SOUTH EAST ASIA GAS DETECTION DEVICE MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Drivers

1. Strict regulatory policies regarding workplace safety are expected to drive growth of the South East Asia gas detection device market during the forecast period

Many countries in South East Asia have enforced stringent regulations related to the safety of workers at the workplace. These regulations are intended to provide ample safety in working conditions. For instance, Malaysia, Singapore, and Brunei have legislated the Occupational Safety and Health Act of 1994, The Workplace Safety and Health Act 2006, and Safety and Health Order 2009, respectively, for occupational health and safety of workforce across industries. Furthermore, countries such as the Philippines have focused on National Occupational Safety and Health (OSH) frameworks by imposing legislation and labor standards. Hence, these factors are expected to drive growth of the market during the forecast period.

2. Rising demand for remote monitoring and reduced operational expenses is expected to propel the South East Asia gas detection device market growth over the forecast period

Gas detection devices offer constant monitoring of work areas and the detection of hazardous gases in the environment. It allows organizations to decrease health and safety risks by monitoring and detect gases beforehand. Furthermore, gas detection devices are expected to reduce the time needed for the assessment of gases by removing manual monitoring of the potential explosion of gases in the area. With rising adoption of work safety equipment in numerous countries are focused on the design and development of gas detection controllers to monitor remote gases, which further trigger audio or visual alarms to alert the risk. Hence, these factors are expected to propel the South East Asia Gas detection device market growth in the near future.

Market Dynamics- Restraints

1. Reduced profit margins are expected to restrain growth of the South East gas detection device market during the forecast period

There is intense competition in the market due to the presence of new entrants and competitive price strategies by players. The detector, transmitters, and controllers are products that are offered by manufacturers on similar lines. Product uniqueness is less as the functioning of these components is relatable. Penetration pricing strategy has reduced profits obtained from products and services. Thus, these factors are expected to restrain growth of the South East Asia gas detection devices market during the forecast period.

2. Technical issues and cost factors are expected to hinder the South East Asia Gas detection device market growth over the forecast period

There are several issues regarding the functioning of gas detection devices. These challenges include faulty readings, frequent failures, etc. Repairing and maintaining operations require skilled personnel. Thus, these factors are expected to hinder the market growth over the forecast period.

Market Opportunities

1. Increasing foreign direct investment (FDI) in greenfield projects can present lucrative growth opportunities

Gas detection devices are experiencing high demand from Greenfield projects. In a Greenfield project, all the parts and facilities are built from scratch—available or ready infrastructure is not used. Greenfield projects are completely new and independent of any previous work done. As stated by the Asian Development Bank (ADB), 39% of all the infrastructure deals (from 2010 to 2015) were Greenfield developments. Greenfield projects represented two-thirds of the total projects in South East Asia and the Pacific region. For instance, according to the World Investment Report published by United Nations Conference on Trade and Development (UNCTAD) based in Switzerland in 2015, FDI Greenfield projects across South East Asia have increased by 9.6%.

2. Development gas detectors with advanced technologies can provide business opportunities

The rapid development in technologies has resulted in the introduction of advanced and innovative products in the Gas Detection Device market. Technologies such as cloud computing and wirelessHART are integrated with gas detectors to enhance the detection points or area coverage. Moreover, it reduces the overall cost of installation by the elimination of fixed wiring costs. Many gas detector manufacturers are developing wireless gas detectors, in order to deliver effective solutions across remote and local gas detection applications. For instance, United Electric Controls based in Watertown, Massachusetts, the U.S. has its distributors in Singapore, Indonesia, and Malaysia. It offers gas detectors with wirelessHART technology across the gas detection applications, especially for oil & gas production facilities.