Global Circuit Breaker Market is Projected to Grow at a CAGR of 6.0% During the Forecast Period
Published | 14 September 2021
Global circuit breaker market is anticipated to grow due to the increasing demand for power supply and transmission from across the globe. Additionally, increasing investment in the renewable energy sector also propels the growth of the circuit breaker market..
A study recently conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global circuit breaker market was worth USD 5.8 billion in 2020 and is further projected to reach USD 8.6 billion by 2027, at a CAGR of 6.0% during the forecast period (2021-2027). Circuit breakers are automatic electrical switches that protect a circuit from damage due to excessive electrical supply. The majority of their applications focus on power production, renewable energy, and other areas. The circuit breaker market is witnessing impressive growth mainly due to a large inflow of investments in renewable energy resources to generate power, paired with a secure and reliable electricity supply across the globe. For instance, a US$ 5-10 billion green energy investment is slated for Tamil Nadu in a move to increase its green energy footprint, including the creation of an energy island in the Gulf of Mannar in association with Denmark. The island has the potential to produce 4-10 Gw.
Increasing Investment in Electrification to Propel the Adoption of Circuit Breaker
Several developing countries are undertaking initiatives such as electrifying rural areas to provide a regular power supply by connecting them to the grid. The development of electrical infrastructure to supply ample electricity to rural areas under electrification initiatives has fueled the growth of the circuit breaker market. World Bank officials report that 89% of the world's population now has access to electricity, with 153 million people getting it each year. For instance, in September 2021, Siemens Energy signed a contract with Aker Solutions ASA for an electrification project operated in the North Sea. Siemens will supply equipment for the electrical transmission, distribution, and power management system of the Troll West project. Thus, the adoption of safe and secure operations is driving the growth of electrification initiatives that have further boosted the development of the circuit breaker market.
Technological Advancementis Driven Market Forward
Increasing technological advancements in engineering and technology have created lucrative opportunities in the global circuit breaker market. As a result of the development and adoption of the smart grid and digital circuit breaker, the circuit breaker market is experiencing a wealth of opportunities—a concept such as solid-state circuit breaker, which is 100 times faster than traditional electro-mechanical breakers. For instance,Asea Brown Boveri (ABB), a global supplier of power grid is investing a large inflow for the development of such solid-state circuit breakers. These breakers have maximized the performance of the power distribution system while maintaining proper safety. Germany's Technical University began to develop electrical circuit breakers on a large scale for electrical devices and systems in May 2020. The project is scheduled for completion in 2023. A total of USD 1.54 million has been allocated toward this project by the Federal Ministry for Economic Affairs and Energy at TU Ilmenau. Therefore, the factors mentioned above are significant drivers of the circuit breaker market.
Renewable Energy to Grow at the Fastest Pace in the End-User Segment
The renewable energy segment is likely to grow at the fastest CAGR in the circuit breaker market, generating considerable revenue. This segment has grown as countries shift their focus to renewable energy sources for power supply and transmission. According to U.S. Energy Information Administration, renewable energy consumption in the United States increased for the fifth year in a row in 2020, reaching a new high of 11.6 quadrillion British thermal units (Btu), or 12% of overall energy consumption in the country. Therefore, the growing adoption of renewable energy has led to the growth of the global circuit breaker market.
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Impact of COVID-19 on the Global Circuit Breaker Market
As soon as countries imposed nationwide lockdowns to control the spread of the virus, electricity demand dropped. Many industries were closed while others operated at reduced capacities. Government and corporate offices were closed, and the world almost came to a standstill for a few months. In the first quarter of 2020, the International Energy Agency (IEA) reported a 2.5% drop in electricity demand, with some countries seeing a drop as steep as 15%. In February 2020, China witnessed a 13% decline in electricity demand as compared to February 2019. The decrease in Feb 2020 was higher than in Jan 2020, when China announced lockdown due to the COVID-19 outbreak. However, in April 2020, the demand accelerated, and since then has maintained a higher value than the demand in 2019.
Global Circuit Breaker Market: Regional Insights
Geographically, the circuit breaker market is categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America. The Asia-Pacific accounted for the largest share in the circuit breaker market in 2020 and is likely to dominate during the forecast period. The growth in the market is prominently due to the enormous power distribution and transmission system in countries such as China, India, Japan, South Korea, and others. In addition, Asia-Pacific has the most extensive railway transportation system across the globe, which has further driven the region's growth. Further, investments made in the renewable energy sector have organically driven the market. According to India’s Reliance Industries, the company expects to generate at least 100 gigawatts of renewable energy by 2030, which will be converted to carbon-free green hydrogen.
Some of the key players in the circuit breaker market are ABB, Schneider Electric, Siemens, Mitsubishi Electric, Eaton, CG Power and Industrial Solutions, XIGAO Group, LS ELECTRIC, Huayi Electric, Myers Power Products, Larsen & Toubro, TE Connectivity. Meidensha, Toshiba, Powell IndustriesV., and other prominent players. Circuit breakers are used to protect transmission systems against fluctuations, making them safer and more secure. As a result, technological advancements are helping key players to develop more advanced circuit breakers to gain a competitive edge.
For instance, the Federal Executive Council approved the National Policy on Fifth Generation 5G Networks for Nigeria's Digital Economy. For successful project setup, the FEC has contracted the procurement of 132 KV chrome temporary circuit breakers and 16 sets of 33KV of ABB circuit breakers.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global circuit breaker market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the circuit breaker market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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