Global Protective Relay Market Growth Fueled by Construction of Transformers

Protective relays are sensing devices deemed to trip a circuit breaker on the detection of faults. They are used to protect generators, motors, and other machines requiring a continuous supply of current. The report on the global protective relay market by Market Research Future (MRFR) covers trends in manufacturing and opportunities for the industry for the forecast period (2021-2027). The effects of the COVID-19 pandemic on the market value are discussed in high detail.

Market Scope

The global protective relay market size is set to reach USD 2,791.7 million by 2027. It can display a CAGR of 6% over the forecast period.

Investments in Infrastructure Projects to Influence Market Demand

The increasing consumption of energy as well as investments in infrastructure projects can drive demand for protective relays. Installation of smart grids for energy management for alleviating damages caused by system failure can bode well for the market. As per the report by the National Fire Protection Association, 24.6% of deaths occurred during installation, repair, and maintenance jobs during the period of 2014 to 2018. Concerns over environmental damage and expansion into renewable energy investments can pave way for future demand.

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Adoption of Renewable Energy Sources to be Profitable for Global Market

The adoption of renewable energy sources for mitigating the effects of grid failures and power outages. Increased construction of substations and need for commercial and residential use for supply of ower can create the need for protective relays. Protective relays can activate circuit breakers and alarm switches during surges in voltage levels. Emphasis on safety of workers as well as demand for relays for prevention of accidents can drive market growth.

Huge Installation Costs to Hamper Market Growth

Huge installation costs of protective relays and exorbitant costs of maintenance and repairs can deter market growth.

COVID-19 Impact Analysis

The COVID-19 pandemic can have a negligible effect on the protective relay market owing to demand for protection and control safeguards for protecting grids and transformers. This is evident with frequent power outages caused by natural disasters and investment by utility providers for modernizing electrical infrastructure. Moreover, the expanded government expenditure for upgrading electrical infrastructure can be opportune for the market over the forecast period.

Segmentation Analysis

Digital/Numerical Relays to be Preferred Operating Mechanism

Digital/numerical relays are expected to be the preferred technology owing to development of transmission and distribution infrastructure, implementation of smart grids, and automation of substations. Digital and numeric protective relays contain multiple protective features for self-test functions, communication, and metering through algorithms.

Motors to be Biggest Market Application

Motors are estimated to gain the moat of protective relays during the forecast period owing to increasing dependence in commercial and manufacturing sectors. Rise in mining activities in South Korea, Japan, China, and India can drive segment growth.

Utility to Capture Largest Market Share

The utility sector is expected to capture the lion’s share of the protective relay market owing to its utilization in protection of busbars, transformers, feeders, and substations. Replacement of electromechanical relays and modernization of grids can drive the demand in the sector.

Regional Analysis

APAC to Dominate Global Market Demand

Asia-Pacific (APAC) is set to dominate market demand over the forecast period owing to high frequency of power outages and increasing population in countries of China, India, Indonesia, Singapore, and others. Collaborations and agreements between players and utility providers can be witnessed in the coming years. Modernization of grid infrastructure and huge potential in low voltage and industrial automation solutions.

Competitive Analysis

Rockwell Automation, Inc. (US), Mitsubishi Electric Corporation (Japan), SEG Electronics GmbH (Germany), Littelfuse, Inc. (US), Orion Italia s.r.l (Italy), Basler Electric (US), CIRCUTOR, SA (Spain), Toshiba Corporation (Japan), Siemens AG (Germany), Hitachi ABB Power Grids Ltd (Switzerland), WEG (Brazil), Schneider Electric (France), Fuji Electric Co. Ltd (Japan), Woodward, Inc. (US), PBSI Group (UK), General Electric (US), Eaton (Ireland), Schweitzer Engineering Laboratories, Inc. (US), and TE Connectivity Ltd. (Switzerland) are prominent players of the global protective relay market. Investments in transmission and distribution infrastructure coupled with open auctions held by governments can create opportunities of growth for the players.

Industry Update

The REX610 protective relay from ABB Ltd has been designed to support safe and smart electrification. It can provide protection to power distribution applications.