POWER QUALITY EQUIPMENT MARKET ANALYSIS

Market Challenges And Opportunities

• High cost of Power Quality Equipment

Global Power Quality Equipment Market- Restraint

High cost of Power Quality Equipment:

Power quality equipment are used to ensure the stable and reliable supply of electricity to power grids, data centers, manufacturing plants, industrial processing sites, and several other applications. The devices used for power quality include uninterruptable power supply (UPS), harmonic filters, multimeters, disturbance analyzers, earthing and grounding systems, etc. The cost of these equipment is usually high. For example, the harmonic filters used in various business and commercial applications are sold in the price range of INR 250,000 to 1.5 million based on the scale of their operations. Such high cost of the power quality equipment might not be affordable for the small and medium industries and such enterprises may avoid installing such equipment in their facilities which may affect the demand for power quality equipment devices and hinder the growth of global power quality equipment market during the forecast period.

Global Power Quality Equipment Market- Opportunity

Rise in the number of power grids:

Power grid is the network of power stations, transmission lines, electricity towers and individual distribution lines. The power grids are used to distribute the electricity to the end-users. These power grids are highly complex and consist of different types of devices, components and systems used in the distribution of power supply to the end-users. These complex systems need to be monitored from time-to-time in order to avoid equipment failure and loss of production. Any disruption in the supply of power can lead to catastrophic losses for the commercial users. Hence, the use of power quality equipment to effectively monitor the power grids is an essential aspect of ensuring the smooth supply of electricity to households as well as the commercial users. For instance, on April 10, 2023, Tata Power, a subsidiary of Tata Group, an Industrial Group operating in several sectors like automobile, power supply, FMCG, etc. announced that the company has signed a deal to enhance power distribution system in Delhi through grid enhancement. This development shows that the major market players are realizing the importance of power grid infrastructure and taking efforts to improve them. This would increase the demand for power quality equipment used in the power grids and provide an opportunity for the global power quality equipment market to grow during the forecast period.

Global Power Quality Equipment Market- Impact of COVID-19:

The Covid-19 pandemic disrupted the business world because of the country-wide lockdowns and strict social distancing norms. The supply chain of majority of the industries was disrupted as procurement of materials and carrying out the production activities was not possible due to factors like stagnancy of cross border trade and lockdowns. The global power quality equipment also experienced the similar challenges with respect to the production of equipment which hampered the growth rate of the market significantly. Moreover, as the governments were entirely focused on dealing with the effects of pandemic on healthcare sector, all the non-essential activities were halted. This meant that the new power projects that the government authorities across the world undertook did not witness a significant development during the pandemic period. This affected the supply side of the market significantly due the halt in production facilities of companies operating in global power quality equipment. Hence, the covid-19 pandemic cab be considered to have hampered the growth of the global power quality equipment market negatively.   

Global Power Quality Equipment Market- Drivers:

Increase in demand for power quality in industrial and manufacturing sectors:

Industrial processing and manufacturing sectors are one of the biggest consumers of electricity. These sectors require a continuous and reliable supply of power throughout their operations. The disruption in the power supply can lead to huge losses for the players operating in the industrial and manufacturing sector. To avoid the risk of power disruption due to equipment failure and to ensure the entire power supply system works efficiently, the power quality equipment are used to monitor the power supply systems for potential damages. Moreover, power back-up devices are also installed in case of a power cut. For instance in August 2022, Hitachi Energy, a global company operating in power sector has invested INR 1,000 million to double the capacity to produce power quality equipment in anticipation of rising demand for the same. This shows that the demand for power quality equipment is increasing significantly and the market players are responding to this growing demand by expanding their production and thus leading the way for the global power quality equipment market to grow further.

Advancement in telecommunication sector and expansion of data centers:

In the past few decades, the telecommunications sector has experienced a significant growth and expansion. In addition to voice communication systems, the concepts like IoT has increased the need for data transmission in the telecom sector. The emergence of data centers and their huge consumption of power has paved a way for power quality equipment market to serve the rising needs of the sector. To ensure the efficient functioning of the data centers, the companies are making extensive use of power quality equipment and systems increasing their demand significantly. For instance, on July 6, 2023, Center3, a company managing data centers in the Kingdom of Saudi Arabia announced the expansion of Khurais Riyadh data center to drive the growth of innovation in the region. Such, expansions in data centers would increase the demand for power quality equipment and lead to the growth of global power quality equipment market during the forecast period.