While power shortage, increase in income levels and expansion of industries will result in increased spending on power backup products in India, competition from unorganized sector, lack of consumer awareness, decline in desktop sales and high import duties are few of the major challenges which will affect the growth of this industry in the future. But There is a huge market opportunity that remains to be unlocked especially in smaller cities and towns with the increasing consumption of electricity
The UPS market in India has witnessed a growth in recent years on account of rising demand fueled by the demand and supply gap in electric power supply, expansion of industries and rising income levels of consumers. The market is highly fragmented in India; however it is dominated by large organized players, which offer a wide range of home and industrial UPS systems.
According to the research report, India Inverters market is projected to grow at an appreciable CAGR of 9.4% by FY’2019. With increasing disposable incomes of households, the sales of electrical equipments like ACs, Refrigerators, Televisions and Microwaves is expected to increase and inadequate power supply will drive consumers to opt for inverters. Indian UPS market is projected to scale new heights, expanding at a CAGR of 9.8% in FY’2014-FY’2019. This is due to shortage of high quality power, expansion of IT/ITE, Banking, Pharma and SMB segments and increasing income levels of consumers.
According to “India UPS Market Forecast & Opportunities, 2018”, the Indian UPS market revenue is forecasted to grow up to two folds by the end of 2018, growing at the CAGR of around 12% during 2013-18. One of the emerging trends has been witnessed that foreign players are acquiring domestic companies of India in order to have access to well-established distribution network & value chain of the UPS systems market in India. The regional demand for UPS systems is being majorly driven by the level of scarcity in a particular area, for instance, J&K (Jammu & Kashmir) has the highest scarcity of power followed by Bihar & Karnataka and thus creating high demand for UPS systems.
Regenerative UPS units are becoming critical for energy conservation in a power deficit nation such as India. Regenerative UPS units provide an efficient approach toward energy conservation, facilitating smooth manufacturing activities. Regenerative UPS units use the regenerative load from braking action; this load is used for creating regulated power which is connected to machines generating regenerative load. This generates electricity providing uninterrupted power supply during power cuts. It allows smooth functioning of machines without damaging the machine. Regenerative UPS systems primarily comprise insulated-gate bipolar transistor (IGBT) transistors, capacitors, inductors, and harmonic filters. Regenerative UPS units are generally installed in industries with rotating or moving applications, such as computer numerical controlled machines (CNC). When braking is applied to the rotating machine regenerative load is created which is fed back to the system for power generation.
The Indian UPS market is largely dependent on low range (up to 25 KVA), accounting for more than half of the total UPS market. However, this trend is set to change due to rising applications of UPS systems in industrial sector.
Moreover, the manufacturing cost analysis done in the report revealed that manufacturing cost of a UPS mainly accounts from core components like transformer and IGBT. Similarly, the capital expenditure analysis and operating cost analysis for different ranges of UPS systems, provides the detailed insight about the UPS systems.
Factors that are influencing the UPS market growth include an increasing understanding of the need for backup power and the cost of not protecting power sources when utility outages do occur, the condition of the national power grid, the increasing likelihood of power outages if the situation is not improved, and the convergence of voice and data networks and an increased reliance on digital networks, phone systems and business equipment.
Although most UPS and backup power systems are used in the information technology (IT) and telecommunication industries to protect data, many industrial processes are now microprocessor and PC-based and very susceptible and sensitive to power disturbances.
Overall Scenario of UPS & Brand Position
According to Sushil Virmani, Managing Director, SOCOMEC, the Indian market has a huge demand for Power products and it’s evolving day by day as the users understand the importance of protecting their critical loads. The UPS Market is seeing a shift towards new innovative technologies and designs in order to support critical applications. On technical scale, there is change in the customer requirements from typical power supply to efficient power solutions, keeping close eye on reducing the operating cost and to have green infrastructure. The Indian UPS market is shifting slowly towards the concept of ‘Forever Young’ and customers are opting for power products which are more reliable, redundant in design, scalable and has lesser footprint. Here our expertise of over 95 Years plays a major role to match the technological advanced product demands of customers and to offer them the most efficient and effective power solutions.
