CIRCUIT PROTECTION MARKET ANALYSIS

Market Challenges And Opportunities

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 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.