Exploring the trends in the Power Backup Market in India
India is the fourth-largest electricity producer in the world. But the electric supply in India is troubled by inadvertent power outages, thunderstorms, blackouts, spikes, electrical circuit failure and a myriad of other issues. Although the power condition in the country has progressed a lot in recent times, it is still not adequate to meet the needs of the industrial expansion or the disappointment of unplanned power cuts. Such is the importance of an uninterrupted and clean source of power supply.
With the escalating disposable incomes among consumers, now the power backup solutions are not only restricted to urban areas but have finally reached semi-urban and rural areas as well. The regular addition of more and more electronic devices in our everyday lives along with the government initiatives like Digital India, Smart Cities and the likes, are the major drivers of growth in the Power Backup Market in India.
The help comes in the form of power back up devices which include diesel generators, UPS and inverters.
A diesel generator is a device used to generate electric energy using a diesel engine. It is commonly used in the case of emergency power cuts. Being a heavy-duty power backup system, it can be used in businesses where power interruption may cause wide-scale disruption.
UPS or Uninterrupted Power Supply market is currently on the rise due to the rapid development and increasing investments in IT and the growing awareness among consumers to protect mission-critical equipment and data. This piece of apparatus helps prevent the loss of stored data, damage to the electrical equipment and also the early breakdown of power sensitive equipment.
An inverter is a power backup device that converts direct current into alternating current and then supplies the same to appliances. This helps the appliances function even during the absence of power supply. With the increased demand for power backup solutions across residential commercial and industrial sectors, the inverter market is witnessing great growth.
According to the report by Research on Global Markets, the Indian power backup market is expected to expand at an 11.28% CAGR till 2023. The power backup market in India is largely dominated by the unorganized sector. The market has become much more uniform in recent times due to the introduction of GST and BIS certification. This has also helped eliminate products that do not comply with the quality norms and standards. On the other hand, the unorganized sector is shrinking due to marginalized profits.
The power backup market has been witnessing a transformational change in the energy sector with the help of supportive policy interventions as well as sector reforms. The inclination of the industry towards the integration of solar technology has been opening up the doors to newer innovations in the market. The growing electricity costs and the aggressive government campaigns for more efficient sources of energy have been pushing the market away from the traditional power backup systems and moving towards solar variants.
With the inclusion of newer and better technology, the Power Backup Market in India will be experiencing a balanced growth in the next decade, since the devices are expected to become for energy efficient and affordable with time.