Global Circuit Breaker Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2031

A circuit breaker is an electrical switch designed to protect an electrical circuit from damage caused by electric current overload and short circuit. When electrical wiring in a building has excess current flowing through it, these simple machines cut the power, safeguarding the electrical appliances in the circuit.

In modern society, household electricity would be impractical without circuit breakers (or the alternative fuses) due to the risk of flames and other havoc caused by simple wiring issues and equipment failures.

The circuit breakers have become an essential part of electrical networks in utility-scale grids, residential buildings, commercial buildings, industries. In addition, modernization and urbanization have made circuit breakers an essential component.

Renewable energy sources such as solar and wind, which are on the rise globally, also require a dedicated safety system to protect the circuit from sudden energy bursts.

Circuit Breakers are further used in railways, metros, commercial centers, bullet trains, IT hubs, etc., requiring a stable and reliable electricity supply. In addition, rapid urbanization has increased the demand for these devices, increasing the circuit breakers demand. 

Circuit Breaker Market Drivers

Rising demand for electricity

The global electricity demand is expected to grow at the rate of 5% in 2021 and 4% in 2022 owing to the global economic recovery, after falling by about 1% in 2020 due to the pandemic.

Coal consumption in South-East Asia has more than doubled in the past decade, with the most significant growth in Indonesia and Vietnam, followed by Malaysia and the Philippines. Vietnams coal use increased by 4% in 2020, making it the only country after China to register a coal use increase in 2020.

The introduction of new technologies demanding high power, e.g., cryptocurrency, is expected to boom in the future. The University of Cambridge's bitcoin electricity consumption Index states that bitcoin miners are expected to consume roughly 130 Terawatt-hours of energy, roughly 0.6% of global electricity consumption. 

The introduction of 5G technology also demands high power for its operation. Therefore, as the adoption of 5G surges, the investment in 5G related infrastructure is expected to rise by Telecos and Tower companies; This, in turn, is set to boost power demand significantly. 

The advent of electric vehicles is also bound to increase energy consumption. An average EV requires 30 kilowatts-hours to travel 100 miles- the same amount of electricity an average American home uses each day. According to the US Department of Energy, increased electrification across all sectors of the economy could raise national consumption by as much as 38% by 2050, largely because of electric vehicles.

The global household electricity consumption has increased by 40% as the citizens are forced to work from home. In addition, the growing adoption of electrical home appliances due to the rise in consumer disposable income and high living standards encourages consumers to buy different electrical appliances, which is further expected to increase the electricity demand.

Rising demand for remote area power supply networks and investments in research and development from leading industry participants to integrate versatile & advanced products will promote the demand for circuit breakers.

The rising self-governed private substations across educational institutions, hospitals and commercial establishments will positively influence industry dynamics.

Large-scale suburban migration has led to a surge in energy consumption, strengthening the adoption of circuit protection equipment. Henceforth, positive regulatory & consumer inclination towards the integration of safe and secure electrical infrastructure will complement the overall industry outlook.

The ongoing rural electrification projects and the regulatory initiatives to integrate distributed energy generation systems, growing investments in power generation, the increase in power generation plants, and development of electric T&D infrastructure have increased the demand for these switching devices.

Other Drivers Include:

• Rising deployment of renewable energy systems
• Evolving T & D infrastructure
• Expansion of smart grids
• Integration of Distributed Energy Sources

As smart grids and renewable electric networks penetrate the power industry, restructuring & revamping the existing infrastructure and the demand for safe & secure operations will, in turn, will foster the market demand for circuit breakers. 

Restraints

• Stringent emission regulations can restrain SF6 circuit breakers widely used in medium and high voltage systems.
• Competition from alternatives such as fusible switches

Opportunities

• Renovation of aging grid infrastructure and the need for more reliable T&D networks
• The advent of concepts like smart cities is anticipated to provide growth opportunities. 

Key Developments

• In Feb 2022, Eaton Corporation agreed to integrate its smart breakers and EV charging technology with LG Electronics for flexible energy management as part of a partnership between the two.
• In Sept 2021, International Electrotechnical Commission approved a residential solid state circuit breaker for commercial use for the first time.
• In July 2021, Infineon Technologies partnered with Amber Solutions to digitally control electricity with embedded intelligence. The collaboration will focus on upgrading the power management architecture in smart circuit breakers, light switches, and outlets to the partnership's solutions. 
• In January 2021, Benshaw Inc. launched the UL 489/CSA 22.2 rated Molded Case Circuit Breakers (MCCBs). These MCCBs offer a reliable overload and short-circuit protection for electrical equipment ranging from 15 to 1200 amps. 

