CIRCUIT PROTECTION MARKET ANALYSIS

The global circuit protection market size was valued at US$ 47.02 Billion in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030.  The circuit protection market continues to grow as a result of new requirements, including measurement and communication capabilities, for power management systems. The need to address these challenges also drives the demand for new technologies and improved performance. The growing demand for consumer electronics is also contributing to the growth of the global circuit protection market. 

Global Circuit Protection Market: Regional Insights

North America is anticipated to show substantial growth in the global circuit protection market over the forecast period. The region is shows high demand for IoT devices for improving the operation and to monitor traffic signals power grids. This is further leading to rise in investments in generation of green power and increase in smart city initiatives in the region. Moreover, rise in demand for circuit protection solutions in telecommunication and electronic firms, owing to increasing worries around equipment. These factors are further expected to propel growth of the market in North America over the forecast future.

Furthermore, Asia Pacific is also projected to show robust growth in the global circuit protection market over the forecast period. This can be attributed to increasing urbanization and rise in construction activities across countries in the region leading to high demand for energy. As a result, the demand for circuit protection solutions is likely to increase in the region. Moreover, the sales of electric vehicles is on the rise across the region, which again is contributing to growth of the global circuit protection market in the region.

Figure 1. Global Circuit Protection Market Share (%), By Region, 2023

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Global Circuit Protection Market Drivers:

Constantly growing automotive industry to boost the market growth

The automotive industry is one of the biggest sector all over the world. As the industry continues grow, automakers are constantly investing in R&D and are launching novel models of buses, trucks, and cars. This steady growth of the industry is further benefiting growth of the global circuit protection market. Modern vehicles come with various electronic components for supporting newest features such as multimedia, infotainment, wireless connectivity, embedded control, driving assistance, telematics, and several features of safety & security that work on different networking standards such as LIN, MOST, IDB1394, CAN, Bluetooth, and FlexRAy. Thus, the demand for circuit protection devices is high in automotive industry, which is expected to fuel growth of the global market over the forecast future.

Increasing adoption of Internet of Things (IoT) to augment the market growth

IoT involves connecting different devices for gathering and sharing data. When different devices are connected to smart network, they offer companies and consumers access to real-time data and data analytics to enhance productivity, obtain deeper insights, and to make informed and better decisions. However, installing IoT devices poses risk of system failures owing to overcurrent, temperature, electrostatic discharge, and electromagnetic pulse. For this, circuit protection solutions offer protection to IoT installations from any kind of damages. Thus, with growing adoption of IoT, the demand for circuit protection devices is increasing and this factor is likely to fuel growth of the global circuit protection market over the forecast period.

Global Circuit Protection Market Opportunities:

Growing urbanization and industrialization in emerging countries is likely to bring opportunities in the global circuit protection market over the forecast period. The global population is increasing rapidly along with constant economic growth, and urbanization leading to demand for energy sustainability. Constantly increasing urbanization and industrialization in emerging countries is mainly driving the demand for energy. For instance, according to the United Nations (UN), the global population is likely to grow to 9.7 billion by 2050 from 7.6 billion in 2017.  With growing demand for electricity, the need for circuit protection solutions is also on the rise, this in turn is creating growth opportunities in the market.

Advent of 5G technology is anticipated to generate lucrative opportunities in the global circuit protection market during the forecast period. The use of circuit protection devices is widespread in telecommunication industry. With emergence of 5G technology, market players are increasingly investing in upgrading the infrastructure of telecom through deployment of different equipment that can handle heavy load of communication. These devices are of high cost, and can be affected due to overheating or voltage fluctuation. Thus, the demand for protection from overvoltage is high in this sector, which in turn is likely to offer opportunities in the market.

Global Circuit Protection Market Trends:

Rise in investments in industrial sector is a growing trend

Industrial sector is witnessing rising investment for leveraging the industrial infrastructure. This is further driving the demand for electrical switching devices in the market. The use of electrical switching devices is predominant in commercial and industrial sectors. As per the World Investment Report 2021, Asia Pacific showed US$ 535 billion of inflow from Foreign Direct Investment in 2020. China and Singapore contributed major share in this investment. Thus, the trend of growing industrial investment is in turn expected to aid in growth of the global circuit protection market over the forecast period.

Market players focusing on increasing production is another trend

Major players in the market are focusing on launch of novel products to cater the growing demand for circuit protection solutions. For instance, in February 2018, Mitsubishi Electric Corporation announced development of an integrated automation unit for production of vacuum interrupters and circuit breakers at the company’s Power Distribution System Center in Japan. The new unit focuses on deploying the IoT-based e-Factory of the company for achieving higher efficiency, productivity, and minimizing costs.

Global Circuit Protection Market Restraints:

Increase in cost of raw materials to hinder growth of the market

Raw materials needed to manufacture circuit protection devices include copper, steel, aluminum, and silver, along with other components such as solenoids, Zener diodes, and silicon-avalanche diodes. The cost of these raw materials has been showing gradual increase. Moreover, the COVID-19 pandemic also contributed significantly to the increased cost of these raw materials. As a result, this factor is expected to hamper growth of the global circuit protection market over the forecast period.

