The global Circuit Protection Market is estimated to be valued at US$ 47.02 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Circuit protection devices play a crucial role in safeguarding electric circuits and ensuring the smooth flow of electricity. Circuit breakers, fuses, surge protectors, and varistors are some commonly used circuit protection devices. They help protect circuits from overload currents, surges, and faults which can damage the circuit components. Growing infrastructure development and investments in renewable energy generation are driving the demand for circuit protection devices across the world. Renewable power plants and systems require robust protection against overcurrents and surges especially those generated by wind turbines and solar panels which makes circuit protection an essential component in them. Furthermore, rapid industrialization and urbanization have increased the need for reliable power supply which is catalyzing the adoption of circuit protection solutions in commercial and industrial establishments.
Market key trends:
Rising focus on renewable energy is one of the key trends spurring the circuit protection market. Governments across the globe are encouraging investments in renewable energy to reduce dependence on fossil fuels and curb carbon emissions. Solar and wind energy generation capacity continues to expand rapidly around the world. This requires effective circuit protection solutions to safeguard the sensitive renewable energy infrastructure and ensure business continuity. Developing economies are also installing distributed renewable systems which will further augment the demand for circuit protection devices over the forecast period. Circuit protection manufacturers are introducing innovative products with advanced features catering specifically to the protection needs of renewable energy plants.
Apart from this, favorable government policies and initiatives towards grid modernization are also expected to drive market growth. Governments are undertaking various grid upgradation projects involving automation, digitalization, and deployment of smart grid infrastructure which presents lucrative opportunities for circuit protection component suppliers. Growing miniaturization of electronic devices and equipment also necessitates compact and highly efficient circuit protection devices which is encouraging new product launches.
Threat of new entrants: Low barriers of entry as the requirement for manufacturing circuit protection devices is moderately capital intensive. However, established brand loyalty and competitive intensity will deter new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power owing to presence of many established manufacturers. However, customized solutions and integrated services by circuit protection providers reduces bargaining power.
Bargaining power of suppliers: Suppliers of raw materials like copper, aluminum have low-to-moderate bargaining power due to availability of substitute materials.
Threat of new substitutes: Threat is low as circuit protection devices are essential for circuit integrity and safety. However, alternatives like fuses and relays pose minimal threat.
Competitive rivalry: Intense competition exists among key players due to technological capabilities, product innovation, and pricing strategies.
The Global Circuit Protection Market Size is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing adoption of circuit protection devices in automotive and industrial sector for circuit safety and reliability.
Regional analysis North America dominates the circuit protection market, primarily driven by strict safety regulations in industries such as aerospace & defense, power generation, and oil & gas.
Key players operating in the circuit protection 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.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it