COVID-19 IMPACT SURVEY MAY 2020
The global Power Monitoring market along with the rest of energy industry value chain is expected to be impacted by the ongoing pandemic and the virus led global recession. The global market size is revised at a projected US$3.8billion for the year 2027. The collateral damage posed by the crisis is rapidly being felt across the entire value chain energy technology, equipment & component suppliers. Government measures to curtail movement of people and goods and the worst ever economic downturn will together bring down the energy industry in the year 2020. Lockdowns are bringing electricity consumption in malls, hotels, gyms, schools, shops to almost zero. Utilities are staring at a severe cash crunch as revenues sharply decline and spot prices of electricity plummet. In countries reliant on component supplies from China, supply chain disruptions are pushing up prices of energy related products and equipment such as energy storage devices, lighting fixtures, power generators, and power monitoring devices and technologies, among others. Increased prices are a revenue buster for companies at a time when consumer confidence and business confidence are hitting rock bottom as the deadly march of the pandemic pushes the human costs of the crisis to unbelievable highs.
The web of destruction spun by the pandemic began with the freezing of economic activity as a measure to curtail the spread of the disease. As the economy continues to choke, businesses are collapsing resulting in workforce layoffs. As unemployment rates spiral to unimagined highs, consumer confidence is plummeting as erosion of household wealth and decline in discretionary spending come together to wield the most severe blow to consumption and business confidence, pushing global GDPinto the red. Inability to meet planned sales targets and decline in profitability and revenues for companies means erosion of finances available for energy efficiency investments. Against this backdrop, investments in power monitoring technologies will decline as the focus on energy efficiency get thrown into the backburner, as companies focus all efforts and available financial resources for surviving the downturn. As companies across all industrial vectors slip on deteriorating economic fundamentals, and as finances dry-up for consumers and businesses alike, sales of power monitoring will decline in the coming years.
However, given that there will always be a need to continuously address power quality issues, the market's growth fundamentals will bounce back in-sync with the improvement in economic climate. A return to business as normal scenario will additionally throw the focus back on regulations and conformance to energy efficiency requirements. A major underlying growth factor for power monitoring is the fact that the world is wasting more energy than It uses even as global leaders strategize to reduce carbon emissions and climate change. This fact will remain unchanged even in the post COVID-19 period, creating a business case for power monitoring. Energy related GHG emissions without technical energy efficiency gains stands at an estimated 40 Gt of CO2 in 2020. With implementation of energy efficiency emissions can be reduced to 32 Gt of CO2. The scenario will create opportunities for energy efficiency solutions.
The role of energy efficiency in long-term climate change goals will undeniably become bigger. Power monitoring is the first step forward in support of support energy-saving activities. Timely identification of potential problems with electrical systems & ability to conduct event forensics is important in reducing energy consumption. Comprising a network of meters connected to a power system in a site, power monitoring system typically aids enterprises in improving the power quality, increasing the facility uptime, generating faster response to power related issues, and in verifying the reliable power equipment operation. Further, enterprises can also leverage the power monitoring system to prevent the overheating of conductors, control and protect the electrical network, enhance the lifespan of electrical equipment, ensure energy contract compliance and fully or partially reduce peak demand power factor penalties. Deployment of power monitoring system allows industrial entities to create a proactive approach to enterprise-level energy management.