“The Indian UPS market is growing rapidly due to the significant demand for uninterrupted power supply. According to a Frost & Sullivan report, the UPS industry in India is estimated to reach US $ 828.2 million by 2017-2018. The UPS market in India is currently dependent on low range UPS systems (up to 25 KVA) constituting for over half of the total UPS market. As India is a power deficit nation, it has a huge market for power backup products. The Sectors which are currently witnessing a growing demand for these UPS solutions are IT and IT enabled services (ITeS); banking, financial services and insurance (BFSI); government, manufacturing, telecom and energy sectors. Additionally with support from the Digital India as well as the Make in India initiatives, we see an increasing number of SMBs and SMEs looking to adopt technology solutions in tier 2 cities and upcountry locations. With several government initiatives and programs such as Smart Cities and ‘The National e-Governance Plan’, the demand for the UPS solutions and systems is growing steadily. We, at Emerson Network Power completely understand the need and are constantly working towards innovating and coming out with UPS Systems and solutions for various industrial needs. Our research, development and innovation team has been developing solutions for various sectors for some time now and look forward to contribute in a big way in providing state-of-the-art UPS solutions and services,” said, Gopakumar Ambujakshan, Director of Product Management for Small and Micro UPS, Emerson Network Power.
“The Indian UPS market is growing at 19%. BPE is slightly better than the national growth figures. The focus has shifted to the Online Business from the Line Interactive. Although we are still very strong in the Line Interactive Business. The year gone by witnessed a paradigm shift in the channel focus from Line interactive to online series,” said, Sudip De, IT Consultant for BPE.
“UPS industry in India is moving towards providing various value added services, such as power quality audits, remote monitoring and modular infrastructure solutions due to increase demand from IT/ITes, manufacturing and infrastructure sectors and government. This industry is also growing towards efficient battery management environment and proper monitoring of batteries thus extending battery life,” concluded, Delta Power Solution.
The number of SMEs and SMBs is increasing due to various government policies. Quite a few of these SMEs are based out of Tier 2 Cities where 24×7 power connectivity is still a challenge and therefore the demand for the UPS is high as they want to run the business efficiently and unhindered. Even an hour without electricity can result in the business facing a loss, thereby affecting their profit in the long run. This is one of the reasons that more companies are now looking at becoming energy efficient without compromising their agility and availability. Additionally, there is a gradual move towards greener technologies to reduce the overall carbon footprint because of which we will see a gradual inclination towards solar-powered UPS systems and solutions.
“Emerson Network Power has recognized all these trends early on and is constantly researching and testing new innovative power solutions for businesses and customers. We continue to identify these emerging market opportunities for our partners and have invested considerably in ensuring that partners can capitalize on market demands by training them. There are various schemes that we introduce every quarter to ensure that the channel partners benefit from pushing Emerson’s portfolio of solutions into the market. Our partnership with PAYBACK has worked out well for our channel partners. With the purchase of Emerson Network Power products, they get payback points which can be redeemed to get exciting rewards too,” Gopakumar of Emerson Network Power.
“BIS, Large Infrastructure, Smart Cities, Digital India etc have added color to the Power trade. Fringe players are getting sidelined. Serious players are taking control. We are witnessing large requirements for high end Tubular models. The SME Channel and the enterprise partners will have a larger pie in the Power Business. Ensuring profitability to them is our prime agenda thereby forging a successful business relationship with partners. We also want to offer customized solutions to the clients as per their requirement,” added, Sudip De of BPE.
According to Delta Power Solution, the current technological trends for the product are: energy efficient products, high power density and compact size, modular construction, detailed monitoring of UPS through LCD displays, remote manageability and controls, combined form factor of rack/tower models, user configurability for application specific needs.
“India is a power deficient market and it has huge business potential especially in the Tier II and Tier III cities and towns. There are robust change in the demand in these areas from both consumers and enterprises. The key change in last few years we see in the market now is that customers are looking for full power solutions with high quality efficient product and 24X7 after-sales service,” concluded, Sushil Virmani of SOCOMEC.
Challenges in UPS Sector
“As per our interaction UPS market size is around INR 5000 crores without battery. But there are more than 200 companies below 10 crores catering to around 2500 crore market. All the above figures are without considering the batteries. The trend in the market analysis says the top three companies are concentrating on higher KVA UPS and projects. All others are concentrating on SME segments. Whereas BPE strategy is to cater to project and Higher KVA to take some of the market share market leaders. BPE is emphasizing on training dealers & distributors. They also have IRIS Computers and Ingram MICRO as their National Distributors. BPE is also concentrating on modular concept UPS with lot of techno commercial benefits which will enhance their market size to the next level undoubtedly,” said, Sudip De of BPE.