The Asia-Pacific region currently holds the largest market share and is anticipated to dominate the global market during the forecast period. The region's growth is accredited to increasing infrastructural development, commercial projects, and industries.

Asia-Pacific region is the manufacturing hub across the globe, and a variety of these breakers are used in different industrial and manufacturing units. The growing number of manufacturing and industrial units in the Asia Pacific region is expected to boost the demand for these switching devices.

India

Prior to the global pandemic, India's energy demand was projected to increase by almost 50% between 2019 and 2031. Still, growth over this period is closer to 35% in the stated policies scenario and 25% in the delayed recovery scenario.

The all-India electricity demand from April 2021 to September 2021 has increased by 12.7% to 707 billion units (BU) on a year-on-year basis due to improved economic activity and lower than normal monsoons leading to higher demand from the agricultural sector.

An expanding economy, population, urbanization, and industrialization mean that India sees the largest rise in power demand. In order to meet the electricity demand of the country, massive additions to the installed capacity are required.

As of September 2021, India had 101.53 GW of installed renewable energy capacity, representing 38% of the overall installed power capacity. The country is targeting 450 GW of installed renewable energy capacity by 2031.

Due to the increased urbanization and rising household income, the demand for residential properties and housing has surged. 

The investment in the construction development (which includes townships, built-up housing infrastructure, and construction development projects) activities stood at USD 26.08 billion between April 2000 and March 2021. With the increasing construction activities and the associated electrical connections, the demand for circuit breakers will remain strong.

Other Regions

Countries in the Americas region posted a strong rebound in electricity demand of 4% in 2020. Commercial and industrial demand were the main drivers of growth in 2021. According to the United States Energy Information Administration, 16.3 GW of wind capacity was added, and utility-scale solar capacity rose by 13.9 GW in 2021. It is expected that solar additions will account for half of the new electric generating capacity in 2022.

The demand for electricity in Europe increased by more than 4% to about the pre-pandemic level of 2019. As a result, the share of renewables in gross final energy consumption was 22.1% in 2020 compared to 9.6% in 2004. With the target of achieving 32% energy from renewables by 2031, the deployment of renewables is expected to rise. 

The increased electricity use in the Middle East is estimated to have grown by 3.5% in 2021 and will continue at an average of 2% during the 2022-2024 period due to population growth and demand for air-conditioning.

According to IEA, the electricity demand in Africa is estimated to register a growth of around 5.6% in 2021. The majority of new capacity due to come online is expected to be from renewable sources and gas projects. By 2024, an addition of 50 TWh of electricity is expected from renewables.

The increasing deployment of renewables and their integration into the grid and other safety concerns associated with it, are expected to keep up the demand for circuit breakers.

The key players in the market have witnessed a decline in sales. The major OEMs such as Mitsubishi Electric Corporation, Schneider Electric, ABB Ltd, and others have registered a drop in sales due to the pandemic.

According to the IMF World Economic Outlook published in April 2021, the global growth is projected at 6% in 2021, moderating to 4% in 2022. However, the projections for 2022 are much stronger than October 2020 World Economic Outlook. The growth indicates the additional financial support in a few large economies, anticipated vaccine-powered recovery, and continued adaptation of economic activity to somber mobility.

Due to the probable third wave and evolution of financial conditions, high uncertainty looms over this outlook. The impact of the COVID-19 pandemic on the energy, automobile, and construction industries has already been profound.

The study presents a detailed market analysis of various factors that affect Global Circuit Breaker Market revenue.

The study also comprehensively analyses the global circuit breakers market by segmenting it based on geography (Asia Pacific, North America, South America, Europe, and Rest of the World), based on end use sector (T & D Utilities, Power Generation, Locomotives, and Renewable Energy), based on voltage (high voltage circuit breakers, medium voltage circuit breakers, and low voltage circuit breakers), and based on insulation type (vacuum circuit breaker, air circuit breaker, gas circuit breaker, and oil circuit breaker)

Blackridge Research's Global Circuit Breaker Market research report provides insights into the current global and regional market demand scenario and its outlook. 

The report also addresses present and future market opportunities, industry trends, Global Circuit Breaker Market Size developments, critical commercial developments, regions, and segments poised for the fastest-growing, competitive landscape.