CIRCUIT BREAKER AND FUSES MARKET ANALYSIS

A circuit breaker is an automatically operated electrical switch, which is designed to protect an electrical circuit from damages caused by excess current from an overload or short circuit. Its primary function is to interrupt current flow after a fault is detected. Furthermore, an electrical fuse is an electrical safety device, which operates to provide overcurrent protection of an electrical circuit. In layman’s terms, circuit breakers and fuses interrupt the flow of electricity, thereby preventing electricity overload. Quantity of electricity on an electric line depends on production, transmission, weather, associated equipment, the status of other transmission lines, and consumer usage. Transmission outage shifts the electricity around the blockage onto adjacent lines.

The global circuit breaker and fuses market is estimated to be valued at US$ 17.7 billion in 2021 and is expected to exhibit a CAGR of 5.2% over the forecast period (2021-2028).

Recent Developments:

• In September 2020, Siemens launched the type SDV-R non-arc-resistant and type SDV-R-AR arc-resistant medium-voltage outdoor distribution circuit breakers that are designed for renewable energy applications, such as wind power generation.
• In January 2020, Siemens acquired C&S Electric, a manufacturer of electrical and electronic equipment, to cater to the growing need for electrification products.
• In September 2020, Eaton Cummins Automated Transmission Technologies announced the expansion of the Endurant Automated Transmission lineup with the launch of the Endurant XD series. The series is high-performance automated transmissions designed for on-highway applications, such as double and triple trailer trucks, and severe-duty on/off highway applications like dump and logging trucks.

Asia Pacific held dominant position in the global circuit breaker and fuses market in 2020, accounting for 30.5% share in terms of volume, followed by North America and Europe, respectively.

Figure 1. Global Circuit Breaker and Fuses Market Value (US$ 5.11 Bn), by Region, 2020

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Market Dynamics- Drivers

Increasing demand for electricity and reliable power delivery is expected to drive growth of the global circuit breaker and fuses market during the forecast period. The demand for electricity has increased significantly in the recent past due to rising population, technological advancements, and rapid economic growth. New upgrades and higher capacity in power infrastructure are required, in order to cater to increasing demand. Since electronic devices are vulnerable to failure due to power fluctuations, government and private agencies around the world have mandated the inclusion of device protection components such circuit breakers and fuses.

Inadequate electric power infrastructure is expected to propel the global circuit breaker and fuses market growth over the forecast period. Currently, in many countries, there is presence of power infrastructure that cannot uphold the standards of quality and bulk power movement needed. Aging electric infrastructure reflects the technology that was developed in the early 1940s, thereby largely characterizing the power delivery system. According to the U.S. Department of Energy, 60% of circuit breakers are more than 30 years old and 70% of transformers and transmission lines are over 25 years old. Furthermore, according to the Coherent Market Insights’ analysis, investment in transition and distribution infrastructure has decreased to 40% from 1980 to 1999 with electricity usage increased by around 58%.

Market Opportunities

Growing demand for solar energy and smart meters can provide major business opportunities. Applications of fuses and circuit breakers have grown by around 400% in the past few years. Electric vehicles, smart meters and solar energy are estimated to be the emerging markets for circuit breakers and fuses. From window lift motors to cooling fans in automation devices, there is a need for circuit breakers and fuses to protect devices from overheating. There is a greater diversity of fuses in vehicles as vehicles are consuming more power than before. Hence, the count of fuses in vehicles is projected to increase. Usage of smart grids helps to update electric grids with reliability and efficiency. The persistent adoption of smart grid technologies is expected to provide growth opportunities for the circuit breakers and fuses market.

Rising smart city projects can present lucrative growth opportunities. Many countries have started launching smart city projects with significant investment involved in it. These smart city projects promote the use of smart meters and smart grids, in order to enhance the efficiency of electricity usage and reduce losses. For instance, in June 2015, the Government of India launched ‘100 Smart Cities Mission’, a smart city project with an investment of US$ 14 billion.

Market Trends

Key companies in the market are focused on research and development activities, in order to enhance the product portfolio and gain a competitive edge in the market. For instance, in March 2014, ABB Ltd launched SACE FORMULA, a complete range of low voltage circuit breakers, for the market in Malaysia. Furthermore, in August 2012, ABB Ltd. launched a new environment-friendly, carbon dioxide live tank high-voltage circuit breaker.

Major companies in the market are involved in strategic partnerships, in order to strengthen the market presence. For instance, in April 2013, Alstom partnered with Soyuz Holding S.A. to manufacture and distribute high voltage switch gears for modernizing the Russian electrical grid. This partnership deal includes manufacturing of 110-220 kV circuit breakers and an additional range up to 500kV.

Figure 2. Global Circuit Breaker and Fuses Market Share, By Circuit breakers, 2020

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Key Takeaways of the Graph:

• The Low voltage held dominant position in the market and accounted for 38.47% share in the global circuit breaker and fuses market in 2020. The segment is expected to reach US$ 7.83 billion in 2028, owing to owing to provide short circuit protection and overload protection.
• In 2020, the Cartridge fuses accounted for the largest share of 52.48% in the global circuit breaker and fuses market and is expected to be valued at US$ 1.63 billion by 2028. This is owing to provide short circuit protection and overload protection.

Market Dynamics- Restraints

High cost of raw materials is expected to restrain growth of global circuit breaker and fuses market during the forecast period. Circuit breakers are comprised of various components such as switching mechanisms and diodes. Some of these components contain silver and gold and thus have high cost of raw materials. According to the World Gold Council, around 7% of world demand for gold is for technical applications. The prices of raw materials such as gold and silver have been going up for more than a decade. According to the World Gold Council, the average gold price in 2000 was US$279.11 per ounce whereas the average gold price in 2010 was US$ 1,224.53 per ounce, an increase of 338.7%.

Strict regulatory norms concerning environmental safety are expected to hamper the global circuit breaker and fuses market growth over the forecast period. Many countries have started imposing stringent environmental regulations and safety rules for Sf6 circuit breakers. These strict rules are challenging to comply with and lead to additional manufacturing costs.

Competitive Section

Key players operating in the global circuit breaker and fuses market are ABB Ltd, Toshiba Corporation, Alstom SA, Siemens AG, Eaton Corporation, Schneider Electric SA, G&W Electric Company, Pennsylvania Breaker, LLC, General Electric, Mitsubishi Electric, and Maxwell Technologies Ltd.