Impact of COVID-19 on the Global Arc Flash Protection Market
The outbreak of COVID-19 has had a negative impact on the global economy as the pandemic has impacted various sectors, including the energy, manufacturing, and automotive sectors, significantly. The energy sector has been notably affected due to the pandemic with a decline in the energy demand from residential, commercial, and industrial sectors in the majority of the countries across the world, such as the UK, the US, China, and India. Many countries across the world have imposed lockdown restrictions, which have also disrupted the supply chain of goods & materials as well as market demand. This has resulted in declining production rate decline, shutting down of manufacturing sites, halting and delaying of various projects, and other activities, which reduces the electricity demand from end users. As per the Global Energy Review 2020 report published by the International Energy Agency (IEA), the energy demand declined by 25% per week in countries with full lockdown restrictions and an 18% decline per week in countries experiencing partial lockdown. Furthermore, as per the IEA, the global annual electricity demand decreased by approximately 2.5% in the first quarter of 2020. In addition to this, global electricity demand in the US, Japan, South Korea, and the European Union decreased by 2.5%–4.5% in the first quarter of 2020 with respect to the same in 2019. Moreover, in China, the electricity demand in the construction and manufacturing sectors decreased by 12% during the lockdown period in 2020. All these factors are likely to restrict the growth of the arc flash protection market in the coming months as the power sector has been significantly affected by COVID-19. However, the demand for arc flash protection is anticipated to grow significantly with the growing electricity demand in the commercial, residential, and industrial sectors in the upcoming months.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Global Energy Investment (2017–2020)
The growing electricity demand, increasing the need for relays and current limiters, and the unstable electric supply in developing nations are some of the factors that are propelling the global arc flash protection market. As per the International Energy Agency (IEA), global electricity consumption is expected to grow by 27% in advanced economies by 2040. Moreover, stringent government regulations in industries such as oil & gas, utilities, transportation, and manufacturing are anticipated to boost the market for arc flash protection. As the pandemic is tearing apart the energy sector, day-by-day, the global players in the market are focusing on the development of preventive measures and new business models to address the situation in the global market.