Industrial Rectifiers Market

Market Overview

The global industrial rectifiers market size is estimated to grow to USD 1380.32 million by 2031, at a CAGR of 4.9%, from USD 898.54 million in 2022, and is valued at USD 1003.23 million in 2023. The growth of the market is attributed to the following factors such as the increasing industrialization and the global push towards renewable energy sources, such as wind and solar power, that have created a need for efficient rectification technology.

A rectifier is a piece of electrical equipment that lets the current flow in only one direction. It is made of materials that do not conduct electricity. Most of the time, these devices are used in electrical parts to correct voltage. Industrial rectifiers change AC power to DC power for many different uses. Silicon diodes are used for uncontrolled uses, and thyristors are used for controlled uses.

Industrial rectifiers come in many forms, such as the Silicon-controlled rectifier (SCR) and the switch-mode power supply (SMPS). These Rectifiers could be cooled by convection, forced-air cooling (using blowers), or water cooling with a cooling tower. They are usually installed in modular, metal-clad enclosures to provide a customer-specified protection rating (IPxx) and as a self-contained, open-frame unit in a secure (inter-locked) area.

Industrial rectifiers are used for things like electrowinning, arc-furnace control, haulage truck assist, winder/elevator armature and field converters, electroplating, soft starters, and heater control, among other things. Some of the things that are boosting market growth are the steel industry's increasing need for a reliable and efficient power supply, the growth of the industrial footprint around the world, and the rapid spread of the smart grid.

Market Dynamics

Market Drivers

• Rise in Demand for Industrial Rectifiers in the Steel Industry Driving the Market Forward

Over the past 35 years, there have been big changes in the iron and steel industry. In 1980, 716 million tons of steel were produced, which was an astonishing number at that time. The former Soviet Union made 21% of the world's steel, Japan made 16%, the United States made 14 %, Germany made 6 %, China made 5 %, Italy made 4 %, France and Poland each made 3%, Canada and Brazil each made 2 %. The World Steel Association (WSA) said that in 2020, the world will produce a total of 1,864 million tons of steel.

The list of the top ten countries in steel manufacturing has changed a lot. China is number one and far ahead of the other countries (it makes 60% of the world's steel). The other top 10 countries are Japan (8%), the US and India (6%), South Korea and Russia (5%), Germany (3%), Turkey, Brazil, and Taiwan (2%). Along with China, India, South Korea, Brazil, and Turkey are the other countries that have moved up in the top ten.

An industrial rectifier has the most stable arc, the best power quality, independent voltage and current control, a fast return on investment, and the most options for different types of raw materials. Many main players in the global steel industry make use of industrial rectifiers in their manufacturing process because of these reasons, which is driving the market forward.

• Growing Industrial Footprints Boosting Market Growth

In the last ten years, the world has rapidly become more industrialized. The OECD says that about 90 Giga tons of raw materials are used around the world every year. By 2060, the amount will have almost doubled to 167 Giga tons. This is because the world's population will have grown to almost 10 billion, the world's economy will have quadrupled, and the average income per person will rise to the level of the OECD, which is about USD 40,000 a year. This will put twice as much stress on the industries that make things as it does now.

Due to these things, industrialization has happened quickly around the world, especially in emerging economies with a lot of people, like China and India. Also, the rapid growth of the small, medium, and large businesses in this region is expected to increase the demand for industrial rectifiers.

Market Restraints

• High Cost of Replacing the Existing Industrial Power Supply Infrastructure is the only Major Restraint to the Growth of the Industrial Rectifiers Market

The high cost of equipment is a big problem for the Industrial rectifier industry, which is why many businesses are hesitant to use it. Even though these Rectifiers have a guaranteed Return on Investment (ROI) in terms of reliability, power factor improvement, and removal of harmonics, which play a key role in making the whole energy system efficient, cost-effective, and profitable.

