Developing public infrastructure, growing demand for power in urban and off-grid areas, increasing power needs for the industrial sector as well as booming healthcare and hospitality sectors are the key factors which are driving the market for diesel gensets in Vietnam.
According to 6Wresearch, Vietnam Diesel Genset Market is projected to grow at a CAGR of 5.49% during 2016-22. The market for diesel genset witnessed slow growth during 2012-13 due to slowdown in FDI and construction activities on account of increasing bad debt in Vietnam which kept investors at bay. However, during the forecast period, the market for diesel genset in Vietnam is expected to surge owing to the new investment favorable policies and growing industrial & manufacturing sectors.
According to Ravi Bhandari, Research Analyst, 6Wresearch, "Small and medium rating (up to 750KVA) diesel gensets have captured major market share both in terms of revenue and volume. Further, this trend is likely to continue throughout the forecast period. Changing Government policies along with growing public infrastructures such as railways, airports and metros have led for the growth of diesel genset market in Vietnam".
"Electronic industry is one of the fastest growing industries in Vietnam. Additionally, electronic industry is expected to grow further over the next six years as a result of huge investments done by global giants such as Samsung, Intel, LG and Panasonic."
According to Prakhar Srivastava, Research Associate, Research and Consulting, 6Wresearch, "The industrial vertical is a key contributing vertical in the overall Vietnam's diesel genset market. Also, the hospitality, retail and construction segments are likely to fuel the demand for diesel gensets owing to expected investments in these segments".
"Global players such as Cummins, Mitsubishi and Caterpillar are facing stringent competition from the domestic and Chinese manufacturers, primarily in the low KVA segment due to their low pricing", Prakhar concluded.
Some of the major companies in the Vietnam Diesel genset market include- Cummins, Caterpillar, MTU, Mitsubishi, Komatsu and Denyo.
Media Source: India Infoline