indian low medium voltage switch gear markets final
TRANSCRIPT
INDIAN LOW & MEDIUM VOLTAGE SWITCHGEAR MARKETS:
GEARING FOR AN UPSURGE
Anup Barapatre
Industry Analyst
Energy & Power Systems
July 06, 2011
22
Focus Points
Research Introduction, Methodology, and Coverage
Key Market Trends
Conclusions
Market Dynamics
Indian Low Voltage (LV) and Medium Voltage (MV) Switchgear Market Analysis
33
Introduction
The aim of this Research Service (RS) is
to provide actionable data, market
intelligence, and opportunity related to
the Indian LV and MV switchgear
markets. To achieve this, the following
objectives were identified:
• Overview of the Indian LV and MV switchgear markets
• Total LV and MV switchgear market size estimate in 2010
(base year)
• Demand analysis of various product segments
• Revenue-based analysis for LV and MV switchgear
products by end users, regions, and sales channels
• Competitive landscape
Time Period
� Frost & Sullivan has considered one calendar year (January to December) for market data and analysis:
� Base Year: 2010
� Historical Data: 2009
� Forecast/Projections: 2011 to 2017
Currency Exchange Rate
� Frost & Sullivan has considered an average exchange rate of 1 US dollar = INR 45.71. The forecast is done with INR
as the base currency and market revenues are expressed in $ million (using the prevalent Exchange Rates)
Research Aim Objectives
44
Research Methodology
Frost & Sullivan used a three-step approach to develop the analysis
1. Internal Expertise
2. Desk Research
3. Primary Research
Frost & Sullivan tapped into the extensive expertise of its research team,
as well as retained market intelligence regarding the LV & MV
switchgear markets
Desk Research was then utilized to further expand and detail the
information collected from Frost & Sullivan’s Internal Knowledge Banks
and Targeted Primary Research
Primary Research focused on obtaining targeted information from select
market participants (manufacturers, contractors, utilities) related to LV
& MV switchgear markets and for updating information from other
sources
LV and MV Switchgear Market in revenue terms ($ million)
55
Research Service Coverage & Market Segmentation
MARKET COVERAGE
Low Voltage Switchgear
1.1 kV & Below
Medium Voltage Switchgear
3.3 kV to 36 kV
REGIONS:
• North
• South
• East
• West
CHANNEL:
• Direct to end user
• Stockists/Distributors/Dealers
• EPC/Panel Builders/System Integrators
• OEM
COMPETITION:
• Supplier market share analysis by product segments
REGIONS:
• North
• South
• East
• West
CHANNEL:
• Direct to end user
• Stockists/Distributors/Dealers
• EPC/Panel Builders/System Integrators
• OEM
COMPETITION:
• Supplier market share analysis by product segments
66
Market Snapshot
Switchgear Markets:
Key Market Characteristics (2010)
Market Size:
•LV Switchgear - $950.0 million
•MV Switchgear - $795.0 million
LV Switchgear MV Switchgear
Number of
Competitors40 + 20 +
Key Market
Participants
L&T, Schneider Electric,
Siemens, ABB, Havells,
Legrand, etc.
Areva, Siemens, CGL,
ABB, Schneider Electric,
BHEL, etc.
High Growth
Products
� Contactors & Relays
� MCCB
� MCB
� RMU
� CSS
Competitive
Trends
� Highly-competitive
market
� Highly price-sensitive
� Competitive market
� Price-sensitive
Key Success
Factors
� Market penetration
with dealer/distributor
network
� Strong after-sales
service
� Competitive pricing
� Wide product portfolio
� Strong after-sales
service
� Competitive pricing
Key End Users
� Industries
� Construction
� Infrastructure
� T&D Utilities
� Industries
� Power Gencos
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
77
Market Analysis by Product Segments
� C&Rs led the LV switchgear demand in revenue
terms followed by MCCB
� Demand for C&Rs was primarily from the
industrial segment driven by the need for
automating and optimizing processes
� MCB, RCD, and DB are high volume, low margin
business due to high competition from
unorganized participants
� ISGs dominated MV switchgear demand followed
by OSGs
� RMUs are preferred in urban centers where the
power distribution network is predominantly
underground
� CSS is a relatively new concept and is steadily
gaining significance
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Revenue:
$795.0 millionRevenue:
$950.0 million
88
End-user Analysis
Revenue:
$795.0 million
� Industries dominated the demand for LV
switchgears, followed by commercial &
infrastructure segments
� It had demand across all product segments
� Residential segment primarily had demand for
MCBs, RCDs, and DBs
� Transmission & Distribution (T&D) utilities
dominated demand for MV switchgears. Most
T&D utilities prefer OSGs over ISGs due to low
initial investment
� Power gencos and industrial segment followed
primarily with demand for ISGs and CSS
Revenue:
$950.0 million
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Others include agriculture & other end-user segments Others include commercial, residential & other end-user
segments
99
Regional Analysis
Revenue:
$795.0 million
� North: The North Indian market dominated the demand with huge investments in industrial and power
infrastructure development, apart from increased use of compact switchgear technologies
� South & West: Demand in these markets was driven by expansion and renovation of T&D infrastructure,
coupled with extensive industrial and commercial development in the regions
� Eastern India: Low demand due to less spending on infrastructure and residential development, compared to
other regions
Revenue:
$950.0 million
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
1010
Competition Analysis
� The prominent suppliers in the LV switchgear
market have an established distribution network
complimenting their wide product portfolio
� Other suppliers either operate with limited
products or cater to few end-user segments.