“The biggest challenge today is to make the UPS systems sustainable especially with lower ratings. Delta provides solutions that drive sustainable growth around the globe, including efficiently using and conserving global resources, developing energy efficient products, reducing emissions, and protecting the environment. Another challenge is to manufacture products keeping future needs in mind. Delta took this challenge and converted it into an opportunity with Delta UPS system. Delta UPS offer higher performance and efficiency with low running cost and increasingly functional design. Keeping the above challenges in mind, Delta manufactures UPS which offers the best value and availability to prevent damage and data losses for offices and small businesses equipment caused by power fluctuations,” elaborated, Delta Power Solution.
“We have right solution for the right application with uniqueness of technology in our offered solutions, transferring this technological advancement to customers language in terms of TCO, high availability, reliability, high efficiency etc, are not widely recognized by the customers. It requires huge effort to transfer this advantage and highlight the financial benefits on a longer run. In recent years depreciation of Indian rupee against US dollar or Euro’s was major concern in the market as it is directly affecting the pricing strategy. Although price plays a key factor for decision makers, it’s necessary now to show the customer the value of their investment or Return on Investment which calls for innovative products or solutions,” said, Sushil Virmani of SOCOMEC.
“Due to shortage of power in the country, customers want to choose backup power systems with innovative technologies and methodologies. The major challenge that the UPS market in India faces are Economic Challenges The depreciating value of the Rupee against the US$, and the fall in Indian IT spending has also had a spilling effect on the industry. The cost of components is one of the major challenges faced by the Indian UPS market. Most organizations in India, including SMEs and SMBs are becoming technology intensive. The need to operate the business 27/7 to function smoothly is driving the UPS systems and customers are increasingly opting for a single point of contact from the vendor’s perspective. Vendors with an end-to-end portfolio will be better positioned to provide reliable, cost-effective and customized solutions. By aligning our capabilities in technology, product design and the delivery model, we are able to address the demand comprehensively and efficiently. Using the latest UPS technologies, our products provide flexibility for easy deployment across a variety of locations as well as reduce capital investment, protect from unstable power quality, depending on the unique requirement of every site with the least manual maintenance,” concluded, Gopakumar Ambujakshan of Emerson Network Power.
Key Challenges for designing UPS systems
“One the key issues that must be addressed before designing UPS systems is that of an unreliable power grid which is mostly ridden with large snags and surges. Various sectors, be it manufacturing, IT/ITes, banking etc face different power related problems. Therefore designing UPS systems catering to their specific needs is a test of the vendor’s capabilities. Perhaps the biggest challenge dominating this area is the lack of awareness with regards to the basic power quality fundamentals for UPS technologies to function. This is where designing a UPS system that can overcome power problems such as faulty earthling and grounding systems presents a stiff challenge,” said, Gopakumar Ambujakshan of Emerson Network Power
“The sluggish growth of the power sector has had huge impact on designing UPS products. The market has huge demand for Power products and it is always evolving, as the users understand the importance of protecting their critical loads and looking for complete Power solution instead of power product like earlier. However, the market has been growing and showing signs of continuous improvements in terms of technological change like smaller foot prints, high availability, scalability, Efficiency, Unity power factor etc,” said, Sushil Virmani of SOCOMEC.
“Input voltage range / Non standardization of electrical wiring / Communication and interactive to server,” added, Sudip De of BPE.
Innovative Technology & Brand
“We have made our development strategy from being a product specialist to a solutions specialist for expert applications, as our name portrays the strategy and reflects the evolution of its business model and diversity of service offerings provided by us. As mentioned above we are well known for offering Innovative power solutions to address the major challenges of the industry such as efficiency, availability and floor space. Our UPS products from 1 kVA to 5400 kVA firmly commits in delivering Innovative solutions that suits evolving needs and gives peace of mind to our customers. By this strategy we expanded significantly in India and established as one of the leading players in the power solution market. We serve our best of the breed products and solutions to most of the businesses in the IT & ITES, Commercial/Colocation Data Centres, Manufacturing and Process, Healthcare, BFSI, Media, Government and Infrastructure segments,” said, Sushil Virmani of SOCOMEC.
