Opportunities Emerge for Critical Power Infrastructure Development in ASEAN Region

Strong opportunities are emerging for critical power infrastructure service providers in the Association of Southeast Asian Nations (ASEAN) region. Companies are increasingly installing power quality and backup power systems to safeguard and maintain their equipment and ensure uninterrupted operation. This is broadening the scope for uninterruptible power supply (UPS) suppliers. As revenues from UPS services are generated one or two years after the sale of equipment – depending on the warranty period – market participants are looking to offer value-added services such as testing and site auditing for more immediate sources of revenue. 

New analysis from Frost & Sullivan, ASEAN Critical Power Infrastructure Services Market, finds that the market earned revenues of US$257.1 million in 2014 and estimates this to reach US$374.4 million in 2018. 

Data centres in the region are at the forefront of adopting critical power infrastructure services in order to build a redundant power infrastructure. Services such as power quality audits and installation/commissioning currently account for a sizeable proportion of market revenues for three phase UPS systems. In the case of single-phase UPS systems, warranty extensions contribute to a large share of total revenues. Besides these power infrastructure services, civil work, electrical distribution and cabling, and earth pit preparation, which are primarily carried out during the installation of three-phase UPS systems, will fuel market revenues globally. 

“With the data centre and telecom sectors in the ASEAN region adopting new technologies that include cloud computing, server virtualisation, modularity, long-term evolution, and voice-over Internet protocol, integrated infrastructure services are in high demand,” said Frost & Sullivan Energy & Environmental Senior Research Analyst Amit Kumar Singh. “As data centres are increasingly using scalable and modular power solutions, the periodic involvement of technicians and service personnel to upgrade power supply capacity across the network will be particularly required.” 

However, the pressure on companies to cut costs due to market volatility is discouraging them from outsourcing power infrastructure services to outsiders. This, along with improving automation in power systems and energy storage, is restraining the uptake of critical power infrastructure services. 

“Overall, the decision-making power is likely to shift from facility to IT managers, blocking the path of small independent service providers who stand to lose business to large system integrators or UPS manufacturers, especially in the high-value market,” noted Singh. “Critical power infrastructure original equipment manufacturers will have an edge over other service providers in the ASEAN region, as customers prefer to associate with them for all post-delivery needs.”