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The global circuit breaker market size was USD 13.99 billion in 2020 and is projected to grow from USD 15.41 billion in 2021 to USD 24.59 billion in 2028, at a CAGR of 6.9% during the forecast period. Based on our analysis, the market exhibited a decline of -12.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with the product witnessing a negative demand shock across all regions amid the pandemic.
A circuit breaker is an electrical switching device that can be operated manually or automatically for protecting and controlling an electric power system. A high fault current usually flows through the device that trips the circuit during a short circuit or another type of electrical fault. This aids in protecting the electrical system from damage. It is deployed in small and medium substations, railway systems, high voltage transmission & distribution lines, and other applications to protect the electrical system.
Whenever a fault occurs, the machine detects the overcurrent & triggers the mechanism, which results in the moving contact losing touch with the fixed contact, thereby opening the circuit. Arcing may occur when the two contacts lose touch due to the high voltage difference between the fixed and moving parts. Hence, growing safety measures and awareness for protecting electrical systems drive the demand for breakers in the global market.
Significant Downfall in Power Infrastructure Development to Impede Market Development
COVID-19 is spreading continuously across the globe. Almost every country is at different stages of the pandemic getting reported infected cases. Countries such as Russia, Italy, Spain, and Turkey are seeing a recent acceleration. India, too, has experienced a significant increase in the number of cases since the beginning of April and has evolved its response strategy, including extending the nationwide lockdown. COVID 19 has affected the power industry, and a drop occurs in the investment power industry.
The widespread effect of COVID-19 has resulted in the total shutdown of businesses in China and India, leading to reduced spending on household appliances by consumers. With more countries announcing lockdown to stop the COVID-19 spread, the utility spending for investing in grid projects has declined rapidly. Additionally, sluggish demand due to a decrease in consumer spending across various applications has impacted global demand. However, the market is expected to gain momentum due to heavy investments in developing energy infrastructures from emerging economies.
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Increasing Investments in Industrial Sector to Surge Demand
The increasing investment in the industrial sector and the growing investment to leverage the industrial infrastructure increase the demand for electrical switching devices in the global market. These devices are predominantly used in the industrial and commercial sectors. According to the World Investment Report 2021, Asia-Pacific received an inflow of USD 535 billion from Foreign Direct Investment (FDI) in 2020, which was majorly contributed by China and Singapore. Hence, the increasing investment from the industrial sector necessitates the deployment of these devices in various end-use and manufacturing industries.
Electrification Initiatives to Propel the Adoption of Circuit Breaker Systems
Several developing countries are running electrification programs to connect the rural areas to the grid. Other countries are further trying to combine different grid zones to form a mega-countrywide grid. Such drivers have boosted the market outlook for utility-scale switches. The increasing availability of electricity is propelling fast-paced infrastructure development, leading to the availability of abundant electrical energy. For instance, on June 10, 2021, The World Bank has sponsored over USD 2.3 billion in infrastructure and reforms in support of the West Africa Power Pool (WAPP), which is seen as critical to ensuring universal access to power in the 15 countries of the Economic Community of West African States (ECOWAS) by 2030. Hence, the adoption of electrical switching devices for safe and reliable operation of gadgets and devices is driving the demand for infrastructure projects globally. This factor is expected to bode well for the circuit breaker market growth in the forthcoming years.
Increasing Adoption of Electrical Safety Regulations to Augment Growth
The breakers have become a mandatory part of electrical networks in residential and commercial buildings, industries, and utility-scale grids. Every home, office, and others, have an electrical switching deviceinstalled because of rapidly increasing urbanization and modernization, the breakers have become an essential part of every structure. Frequent amendments such as adhering to strict compliance of test procedures for breakers and switchgear used in electrical power distribution systems. Some of the heavy load equipment requires the adoption of individual circuit breakers for safe and reliable operation. Such a regulatory scenario has positively influenced the market dynamics of breaker market sales.
Increasing Competition from the Unorganized Sector to Hinder Market Growth
The increasing investment for advancement in technology for breaking the circuit has enabled the major players to compete in the global market. Competitive pricing strategy among the small competitors and rising competition from the unorganized players to fulfill the demand from industries such as manufacturing, construction, transportation, and processing is likely to act as a major factor restraining the market's growth during the forecast period.
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Medium Voltage Circuit Breakers to Have Largest Market Growth
Based on voltage, the market is classified into low voltage, medium voltage, and high voltage. Low voltage breakers are increasingly used in residential and commercial applications. The medium voltage breakers are used more in industrial, infrastructural, and utility-scale applications. The medium-scale breaker applications have the most extensive applications and are expected to show significant market growth.
The high voltage automatically operated electrical switch are used in utility-scale applications and rarely in some industries. These breakers have been gaining traction with the advancement of electrical technology. The market size of high voltage breakers is increasing due to the introduction of high voltage DC cables.
Outdoor Segment to Hold a Dominant Market Share
Based on installation, the market is segmented into indoor and outdoor. Majority of the breakers installed are outdoor automatically operated electrical switch. The market size of outdoor breakers is almost double that of indoor breakers. It is used in switchgear assembly, which is majorly used outdoors for utility-scale applications. Few industrial machinery and equipment require outdoor breakers. Indoor breakers are used majorly in residential, commercial, and industrial breakers.