“With technological advancements, organizations too are looking at installing and investing the best UPS systems available in the market. Emerson Network Power is aware of this and we are constantly coming out with new UPS Systems that are up to date with the latest technologies. Today a high efficiency UPS, helps companies save on a huge annual electricity cost. Over the years UPS technology has evolved by leaps and bounds. At Emerson Network Power the aim has always been to provide good products to our customers which give them a good return on investment. For example- for a 500-kW UPS, a 2% to 3% efficiency improvement puts the ROI at two or three decades. Our new UPS systems are crafted with utmost sophistication and promise higher energy efficiency and lower power demand. This has made our UPS solutions more appealing to our customers. Additionally all our products are being manufactured with the benefits of up gradation which can be done at any point in time without having to replace the existing UPS solutions. Most of our UPS solutions are mechanized and are state-of-the-art which promises not only lesser downtime but also ensures that businesses can reduce the losses on event of non-functioning of equipment. We observed that industries have started bundling UPS systems with containment monitoring solutions in an aggressive fashion and buyer decisions today lean more towards reliability and ease of integration,” said, Gopakumar Ambujakshan of Emerson Network Power
“Now UPS are interactive and highly energy efficient. Adoption of IGBT in rectifier and inverter with DS controlled has really enhanced the technologies of ups. Now ups are coming with integrated solar panel to use solar power and also ducts are evolving soon for connecting directly to pc. As new trend coming where all PC will take DC power not AC, saving lot of energy wasting from AC to DC and DC to AC,” said, Sudip De of BPE.
“Delta has the expertise in offering Power Management Solutions. Our expertise in providing leading-edge power solutions which significantly reduce complexity, management costs (Both CAPEX & OPEX) and power consumption, has earned us the trust and confidence of over many customers across 120 countries worldwide. Continuous research and development keep us in the ahead of competition power solution technology and act in accordance with the industry’s latest standards and necessities. As far as power management solutions are concerned we have AC-DC products for Telecom and AC – AC UPS for IT / Telecom / Industry segments. Historically Delta has been an Original Equipment manufacturer rendering its services to endless numbers of reputed UPS vendors. Delta had the technical expertise in every facet of manufacturing – proscribed through detailed testing and continual quality checks performed by a proficient technical staff. Our Power Solutions accomplishments are proven through highly successful deployments to some of the world’s largest organizations operating within industry sectors ranging from small & medium business & enterprise, commerce, finance, manufacturing, healthcare, pharmaceutical, education, IT , Telecom and government departments,” concluded, Delta Power Solution.
The UPS market is moving towards further consolidation on a global scale. This global outlook means more accessible sales and service teams for customers in previously untapped locations. Additionally, green/efficient products are becoming an important inclusion in vendors’ product offerings. Data centers and server rooms of all sizes face significant threats in availability of electricity, making enterprises more conscious of efficiency. There will be a lack of new power coming on line as new power utilities cease to be built, turning it into a simple economics equation of supply and demand, where electricity prices will continue to rise.
Mr. Sushil Virmani, Managing Director, SOCOMEC
“We have made our development strategy from being a product specialist to a solutions specialist for expert applications, as our name portrays the strategy and reflects the evolution of its business model and diversity of service offerings provided by us. We are well known for offering Innovative power solutions to address the major challenges of the industry such as efficiency, availability and floor space. Our UPS products from 1 kVA to 5400 kVA firmly commits in delivering Innovative solutions that suits evolving needs and gives peace of mind to our customers.”
Mr. Gopakumar Ambujakshan, Director of Product Management for Small and Micro UPS, Emerson Network Power
“Emerson Network Power has recognized all these trends early on and is constantly researching and testing new innovative power solutions for businesses and customers. We continue to identify these emerging market opportunities for our partners and have invested considerably in ensuring that partners can capitalize on market demands by training them. There are various schemes that we introduce every quarter to ensure that the channel partners benefit from pushing Emerson’s portfolio of solutions into the market. “
Mr. Sudip De, IT Director for BPE
“The trend in the market analysis says the top three companies are concentrating on higher KVA UPS and projects. All others are concentrating on SME segments. Whereas BPE strategy is to cater to project and Higher KVA to take some of the market share market leaders. BPE is emphasizing on training dealers & distributors. They also have IRIS Computers and Ingram MICRO as their National Distributors. BPE is also concentrating on modular concept UPS with lot of techno commercial benefits which will enhance their market size to the next level undoubtedly.”
Delta Power Solution
“Delta has the expertise in offering Power Management Solutions. Our expertise in providing leading-edge power solutions which significantly reduce complexity, management costs (Both CAPEX & OPEX) and power consumption, has earned us the trust and confidence of over many customers across 120 countries worldwide. Continuous research and development keep us in the ahead of competition power solution technology and act in accordance with the industry’s latest standards and necessities. As far as power management solutions are concerned we have AC-DC products for Telecom and AC – AC UPS for IT / Telecom / Industry segments.”