But the high initial cost of installing such a rectifier could be a deal-breaker for potential customers who would rather stick with regular transformers for power supply. Also, in order for industries to put new industrial rectifiers in their transformers, they have to change their whole power supply system. This costs the industries money and makes them less likely to use industrial rectifiers.

Market Opportunities

• Increase in Demand for Industrial Rectifiers in the Transport Industry to Create Huge Opportunities in the Global Market

Rectifiers are very important in the railway industry. For example, traction rectifiers use silicon diodes and aluminum heatsinks to turn alternating current (AC) into direct current (DC) for railway traction applications. Naturally cooled silicon diode rectifiers are the most common type of silicon diode rectifier used for this purpose because they are easy to make, can handle overloads well, do not need much maintenance, and last a long time.

The subway's underground power grid is made to make the most of the energy that is available by turning it into alternating current and putting it back into the urban power grid. As a result of these improvements, more rectifiers are being used in transportation.

Ignitron rectifiers are also often used in mines and on railroads to move things around. The market for ignitron rectifiers is driven by the need for high overload ratings in railroad loading. Due to their resistance to arc surges at any water temperature and their independence from previous loads, these rectifiers are a great choice for sudden overloads. Also, the high demand for industrial rectifiers in the electric transportation system and the efforts of governments around the world to quickly implement electric transportation are expected to give the industrial rectifier market a lot of good opportunities.

• Rising Demand for Smart Transformers Creates Numerous Opportunities for Market Growth

The local and global climates are at risk when more fossil fuels are used. Qatar, the United Arab Emirates (UAE), Kuwait, and Bahrain have some of the highest CO2 emissions per person in the world because of how they make and use things. At the same time, many places around the world are investing in renewable fuels and saving energy, as well as using resources that have not been used before, like shale gas. Alternative energies are becoming more important for meeting the world's energy needs and lowering greenhouse gas emissions at the same time.

Alternative energy sources are often better for the environment than burning fossil fuels. They can also help people's health and the local environment by reducing the amount of air pollution in the area. Some renewable energy sources, like wind and solar energy, do not need water to work. This means that they do not pollute water supplies or put a strain on them.

When more non-linear equipment is used to help renewable energy systems, grid instability is more likely to happen. There is a chance that the electrical grid could fail or that the electronic equipment that makes these renewable energy systems work could be damaged. Smart transformers help keep the grid's frequency-stable by controlling the voltage of the power they feed into the grid.

Regional Analysis

The global industrial rectifiers market is primarily divided into three regions, North America, Europe, and Asia-Pacific, where the Asia-Pacific region has the major market share among the other two regions and dominates the overall revenue generation of the global market.

The Asia-Pacific is the strongest industrial rectifier market and is likely to grow quickly over time. India and China, which are both developing economies, are putting a lot of effort into building smart grid technology in their countries. These countries really want to come up with smart technologies for a flexible electricity grid so that they can use renewable energy. One of the most important parts of making smart grid applications work is the industrial rectifier. Also, growing industries like the transportation, chemical, and steel industries are a big reason why the demand for industrial rectifiers is going up and is said to grow at a CAGR of 5.69% during the forecast period.

The steel industry in Europe is using industrial rectifiers in more numbers, which has led to a lot of growth in the market for them, which is why it is predicted that the said market in Europe will reach USD 337.4 million by 2030 at a CAGR of 4.45%. In 2019, nearly 9% of all the crude steel made in the world came from the steel industry in Europe. Some of the biggest names in the steel business are in Europe, which helps the region grow. Construction, Machinery, and automotive manufacturing are the main industries in Europe that use steel, which in turn are using industrial rectifiers for the processes.

In North America, where the chemical industry is growing quickly, the market for industrial rectifiers is also growing. Key players from North America have come back from the crisis by focusing on operational efficiency, asset optimization, and cost management. Several countries in the region, like the US, Mexico, and Canada, have seen their chemical industries grow a lot. The chemical industry in the US is growing because energy and raw materials are cheap, and the country has a competitive edge in many key product areas. This has led major companies in the US to put a lot of money into making chemicals. It has become one of the biggest manufacturing markets in the US, serving both the growing domestic market and the growing international market.

