December 18, 2008: The overall fundamentals of the Indian economy remain stable with the growth momentum expected to sustain. Over the last three years the DCS market in India grew at a very robust CAGR in excess of 20% and despite global economic downturn, India’s growth story will continue over the long term, resulting in a robust DCS market outlook over the next five years. “ARC expects there to be continued growth in the India DCS market through 2012, with the overall CAGR of just under 15.2%. Significant investments will be channeled into the electric power industry over the next fifteen years and beyond in India.
Other process industries too are likely to grow significantly powered largely by the domestic demand,” according to ARC Senior Analyst S.R. Venkatapathy the principal author, and Research Director Larry O’Brien of ARC’s “Distributed Control Systems Outlook for India.”
Electric Power Industry Will Remain the Key Growth Driver
Even as India battles current power shortages, continuous investments will be required to match the economic growth. India’s battle for overcoming current power shortages means continuous investments will be required to match the economic growth. Despite the planned addition of 78,000 MW of electric power generation during the ongoing Eleventh Five Year Plan (financial years 2008 to 2013), the demand-supply gap will cease to exist. With coal-fired electric power generating plants making extensive use of DCS technology, DCS market growth is assured. The bulk of capacity additions are expected to be through state-owned enterprises, such as NTPC, India’s largest electric power company, and through regional electric utilities.
With a majority of projects planned, vetted, and financed by Power Finance Corporation (PFC), large-scale slippages are far less likely in the present phase of expansion. Furthermore, a far greater private participation in the growth of the electric power industry besides power trading is now a reality. Coastal and coal pithead-based Ultra Mega Power Projects (UMPPs) are also expected to usher in competition for establishing power projects of extraordinary scale. Electric power industry opportunities in India also include captive power plants (CPPs) being established by process industry manufacturers across verticals to meet internal needs. The demand for DCSs from the Indian power segment will range from small to large systems, with accompanying opportunities for suppliers.
DCS suppliers will need to institute strategic alliances with global and domestic EPCs and turnkey contractors to leverage contracts.