MARKETS ON THE HIGH DEMAND FOR PURE UN-INTERRUPTTED, CLEAN,
GREEN POWER BOOSTS
Big boost with good recovery expected, if 2023-24 Never before analysis of 17
years surveyed, like never before and the 18th year projected.
Softdisk has observed the Power Electronic Industry`s development for three
decades and has witnessed its growth from less than a 1000 crore mark to its current
state. During the industry`s early stages, the UPS Industry emerged as a stabilizing
force for the Computing Industry, and even the leading UPS companies today were in
their infancy. Despite this, Softdisk remained committed to monitoring the industry`s
As the Modi Government focuses on achieving self-reliance with its ATMANIRBHAR
BHARAT initiative and multiple countries pledge to relocate their manufacturing facilities
from China to India, the Indian Power Electronic Industry is projected to surpass the
7000 crores mark by March 2023.
This increase in revenue represents over 8.00% growth from the previous
year (2021-22) & is expected to give the Indian economy a boost by the
end of 2024.
Additionally, The Indian Power Electronic Industry is anticipated to grow by well over
10.0% in 2023-24 and exceed the 7900 crores revenue mark by March 2024.
If FTA’s under negotiations are signed before Sept 2023 or even by
November, don`t be surprised if revenue crosses 8000 by March 2023-2024.
Companies that prioritize their bottom line may face pressure from companies
seeking to improve their top line. However, if we consider surveys as an indicator, the
private sector is likely to open up more, and new start-ups may transform into unicorns,
making it more favorable for those concerned with their bottom line.
The banking sector may be a cause for concern, as they prioritize the lowest bid,
resulting in complaints about inadequate service. We have spoken to the DIT purchase
departments of various banks and government agencies, explaining that service is
related to purchase price. When companies sell at very low margins, they may find it
challenging to provide adequate service after two years. Moreover, the bundling of
orders with system purchases makes it unsustainable to provide service in the first two
years itself. The decline in prices is directly linked to the intense competition among UPS
majors, which adversely affects smaller manufacturers.
The increasing amount of consolidation in the UPS industry may be since more and
more companies are experimenting with solar-enabled UPS and SPCUs. This trend is
more prevalent among smaller companies.
The industry is not solely focused on acquisition or takeovers but is instead looking
at co-existence, allowing smaller companies with niche expertise to work alongside
larger companies that have the resources and reach to expand their market. Emphasis is
now being placed on low-key players who are exploring different market
ACHIEVING 8000 CRORE MARK WILL BE A GREAT FEET DURING THIS GLOBAL
The projected revenue estimate of over 7900 crore is exclusively for the
sales, services, and maintenance of UPSs and power electronic devices, including SPCUs
and home UPSs (excluding cooling solutions) and other add-ons with GST. This estimate
is subject to a variation of up to 2%. Furthermore, it is encouraging to note that
business entities worldwide are targeting the Indian market, indicating a growth in
With more entities establishing facilities in India, the demand for reliable and
uninterrupted power supply is expected to increase. This may result in a higher demand
for three-phase and modular up-gradeable UPS systems, while the market for line-
interactive systems may decline, making room for long backup UPS systems in
capacities of up to 3 kVA.
This report was generated by conducting interviews with over 232 companies across
various verticals and speaking with over 493 direct decision makers. All 232 companies
interviewed had over 250 employees and a presence in almost all regions of the country.
The report indicates a growing demand for single-phase UPS systems up to 10 kVA
(approximately 20%) and three-phase UPS systems (around 35%). Additionally,
modular UPS systems account for approximately 35% of the demand. While the demand
for industrial UPS systems is expected to increase slowly, the remaining revenue is
accounted for by services and other equipment.
Softdisk has observed that the UPS industry emerged as a stabilizing force for the
computing industry, and the major players in the UPS industry were in their infancy.
Softdisk has remianed committed to monitoring the industry throughout this period of
The report indicates that the regional growth will be as follows:
NORTH: Last year the overall Northern market had
grown by 5%, we expect it to go up by 6 % this year. Leave apart power continuity,
availability of power has certainly improved over the last five years. There will a no
marked raise in Government purchase in the north. (Already visible) Followed closely by
IT, ITES and BPO segment. SMB will also be a significant contributor especially in the
state of UP, Rajasthan, Bihar and Jharkhand. Overall North will contribute 24 to 25% of
expected 7600 plus crore by March 2023.
SOUTH: By March 2023, the southern region of India, specifically
Karnataka, Tamil Nadu, Telangana, and Kerala, is expected to experience a growth rate
of 31% to 33%, resulting in a contribution of nearly 2500 crores INR to the country`s
industry revenue. Andhra Pradesh appears to have an advantage in this regard.
Corporate business is expected to be a major contributor to the revenue, along with the
IT/ITES and BPO sectors in these states. Education is also expected to be a significant
contributor to the revenue.
EAST: It is estimated that the sales of power electronic equipment in the
Eastern region of India will generate approximately 1600 crore in revenue by March
2024, with government purchases dominating the market as many planned projects are
expected to be executed. In the bigger picture, the East is expected to contribute around
19% to 21% of the total revenue by March 2023.
WEST: The Western region of India is expected to contribute
approximately 23% to 25% of the total industry revenue by March 2024, with a revenue
estimate of nearly 2000 crores out of the total of 7600 crores plus. The major
contributor to this revenue will be SME buying, accounting for 31% of the West`s
revenue. Gujarat and corporate buying, IT/ITES, BPOs, IT services, and industrial
process automation are also expected to be significant contributors, generating
approximately 25% of the revenue. Additionally, SMB and SOHO will be major
contributors in the state of Madhya Pradesh.
Vertical wise Bifurcation:
It is projected that in the financial year 2023-24, the banking, insurance, and
finance sector will contribute around 7%, which is approximately 532.00 crores INR, to
the industry revenue. The government sector is expected to be another major
contributor, with a projected contribution of nearly 1272.00 crores (directly and through
System Integrators), accounting for nearly 16% of the total industry revenue.
The IT/ITES & BPO sector is expected to make the largest contribution, netting
revenue of approximately 1669.00 crores, which is a share of nearly 21% in the overall
industry revenue. Corporate buying is expected to grow at a rate of approximately 8%,
generating revenue of above 636.00 crores. The low purchase rate is primarily due to
modular UPS, which can be upgraded and avoid fresh new purchases. Another major
contributor this year will be industrial process automation, with high-capacity CNC
machines being installed.
High-end UPS Systems that can use regenerative load as an input source will be
more popular. They will generate 13% of the revenue, which is around 1033 crores. The
trend indicates that those selling higher kVA ratings will be the ones to watch out for as
they may clinch the CNC deals. Companies selling to government concerns will be at a
benefit. Research and educational institutions will attract non-modular UPSs to cater to
their needs, and this sector will contribute nearly 556.00 crores. The hospitality sector
will have a low share of the pie.
Small UPS systems with large backups will be in demand as more and more
corporates encourage a work-from-home culture. We expect the total revenues to be
nearly 7900 crores by March 2024.
Softdisk is proud to announce that the SMB & SOHO segment will
contribute nearly 875 crores indicating that our effort to educate the masses over the
past three decades have finally started paying dividends.
Chief Editor, SOFTDISK