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The global circuit breaker market size was USD 16.04 billion in 2019 and is projected to reach USD 25.85 billion by 2027, exhibiting a CAGR of 6.6% during the forecast period.
A circuit breaker is an electrical switching device that can be operated manually or automatically for protecting and controlling an electrical power system. During a short circuit or other type of electrical fault, a high fault current usually flows through the device that trips the circuit. 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 application areas for protecting 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. When the two contacts lose touch, arcing may occur 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 circuit breakers in the global market.
Significant Downfall in Developing Power Infrastructure Due to Outbreak of COVID-19
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 drop occurs in the investment power industry.
The widespread effect of COVID-19 has resulted in total shutdown of businesses in countries such as China and India that is leading to reduced spending on household appliances by the consumers. With more countries announcing lockdowns to stop the COVID-19 spread, the utility spending for investing in grid projects has declined at a faster rate. Additionally, sluggish demand due to a decrease in consumer spending across various applications has impacted the global demand. However, the market is expected to gain momentum owing to the heavy investments for developing energy infrastructures from emerging economies.
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Increasing Reliability and Secure Power Supply to Fuel the Market Growth
The increasing urbanization rate and significant growth in the infrastructure services are propelling the need for reliable and secure power, which in turn is driving the demand for breaker devices. As per the global market trends in renewable energy investment 2020, the new renewable power capacity increased by 184 Gigawatts, by 20GW more than in 2018. The growing demand for renewable power is increasing the focus on the secured power supply, which is expected to grow and to drive the demand in the forthcoming years. For instance, in March 2017, the World Bank (WB) approved USD 100 million for large-scale solar parks in India, which facilitated an increase in electricity generated in solar parks and provided reliable and secure power. Hence, the increasing investment and the emerging need for secure and dependable power supply are expected to propel the market growth during the forecast period.
Increasing Investment in Industrial Sector to Surge Demand
The increasing investment in the industrial sector and the growing investment to leverage the industrial infrastructure is increasing the demand for these breakers in the global market. These devices are predominantly used in the industrial and commercial sectors. According to the World Investment Report 2018, Asia-Pacific received an inflow of USD 476 billion from Foreign Direct Investment (FDI) in the year 2017, 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 that is expected to lead to the availability of abundant electrical energy. For instance, in 2018, the World Bank Group announced the investment of around USD 200 billion in the coming five years to combat climate change, which includes supporting the generation, integration, and enabling of infrastructure for 36 GW of renewable energy, and supporting 1.5 million GWh-equivalent of energy savings through efficiency improvement. Hence, the adoption of these breakers for safe and reliable operations of gadgets and devices is driving the demand for infrastructure projects globally. This is expected to bode well for the 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 buildings, commercial buildings, industries, and utility-scale grids. Every home, office, etc., has a circuit breaker installed. As a result of rapidly increasing urbanization and modernization, the breakers have become an essential part of every structure. Frequent amendments have been undergone, such as adhering to strict compliance of test procedures for breakers and switchgear, which are used in electrical distribution systems. Some of the heavy load equipment requires the adoption of individual breakers of circuits 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 growth of the market during the forecast period.
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Medium Voltage Circuit Breakers to have The Largest Market Growth
Based on voltage, the market is classified in low voltage, medium voltage, and high voltage. Low voltage breakers are used more 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 breakers 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 as a result of the introduction of high voltage DC cables.
Increasing Adoption in Industrial Applications to Promote Growth
Based on end-user, the market is segmented into residential, commercial, industrial, and utility.
Residential end-users use 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 VCB or Vacuum circuit breakers along with MCB and MCCB are used in industrial applications. The electric utility requires the use of all voltage ranges of breakers. Majorly medium and high voltage is used for utility applications. Due to environmental concerns, SF6 based breakers are losing popularity in utility-scale applications, and an alternative for this is under research, development, and demonstration phase.
Outdoor Segment to Hold a Dominant Market Share
Based on the installation, the market is segmented into indoor and outdoor. The majority of the breakers installed are outdoor. The market size of outdoor breakers is almost double to that of the indoor. 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.
15-50 kV 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. Circuit breakers having rated voltage between 1KV to 70kV are in the medium voltage category. Breakers with rating capacity of 15-50kV are dominating the circuit breaker market share owing to 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 in the global market.
Asia-Pacific region currently holds the largest market share and is anticipated to dominate the global market during the forecast period. The growth of the region is attributable to increasing infrastructural development, commercial projects, and industries. Asia-Pacific region is the manufacturing hub across the globe and a variety of these breakers are used in every industrial and manufacturing unit. Growing number of manufacturing and industrial units in the Asia Pacific region is expected to boost the demand for these switching devices in the region.
Breakers are further used in railways, metros, commercial centers, bullet trains, IT hubs, etc. which require a stable and reliable electricity supply. Rapid urbanization has increased the demand for these devices. The increase in the number of power generation plants and transmission infrastructure has increased the demand for these switching devices. China, the Republic of South Korea, Japan, India, etc. are the world leaders in technology and production of these devices.
Europe and North America are expected to experience a steady growth in the global market. The modernization and automation of existing industries in these regions are projected to boost the market. The increasing investment in developing infrastructure has 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 circuit breakers. The offshore wind production units worldwide use high voltage cables to feed into the grid in the mainland. Hence, the growing industrial investment, along with rapid urbanization, drives the demand for these devices 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. Currently, ABB, GE, Schneider Electric, Eaton, and Mitsubishi Electric Corporation hold the major portion of market share in 2019. They offer secure and reliable power supply to maintain the continuity of supply. This is projected to lead to the healthy growth of the market by 2027. The other key players such as Super Electrical Co, Roopal Automation Pvt. Ltd., and Square D have entered the market for providing innovative circuit breakers to end-users.
An Infographic Representation of Circuit Breaker Market
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The increased rural electrification initiatives & need for electrical safety devices in buildings, industries, etc. and introduction of new products based on advanced technologies is expected to increase the market size in the projected period. Along with this, the report provides an elaborative circuit breaker industry analysis of the global market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail industry trends, competitive landscape and company profiles.
Value (USD Billion)
By End User
By Rated Voltage
Fortune Business Insights says that the global circuit breaker market size was USD 16.04 billion in 2019 and is projected to reach USD 25.85 billion by 2027.
Growing at a CAGR of 6.6%, the market will exhibit steady growth in the forecast period (2020-2027).
In 2019, the Asia pacific market value stood at USD 6.14 billion.
The medium voltage segment is anticipated to be the leading segment in this market during the forecast period.
An increase in electrification initiatives and electrical safety regulations are major factors driving the growth of the market.
GE, Schneider Electric, Eaton, Mitsubishi Electric Corporation, Siemens AG, and CG Power and Industrial Solutions Limited are among the major players operating in the global market.
Asia Pacific dominated the market share in 2019.
These devices work for opening and closing the circuit under fault condition. It is deployed in power plants, industries, residential and commercial applications where there are huge possibilities of fire or explosion hazards.
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