15-50kV Rated Voltage Segment is Dominating the Market
Based on rated voltage, the market is segmented into 500V, 500V – 1kV, 1kV – 15kV, 15kV – 50kV, 50kV – 70kV, 70kV – 150kV, 150kV – 300kV, 300kV – 600kV, 600kV – 800kV, and Above 800kV. The breaker having a rated voltage less than 1kV is in the low voltage category. Electrical switching devices with a rated voltage between 1kV to 70kV are in the medium voltage category. Breakers with a rating capacity of 15 – 50kV dominate the market share due to a wide application in commercial projects and industrial applications. Breakers having rated voltage above 70kV are in the high voltage category. Low-rated voltage and medium rated voltage are generally used in residential and industrial end-user, which drives the demand for electrical switching devices in the global market.
Increasing Adoption in Industrial Applications to Promote Growth
The market is segmented into residential, commercial, industrial, and utility-based on end-user. Residential end-users use miniature circuit breakers (MCB) or molded case circuit breakers. Commercial structures also use similar types of breakers due to higher rated voltage and current. Both commercial and residential buildings use majorly low voltage breakers. The use of elevators and escalators in residential and commercial buildings requires medium voltage breakers.
Medium and low voltage breakers are extensively used in the industrial sector. The safety of industrial machinery and equipment is dependent on breakers. Air circuit breakers (ACB) and vacuum circuit breakers (VCB) and MCB and MCCB, are used in industrial applications. The electric utility requires the use of all voltage range of breakers. Majorly medium and high voltage switching devices are used for utility applications. Due to environmental concerns, SF6 circuit breakers are losing popularity in utility-scale applications, and alternative for SF6 based automatically operated electrical switch is under research, development, and demonstration phase.
Asia Pacific Circuit Breaker Market Size, 2020 (USD Billion)
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The market has been analyzed across five key regions: North America, Asia Pacific, the Middle East & Africa, Europe, and Latin America.
The Asia Pacific region currently holds the largest market share and is anticipated to dominate the global market during the circuit breaker market forecast period. The growth of the region is attributable to the increasing infrastructural development, commercial projects, and industries. Asia Pacific region is the manufacturing hub across the globe, and a variety of electrical switch are used in every industrial and manufacturing unit. A growing number of manufacturing and industrial trip units in the Asia Pacific region is expected to boost the demand of this market in the region.
Breakers are further used in railways, metros, commercial centers, bullet trains, IT hubs, and others, which require a stable and reliable electricity supply. Rapid urbanization has increased the demand for electrical switch. The increase in power generation plants and power transmission infrastructure has increased the demand for automatically operated electrical switch. China, the Republic of South Korea, Japan, India, are some of the leaders in the technology and production of these breakers globally.
Europe and North America are expected to experience steady growth in the global market. The modernization and automation of existing industries in these regions are projected to boost the market. Increasing investments in developing infrastructure have helped the market to grow in Europe and North America.
Africa has the highest potential for the growth of the market. The rapid industrialization and urbanization of the African continent will propel the market in the coming years. The Middle East, Europe, and North America are enriched with oil and gas platforms provided with direct high voltage supply cables that use electrical switch. The offshore wind production units worldwide use high voltage cables to feed into the grid on the mainland. Hence, the growing industrial investment and rapid urbanization, drive the demand for in the global market.
Innovative Product Launches by Major Companies to Consolidate Their Market Positions
The market is consolidated owing to the strong product portfolio and remarkable distribution network of major companies in developed and emerging countries. ABB, GE, Schneider Electric, Eaton, and Mitsubishi Electric Corporation currently holds a major market share in 2020. These players are constantly focusing on new product development and merger & acquisitions in the market. For instance,
Circuit breakers offer a secure and reliable power supply to maintain the continuity of supply. This factor is projected to lead to the healthy growth of the market by 2028. The other key players, such as Super Electrical Co, Roopal Automation Pvt. Ltd., and Square D, have entered the market for providing innovative electrical switching devices to end-users.
An Infographic Representation of Circuit Breaker Market
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The market research report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches have been adopted to make meaningful assumptions and views to formulate the market research report. Furthermore, the report covers a detailed analysis and information as per market segments, including voltage, installation, rated voltage, end-user, and regions, helping our readers to get a comprehensive overview of the global industry.
Value (USD Billion)
By Voltage, By Installation, By Rated Voltage, By End-user, and By Region
By Rated Voltage
Fortune Business Insights says that the global market size was USD 13.99 billion in 2020 and is projected to surpass USD 24.59 billion by 2028.
In 2020, the Asia Pacific market stood at USD 5.39 Billion.
The market will grow at a CAGR of 6.9% during the forecast period (2021-2028)
The medium voltage segment is anticipated to hold a significant share and dominate the market during the forecast period.
An increase in electrification initiatives and electrical safety regulations is the major factor driving the market growth.
GE, Schneider Electric, Eaton, Mitsubishi Electric Corporation, Siemens AG, and CG Power and Industrial Solutions Limited are some of the major players operating in the global market.
The Asia Pacific dominated the market in terms of share in 2020.
The product works for opening and closing the circuit under fault conditions. It is deployed in power plants, industries, and residential and commercial applications where there are huge fire or explosion hazards possibilities.
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