A new report released by Eaton explores the current and future trends within the power management solutions market in Singapore and Asia Pacific.
One in three (33%) companies in Singapore increased their investments in power management due to the COVID-19 pandemic compared to 60% in Australia and 40% in Indonesia.
COVID-19 saw the acceleration of digital transformation plans to both maintain business continuity and innovate new digital products and services amidst work from home and safe distancing measures, according to “The Future of Power Management in Asia-Pacific” report.
When looking at the pandemic’s impact on investments in power management, only 10% reported a decrease in investment amount in Singapore.
Close to four in five companies either increased or saw no change to their investments, in likely recognition of the need for reliable power management solutions to keep mission-critical systems and services online.
Similarly, most investment timelines were either accelerated or saw no change (60%). Those that were positively impacted saw a median rise in investment amount of 18% and moved up their investment timeline by approximately four years.
Power management investments in Singapore are set to increase, with focus on intelligent power management software solutions. Four in five Singapore companies say they will adopt new solutions to improve power management in the next one to three years.
In line with Singapore’s growing appetite for digitalisation, 63% are keen to explore the use of intelligent power management software, which will help companies optimise power management through emerging technologies such as holistic monitoring, predictive analytics and automation.
Businesses are mainly concerned about operational and cost efficiencies but also recognize the importance of pivoting to renewables.
There is also interest in energy storage (54%) to manage the intermittency of renewable energy, and containerised modular solutions (46%) to cater to data centers of varying sizes and their specific power needs.
Sustainable development is driving change but costs are still a major factor.
When examining businesses’ current power management priorities, energy cost and optimisation (87%) and eliminating downtime (70%) were the most commonly cited. This emphasis on operational and cost efficiency can be attributed to the high operating costs and the need for a constant, stable power supply in an international business and data center hub like Singapore.
Three in five are looking to increase their use of renewables (60%), a proportion that will likely grow as the Government unveils more details around the Singapore Green Plan 2030. Many new initiatives such as schemes to encourage electric vehicle adoption and the growing move towards renewables will likely encourage businesses across a broad range of sectors to have an effective energy management strategy in place. Such conversations have probably been initiated, with 53% of businesses looking to explore new sustainable energy sources in the next one to three years.
Changing regulations are a concern in Singapore.
In light of this dynamic power and sustainability landscape, many Singapore businesses noted changing government and industry regulations (57%) as a big challenge. Companies here are not alone in this regard, with businesses in Indonesia (57%) and South Korea (53%) citing similar issues. This highlights the need for closer collaboration between the public and private sector in order to jointly achieve sustainable development goals. Despite these concerns, three in five still feel that their organization is equipped to handle such changes to the power grid and the evolving regulations.
Evidence of this close relationship is seen in the high level of awareness of government initiatives to encourage energy savings among Singapore businesses (80%). Of this number, the level of participation in such energy savings initiatives is also high (79%), reflecting a willingness to work together to optimize costs and adopt new technologies.
Richard Farrell, Asia-Pacific director – digitalization, coud and data center segment, Eaton, said: “Organisations in Singapore have shown resilience and adaptability despite the disruption caused by the COVID-19 pandemic. Their willingness to adopt new solutions and work with the government to meet sustainability targets will boost their global competitiveness amidst the transition towards a cleaner, energy-efficient future.
The research surveyed 180 power management professionals across 6 Asian markets: Singapore, Australia, Indonesia, Japan, South Korea and Taiwan.