Stringent government regulations against use of sulfur hexafluoride (SF6) to limit the market growth

Governments of several countries around the world have implemented various regulations around use of SF6 that potentially influence the global circuit protection market. For instance, regulations around use of SF6-free high voltage circuit breaker technology. As per the Kyoto Protocol, SF6 is major contributor of greenhouse gases. The Intergovernmental Panel on Climate Change has listed SF6 among the harmful greenhouse gases. This factor is further expected to hinder growth of the global circuit protection market over the forecast period. However, market players are also developing alternatives for high voltage applications, which is expected to aid in growth of the market in the near future.

Figure 2: Global Circuit Protection Market Share (%), By Channel, 2023

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Global Circuit Protection Market Segmentation:

The global circuit protection market report is segmented into Product, Channel, and Application

Based on Product, the market is segmented into Circuit Breaker, Fuse, HD Pro, Inrush Current Limiter, Mobile Power Protection, Overvoltage Protection, PTC Devices, and GFCI. Out of which, Circuit Breaker is expected to dominate the global market over the forecast period and this is attributed to the rise in demand for energy efficiency, better electrical connectivity, as well as smart grids leading to growing development of low-voltage circuit breakers with high quality, accuracy, and reliability. Moreover, increasing investment in power generation with a focus on using RE sources among various other factors is also driving growth of this segment.

Fuse segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for battery capacity and vehicle power in electrical and hybrid vehicles. This in turn is driving the need for fast-acting fuses for traction and motor batteries. Along with this, rise in use of industrial equipment, consumer electronics, increase in safety concerns around electric switches are also anticipated to drive growth of Fuse segment.

Based on Channel, the market is segmented into OEM, Retail, and Wholesale. Out of which, OEM is expected to dominate the global market over the forecast period and this is attributed to the growing energy costs, shorter product life cycles, stringent government regulations, and intense global competition. Due to this the need for innovation and implementation partners is increasing in OEM channel. As a result, the segment is likely to gain strong growth in the near future.

Retail segment is also expected to witness significant growth in the near future and this is owing to the low cost investment, improved visibility of electrical products, and availability of training sessions for suppliers. Retailers use offline channel so they can run their business and reduce marketing budgets investments. Offline stores also help build a brand and enhance product visibility. Thus, these factors are further driving the demand for retail channels, which in turn is expected to support growth of this segment.

Based on Application, the market is segmented into Agriculture, Automotive, Commercial & Residential Building, Household Appliances, HVAC, Power Generation, Recreational Vehicle, Telecom, and Others. Out of which, Agriculture is expected to dominate the global market over the forecast period and this is attributed to the widespread use of circuit protection devices in the industry, as agricultural workers are highly prone to electrical hazards through various situations. The popularity of circuit protection devices has increased in the industry to protect equipment, farmlands, and buildings from electrical fires caused due to short-circuit or overloads on the electrical systems.

Commercial & Residential Building segment is also expected to witness significant growth in the near future and this is owing to the growing importance and need for circuit protection devices to maintain safety of people and cut down risk of fire. Due to rise in incidences causing huge losses to industry due to short circuits and electrical faults, the demand for these solutions is high in commercial and residential buildings.

Global Circuit Protection Market: Key Developments

In January 2021, ABB Ltd. Introduced novel products of Residual Current Circuit Breakers (RCCBs), Isolators, Miniature Circuit Breakers (MCBs) for India’s electrical retail market. These products are designed for protecting electrical circuits from damages occurring due to overload, short circuits, and earth leakages in the buildings.

In January 2021, Bel Fuse Inc. completed acquisition of rms Connectors Inc. With this strategic acquisition Bel Fuse expanded its portfolio of Mil-Spec qualified connectors and it will help the company also for increasing revenue opportunities in military and aerospace sector.

In August 2020, Schneider Electric SE revealed its ComPacT, a novel circuit breaker with molded case redesigned for improving the panel builders and efficiency. It is built for improving the advanced monitoring capabilities through various modular plug-and-play and connectivity-ready accessories.

In December 2020, Mitsubishi Electric Corporation introduced its novel AE V Series C-class air circuit breaker having nearly 50kA breaking capacity. The novel ACB is intended for providing built-in features, which will help cut down stress of installation and maintenance as it eliminates additional parts required for achieving operations remotely.

Global Circuit Protection Market: Key Companies Insights

The global circuit protection market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global circuit protection market are ABB Ltd., NXP Semiconductors N.V., Bel Fuse Inc., Larsen & Toubro Limited, Schneider Electric SE, Rockwell Automation, Inc., Mitsubishi Electric Corporation, Siemens AG, Eaton Corporation plc., and General Electric Company.

*Definition: Circuit Protection solutions help ensure the safety and function of devices in harsh environments. This is especially important as equipment is miniaturized and becomes more susceptible to voltage spikes and electrical surges.