However, these participants are steadily expanding
their product offerings
Revenue:
$950.0 million
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Revenue:
$795.0 million
� Top four participants have significant presence
across all product segments in the MV switchgear
market
� Other prominent participants either have a limited
product portfolio, or primarily focus on limited end-
user segments
Others include HPL, IndoAsian, GE, C&S, BCH etc. Others include Megawin, Jyoti, MEI, KECL, Easun Reyrolle etc
1111
Market Tiers
TIERRevenue
Range
Brand Presence Among
End-User Segments
(Domestic & Global)
Brand Recognition Technology Superiority
TIER 1Above $100
million
Global/Pan India/All
End-User Segments
Globally-Recognized
Brand
High Degree of
Innovation and R&D
TIER 2$30 million to
$100 million
Pan India/Major End-
User Segments
Pan India
Recognition
Low Degree of
Innovation and R&D
TIER 3Less Than $30
million
Regional Presence/
Limited End Users
Locally Recognized
Brand
Negligible Innovation
and R&D
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
� LV SWITCHGEAR: Even with a large number of suppliers
operating in this highly price-sensitive market, Tier 1
participants had over 50 percent share
� MV SWITCHGEAR: Tier 1 and Tier 2 participants together
had approximately 75 percent share
1212
Key Market Trends
KEY TRENDS
Price & Market
Penetration – Key
competitive factors
Customization: End
users demanding tailor-
made equipment,
which best suit their
project needs
Increased demand for
compact and hybrid
technologies
Products like C&R,
MCCB, RMU, & CSS are
likely to have better
market growth rates
Embedded intelligence
and communication-
enabled switchgear
Increased acceptance of
electronic releases in
circuit breakers
1313
• Fluctuating raw material prices
• Uncertainty and delays in
implementation of various power
reform programs/initiatives
Market Dynamics
MARKET DRIVERS
MARKET RESTRAINTS
INDUSTRY CHALLENGES
• Price competition
• Poor financial health of State
Electricity Boards (SEBs)
• Macro economic challenges
constrain public and private
funding
• Expansion in key industry
segments
• T&D network and power capacity
augmentation
• Growing infrastructure and
construction segments
• Increasing demand from
replacement and retrofitting
programs
1414
Conclusions
Factors determining the future of the LV and MV Switchgear Market
�Investments in infrastructure, industrial, and construction (commercial/residential) segments
�Implementation of reforms regarding T&D network development and power augmentation
�Efforts to arrest energy crisis and improve power quality and safety
BRIGHTER SIDE OF SWITCHGEAR MARKET:
India Inc. witnessing
� Increased investments � industrial expansion and infrastructure development
�Increased budgetary allocations for Revised Accelerated Power Development and Reform Program (R-APDRP)
and Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY) schemes by the Government of India (GoI)
�Commercial & Residential Corridors: Post 2009, more and more construction giants are investing in massive
commercial and residential projects across the country
� Increasing focus on alternative energy sources (wind, solar, etc.)
1515
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For Additional Information
Ravinder Kaur
Assistant Manager
Corporate Communications
(+91) 44 - 66814080
Vivek Verma
Business Development Manager
Energy and Power Systems
(+91) 22 - 66072034
Anup Barapatre
Industry Analyst
Energy and Power Systems
(+91) 22 - 66072012
Amol Kotwal
Deputy Director
Energy and Power Systems
(+91) 80 - 67028006