Energy Market Research in Asia
Asia’s energy usage has skyrocketed and the energy demands in the region are expected to increase over the next few years, particularly in China and India. Therefore, conducting in-depth energy market research in Asia is essential for decision-making in businesses interested in this growing industry.
The importance of energy market research in Asia
For global corporations, the ever-developing Asian energy market is an attractive and growing high-consumption region that can be very profitable in the near future. However, to enter into some of its local markets successfully, it is crucial to have a thorough understanding of the Asian energy industry before making any investment.
Companies can use this data to better understand regional demand and consumption, which is essential for making strategic decisions about the development and expansion of the industry. Companies can also gain an advantage over their competitors by conducting energy market research in Asia because it helps them predict future trends and evaluate company prospects.
In particular, by conducting energy market research in Asia companies can have advantages such as:
- Discover untapped niches in the market and capitalize on them.
- Maintain a competitive edge by figuring out the newest energy trends and industry changes.
- Expand into new areas, broaden their client base, and diversify their revenue streams.
- Uncover opportunities for regional cooperation and partnerships.
Opportunities and challenges
Technological advances and the growth of the energy sector make energy market research in Asia more promising than ever before, and multiple companies are researching the market carefully before moving into the market.
- Discover opportunities and needs in sustainable energy sources in Asia, where solar, wind, and hydropower are already used extensively.
- Companies looking to expand their business in Asia are able to familiarize themselves with the region’s multiple energy markets, which include traditional industries in the region such as oil and gas, as well as renewable energies.
- Oil and gas remain important sources of energy in Asia despite the expansion of renewables, so exploring market patterns in these industries can be clarifying for global corporations.
- Obtaining accurate and trustworthy data can be challenging, especially in nations with poor infrastructure and rudimentary data collection procedures.
- Economic and political uncertainty in some Asian countries make data collection difficult.
- Asian countries’ cultural and linguistic norms may hinder the ability to conduct research and collect relevant data.
- It can be challenging to compare and interpret data from different markets due to the lack of consistency in energy statistics.
- Researching the energy sector can be time-consuming and expensive, especially in the field.
Preferred methodologies for energy market research in Asia
The best methodologies for energy market research in Asia include:
- Primary research: Surveys, interviews, and focus groups with industry experts and consumers.
- Secondary research: Analysis of publicly accessible information and studies from governmental bodies, businesses, and trade groups.
- Industry analysis: It comprises energy industry trends, market size, and competitive landscape in Asia.
- Predictive modeling: Analysis using statistics and econometrics to predict future market conditions and trends
Trends in energy market research in Asia
Governments across Asia are investing extensively in the research and development of renewable energy sources due to the rising popularity of this type of energy. The necessity to curb greenhouse gas emissions and the rising popularity of renewable power sources have propelled Asia’s renewable energy industry forward.
For instance, as part of the central measures to achieve carbon goals, China might tighten supervision over the energy-intensive industries’ efficiency to achieve world-leading energy efficiency standards.
However, traditional energy industries such as oil and gas are still the most popular, and it is expected that this trend will not change in the near future despite the entry of industries dedicated to renewable energies, which in the medium and long term could become competitors of some companies that use fossil fuels.
For this reason, Energy market research in Asia should consider the growth that conventional energies will have in the next few years, although they may subsequently decline when renewable energies become widespread in the market, for example, with the use of electric vehicles.
Main countries to conduct energy market research in Asia
- China: Research on the Chinese energy market is crucial because of the country’s expanding influence and importance in the global energy industry. A study on the Chinese energy landscape informs companies of China’s energy policies and its rapidly rising energy needs. However, China’s rising energy demand is increasing dependence on imports, and the effects of this trend on the energy market must be taken into account.
- India: Research of the Indian energy market is of major importance considering India’s expanding energy demand, and the country’s efforts to meet that need through diversification of energy sources. The energy market must consider the fact that India is aggressively working to diversify its energy mix, notably by increasing its investment in renewable energy. Furthermore, competition is fierce in the Indian energy market, thus a competitors analysis is necessary to understand the major firms’ strategies.
- Malaysia: Since Malaysia is a leading player in the energy industry in Southeast Asia and is making advances to fulfill rising energy demand through diversification of energy sources, understanding the energy market in Malaysia is key. Energy market research in Malaysia must consider government policies and regulations due to the government’s prominent position in the energy sector, especially in the oil and gas industry. Likewise, energy market research in Malaysia needs to address the growing environmental concerns in the country and how they can affect the energy market, and the opportunities for developing sustainable energy solutions.
Future prospects in Energy Market Research in Asia
As Asian economies expand rapidly, the growing need for energy creates additional opportunities for research in the sector. At the same time, several Asian countries are attempting to modernize their energy infrastructures to better meet the challenges ahead and to satisfy the ever-growing demand for energy by the middle class.
Energy market research in Asia must address the impact of environmental concerns on the energy market, and the potential for sustainable energy solutions to be developed. Environmental issues will continue to be a major global concern, and Asian markets are slowly catching up with this trend.
Therefore, energy market research in Asia must consider global trends, including a potential shift to a low-carbon economy in Asian markets.
SIS International offers Quantitative, Qualitative, and Strategy Research. We provide data, tools, strategies, reports and insights for decision-making. We conduct interviews, surveys, focus groups and many other Market Research methods and approaches. Contact us for your next Market Research project.