Impact of the COVID-19 Outbreak on the Global Vacuum Circuit Breaker Market
The outbreak of the COVID-19 pandemic, which started in November 2019, has had a harsh impact on the global economy as the pandemic has impacted various sectors such as energy, manufacturing, construction, and automotive significantly. The outbreak of the pandemic has affected the global energy sector adversely, as there has been a significant decline in the energy demand from the residential, commercial, and industrial sectors. The power sector has been affected due to the spreading of the pandemic across countries such as the US, the UK, China, and India as most of the countries around the world have imposed lockdown restrictions, that have not only disrupted the supply chain of goods & materials but have also caused a decline in the production rate, shutting down of manufacturing sites, and halting of various projects, which has lowered the demand for electricity from end-use consumers. As per the International Energy Agency (IEA), the global annual electricity demand decreased by approximately 15% in 2020. It has been recorded that the demand for electricity in the United States, Japan, South Korea, and the European Union decreased by nearly 2.5%-4.5% in Q1 of 2020 when compared to the same in 2019.
Moreover, in 2020, the demand for electricity in the construction and manufacturing sectors decreased by 12% in China during the lockdown period as compared to the same period in 2019. These factors are expected to influence the vacuum circuit breakers market in the coming months as the power sector has been affected significantly due to the COVID-19 pandemic. Thus, the global vacuum circuit breakers market has been negatively impacted by the COVID-19 pandemic. The pandemic has considerably disrupted the supply chain momentum as well as product demand across the entire energy and power industry. However, the demand for vacuum circuit breakers is anticipated to grow significantly with the growing demand for electricity in the residential, commercial, and industrial sectors during the coming months. Such factors are expected to influence the vacuum circuit breakers market.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Global Investment in the Energy Sector (2017-2020)
The growing demand for power, the increasing investments in the transmission and distribution sector, and the rising demand for smart grids are some of the factors which propel the global vacuum circuit breakers market. As per the International Energy Agency (IEA), the overall demand for energy in Southeast Asia is estimated to grow by nearly 60% by 2040. The growing energy demand across the region is anticipated to boost the market for vacuum circuit breakers. Furthermore, rapid industrialization is expected to fuel the demand for vacuum circuit breakers in the global market as they are electrical safety devices installed in electrical systems for protecting electrical circuits from instances of overload and short-circuit. Additionally, the global players in the vacuum circuit breakers market are focused on the development of preventive measures and new business models to address the situation in the global market.