The stability of Malaysia's reliable power supply has led to an economic growth of 4%-5% per annum. The demand for power rental solutions witnessed flat growth over the past few years. However, 10th Malaysian plan led to numerous construction and infrastructure activities across the country in addition to development of independent power plants, consequently, driving the growth of power rental market in Malaysia.
According to 6Wresearch, Malaysia Power Rental market is projected to grow at a CAGR of 4.2% during 2018-24. Power demand in Malaysia is anticipated to grow between 3-5% per annum over the next five years. Government is planning to commission 12 new generation projects between 2017 and 2023. With the addition of new power plants in the country and setting up of manufacturing hubs, in order to sustain the reserve margin of around 30%, the demand for rental gensets would further perceive a boost moving forward. Additionally, government initiatives such as Economic Transformation Programme and 11th Malaysian Plan would further proliferate the growth of construction and infrastructure sectors.
According to Ravi Bhandari, Research Manager, Research and Consulting, 6Wresearch, "Diesel genset segment bagged the largest share of rental market pie in Malaysia owing to low demand for gas gensets in the country. Additionally, easy availability of fuel and increased demand from power utilities and construction applications have further fueled the growth of this segment. However, the segment is anticipated to register a weak demand over the coming years owing to shifting preference towards gas gensets. 350.1-750 KVA and 750.1 and 1,000 KVA segments were popular KVA segments for rental diesel gensets in Malaysia."
"Gas gensets occupied the marginal share attributed to challenges related to availability and accessibility of gas. Though, the segment is anticipated to register significant growth during the projected period owing to government initiatives to reduce carbon emissions, and projects related to development of natural gas supply network such as $43.6 million Kinta Valley Natural Gas Distribution Pipeline project, which is scheduled to be completed by 2019," Ravi further added.
According to Rishi Malhotra, Senior Research Analyst, Research and Consulting 6Wresearch, "Amongst all the applications, power utilities seized the largest slice in Malaysia's power rental market in both diesel and gas gensets. Furthermore, rental demand for diesel gensets and gas gensets is expected to witness higher growth in oil & gas and manufacturing applications during the forecast period attributed to setting up of principle manufacturing hubs across the country and development of greenfield and brownfield projects."
"Amongst all the regions, Peninsular Malaysia was the leading contributor for sales of rental gensets in Malaysia. On the other hand, Sabah and Sarawak are expected to post higher growth during the forecast period. Substantial investment in manufacturing and industrial applications in addition to expansion of generation capacity would lead to growth of rental solutions in these regions," Rishi concluded.
Some of the major players in Malaysia Power Rental market includes - Aggreko (Malaysia) SDN BHD., Atlas Copco (Malaysia) Sdn. Bhd., Caterpillar Inc., Dynasynergy Sdn. Bhd., FG Generators Sdn. Bhd., SP Energy SDN. BHD. and WCM Power Sdn. Bhd.
"Malaysia Power Rental Market (2018-2024)" provides an in-depth analysis with 55 figures and 33 tables covered in more than 135 pages. The report estimates and forecast the overall Malaysia Power Rental market by types, KVA Ratings, applications and regions. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.