Recloser Market

Market Overview

According to Straits Research, the global recloser market size, valued at USD 1.1 billion in 2023, is projected to reach USD 1.8 billion by 2032, with a CAGR of 5.5% from 2024 to 2032. The market growth is driven by the increasing demand for reliable electricity distribution, especially in developing nations.

A recloser, also known as an automated circuit recloser (ACR), is a critical component in power distribution networks that detects and interrupts transitory faults. It immediately restores power after a brief interruption, ensuring negligible disruption to the power supply and increasing the electrical system's reliability. Reclosers are critical for preserving power distribution stability and efficiency, especially in areas susceptible to transient faults induced by environmental causes such as lightning or falling branches.

The market is primarily driven by the growing demand for reliable power distribution worldwide, particularly in developing economies. This can be linked to the growing demand for reliable power supply in urban areas. Furthermore, increasing emphasis on expanding and upgrading power infrastructure to satisfy rising energy demands opens up attractive market opportunities.

Furthermore, ongoing technological improvements in grid upgrade projects and the introduction of smart grids and distribution automation systems are driving market growth. Again, the increasing integration of renewable energy sources, such as solar and wind energy, into the power grid is driving up demand for reclosers. The market is also being driven by the implementation of severe energy efficiency policies by various government and regulatory agencies in several countries. Aside from that, the market demand is driven by an increased emphasis on grid resilience and reliability as the incidence of natural disasters and extreme weather events grows. Furthermore, favorable government initiatives, subsidies, and incentives for executing grid modernization initiatives boost the market outlook.

Market Dynamics

Global Recloser Market Drivers:

Growing Demand for Reliable Power Supply

Global demand for dependable and uninterrupted power supply is growing due to rising urbanization, industrialization, and technological improvements. Modern economies and cultures rely primarily on constant electrical power for household, commercial, and industrial purposes. Any breakdown in power supply can result in considerable economic losses, operational downtime, and annoyance. Reclosers, or automatic high-voltage electric switches, are crucial to improving the reliability of power distribution networks. They automatically detect and isolate problems, restore power rapidly, and reduce the length and severity of power outages.

According to a United States Department of Energy study, power disruptions cost the economy around USD 150 billion annually. These costs include lost production, damaged equipment, spoiled commodities, and other associated expenses. For example, a single protracted power outage might cost a manufacturing firm millions of dollars in lost productivity and machinery damage.

Furthermore, rapid urbanization in nations such as India and China has raised the demand for reliable electricity. India's urban population is expected to reach 600-630 million by 2030, nearly doubling its 2011 population of 377.1 million. This means 40-50% of India's population will likely live in cities by 2030. This rapid urbanization needs the installation of robust and dependable power distribution networks. Reclosers are essential in reducing power outages in densely populated urban areas.

Moreover, utilities worldwide are investing significantly in grid infrastructure to improve reliability. For example, Pacific Gas and Electric Company (PG&E) in the United States has installed reclosers in its distribution network to increase service reliability and decrease the frequency and duration of outages. PG&E's Grid Resilience Improvement Program intends to install modern reclosers to automatically manage and isolate problems, improving grid reliability and customer satisfaction.

Global Recloser Market Restraints:

High Initial Cost

The high initial costs of recloser deployment offer a substantial obstacle to industry expansion, particularly for smaller utilities and locations with limited financial resources. These expenditures include the cost of recloser units, the associated communication and control infrastructure, grid management software, and employee training. Furthermore, incorporating reclosers into existing networks may demand costly updates to legacy equipment.

In addition, reclosers can cost anything from USD 3,000 to USD 65,000, depending on the type and whether installation is included. This value rises dramatically when the cost of supplementary equipment, such as communication systems for remote operation and monitoring, is factored in. For example, incorporating a recloser into an intelligent grid may necessitate extra expenditures in advanced sensors and communication networks, which may cost several thousand dollars per unit.

In developing countries, financial constraints are more severe. For example, in Sub-Saharan Africa, where electrification efforts are still underway, funding for advanced grid technologies like reclosers is restricted. According to the African Development Bank, several regional governments prioritize expanding primary power access above investing in cutting-edge technologies. This financial reality lowers the adoption rate because utilities must prioritize critical infrastructure.

Additionally, India is a relevant illustration of the problems and efforts associated with high starting expenses. The Indian government's Smart System Mission seeks to improve the electricity system, including installing reclosers. However, state utilities, particularly in rural areas, frequently need help with the enormous cost of these renovations. According to the Ministry of Power, urban regions in India have experienced faster adoption of smart grid technology, such as reclosers, due to improved funding and infrastructure. In contrast, rural areas lag, emphasizing the financial constraints of broader implementation.

