Circuit Protection Market

Market Overview

The global circuit protection market size 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). The growing popularity of the Internet of Things, the continued growth of the automotive industry, and rising demand for consumer electronics promote market growth.

Electrical systems must have circuit protection to guard against damage from high voltages, excessive currents, and other potential hazards. It involves a variety of technologies and approaches to ensure the dependability, safety, and longevity of electrical systems. It was first developed by the American Electrical Manufacturers Association (AEMA) in 1974. The main goal of circuit protection is to avert errors and lessen their impact. Fuse, circuit breaker, surge protector, and ground fault circuit interrupter (GFCI) devices are installed as safety features to monitor current flow and take corrective action if anomalies are found. These parts protect the circuit and the connected devices, guaranteeing the circuit's security and the linked devices.

While GFCIs monitor current flow between hot and neutral conductors to protect people from electric shocks, surge protectors stop dangerous voltage spikes and overvoltages. The safe and dependable operation of electrical systems is guaranteed by circuit protection mechanisms, which reduce threats like electrical fires, overloads, power surges, and short circuits. These preventative measures are essential in residential, commercial, and industrial applications because they offer staff and machinery the required defense against electrical malfunctions.

Market Dynamics

Global Circuit Protection Market Drivers

Growing Popularity of the Internet of Things

The Internet of Things (IoT) aims to join gadgets into a clever network to collect and exchange real-time data. In many industries, this technology can increase productivity and decision-making. However, IoT deployments are vulnerable to system failures because of overheating, overcurrent, EMP, and ESD. Circuit protection is essential to safeguard IoT installations from these hazards and keep the network's integrity.

Governments are putting into practice "smart city" initiatives, which include networked equipment for grid management, environmental monitoring, electricity generation, and energy security. We anticipate the emergence of autonomous IoT infrastructures that need a reliable power source for their autonomous systems. IoT installations are under much pressure and are at risk from the environment as increasingly linked smart assets depend on them for real-time access and data. Circuit protection solutions are crucial for shielding IoT infrastructure from ESD, electrical transient bursts, and power surges to provide a dependable IoT network.

Continued Growth of Automotive Industry and Rising Demand for Consumer Electronics

The automotive sector is one of the biggest in the world. It is constantly expanding and investing in R&D. Electronic parts are used in modern vehicles for various features, including entertainment, multimedia, embedded controls, wireless connectivity, telematics, driver assistance, and safety systems. Because these technologies are prone to unstable power sources and power overloads, the comfort, safety, and overall driving experience may be in danger. To safeguard against voltage transients, voltage spikes, reverse polarity, and overloads, circuit protection devices are crucial for electrical systems, electronic components, automobile peripherals, and portable electronics. These gadgets offer synchronized overvoltage, overcurrent, and electrostatic discharge (ESD) protection, essential for accessing multimedia files, navigational data, films, and streaming media.

Circuit protection market expansion is being driven by increasing urbanization and a focus on security and safety. Electronic control systems, small electric motors, LED displays, and other consumer electronics must also include circuit protection. Demand for circuit protection devices has increased due to the rising use of cell phones, PCs, laptops, and tablets.

Global Circuit Protection Market Restraint

Rise In Raw Material Prices

Rising raw material costs may impede the market for circuit protection. These prices have steadily increased, especially after the COVID-19 pandemic and lockdowns. The recovery of the global economy has caused fluctuations in the prices of basic materials, which account for a significant portion of the total production cost of circuit protection devices. Circuit breakers, like vacuum and Sulphur Hexafluoride (SF6), necessitate gold and silver for assembly, thereby increasing the price of the overall assembly.

However, silicon components, such as diode arrays and diodes, are becoming more expensive. As integrated circuits (ICs) become more susceptible to electrical disturbances, miniaturization substantially impacts the market for circuit protection. Manufacturers are now focused on adding value to their products, resulting in the creation of hybrid components, the simplification of design, and the expansion of OEMs' raw material selection options.

Global Circuit Protection Market Opportunities

Continued Industrialization and Urbanization in Developing Economies

The increase in global population, economic expansion, and accelerated urbanization have substantially impacted energy demand. In developing nations, industrialization and urbanization are factors in this rise. Due to rising household income, electrification of transportation, increased demand for air conditioning, and the expansion of digitally connected gadgets, there will be an increase in the demand for electricity. Developing nations like Brazil, China, and India are expanding their electricity generation capabilities to accommodate this need. The cost of solar modules and cells has dropped by 99% because of mass production in China, while in just three years, India has installed more than 600 million LED bulbs.

