Noida, India, Sept. 16, 2021 (GLOBE NEWSWIRE) -- The global circuit breaker market is anticipated to grow due to the increasing demand for power supply and transmission from across the globe. Additionally, increasing investment in the renewable energy sector accompanied by rising concerns toward the environment is propelling the growth of the global circuit breaker market.
A study recently conducted by the strategic consulting and market research company, BlueWeave Consulting, revealed that the global circuit breaker market was worth USD 5.8 billion in 2020. The market is further projected to , at a CAGR of 6.0% during the forecast period (2021-2027). Circuit breakers are automatic electrical switches that protect a circuit from damage due to excessive electrical supply. The majority of their applications focus on power production, renewable energy, and other areas. The global circuit breaker market is witnessing impressive growth mainly due to a large inflow of investments in renewable energy resources for generating power, paired with a secure and reliable electricity supply across the globe. For instance, a US$ 5-10 billion green energy investment is slated for Tamil Nadu in a move to increase its green energy footprint, including the creation of an energy island in the Gulf of Mannar in association with Denmark. The island has the potential to produce 4-10 Gw. The growing investment for research and development in the electrification sector, accompanied by rising concerns toward the environment, is also driving the growth of the global circuit breaker market.
Increasing investment in electrification to propel the adoption of circuit breaker
Many developing nations have started initiating the process of electrifying rural areas to provide a regular power supply by connecting them to the grid. The development of electrical infrastructure to supply ample electricity to rural areas under electrification initiatives has fueled the growth of the global circuit breaker market. According to the World Bank, more than 90% of the world's population has access to electricity as of 2019, with over 759 million people still waiting for access to electricity. Many companies across the developed nations have started initiating projects for uplifting and improving access to electricity across the developed nations. In September 2021, Siemens Energy signed a contract with Aker Solutions ASA for an electrification project operated in the North Sea. As a result of this, many other companies are looking forward to contacting the developing nations to provide and improve access to electricity, thereby enhancing the quality of life of the people. The growing allocation of investments and due emphasis on the penetration of electricity in developing nations are driving the growth of the global circuit breaker market.
Technological advancement and newer smart cities projects are driving the growth of the global circuit breaker market
Increasing technological advancements in engineering and technology have created lucrative opportunities in the global circuit breaker market. As a result of this development and growing adoption rates of the smart grid and digital circuit breaker systems, the global circuit breaker market is experiencing a wealth of opportunities. The growing investment for the construction of smart cities like the NEOM smart city projects in Saudi Arabia and the Zayed Smart City Project in the UAE are pushing for the demand for renewable sources of electricity. Since solid-state circuit breakers happen to be the most renewable source for protecting electricity, there is a growing demand for such circuit breakers. Additionally, Germany's Technical University began to develop electrical circuit breakers on a large scale for electrical devices and systems in May 2020. The project is on track for completion in 2023. A total of USD 1.54 million has been allocated toward this project by the Federal Ministry for Economic Affairs and Energy at TU Ilmenau. Therefore, the factors mentioned above are positively contributing to the growth of the global circuit breaker market.
Renewable energy to grow at the fastest pace in the end-user segment of global circuit breaker market
The end-user segment comprises T&D utilities, power generation, renewables energy, railway, and others. Across these end-users, the renewable energy segment is likely to grow at the fastest CAGR in the global circuit breaker market, generating considerable revenue. The segment has grown as countries have started shifting their focus toward renewable energy sources for power generation and transmission. According to U.S. Energy Information Administration, renewable energy consumption in the United States increased for the fifth year in a row in 2020, reaching a new high of 11.6 quadrillion British thermal units (Btu), or 12% of overall energy consumption in the country. The growing demand for renewable sources of energy can be also be attributed to the growing concerns toward climate change, which is responsible for increasing the annual average temperature of the planet. Thus, the growing adoption of renewable energy is a leading factor contributing to the growth of the global circuit breaker market.
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Impact of COVID-19 on the Global Circuit Breaker Market
In March 2020, WHO stated that the world has been experiencing a global pandemic, causing a panic situation across the globe. Many government organizations issued orders for the temporary closure of the factories and industries barring the ones associated with food and beverage and the pharmaceutical to control the spread of the virus. As soon as countries imposed nationwide lockdowns to prevent the spread of the virus, the demand for electricity and power declined. Government and corporate offices were closed, and the world almost came to a standstill for a few months.
In the first quarter of 2020, the International Energy Agency (IEA) reported a 2.5% drop in electricity demand, with some countries witnessing a drop as steep as 15%. In February 2020, China saw a 13% decline in electricity demand as compared to February 2019. The decrease in Feb 2020 was higher than in Jan 2020, when China announced lockdown due to the COVID-19 outbreak. However, in April 2020, the demand accelerated, and since then has maintained a higher value than the demand in 2019. Additionally, the growing adoption of work from home has resulted in increased demand for electricity lately, which is anticipated to enhance and reach a level close to the pre-pandemic levels in the coming years. The due emphasis on the adoption of renewable energy sources is also anticipated to bolster the growth of the global circuit breaker market in the coming years.
Global Circuit Breaker Market: Regional Insights
Geographically, the global circuit breaker market is categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America. The Asia-Pacific accounted for the largest share in the global circuit breaker market in 2020 and is likely to dominate during the forecast period. The growth in the global circuit breaker market is prominently due to the enormous power distribution and transmission system in countries such as China, India, Japan, South Korea, and others. In addition, Asia-Pacific has the most extensive railway transportation system across the globe, which has further driven the region's growth. Further, investments made in the renewable energy sector have organically driven the market. According to India’s Reliance Industries, the company expects to generate at least 100 gigawatts of renewable energy by 2030, which will be converted to carbon-free green hydrogen.
Global Circuit Breaker Market - Competitive Landscape
Some of the key players in the global circuit breaker market are ABB Ltd., Schneider Electric SE, Siemens AG, Mitsubishi Electric Corporation, Eaton Corporation, CG Power and Industrial Solutions, XIGAO Group, LS ELECTRIC, Huayi Electric Co., Ltd., Myers Power Products Inc., Larsen & Toubro Ltd., TE Connectivity, Meidensha Corporation, Toshiba Corporation, Powell Industries Inc., and other prominent players. Circuit breakers are used to protect transmission systems against fluctuations, making them safer and more secure. As a result, companies are earmarking huge investment for the research and development of environmentally friendly circuit breakers to enable them in capturing a higher share among key players in the global circuit breaker market and gain a competitive edge over others.
In January 2021, ABB Ltd. India announced the launch of Formula DIN-Rail, which encompasses a whole range of miniature circuit breakers (MCBs), and residual current circuit breakers (RCCBs) designed specifically for the electrical retail market. ABB Ltd.'s Formula DIN-Rail portfolio offers and enables optimal protection to electrical circuits from possible damages caused by an excessive power supply, earth leakages and short circuits in buildings.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global circuit breakermarket. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global ¬¬¬circuit breakermarket, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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