Global Recloser Market Opportunity:

Expansion of Smart Grid Technologies

Expanding smart grid technologies creates a significant opportunity for the recloser sector. Smart grids use modern communication, automation, and control technology to increase power distribution systems' efficiency, reliability, and sustainability. Reclosers play an essential role in smart grids by automatically detecting and isolating faults, minimizing outages, and increasing grid resilience.

According to the International Energy Agency (IEA), global investment in smart grids must more than double by 2030 to meet the world's climate targets. This would necessitate an annual expenditure of over USD 600 billion through the decade's end, with distribution grids accounting for roughly 75%. According to the IEA, this is particularly significant in developing and emerging markets. This investment is motivated by the desire to repair outdated infrastructure, incorporate renewable energy sources, and improve grid dependability.

Furthermore, countries worldwide are investing in smart grid infrastructure to solve various difficulties, including increased electricity demand, integrating renewable energy sources, and improved grid resilience. The European Union, for example, has set lofty goals for smart grid adoption as part of its Clean Energy Package. These objectives include investments in sophisticated grid technologies such as reclosers. For example, in 2023, China spent roughly 428 billion yuan on electric power system building projects. China's State Grid Corporation also announced plans to invest USD 77 billion in transmission in 2023 and USD 329 billion from 2021 to 2025. These investments included deploying modern grid technologies such as reclosers, which improved grid efficiency and reliability.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global recloser market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global recloser market shareholder and is estimated to grow at a CAGR of 5.6% over the forecast period. The Asia-Pacific region is rapidly urbanizing and industrializing, increasing electricity demand. Reclosers are in high demand in the area because of the need for reliable power distribution infrastructure to support urban growth and industrial development. Furthermore, governments in Asia-Pacific countries are making significant investments in extending and updating their power infrastructure to satisfy rising energy demand. This includes investments in transmission and distribution networks, where reclosers are crucial for increasing grid dependability and reducing downtime. 

Furthermore, several Asian countries invest in alternative energy sources like solar and wind power. Singapore's Green Plan 2023 focuses on increasing the use of renewable energy. The Ministry of Sustainability and the Environment stated that it intends to enhance solar energy deployment to at least 2 gigawatts of capacity by 2030, which will meet around 3% of predicted electricity demand. Reclosers aid in integrating renewable energy into the grid by rapidly responding to changes in generation and maintaining system stability, hence driving their adoption in the region.

Moreover, modernization efforts to improve grid efficiency, dependability, and resilience are progressing in Asia Pacific. Reclosers with advanced features like self-healing and remote monitoring/control are critical to these projects, contributing to their regional supremacy.

North America is anticipated to exhibit a CAGR of 5.7% over the forecast period. North America is experiencing the highest growth, driven by increased adoption of smart grid technology, government measures to improve grid dependability, and replacing old infrastructure. Digital reclosers and distribution automation will increase grid efficiency and reliability. Infrastructure modifications are required for the region's mature electrical infrastructure. Companies in the recloser sector will gain from increased investment in renewable energy sources.

Additionally, S&C Electric Company and Hubbell Power Systems develop new products to contribute to market growth. The North American recloser industry is predicted to expand due to the increased need for dependable and efficient power distribution networks.

European countries have made significant contributions to industrialization, which has benefited the region's economic prosperity. The United Kingdom, Germany, Norway, Italy, and Russia are the primary countries driving the rise of European sustainable industry.

Segmental Analysis

The global recloser market is segmented based on machine type, control, insulation, and voltage.

The market is further segmented by machine type into Single Phase Recloser, Three Phase Recloser, and Triple Single Recloser.

The single-phase recloser category dominated the market, accounting for almost 50%. Many distribution networks are mostly single-phase, especially in residential and rural areas. Single-phase reclosers are engineered to perform well in such conditions, making them the ideal choice for utilities that manage these networks. Most notably, single-phase reclosers are frequently less expensive than three-phase counterparts. Their simplified design and lesser complexity result in lower manufacturing and installation costs, making them an appealing option for utilities aiming to maximize their grid modernization efforts.

Furthermore, single-phase reclosers are more flexible and scalable in deployment than three-phase reclosers. Utilities can deploy single-phase reclosers selectively, emphasizing areas with higher reliability requirements or frequent faults without requiring substantial infrastructure changes.

Three-phase reclosers are intended to handle faults and interruptions in three-phase electrical circuits, and they are widely used in industrial, commercial, and large-scale residential applications. They protect all three phases of the circuit at once, ensuring balanced and dependable power distribution. Three-phase reclosers are extensively used in substations, distribution feeders, and medium to high-voltage transmission lines to protect critical equipment and provide continuous power delivery to consumers.