The energy-saving LED technology, up to 75% more efficient than compact fluorescent and traditional incandescent bulbs, is progressively included in the world's lighting market. Despite a dramatic decline in the past five years, more than 11% of the world's population still lacks access to electricity, especially in rural regions, necessitating more generation capacity. In the coming years, the circuit protection market may experience growth due to the quick industrialization and urbanization of developing nations and the rising demand for more generation capacity.

Regional Analysis

Based on region, the global circuit protection market is bifurcated into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

North America Dominates the Global Market

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.

In Europe, the market for circuit protection has reached a mature stage, as shown by stringent safety legislation and regulations. The market can identify this. Demand for circuit protection devices in the region should increase due to the growing popularity of electric vehicles and renewable energy sources. Several causes, including the increasing prevalence of industrial automation and investments in the physical infrastructure of smart grids, partly drive the market expansion.

In South America, some of the factors that are likely contributing to the growth of the circuit protection market include an increase in the amount of industrial activity, an increase in the number of investments made in the construction of infrastructure, and an increase in the number of new technologies that are being adopted. The electrical and electronic goods industries are experiencing exceptional growth in Brazil and Argentina, two of the most important markets in this region. Argentine and Brazilian marketplaces are both crucial for the global economy. These nations also have the world's most technologically advanced production facilities.

In the Middle East and Africa, the market for circuit protection has a significant amount of unrealized potential for further expansion. The market's rise is fueled by various causes, including rising urbanization, increased construction activity, and increased investments in projects incorporating renewable energy sources. Several nations, including Saudi Arabia, the United Arab Emirates, and South Africa, are reporting a significant rise in the need for circuit protection devices.

Segmental Analysis

The global circuit protection market is bifurcated into product, applications, and channels.

Based on the product, the global 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% during the forecast period. A circuit breaker is a switching mechanism to stop an abnormal or faulty current from damaging an electrical circuit. There are two types of circuit breakers: low voltage and high voltage. A high-voltage circuit breaker is appropriate for circuits with a voltage rating of more than 600, while a low-voltage circuit breaker is suitable for circuits rated at 600 or less. High-voltage circuit breakers typically have voltage ratings between 4,160 and 765,000 volts.

Developing low-voltage circuit breakers with increased accuracy, quality, and reliability is necessary to meet the growing demand for better electrical connectivity, energy efficiency, and smart grids. The demand for high-voltage circuit breakers is also anticipated to increase shortly due to growing investments in power generation with a greater focus on utilizing RE sources, increasing capacity addition due to urbanization, rising demand for uninterruptible power supply, and improvements in T&D networks.

Based on application, the global market is bifurcated into agriculture, automotive, commercial and residential, household appliances, HVAC, power generation, recreational vehicles, telecom, and others. 

The power generation segment owns the highest circuit protection market share and is predicted to exhibit a CAGR of 5.6% over the forecast period. Power plants and the networks they are connected to, such as transmission and distribution lines, continue to form the foundation of a flexible power system and offer tremendous potential for demand-side response. The demand for energy is anticipated to increase globally due to growing technical advancement, changes in governmental policies to encourage new technology, and consumer preferences for energy. Every industry now demands a more efficient, dependable, adaptable, and uninterruptible power supply, which has increased demand for safeguarding power-producing equipment.

The industry makes extensive use of circuit protection tools like circuit breakers, fuses, bulkhead GFCI/ELCI, Automatic Transfer Switches (ATS), protection relays and controls, load centers, and overvoltage protection tools like crowbar and surge protection devices. Reduced demand, more disruptions, and economic changes to the power supply chain are ways the COVID-19 pandemic has affected the power generation sector. Additionally, the enforced lockdowns have significantly decreased electricity use in the commercial and industrial sectors.

Based on channel, the global 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. Original Equipment Manufacturers (OEMs) are responsible for ensuring that their electrical goods perform safely and reliably following design specifications and industry and government regulations. This is necessary so that the devices may meet the requirements of their respective industries and governments. Shorter product life cycles, increasing energy prices, strong global competition, and severe government regulations simultaneously push speed-to-market demands for circuit protection devices.

As a result, the demand for implementation and innovation partners across the OEM channel is growing. The original equipment manufacturers (OEMs) contribute to the efficiency of their products by providing information on recent market trends, training, promotional activities, and technical support; this results in an improvement in the quality of electrical products.

Recent Developments

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