Unorganized sector in the Indian Power Inverter Market to reach a new low of about 20% by 2021: Bonafide Research
May, 01

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Unorganized sector in the Indian Power Inverter Market to reach a new low of about 20% by 2021: Bonafide Research


Strong participation of the organized players, increasing acceptance of the inverter by the residential sector, lowering prices of the inverters, increasing availability of the raw materials and the strong competition in the industry is driving the organized market in the Indian Power Inverter Market. According to recently published report of Bonafide Research "India Power Inverter Outlook 2021" the unorganized sectors which lead the market in 2012 is expected to decrease in a very drastic manner. The increasing competition by the organized players by targeting the price sensitive customers and the new innovations and technologies brought in the inverters for the residential segment made the organized sector to take away almost 60% of the share by 2014. A power inverter, or inverter, is an electronic device or circuitry that changes direct current (DC) to alternating current (AC). The input voltage, output voltage and frequency, and overall power handling depend on the design of the specific device or circuitry. The inverter does not produce any power as the power is provided by the DC source. Earlier the inverters were mostly used in the small industries and those customers who could afford to buy one for home were a minimum. Back then the unorganized sector ruled the inverter industry, but now with the increasing purchasing power of the buyers the people are opting power inverter as a basic necessity because of the long power cuts in India. The innovations in technology, reduction in prices and the brand quality made a difference in the overall outlook of the market. The organized market is expected to acquire 80% of the market share of the Indian Power Inverter market by 2021. The unorganized sector consisted of the Chinese players and the local manufacturers of the particular city. Unorganized players source their products in knocked-down units from East Asia, which do not compare favorably with locally produced products in their quality and reliability. However, their input costs have increased on account of levying of duties on the import of lead and lead products. Due to the dominant unorganized market back then, the organized players strengthened their distribution networks, thus posing a formidable challenge to the unorganized players by 2014.