Segmental Analysis

The global industrial rectifiers market is segmented by type and power.

By Type Analysis

The global industrial rectifiers market is divided into two segments, SCR and SMPS. Out of these two, the SMPS segment dominates the market.

Most of the time, a switched-mode power supply (SMPS) is used to add a switching regulator to efficiently convert electrical power. When moving electricity from a DC or AC source to a DC load, the SMPS changes the voltage and current. Unlike a linear power supply, a switching-mode power supply's pass resistor continuously cycles between low-dissipation, full-on, and full-off states, spending little time in the high-dissipation transitions and thus not wasting any electricity. 

Since the switching resistor uses little power while acting as a lever, switching power supplies are more efficient (up to 96%) than linear regulators. In the coming years, the need to control the size and weight of electronic circuits in mobile systems is also likely to increase demand for switch-mode power supplies (SMPS) around the world and is predicted to grow at a CAGR of 5.34% during the forecast period.

Silicon Controlled Rectifiers, or SCRs, are used in many devices that need to control both high power and high voltage. Because of this, these rectifiers are often used to control medium- to high-voltage AC power, such as in motor control, power regulators, and lamp dimmers. SCRs are also used to control welding machines, mostly in GTAW, which stands for gas tungsten arc welding. Aside from these benefits, SCR also makes sure that there is less thermal stress and that electronic devices last longer with the switching loss kept lower. Because of these benefits, SCRs are still used in a wide range of industrial applications. 

By Power Analysis

The global industrial rectifiers market is further divided into two sub-segments, which are low to medium current rectifiers and high current rectifiers. Out of which, the High current rectifiers are the most dominant ones with the major market share in the global market.

High current rectifiers (HCR) use high-power thyristor technology and are controlled, monitored, and checked by a microprocessor. This HCR is a DC power supply that can be set to control either the current or the voltage. High current rectifiers are often used for cathodic and anodic protection, electroplating, treating water, and electro chlorination. Also, HCR can be used in places like plasma torches and DC arc furnaces where a rectifier is used to make electric current.

Efficiency and dependability are important things to think about when running large units because they have a big effect on how much the plant makes. The topology and electric parts of the circuit where the rectifier is used affect how well it works. Due to the improvement of high current insulated gate bipolar transistors (IGBTs) and the development of chopper-rectifiers, high current rectifiers can produce large controlled currents with high efficiency and high reliability. With all these things in consideration and the rapid increase in its demand, the high current rectifiers are predicted to grow at a CAGR of 4.96% during the forecasted period of 2021-2030.

For the electrochemical and electroextraction industries, low- to medium-current rectifiers are made. It shows that the hardware is reliable and has a lot of features to help consumers get the most out of them. These rectifiers for low to medium currents are made with a self-supporting heat sink profile and built-in water channels for the best possible cooling.

In addition to being a DC conductor, it acts as a mechanical support and mounting area for the semiconductor clamping sets, overvoltage safety, and thyristor gate firing electronics. The engineered water channels are made to cut down on the number of hose connections on the outside. All semiconductors and fuses are cooled on all sides by heat sink profiles and good cooling boxes. As these are modular and simple, they can be used in many different ways and are easy to maintain, which is why it also has a significant market value, followed by the high current rectifiers.

Recent Developments

• In June 2022, ABB e-mobility division opened its largest DC fast charger production facility in Italy.
• In June 2022, Siemens AG introduced new IoT-enabled products and solutions in the market to strengthen Siemens fire safety portfolio.
• In January 2022, AEG Power Solutions introduced a new generation of UPS with versatile phase configuration.
• In January 2022, Fuji Electric established a new Plant Systems Center to expand the systems business and take it to the next level.