Due to chronic power shortages and rapid growth across several segments such as industries, infrastructure, as well as IT and ITES, this market is heavily dependent on the Indian diesel generator set market.
Leading market participants are Emerson Group, Crompton Greaves Limited, and Cummins Generator Technologies, India. Other new entrants are Mecc Alte, Marathon Electric, and Sara Elgi. During the short and medium terms, the overall market is expected to witness a high growth rate.
New analysis from Frost & Sullivan (energy.frost.com), Indian LT AC Brushless Alternator Market (10 - 2,000 kVA), finds that finds that the market earned revenues of $202.1 million in FY 2009-10 and estimates this to reach $352.5 million in 2015.
"The burgeoning industrial sector and peak power deficit at about 15 percent are expected to stoke demand for diesel generator set sales in India," says Frost & Sullivan Research Analyst Udit Krishnan. "This will in turn uplift prospects for the LT AC brushless alternator market."
New telecom towers are expected to be added in the next few years to accommodate the needs of 3G service deployment, and high investments in infrastructure and commercial sectors will create a new wave of demand for LT AC brushless alternators for diesel generator sets.
Apart from telecom, generator set sales are poised for an upswing in the retail, industrial, manufacturing, real estate, and construction sectors due to the high demand-supply gap and growing need for power backup for higher loads. This trend will ensure higher demand for LT brushless alternator in the medium and long terms.
Although the prospects for the market look bright, there are some challenges restraining its progress. The primary raw materials used in LT AC brushless alternators are copper and steel. Currently, the prices of these materials at the London Metal Exchange (LME) are increasing gradually, with steel touching $320 per ton and copper reaching $7,204 per ton. Due to the fact that the LT AC brushless alternator price in a diesel generator set comprises only 18 to 20 percent of the total generator set cost and it is procured by original equipment manufacturers (OEMs), the overall profit margins are considerably low.
"Almost all LT AC brushless alternators are supplied based on a long-term supply rate contract set among the alternator supplier and the end users such as engine manufacturers and generator set OEMs," says Krishnan. "For this reason, new entrants find it challenging to enter this market."
Product positioning and service strategies directed toward offering additional value-added services to OEMs and end users are the key success factors for the Indian LT AC brushless alternator market.
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Indian LT AC Brushless Alternator Market (10 - 2,000 kVA) is part of the Energy & Power Growth Partnership Service program, which also includes research in the following markets: Indian Power Transformer Market, Indian Distribution Transformer Market, India Diesel Generator Set Market, India Solar Photovoltaic Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Indian LT AC Brushless Alternator Market (10 - 2,000 kVA) / P42A-14
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