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Malaysia Power Market Size (2024 - 2029)

The Malaysian power market is poised for growth, driven by the expanding industrial sector and increasing population, despite challenges such as infrastructure maintenance neglect. The market size is expected to expand, with the natural gas segment anticipated to grow significantly due to its abundant availability. The manufacturing industry presents a substantial opportunity for power demand growth, as it accounted for the largest share of power consumption. Additionally, the shift towards sustainable power generation methods, particularly renewable energy, is expected to further enhance the market's expansion prospects.

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Market Size of Malaysia Power Industry

Malaysia Power Market- Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 4.20 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

Malaysia Power Market Analysis

The Malaysian power market is expected to witness a CAGR of around 4.2% during the forecast period. The COVID-19 outbreak visibly impacted the Malaysian power industry with reduced power demand. The electricity consumption decreased to 142.42 billion kilowatt in 2020, from 149.29 billion kilowatt in 2019. The decrease in consumption was primarily due to the temporary shutdown of several workplaces and industries within the country. The country's power market is expected to grow in the coming years due to the rapidly growing industrial sector and growing population. However, the negligence toward the maintenance of power infrastructure on behalf of the Malaysian government is expected to hinder the market.

  • The natural gas segment is expected to witness significant growth in the future due to its high availability in the country.
  • The high-paced growth of the manufacturing industry in the country is likely to be the most lucrative opportunity for power demand growth. Malaysia has over 2,500 manufacturing companies with huge manufacturing bases. The industrial sector held the highest share of power consumption in 2020, largely contributed by manufacturing and production businesses.
  • The growth in sustainable ways of power generation like renewable-based electricity production is expected to boost the market in the coming years.

Malaysia Power Industry Segmentation

The scope of the Malaysian power market report includes:

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Malaysia Power Market Size Summary

The Malaysian power market is poised for growth, driven by a burgeoning industrial sector and an increasing population. Despite the initial setback due to the COVID-19 pandemic, which led to a temporary decline in electricity consumption, the market is expected to recover and expand. The natural gas segment is anticipated to experience significant growth, supported by Malaysia's substantial natural gas reserves and its status as a net energy exporter. The country's focus on expanding gas-based power generation, with several new projects like the Pulau Indah and Kedah Power Plants, underscores its commitment to enhancing its energy infrastructure. However, challenges such as inadequate maintenance of power infrastructure could impede progress.

In addition to fossil fuels, Malaysia is making strides towards sustainable power generation, with a focus on hydro, solar, and biomass energy. Although renewable energy currently constitutes a small fraction of the power generation mix, government initiatives aim to increase this share significantly by 2025 and 2035. Policies such as the Green Technology Tax Incentives and tax exemptions for solar energy adoption are designed to encourage investment in renewable energy. Projects like the large-scale solar initiatives by Sunway Construction Group Bhd are expected to bolster the renewable energy sector. The market remains moderately fragmented, with key players like Tenaga Nasional Berhad and Korea Electric Power Corporation actively participating in the sector's development.

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Malaysia Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Generation Source

      1. 2.1.1 Oil

      2. 2.1.2 Natural Gas

      3. 2.1.3 Coal

      4. 2.1.4 Renewables

      5. 2.1.5 Other Power Generation Sources

    2. 2.2 Transmission and Distribution

    3. 2.3 End User

      1. 2.3.1 Residential

      2. 2.3.2 Commercial

      3. 2.3.3 Industrial

      4. 2.3.4 Transport

      5. 2.3.5 Agriculture

Malaysia Power Market Size FAQs

The Malaysia Power Market is projected to register a CAGR of greater than 4.20% during the forecast period (2024-2029)

Tenaga Nasional Berhad, Korea Electric Power Corporation, Sunway Construction Group Bhd, LYS Energy Group and Cutech Green Ventures are the major companies operating in the Malaysia Power Market.

Malaysia Power Report Snapshots

Malaysia Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)