Protective Relay Market is projected to be worth USD 2,791.7 Million by 2027, registering a CAGR of 6% during the forecast period, The market was valued at USD 2.79 billion in 2020.
The factors driving the demand for protective relays are the increasing share of renewable energy sources, expansion of transmission & distribution networks, and rapid growth in the industrialization sector. The global electricity demand is projected to grow at a significant rate over the next few years due to the rise in population, rapid development in urbanization, growing infrastructure activities, and increased access to electricity. The conventional electricity generation sources, namely, coal, petrol, and natural gas, contribute primarily to carbon emissions. Several stakeholders in the power generation industry have begun seeking ways to reduce their carbon footprint and focusing on raising the share of renewable energy sources in the total power generation mix globally. Furthermore, countries across the world, including India, the US, Germany, and Saudi Arabia, have set targets to increase the capacity of renewable energy generation sources to increase the share of renewable energy in the power generation mix. For instance, according to the International Renewable Energy Agency (IRENA), in the US, under the current policies and investment scenario, the share of renewable energy in the country’s total energy generation capacity is expected to reach 10% by 2030. In 2019, the Saudi Arabian government set a target to generate 60GW of energy from renewables by 2030. Additionally, according to the Federal Ministry for Economic Affairs and Energy, the German government set a target to have a 40–45% share of renewable energy in the country’s total electricity consumption by 2025.
The Prominent Players operating in the Global Protective Relay Market are Hitachi ABB Power Grids Ltd (Switzerland), Schneider Electric (France), Siemens AG (Germany), Eaton (Ireland), Mitsubishi Electric Corporation (Japan), Toshiba Corporation (Japan), SEG Electronics GmbH (Germany), Fuji Electric Co. Ltd (Japan), Littelfuse, Inc. (US), WEG (Brazil), TE Connectivity Ltd. (Switzerland), Basler Electric (US), Rockwell Automation, Inc. (US), Woodward, Inc. (US), CIRCUTOR, SA (Spain), PBSI Group (UK), Orion Italia s.r.l (Italy), Schweitzer Engineering Laboratories, Inc. (US), and General Electric (US).
Furthermore, the National Agency of Electrical Energy, the electricity regulatory agency, hosted seven power generation and transmission auctions in 2017. In one of the auctions, around USD 3.04 billion was invested in developing 7,068 km of transmission lines to strengthen the existing infrastructure. Moreover, the increasing demand for electricity in various industries has also attracted foreign players to invest in transmission & distribution (T&D) infrastructure development. The rising investments in T&D are expected to replace the aging infrastructure to maintain reliability and meet the energy demand worldwide. Such factors contribute hugely to the development of new transmission and distribution networks across the world, which boosts the demand for protective relays.
Global Protective Relay Market is classified based on Voltage, Application, Operating Mechanism, End-Use, and Region. By voltage, the global market has been segmented into low, medium, and high. Based on application, the global protective relay market has been segmented into feeder, transmission line, motor, transformer, generator, and others. By operating mechanism, the glob protective relay al market has been segmented into electromechanical relays, static relays, and digital/numerical relays. By end use, the global protective relay market has been segmented into industrial, utilities, railways, and others.
Geographically, the protective relay market has been segmented into five major regions, namely, North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Asia-Pacific holds the largest market in the global protective relay market. According to an estimate by the US State Department, approximately 387 million people in Asia-Pacific live without access to electricity. This demands a continuous need to mount and upgrade the existing transmission and distribution (T&D) infrastructure to serve the growing need for electricity in the region. These developments require a large number of protective relays to protect the electrical system. Protective relay manufacturers are collaborating and signing agreements with other companies to supply the electrical components in the region and refurbish the electrical infrastructure in Asia-Pacific. For instance, in September 2020, Schneider Electric (France) acquired the electrical & automation business of Larsen and Toubro Ltd (India). This agreement helped Schneider Electric enlarge its product portfolio in Asia-Pacific for low voltage and industrial automation product business, including low voltage and industrial automation solutions. Such strategic developments in the region increase the demand for protective relays in Asia-Pacific to meet the need for improved access to electricity, driving the protective relay market. However, the COVID-19 pandemic slowed down economic activities in the region considerably, as many nations obtain a significant percentage of their GDP from exports. This has drastically reduced expenditure on electrical equipment in the region. However, by the second half of 2020, most economies are expected to stabilize, and the demand for protective relays in Asia-Pacific is expected to grow during the forecast period.
Protective relays are sensing devices that sense faults in a circuit. After identifying the fault, it gives the tripping command to the circuit breaker. After receiving commands from the protective relay, the circuit breaker disconnects the faulted element. Protective relays are used for various applications, including generators, motors, generators, and other machines that require continuous current without any disturbance.
The report for the global protective relay market of Market Research Future research covers extensive primary research. This is accompanied by a detailed analysis of qualitative and quantitative aspects by various industry experts and key opinion leaders to gain deeper insights into the market and industry performance. The report gives a clear picture of the current market scenario, which includes the historic and forecasted market size in terms of value and volume, technological advancement, macroeconomic, and governing factors of the market. The report provides comprehensive information about the strategies of the top companies in the industry, along with a broad study of the different market segments and regions.
In March 2020, ABB improved the REX640 protection relay, which improves communication security and flexibility in advanced power generation and distribution applications. REX640 is compatible with a number of communication protocols, including IEC 60870-5-104 for power system automation. IEC 60870-5-104 enables simple and direct connectivity to a higher-level system, such as SCADA (Supervisory Control and Data Acquisition), without the use of a gateway.
|CAGR||6% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Voltage, Application, Operating Mechanism and End-Use|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Hitachi ABB Power Grids Ltd (Switzerland), Schneider Electric (France), Siemens AG (Germany), Eaton (Ireland), Mitsubishi Electric Corporation (Japan), Toshiba Corporation (Japan), SEG Electronics GmbH (Germany), Fuji Electric Co. Ltd (Japan), Littelfuse, Inc. (US), WEG (Brazil), TE Connectivity Ltd. (Switzerland), Basler Electric (US), Rockwell Automation, Inc. (US), Woodward, Inc. (US), CIRCUTOR, SA (Spain), PBSI Group (UK), Orion Italia s.r.l (Italy), Schweitzer Engineering Laboratories, Inc. (US), and General Electric (US)|
|Key Market Opportunities||New product launches and R&D Amongst major key players|
|Key Market Drivers||
The protective relay market can surge at 6% by 2027.
By 2027, the protective relay market can value at USD 2,791.7 Million .
ABB (Switzerland), Mitsubishi Electric Corporation (Japan), and General Electric (US) are some reputed names in the protective relay market.
The growing need for curbing carbon emission can impel the protective relay market growth.
The protective relay market can attain a high valuation due to an increase in oil production.