Based on control, the market is fragmented into Electronic, Hydraulic, and Microprocessors.

The electronic category led the market in 2023, accounting for over 55%. Electronic control reclosers feature sophisticated monitoring and control capabilities thanks to electronic sensors, communication modules, and microprocessor-based processors. These qualities enable utilities to remotely monitor, troubleshoot, and manage recloser operations in real time, increasing grid visibility and control. Furthermore, electronic control reclosers use advanced algorithms and sensors to effectively detect and locate problems in distribution networks. This factor enables utilities to swiftly isolate faulty sections and restore power to unaffected areas, reducing outage times and enhancing grid dependability.

In addition, electronic control reclosers can perform self-healing functions, which involve autonomously reconfiguring the distribution network to bypass damaged parts and restore power to as many consumers as feasible. This proactive response to grid disturbances increases system resilience and reduces the impact of outages on consumers.

Hydraulic control reclosers use hydraulic systems to control the opening and shutting of recloser contacts. These reclosers use hydraulic pressure from fluid pumps or accumulators to power the mechanism. Hydraulic control reclosers are strong, dependable, and can handle large fault currents. They are commonly utilized in medium to high-voltage applications where mechanical simplicity and longevity are essential.

The market can further bifurcate based on Insulation into an Epoxy-Insulated Recloser, Gas-Insulated Recloser, and Oil-Insulated Recloser.

The epoxy-insulated recloser category dominated the market in 2023, accounting for around 45%. Epoxy-insulated reclosers outperform oil or gas-insulated reclosers in terms of safety. Epoxy insulation prevents the possibility of oil leaks or gas emissions, lowering the likelihood of environmental pollution and fire threats. Furthermore, epoxy-insulated reclosers require little maintenance and present fewer operational risks to staff. Furthermore, epoxy-insulated reclosers can be custom-designed to satisfy specific application and performance requirements.

Additionally, epoxy-insulated reclosers can be customized regarding insulation characteristics, size, and configurations to accommodate varying voltage levels, fault currents, and environmental conditions. Furthermore, epoxy insulation is regarded as environmentally friendly and adheres to strict environmental norms and standards. Epoxy-insulated reclosers do not contain hazardous chemicals like PCBs or SF6 gasses, which reduces environmental impact and ensures regulatory compliance.

Gas-insulated reclosers use sulfur hexafluoride (SF6) or other insulating gases for insulation and arc quenching. These compact reclosers provide better insulation performance than typical air-insulated designs. Gas-insulated reclosers are suited for high-voltage applications when space is restricted, and environmental considerations demand environmentally friendly insulating media. Gas-insulated reclosers are used in high-voltage substations, transmission lines, and vital infrastructure where dependability, compactness, and ecological concerns are essential.

The market is sub-segmented based on voltage up to 15 Kv, 16-27 Kv, 28-38 Kv.

The 16-27 Kv category led the market in 2023, accounting for around 40%. The 16-27 kV voltage range is widely employed in medium-voltage distribution networks globally. This voltage range is ideal for distributing power to residential, commercial, and industrial consumers, making it a common choice for distribution infrastructure. The 16-27 kV voltage range provides a good balance of performance and cost-effectiveness. It delivers enough voltage to suit the demands of medium-voltage distribution networks while staying economically feasible for utilities and end users.

Moreover, reclosers operating in the 16-27 kV voltage range have uses in various distribution network designs, including urban, suburban, and rural locations. They protect feeder lines, lateral branches, and transformers, ensuring consumers receive reliable electricity in various settings.

Reclosers with voltage ratings ranging from 28 to 38 kV are utilized in high-voltage distribution and transmission systems. These reclosers are built to resist higher electrical stresses and offer reliable protection against transient faults and lightning-induced surges. They use superior insulating materials and switching technology to enable dependable operation under harsh situations.

Recent Developments

• February 2024- The commitment to renewable energies in the context of the energy revolution provided significant prospects for Arteche in North America, where we have witnessed a strong impulse owing to projects such as the Brazos Repower Project, an 182.5MW wind farm.
• May 2024- ABB strengthened its electrification portfolio by acquiring Siemens' Wiring Accessories business in China.
• March 2024- Utilidata, an industry leader in AI-powered technology, announced that Aclara, a division of leading utility and electrical solutions provider Hubbell Incorporated, will be the first to embed Utilidata's distributed AI platform, Karman, in a smart meter, enabling a connected grid that provides clean and reliable energy.