Residual Current Devices Market Size, Share, and Industry Analysis, By Type (Type AC, Type A, Type F, Type B+, and Others), By Network (2 Pole, 3 Pole, and 4 Pole), By End User (Residential, Commercial, and Industrial), and Regional Forecast till 2032

The global residual current devices market is expanding considering the surge in construction activities and the extensive consumption of electricity in the commercial, residential, and industrial sectors.

Residual Current Devices (RCDs) are safety devices that prevent electrical shock by immediately cutting off the electrical supply when they detect a difference between the live and neutral currents. This difference usually occurs due to current leakage to the ground, often due to faulty appliances or wiring.

• According to the United Nations Environment Program, in 2022, the global buildings sector used 30% of the global energy. Energy demand in the sector has been growing by a little more than 1% each year. Electricity use in buildings increased from 30% in 2010 to 35% in 2022 as more buildings started using renewable energy sources. The energy used for making construction materials has also reached 34%.

Residual Current Devices Market Driver

Rising Safety Regulations for the Construction of Buildings to Impede Market Expansion

The growth in the population and urbanization have fueled the construction of buildings, including residential, commercial, and industrial, to fulfill individuals' requirements. The governments of many countries have implemented stricter safety codes and regulations to increase the safety of buildings and individuals, which has led to the adoption of residual current devices.

• The National Electrical Code (NEC), or NFPA 70, is a U.S. standard for safely installing electrical wiring and equipment published by the National Fire Protection Association (NFPA). The NEC provides a standardized set of rules for safe electrical installations, which local inspectors enforce.

Residual Current Devices Market Restraint

Requirement for Advanced Costly Residual Current Devices in Renewable Energy to Limit the Market Growth

The rise of renewable energy, such as solar power, creates challenges for RCDs, as DC currents from solar inverters require more advanced (and costly) Type B RCDs. This complexity and higher cost can slow the adoption of green building projects. To overcome this, manufacturers should develop affordable RCDs designed for renewable energy and raise awareness about the importance of proper protection, which could boost market growth.

Residual Current Devices Market Opportunity

Growing Demand for Smart Building Solutions to Fuel the Market Growth

The growth and modernization of cities across the globe are leading to a surge in smart and technologically advanced buildings, which further require advanced electrical systems to ensure safety. Smart buildings, which integrate connected technologies, rely on residual current devices to protect complex electrical networks and prevent electrical hazards.

• In July 2024, Talat Moustafa Group Saudi Arabia started building "Banan City," a large smart city project northeast of Riyadh. This follows an advertising campaign launched two months ago. Construction has begun on the 10-million-square-meter site, and hundreds of heavy machines are in use to meet deadlines.

Segmentation

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Countries
• Latest Technological Advancements
• Insight on Regulatory Landscape
• Porters Five Forces Analysis
• Impact of COVID-19 on the Market 

Analysis by Type

Based on type, the market is segmented into Type AC, Type A, Type F, Type B+, and others.

The Type AC segment holds the dominant share in the market owing to its widespread use in residential applications where the current is purely alternating. It is designed to detect and protect against circuits carrying pure alternating current (AC) faults, making it ideal for traditional residential applications such as lighting and basic appliances.

Analysis by Network

Based on network, the market is segmented into 2 pole, 3 pole, and 4 pole. The 2 Pole segment holds the dominant share in the market owing to its wide installations in residential and small commercial applications. Demand for 2 poles is forecasted to grow over the coming years due to the ongoing construction of homes and small-scale commercial properties, the surging population and urbanization.

Analysis by End User

Based on end user, the residual current devices market is divided into residential, commercial, and industrial.

The residential segment holds the largest share of the market, primarily driven by strict safety regulations and the widespread use of RCDs in homes to protect against electrical faults. Most new housing developments and renovations require the installation of RCDs to ensure electrical safety, especially in regions where electrical codes mandate them.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific accounted for the largest share of the global residual current devices market in 2023. The market is projected to grow in the region owing to rising government initiatives toward safety in the building and construction sector. Additionally, the rising population in regional countries such as China, India, Indonesia, and others has led to a surge in building construction, further contributing to the market growth.

• From July 1, 2024, all homes in Singapore should have residual current circuit breakers installed, according to the Energy Market Authority (EMA) and the Housing and Development Board (HDB). Homeowners will have a two-year grace period to complete the installation.

North America is the second-largest region in the global residual current devices market due to the increasing awareness of electrical safety regulations and the implementation of stringent building codes by the governments of the U.S. and Canada. Additionally, the soaring installations of renewable energy systems, such as solar power, require advanced electrical protection, further driving the demand for residual current devices in the region.

• According to the Solar Energy Industries Association, in 2023, the U.S. solar industry added a record 32.4 gigawatts (GW) of new capacity, a 37% increase from the previous record in 2021 and around 51% jump from 2022.

Furthermore, various initiatives have been introduced regarding the safety of buildings in countries of other regions, such as Europe, the Middle East, Africa, and Latin America, which will enhance the global residual current devices market over the forecast period.

Key Players Covered

The global residual current devices market is fragmented, with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Siemens AG (Germany)
• Eaton (Ireland)
• Legrand (France)
• Honeywell International Inc. (U.S.)
• ABB (Switzerland)
• Schneider Electric (France)
• Gewiss S.p.A. (Italy)
• HPL Electric & Power Limited (India)
• Rockwell Automation, Inc. (U.S.)
• Hager Group (Germany)

Key Industry Developments

• In March 2024, ABB introduced the FlexLine modular protection devices, designed for quick and flexible installation in residential and small commercial buildings. The range includes Miniature Circuit Breakers (MCBs), Residual Current Devices (RCDs), and Arc Fault Detection Devices (AFDDs), all featuring push-in technology which allows them to be easily combined on a single busbar, streamlining the installation process.
• In February 2024, Schneider Electric introduced Acti9 Active, a modular circuit protection range designed specifically for the U.K. market. This innovative solution is ideal for higher-risk residential buildings, HMOs, offices, and care homes, meeting the sustainable needs of electricians, facilities managers, and design firms. Acti9 Active is scalable and works with the Acti9 Isopar P distribution board, growing with business needs.