Growing public infrastructure, rising demand for power in off-grid and unreliable grid areas, need to provide power backup to the manufacturing sector as well as booming hospitality sector are some of the key factors which are expected to spur the demand for diesel gensets in Thailand.
According to 6Wresearch, Thailand Diesel Genset Market is projected to reach $81.6 million by 2022. The market for diesel genset witnessed sluggish demand over the past two years due to slowdown in the industrial and construction activities as a result of political instability in Thailand. However, during the forecast period, the market of diesel genset in Thailand is expected to surge owing to the new investment friendly policies and to compensate the need for providing continuous and back-up power across the country.
According to Ravi Bhandari, Research Analyst, 6Wresearch, "In Thailand's Diesel Genset market, the small and medium rating (up to 750KVA) diesel genset accounts for leading share both in-terms of revenue and volume. Competitive pricing and usage of these gensets in multiple domains across different verticals contributed to their market dominance. In the forecast period, the medium ratings diesel genset market is expected to maintain its leadership, where growth of these gensets would be exhibited from the SME, hospitality and retail sectors.
"Telecom sector is one of the largest end users for small rating diesel gensets, where these are deployed to power telecom towers in unreliable and off-grid areas. However, Thailand's government policy to increase the usage of renewable energy source can affect the market for low rating diesel gensets," Ravi further added.
According to Anuj Sharma, Research Associate, Research and Consulting, 6Wresearch, "The commercial vertical has captured major share of the overall diesel genset market in Thailand. The government of Thailand has planned to invest $50.2 billion in public infrastructure, in which the major part of investments would go in rail, state highways, airport expansions and construction. Additionally, the hospitality and retail sectors along with healthcare sector owing to increase in medical tourism is anticipated to fuel the demand for diesel gensets over the next six years.
"Global players such as Cummins, Mitsubishi and Scania are facing stringent competition from Chinese manufacturers, especially in the low KVA segment due to their low pricing, Anuj concluded.
Some of the major companies in Thailand Diesel genset market include Cummins, Caterpillar, Scania, Himoinsa, Denyo, Kipor Power and Lega Power.
Media Source: India Infoline