It is vital for electrical systems to function properly without undergoing any damages. An electrical system can be subjected to effects of thermal cycling, mechanical stresses, switching, and environmental extremes. If proper care is not taken it can lead to catastrophic system failure. Electrical testing services are crucial, in order to ensure the operating standards of a plant which uses electricity. Generally, electric testing services are outsourced or done in-house. Moreover, frequency of testing services vary according to nature of workplace and risk associated with electrical equipment. Power generation stations, power transmission and distribution stations, steel plants, and refineries are major end users of electrical testing services.
The India electrical testing services market was valued at US$ 162.0 Mn in 2018 and is expected to grow at a CAGR of 4.4% between 2019 and 2027.
Market Dynamics- Driver
Steady increase in production of steel across the country is the major factor driving the market growth. For instance, according World Steel Association (WSA), India accounts for the third-largest production of crude steel in terms of volume. According to the same source, India has witnessed increasing growth in production output at a rate of 2.6%. However, the growth rate is slightly less than average annual production output rate of 6.5% since 2006. Moreover, Electric Arc Reactors are commonly used manufacturing process for the production of steel with electricity as power source. Thus, growing annual production of steel coupled with rising electricity market in India is expected to propel the India electrical testing services market growth.
India is the second-most populace country with population accounting for 1.31 billion in 2015. The government has taken proactive initiatives to electrify villages. This, in turn, is expected to increase the power generation in India with wider distribution and transmission network across the country. Moreover, the Government of India has planned to electrify over 55 million households by 2018, which is expected to boost the sales of electricity. Thus, increasing demand for electric power in villages is expected to fuel the market growth in the near future.
Market Dynamics- Restraints
In the current scenario, companies are outsourcing the electrical testing services, in order to increase focus on core activities of the company. Although the trend is likely to continue, outsourcing testing services incurs higher initial costs for the clients. Moreover, companies are setting up their own testing department equipped with necessary equipment and skilled technicians. This, in turn, is expected to increase the charges for outsourced testing service, thereby expected to restrain the India electrical testing services market growth in the near future.
Various tools are required for monitoring electrical equipment including circuit breakers, transformers, etc. However, these tools are relatively expensive, owing to extreme nature of the equipment it performs tests on. These test devices need to endure high voltages, current fluctuations, and other critical conditions. This, in turn, has increased the price of these tools, leading to high capital investment. Moreover, trained professionals are required to operate these tools in safe and controlled manner. Thus, these factors are expected to hinder the India electrical testing services market in the near future.
Various equipment used in industries such as power generation, steel plants, and other are bulky, large in size, and burdensome to handle. When failed, replacement of these equipment takes month or years, depending upon the specification offered by international accreditation authorities. However, this can be improved with timely testing services that provides certifications of InterNational Electrical Testing Association (NETA), Electrical Research & Development Association (ERDA), and Bureau of Indian Standards (BIS). This, in turn, is expected to offer lucrative growth opportunities for key players in the market.
Innovation of novel products for testing and development of advanced technology are expected to pose excellent growth opportunities for market players in the near future. Advent of advanced multimeter, Ohmmeter, Ammeter, Signal tracer, logic analyzer, etc. are some of the equipment used in electrical testing services market.
The current power generation in India is sufficient to provide electricity to every households. However, poor distribution and transmission network across the country reaches on 55% of the India households. The report suggests that if current power generation plants are used it their full potential, India would not need any new power plants for next three years, considering increasing population and household growth. This, in turn, is expected to drive the market growth in the near future.
The Government of India has undertaken several projects to expand and enhance the transmission & distribution network across the country. This is to be done by working on problems such as power thievery, pilferage, bureaucracy, and replacement obsolete and old equipment. Moreover, electrification of railway lines in India is another ambitious project and is growing steadily with currently over 40% network being electrified.
India Electrical Testing Services market, by end-user type segment, power generation station sub-segment was valued at US$ 26.5 Mn in 2018 and is expected to grow at a CAGR of 2.9% between 2019 and 2027.
Value Chain Analysis
Key players operating in the India electrical testing services market are INEL Power System Engineers Pvt. Ltd., Technomark Engineers India Pvt. Ltd., Voltech Group, Powertest Asia Pvt. Ltd., Rulka Electricals Pvt. Ltd., Inser Hitech Engineers Pvt. Ltd, Ultra Electric Company India Pvt. Ltd., JBS Enterprises Pvt. Ltd., and Laxmi Associates
Commercial electrical testing helps to keep business safe and compliant. Electrical testing services are majorly getting adopted for the testing of the operating conditions of a wide variety of electrical equipment, assemblies, and products under various types of environmental conditions. Faulty electrical systems or appliances can cause risks of shock, burns, fire, and explosion.
Timely electrical testing of the equipment decreases the fire hazard of the electrical equipment or the electrical connections. Moreover, from electrical testing services organizations can analyze their insulations of the electrical connection or the electrical equipment. In addition, regular inspections of the electrical equipment will also help to increase the operating efficiency of the organization, by maintaining the proper electrical condition of the equipment.
Rising electrification of the Indian railway lines, improved steel production, and orderly testing of electrical equipment for controlling breakdowns are expected to boost the demand for Indian Electrical Testing Equipment over the forecast period. For instance, according to, Press Information Bureau (Government of India), in 2016-17, Indian Railways have prepared an Action Plan to electrify 24,400 route kilometers in five years (2016-17 to 2020-21).
In addition, growing large power generation plants, manufacturing industries, and oil refineries are expected to propel the demand for the electrical testing equipment over the forecast period.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.