Table of Contents
The market is consolidated with top automation vendors accounting for x % of the total revenue. Companies such as Schneider Electric and General Electric have adequate representation in these countries, while ABB continues to expand its presence in Myanmar. Other multinational vendors such as Emerson and Honeywell operate through regional offices or distributors.
The automation and control market in Laos, Cambodia, and Myanmar is in the growth stage. The market is expected to reach $ x million by 2019.
PLCs due to their cost effectiveness and SCADA due to the rapidly improving oil and gas infrastructure—will continue to be widely sought-after automation systems. Specifically, revenue from new installations will be higher than from retrofits.
Pockets of growth for automation vendors include Champasak, Sekong, and Attapeu in Laos, and Phnom Penh, Sihanoukville, and areas along the southern economic corridor in Cambodia. In Myanmar, growth opportunities will come from Yangon, and from exploration activities (oil and gas and petrochemicals) in the Bay of Bengal.
Key industries that will drive the automation industry are—power, chemicals, and petrochemicals (in all 3 countries, especially hydro-power in Laos), and cement and oil and gas (in Myanmar). In future, Cambodia is expected to build up its manufacturing sector by focusing on machinery and chemicals, which will directly support the automation industry.
Most applications of automation systems in all 3 countries are in the process industries such as power and oil and gas. The relatively nascent water and wastewater industry will offer immense potential for automation vendors. Automation suppliers catering to process industries will find success in these countries.
The power and infrastructure industries are vital to all 3 countries, but in varying degrees. There are collaborative efforts between public and private. Success in negotiating with public and private institutions for capital will be important for the automation industry.
Unlike other countries in the SEA region, where there is a balance between greenfield and brownfield projects, there are far more opportunities in greenfield projects in Laos, Cambodia, and Myanmar. Given the nascent stage of various industries that will use automation in the country, automation vendors can expect demand for new projects (greenfield).
Contacts in the local industry and knowledge of market conditions are vital to succeeding in countries such as Myanmar. Corruption and lack of adequate regulations in these countries are likely to result in delay for new investors in projects. However, partnering with local agencies or system integrators and increasing local presence will circumvent the delay.
The Asian Development Bank has predicted Southeast Asia’s growth rate to be about x % in 2015, given the problems faced by major economies such as Thailand, Vietnam, and Indonesia.
•Predictions on the economy in SEA are mixed in the short term as several major economies in the region are experiencing instability. However, the emerging Asian economies (Laos, Cambodia, Vietnam, and Myanmar) are expected to grow at about x % during 2014–2018.
•Indonesia's mineral export ban and industrial park riots in Vietnam have impacted growth in the respective countries. Vietnam’s economic forecast has also been worrying due to the economic effect of tensions with China. Thailand's imports suffered a further decline in June, showing the delicate state of the domestic economy. Malaysia has witnessed ethnic tensions coupled with decreased economic growth.
•Overall, trade in Southeast Asia is active, given the investments from China, which is high in the region.
•Industrial production growth has been high in both Laos and Myanmar as these countries have opened up their economies for more investment (domestic and foreign). They have introduced a slew of measures that will aid industrialization in the medium to long term.
Economy: Laos is one of the faster growing economies in the SEA region and it plans to establish itself among other developing economies by 2020. Over the years, the country has benefited from large-scale foreign direct investment in hydropower, copper, and construction. Myanmar’s economy grew at x % in 2013, primarily driven by increased gas production, the construction industry, and strong commodity exports. The budget deficit declined to x % of the GDP in 2012–2013, from x % in 2011–2012, but rose to x % in 2013–2014. In Cambodia, the real GDP grew by over x % in 2013. With growth anticipated from the textile industry, the country looks to tap into the oil and gas industry (hydrocarbon) for future growth. The economies of Cambodia and Myanmar are growing, with increased economic liberalization. However, there have been problems in the financial sector in Cambodia and the country needs to reform its public finances. Role in ASEAN: Thailand and Cambodia are looking to work together in the energy industry. Myanmar’s domestic reforms, positive developments in the political front and improved relations with the US, EU, Japan, and the Association of Southeast Asian Nations (ASEAN) have meant that there are significant opportunities for the country in the region.
Key Questions This Study Will Answer
What are the prevailing trends in the automation and control market, and how will it shape up in the years to come?
What is the total market for automation and control market in the 3 countries (Laos, Cambodia, and Myanmar), and what are the factors that will impede/help with adoption?
Who are the major end users of automation systems, and what opportunities are likely to come up in future that will be of interest to automation suppliers?
Who are the major market participants and what is the current competitive scenario?
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