|By PR Newswire||
|September 25, 2013 03:39 AM EDT||
- Government incentives for shipbuilding stoke market for electrical equipment
SINGAPORE, Sept. 25, 2013 /PRNewswire/ -- The Asia-Pacific market for electrical equipment for marine and offshore solutions has been concentrated in South Korea, Japan and Singapore. While South Korea and Singapore have been the hubs of the offshore structure building industry, Japan and South Korea are leaders in marine vessel manufacturing.
New analysis from Frost & Sullivan (http://www.energy.frost.com), Electrical Equipment and Solution for Marine and Offshore Markets in Asia-Pacific, finds that the market earned revenues of US$350.0 million in 2012 and estimates this to reach US$467.4 million in 2017. The main end-user segments are marine vessels and offshore structures.
"The shipbuilding industry had experienced a slump in demand for ships due to oversupply and financial constraints among shipbuilders," said Frost & Sullivan Energy & Environmental Senior Research Analyst Avanthika Satheesh P. "However, the electrical equipment market is likely to grow with the rising demand for ship maintenance and increasing offshore oil exploration."
The depletion of onshore fields has spawned offshore explorations, and the recent trend of converting existing liquid nitrogen gas (LNG) carriers into offshore structures such as floating production storage offloading (FPSO) provides a huge boost to the electrical equipment market.
The market will also benefit greatly from the incentives offered by governments in countries such as Malaysia and the Philippines. They offer tax holidays and tax rebates on the equipment used in the shipbuilding sector, which is a significant revenue driver for electrical equipment manufacturers.
"In Indonesia and Malaysia, the government gives high priority to 'local content value' in oil & gas projects," noted Satheesh. "They mandate the installation of equipment that is manufactured in the country, giving an opportunity to regional manufacturers to increase their presence in offshore projects."
The shipbuilding industry too has regulations to ensure high-quality production. The high technical specifications of the shipbuilding sector compel the installation of electrical distribution products that are compliant with various standards such as National Electrical Manufacturers Association (NEMA) and American National Standards Institute (ANSI).
However, not many OEMs are capable of adhering to these standards and the shipbuilders end up procuring the products from European countries such as Belgium and Norway.
Shipbuilders and oil companies maintain a master list of vendors that are most preferred during project procurements. The market will have abundant opportunities for regional participants that strive to gain entry into that list by complying with the customers' technical and commercial terms and conditions.
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Electrical Equipment and Solution for Marine and Offshore Markets in Asia-Pacific is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: North American Electrical Equipment Market for Oil and Gas and Asia-Pacific Electrical Equipment and Solutions Market for Oil and Gas. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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