The power backup market in India is fast growing primarily due to chronic power shortage. Power problems are one of the most important drivers of growth in the UPS market.

In the UPS space, energy efficiency is a key word that has gained huge proportions in the past year. Energy is one of the biggest components of an organization's OPEX and over 80 percent of it comes from infrastructure. Therefore, by improving energy efficiency in network infrastructure and using alternative energy sources, customers reduce dependency on oil and other energy sources which are in jeopardy because of swelling costs and limited supply.

On the growth drivers of the Indian UPS market

The power backup market in India is lucrative and fast growing primarily due to chronic power shortage. Power problems in most parts of India are one of the most important drivers of growth in the UPS market. Apart from this continuous demand from telecom operators and expanding desktop user base are the key drivers to growth in this market.

On the market and technology trends in the UPS market

As UPS solutions have become integral to countless businesses'IT, ITeS, BPO, data centers, BFSI, textile, manufacturing, and healthcare organizations; increased pressure to ensure 100 percent uptime and to cost-effectively manage space is forcing today's electrical contractors, IT professionals, and facility managers to seriously evaluate the types of technologies they use. These next-generation power requirements have inspired recent developments in UPS technology, which include:

• Improved battery management
• Advancements in power density and footprint
• Robust software offerings and monitoring services.

Some current technology trends are:

• Green technology
  • High efficiency machines reducing operating expenses
  • Less harmonics from UPS resulting in low pollution of utility
  Highest power to footprint ratio which will lower real estate costs
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• Advanced and remote monitoring
• Focus on reliability

On the impact of the slowdown on the market

The global recession has affected the UPS market as companies have frozen their expansion plans while others have been impacted by the rapidly shrinking end-user market in the US. Further, the adverse foreign exchange rates increase the cost of imports, leading to a higher cost of UPS.

On the key demand verticals

The key demand verticals include ITeS/BPO, textiles, pharmaceuticals, manufacturing, and telecom.

On the key challenges faced by the players in India

• Increasing cost of raw materials like battery and packaging materials
• Competition from unorganized sector
• Lack of awareness amongst the customers

On major policies or regulatory issues that are affecting the growth of the market

The government can assist the power management industry in India by encouraging investments in electronic components manufacturing, as supply chain is currently sub-optimal.

On the future of UPS market in India

The UPS market will experience continuous growth in future driven by demand from sectors like BFSI, telecom, retail, IT/ITeS, manufacturing, infrastructure, and others. According to Frost and Sullivan, the Indian UPS Market is estimated to reach USD 1,316.5 million (Rs. 6319.2 crore) by 2014.