Marine Generator Market in Asia Pacific to Expand
Chinese marine generator sets to lead in production capacity by 2020 in the Asia Pacific market according to a Frost & Sullivan report
The recovery of the ship building industry will stoke demand for marine generator sets in the Asia Pacific, with customers preferring to install multiple units of lower output generator sets in their vessels instead of a single heavy-duty generator set.
The Southeast Asian and the North Asian markets are showing huge potential as they are continually involved in the export and import of raw materials. However, with competitively-priced Chinese brands flooding the Asia Pacific market, local participants will be hard pressed to make their presence felt or get a toe-hold.
The report says that It is vital for foreign companies to establish a local presence to gain trust and support from their partners and clients, obtain contacts and attract venture capital funding. This is because customers prefer locally packaged generator sets of popular brands, for their overall low prices.
Chinese participants' increasing dominance will make the market highly price sensitive and eat into the profits of established companies, eroding overall market revenues.
"Dealers may be forced to remove less-performing brands and concentrate on the more popular brands," saysFrost & Sullivan Research Analyst Subha Krishnan. "The demand from the commercial segment, effective pricing, economic recovery and modernization of engines are expected to drive the marine generator set market in the next five years."
The full report may be accessed here.