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Asia-Pacific Energy and Environment Industry Outlook, 2019

  • Report

  • 87 Pages
  • April 2019
  • Region: Asia Pacific
  • Frost & Sullivan
  • ID: 4768674

Digitalization Set to Shake Up the Energy and Building Segments as Key Participants Strive to Stay Competitive

The main objectives of this study are to provide an inclusive perspective of the energy and environment value chain, to understand the competition, and to analyze future business models. Growth opportunities are also discussed.

In 2019, oil and gas (O&G) capital expenditure (CAPEX) in exploration and production (E&P) is expected to grow by 7% to account to nearly $600 billion. Nonetheless, the year is likely to end with a lower average Brent crude oil price than 2018. On the other hand, the midstream sector, especially LNG, will be the biggest beneficiary of the improved industry sentiment and also as an enabler of a low-carbon future. Double-digit growth in overall expenditure can be expected in 2019. Renewable energy will continue to be prominent, with a positive outlook for wind power generation, as many countries such as Taiwan, China, South Korea, and Japan move toward offshore farms. While renewable energy continues to thrive, the coal industry will witness a neutral outlook, as some countries scrap plans to build new plants, while Japan and China continue to build new plants. Energy storage and batteries will emerge as key sectors in 2019, as more than 70% of the global Li-ion batteries will be manufactured in mega factories in China. Furthermore, new business models in the microgrid segment will shake up the energy industry in 2019.

The building industry in Asia-Pacific will be driven by a new Smart City framework in the ASEAN region. Formation of a consortium by Chinese technology giants is expected to create traction for smart cities development. In India, more than 300 smart city projects worth $2 billion are expected to undergo tendering in 2019. The evolution in building services means that suppliers with digital solutions for maintenance and services will gain acceptance in the marketplace. In particular, the facility management (FM) market will witness good growth, at 4.1% in 2019. Key FM markets include China, India, Indonesia, Thailand, and Vietnam. The evolving use of facilities, such as artificial intelligence (AI) and co-working space, leads to a different FM demand, with high emphasis on end user experience and operational efficiency.

2019 will be the year for improvements in water management, as utilities strive to be more resilient to water scarcity due to extreme weather conditions. CAPEX of APAC water utility will expand by 9.8% in 2019, with key focus on urban water management that adapts to extreme weathers. This includes replacement of pipes and drainage, new reservoirs, and expansion of treatment plants.

Overall, the growth opportunities in Asia-Pacific’s energy and environment industry will focus on collaborations with start-ups, use of AI and blockchain, and sustainability themes.

Table of Contents

1. Executive Summary
  • Top 20 Predictions for 2019
  • Regional Market Highlights
  • Energy Market Forecast
  • Buildings Market Forecasts
  • Water Market Forecasts

2. Scope and Segmentation
  • Research Scope and Market Segmentation

3. Key Trends - Climate Change
  • Climate Change and Sustainability
  • Dimensions of Climate Change and Sustainability
  • Trend - Green Bonds to Witness More Issuance from the Private Sector

4. Key Trends - Energy and Power
  • Key 2019 Trends for the Energy and Power Industry
  • Global O&G Outlook
  • E&P Outlook
  • Trend 1 - Oil Price Likely to Remain Soft in 2019, Despite Production Cuts
  • Trend 2 - Rebound in LNG Investments Owing to Strong Demand from China
  • Trend 3 - Growth Momentum in Downstream Segment to Continue in 2019
  • Trend 4 - Offshore Wind Power Accelerating in APAC, Led by Taiwan
  • Trend 5 - APAC’s Dominance in Solar Power Market to Shine Brighter in 2019
  • Trend 6 - Investments in Coal Power Plants in APAC Likely to Remain Soft
  • Trend 7 - VPPs to Kick-start Digital Retail with Japan and South Korea as Leaders
  • Trend 8 - AMI Metering to Gain Prominence as Utilities Commit to Consumption Efficiency
  • Trend 9 - China to Become the Second-largest ESS Market Globally
  • Trend 10 - New Business Models to Shake Up APAC’s Microgrid Market
  • Trend 11 - UPS Sales to Benefit as APAC Leads Big in Data Center Expansion

5. Key Trends - Buildings and Water
  • Key 2019 Trends for the Buildings and Water Industry
  • Trend 1 - Smart Cities in Emerging APAC Moving Beyond Exploration Phase and Likely to Attract Commercial Investments
  • Trend 2 - Digital Transformation in Buildings to Enable Efficient Maintenance and Service Delivery
  • Trend 3 - Focus of LED Adoption to Shift from Private to the Public Sector
  • Trend 4 - Increasing Demand from Tier II and Tier III Cities to Boost AC Sales
  • Trend 5 - Emerging APAC to Register a Strong Growth Rate in FM, Propelled by Buoying Buildings Industry
  • Trend 6 - Co-working and AI to Create New FM Opportunities
  • Trend 7 - Leading FM Providers to Use Standards for Competitive Differentiation
  • Trend 8 - Resilient Water Management to Adapt to Extreme Weathers

6. Growth Opportunities and Call to Action
  • Growth Opportunity 1 - Collaborations with Start-ups
  • Growth Opportunity 2 - Going Smart with AI
  • Growth Opportunity 3 - Smart Transactions via Blockchain
  • Growth Opportunity 4 - Sustainability
  • Strategic Imperatives for Success and Growth

7. Key Conclusions
  • Legal Disclaimer

8. Appendix
  • Abbreviations and Acronyms Used
  • Learn More - Next Steps
  • Additional Sources of Information on Outlooks and Energy and Environment Industries
  • List of Exhibits