With demand for UPS systems rising, prices will fall further in coming years

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Indian UPS market revenue to grow at 12 per cent CAGR during 2013-18

UPS_systemsBy Kartiki Negi

Tuesday, April 01, 2014: According to a recent report by TechSci Research, revenue from the Indian UPS systems market is expected to grow at a CAGR of 12 per cent during the period 2013-18. A Frost & Sullivan report has also estimated that the Indian UPS systems market will reach US$ 828.2 million by 2017-18.

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Untapped markets

The domestic UPS systems market has huge potential, which is yet to be tapped. Today, electricity generators have become essential for every organisation and similarly, battery-supported inverter systems can be seen in most Indian households, thus driving the demand for UPS systems. “Several people are now replacing generators with industrial inverters due to the cost efficiency. The running costs of inverters are significantly lower when compared with traditional generators,” says Manoj Jain, VP, Microtek International Pvt Ltd. According to him, “Growing demand from IT/ITeS, the government and manufacturing sectors is boosting the UPS systems market. The penetration of the IT/ITeS sector in Tier II and III cities and the computerisation initiatives by the government will be key to pushing uptake levels.”

Says Yogesh Dua, managing director, upsINVERTER.com, “The banking sector will add to the demand as many new banks are coming up this year. The industrial and IT sectors are also expected to do well in the coming years, and new set-ups will also come up, hence increasing the demand for UPS systems.”

Says Manoj Jain, “Growth is also being fuelled by the demand coming from rural areas and small towns.”

Manoj Jain, VP, Microtek International Pvt Ltd
Manoj Jain, VP, Microtek International Pvt Ltd
Yogesh Dua, managing director, upsINVERTER.com
Yogesh Dua, managing director,            upsINVERTER.com

 

Says Dua, “Solar is the latest addition to the UPS systems domain. This new combination of solar roof top home UPS systems is getting a good response, especially from rural areas and small cities. The coming years will definitely see a rise in demand for such systems.”

The growing dependence on machines, e-commerce, data centres, servers, and electronic and medical equipment needs a high level of continuous power supply for uninterrupted services. All these factors are generating significant demand for high powered UPS systems.

Lower prices

The demand for UPS systems going up significantly has led to a drop in prices. Today, markets are flooded with a variety of products for different applications. Says Yogesh Dua, “Prices of UPS systems have definitely come down in the past few years due to the increase in demand. The demand is here to stay and we will further witness a drop in prices in the coming years.”

However, Manoj Jain has a different opinion, “Prices are more or less stable. Though demand is increasing, the cost of components is going up; hence, manufacturers are unable to lower the prices. Since most of the components used for manufacturing UPS systems are imported, the profit margin automatically reduces.”

Moreover, it is a need-based product. Thus the price of the product is not affected with the rise in demand,” adds Manoj Jain.

In the past, the Indian UPS market has been largely dependent on the below-5 kVA range of UPS systems. However, this trend is set to change as the use of UPS systems in the industrial sector is growing. Also, use of high-end UPS systems in Indian data centres has gone up. In addition, an increase in the use of flexible modular UPS systems has made high-end UPS systems very practical for industries. Hence, it is expected that high-end UPS systems will increase their market share in the Indian UPS market at a fast pace during the next five years,” says the TechSci Research report.

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