Protective Relay Market Size, Regional Outlook, Growth Potential, COVID-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3494
Protective Relay Market size is projected to gain significant momentum over 2021-2027, as a result of the escalating number of electrification projects to meet the robust energy demand across varied sectors. This includes railways, alongside the shifting preference from electromechanical to microprocessor-based protective relay equipment worldwide. A relay refers to an automatic device used to sense abnormal conditions or faults of the electrical circuit. The purpose of the protective relay is to provide an indication to control systems, alarm activation, as well as trip the appropriate breakers to disconnect the faulty portion from the healthy circuit.
Rapid digitalization and intelligentization of substations, mounting usage of medium-voltage (MV) switchgear including protective relays and breakers in data centers, and rising inclination towards clean energy sources are among the prominent trends bolstering the global protective relay market penetration. For example, Fanox showcased its SIA-B Advanced OC&EF Self-Powered Relay at MEE 2019, designed for MV applications and well suited for solar parks, wind turbines, and other distributed renewable generation operators.
With regards to the end-user spectrum, the utilities segment is slated to proliferate at a substantial rate through 2027. This is attributable to the strong focus on grid expansion for the long-term transformation of the energy system, mounting adoption of energy-efficient electric motors, and the subsequent surge in the need for different types of protective relays such as overload relays. These relays are specifically designed to ensure overcurrent protection of the electrical circuits and motors.
Regionally, the Asia Pacific is poised to emerge as a lucrative revenue pocket for the protective relay industry by 2027, due to the growing power consumption across the residential and commercial sectors, coupled with the rising deployment of renewable energy to improve access to energy and mitigate climate change in the region. Since the start of the gradual unlock process in June 2020, India has been experiencing a growth in electricity demand by 4-5% on average every month.
The competitive landscape of the protective relay market consists of companies including Schweitzer Engineering, Basler Electric, Littlefuse, Siemens, Fanox Electronics, Toshiba, Schneider Electrics, Mitsubishi Electric, General Electric, and ABB, among others. These market players are undertaking various efforts like new product launches, M&A, and business expansions to boost their presence across the global market.
For instance, in May 2020, Toshiba unveiled its photovoltaic-output photocoupler, TLP3910, housed in a thin SO6L package, developed with an objective to drive the gates of high-voltage power MOSFETs for switches, which are adopted as isolated solid state relays. ABB expanded its Relion product portfolio with the launch of REX610 protection relay in May 2021, designed to support smart and sustainable electrification, as well as cater to the rising complexity and size of the power distribution networks.
Low Investment in Energy Sector During COVID-19 & its Impact on Protective Relay Market Trends:
The novel coronavirus pandemic has posed a major impact on the energy systems worldwide, curbing multiple investments and expansion of crucial renewable energy technologies. The outbreak has also caused huge disruptions in trade, travel, and economic activity due to the implementation of strict lockdown measures, interrupting the adoption of protective relays in electrical circuit and grid infrastructural developments.
However, there has been significant recovery in the energy demand despite the ongoing pandemic in several countries, owing to the robust focus on capacity addition, merchant power, and other favorable trends in the power sector. In India, the power generation surged by 42.5% Y-o-Y to 115.5 billion units in April 2021, supported by a considerable rise in thermal generation. This growing energy demand from renewable sources, alongside the gradual ease of coronavirus restrictions, is expected to help the protective relay industry regain traction over the upcoming years.
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