Global Circuit Protection Market Grows Steadily at a CAGR of 5.8%

Introduction

Circuit protection is required for electrical systems to prevent damage from high voltages, excessive currents, and other potential hazards. It employs various technologies and methods to ensure electrical systems' dependability, security, and durability. The American Electrical Manufacturers Association (AEMA) devised it in 1974. The primary objective of circuit protection is to prevent and mitigate errors. Safety features, fuses, circuit breakers, surge protectors, and ground fault circuit interrupter (GFCI) devices are installed to monitor current flow and correct anomalies.

These components protect the circuit and the connected devices, ensuring the safety of both the circuit and the connected devices. While GFCIs monitor current passage between hot and neutral conductors to prevent electrical shocks, surge protectors prevent dangerous voltage spikes and overvoltages. Circuit protection mechanisms ensure electrical systems' safe and dependable operation by reducing hazards such as electrical fires, overloads, power surges, and short circuits.

Market Dynamics

Growing Popularity of the Internet of Things Drives the Global Market

The Internet of Things (IoT) aims to connect devices to a sophisticated network to capture and exchange real-time data. This technology can increase productivity and decision-making in numerous industries. However, IoT deployments are susceptible to system failures due to overheating, overcurrent, electromagnetic pulse, and electrostatic discharge. Circuit protection is essential to protect IoT installations from these threats and maintain the network's integrity.

Governments are implementing "smart city" initiatives comprising networked apparatus for grid management, environmental monitoring, electricity generation, and energy security. We anticipate the emergence of autonomous IoT infrastructures whose autonomous systems require a dependable power source. As increasingly interconnected smart assets rely on them for real-time access and data, IoT installations are at risk and under significant environmental pressure.

Continued Industrialization and Urbanization in Developing Economies Creates Tremendous Opportunities

Population growth, economic expansion, and rapid urbanization have significantly impacted energy demand. Industrialization and urbanization in developing nations contribute to this increase. Electricity demand will increase due to rising household income, electrification of transportation, increased demand for air conditioning, and the proliferation of digitally connected devices. Developing nations such as Brazil, China, and India are expanding their electricity generation capacities to meet this demand.

Despite a significant decline over the past five years, more than 11 percent of the world's population still lacks electricity, particularly in rural areas, necessitating the addition of generation capacity. In the coming years, the market for circuit protection may expand due to the rapid industrialization and urbanization of developing nations, as well as the increasing demand for more generation capacity.

Regional Analysis

North America is the most significant global circuit protection market shareholder and is estimated to exhibit a CAGR of 6.9% over the forecast period. The market for circuit protection in North America has grown, and many distinct factors could be to blame. It's crucial to take each of these factors into account. Any one of these possibilities is conceivable. These characteristics include but are not limited to the region's highly developed infrastructure, strict safety regulations, and technological innovation developing quickly. The following list only represents a small portion of creating these components. The existence of significant market players and growth in the overall amount of money spent on the research and development of new electrical systems are two examples of factors that are acting as contributors to the market expansion in this particular industry. These two instances serve as illustrations of elements that are influencing the market's growth.

Asia-Pacific is anticipated to exhibit a CAGR of 7.8% over the forecast period. The Asia-Pacific region is experiencing rising rates of urbanization and industrialization, as well as the expansion of associated infrastructure. Each of these three occurrences has played a role in contributing to the rise in demand for circuit protection solutions. One of the most significant contributors to the market's growth is the expansion of Asian economies, most notably those of China, India, and Japan. This is one of the most important elements responsible for the increase in the market. This region has been significantly impacted by several factors, including the growth of the manufacturing sector and the increased focus on producing energy from renewable sources.

 

Key Highlights

• The global circuit protection market was valued at USD 51.01 billion in 2022. It is estimated to reach USD 84.73 billion by 2031, growing at a CAGR of 5.8% during the forecast period (2023–2031).
• Based on the product, the global circuit protection market is bifurcated into circuit breakers, fuse, GFCI, HD pro, inrush current limiters, mobile power protection, overvoltage protection, and PTC devices. The circuit breaker segment dominates the global market and is predicted to exhibit a CAGR of 5.6% over the forecast period.
• Based on application, the global circuit protection market is bifurcated into agriculture, automotive, commercial residential, household appliances, HVAC, power generation, recreational vehicles, telecom, and others. The power generation segment owns the highest market share and is predicted to exhibit a CAGR of 5.6% over the forecast period.
• Based on channel, the global circuit protection market is divided into OEM, retail, and wholesale. The OEM segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 6.6% over the forecast period.
• North America is the most significant global circuit protection market shareholder and is estimated to exhibit a CAGR of 6.9% over the forecast period.

Competitive Players

Competitive Players

The key players in the global Circuit Protection market are ABB Ltd.; Bel Fuse Inc.; Schneider Electric SE; Mitsubishi Electric Corporation; Eaton Corporation plc; General Electric Company; Siemens AG; Rockwell Automation, Inc.; Larsen & Toubro Limited; NXP Semiconductors N.V.; SCHURTER Holding AG; Sensata Technologies Holding plc; and Texas Instruments Incorporated.

 

Recent Developments

Market News

• In April 2022, Little fuse, Inc., a US-based electronic manufacturing company, acquired C&K Switches for USD 540 million. This acquisition would increase growth across a wide range of end markets for Little Fuse Inc. C&K Switches, a US-based manufacturer of circuit protection and circuit breaker components.
• In July 2022, Eaton Corporation, an American company specializing in power management, revealed its recent acquisition of a 50% stake in the low-voltage circuit breaker business of Jiangsu Huineng Electric Co. Ltd.

 

Segmentation

Global Circuit Protection Market: Segmentation

By Product

• Circuit Breaker
• Fuse
• GFCI
• HD Pro
• Inrush Current Limiter
• Mobile Power Protection
• Overvoltage Protection
• PTC Devices

By Applications

• Agriculture
• Automotive
• Commercial and Residential
• Household Appliances
• HVAC
• Power Generation
• Recreational Vehicle
• Telecom
• Others

By Channel

• OEM
• Retail
• Wholesale

By Regions

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa