AC Circuit Breaker Market

[265 Pages Report] The global AC circuit breaker market is expected to grow from an estimated USD 4.1 billion in 2023 to USD 5.3 billion by 2028, at a CAGR of 5.3% from 2023 to 2028. Strengthening of power distribution infrastructure is driving the demand of ac circuit breaker market. This progress is due to the rising per capita income, growing middle-class population, expanding urbanization, and increasing access to electricity in remotely located areas. Rural electrification in some developing countries is expected to bypass large national grids in favor of distributed power generation. For instance, the Indian Government is focusing on increasing the penetration of power supply in villages with the help of schemes such as the Restructured Accelerated Power Development and Reforms Program (R-APDRP) and Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY). These schemes are providing an excellent opportunity for the ac circuit breakers market.

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AC Circuit Breaker Market Dynamics

Driver: Increasing capacity additions and enhancements for T&D networks

Developing countries such as India and China and countries in Southeast Asia are witnessing a continuous increase in the demand for electricity. These countries have a high rate of urbanization and industrialization, requiring additional capacity to support the increased loads. The Indian Government is also planning on adding generation capacity along with its T&D infrastructure. Therefore, the AC circuit breaker market is expected to have the highest growth in India. Once the power is generated, it needs to be distributed to end users such as renewable companies and industries. As AC circuit breakers are required to distribute power networks, capacity addition and enhancement plans are expected to drive the circuit breaker market.

Restraint: Competition from unorganized sector

Major AC circuit breaker manufacturers face tough competition from unorganized market players that supply cheap and low-quality products. Unorganized players in the market include local players and gray market players. Local players sell goods manufactured in-house with their local brand name, whereas gray market players refer to the import and sale of goods by unauthorized dealers.

These market players from the unorganized sector overpower the big players in terms of price competitiveness and the local supply network they maintain, which is difficult for global players to achieve. The growth in AC circuit breaker sales from the gray market deteriorates the brand name of the market leaders if cheap-quality goods are sold under their brand name. Increasing sales from both local and gray market players reduce the opportunity for global players to increase their revenue (market share).

Opportunity : Emerging smart technologies and digitalization systems

A smart grid is a digital technology that modernizes electricity networks by providing 2-way communication between the utility and its customers. Global power utilities are increasingly investing in smart grid technologies to control and protect power equipment. At the end-user level, smart grids can enable demand flexibility and consumer participation in energy system operations through distributed generation and storage.

The expansion of the IoT has fostered the development of smart technologies in fields such as power transmission and distribution systems (as is the smart grid). The network communication infrastructure for a smart AC circuit breaker system has high requirements from functionality, performance, and security point of view, given the large amount of distributed connected elements and the real-time information transmission and system management. In addition, smart AC circuit breakers (SCB) can offer improved protection as well as “smart” detection and management of grid faults.

Challenge : Risk of cybersecurity attacks and installation of modernized circuit breakers

AC circuit breakers face various cybersecurity threats, such as grid instability, data theft, or security breach, which can be done by bypassing securities on remote access, leading to blackouts and power outages. These outages are the result of incorrect settings in a relay or AC circuit breaker, which determines the response (or non-response) of the device. Incorrect settings may have serious effects on the power system operation. This can be avoided by developing dedicated secure networks for monitoring and controlling the devices/equipment. Developing such a network and assuring control of elements pose a challenge as well as provide opportunities for industry players to develop a secure and safe solution for data acquisition and monitoring along with new-age devices.

AC Circuit Breaker Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of ac circuit breakers Market and components. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Eaton (Ireland), ABB (Switzerland), Siemens (Germany), Mitsubishi Electric (Japan), and Schneider Electric (France).

The high voltage segment by voltage holds the second largest segment in 2022

The These AC circuit breakers are manufactured based on a modular design with identical interrupter units, operating mechanisms, and control elements for all types, whether for GIS or AIS applications. GIS between 72.5 kV and 220 kV are mostly used in transmission systems; with the growing global demand for electricity, an increase in demand for these circuit breakers is expected.

According to the IEA, in 2022, the total global energy consumption grew by 2.3%, twice as fast as the average rate over the last 10 years. Investments in the transmission infrastructure are driven by emerging economies such as India, China, the UAE, and Argentina, which is likely to strengthen the market for circuit breakers under this segment.

Indoor segment by installation is estimated to be the second-largest segment for ac circuit breaker market

Medium-voltage indoor AC circuit breakers are approximately from 1.1 to 36 kV. They find applications in large commercial buildings (skyscrapers, airports, and hospitals) and industrial plants (chemical plants, cement plants, food & beverage plants, and power grid distribution systems). These AC circuit breakers are also suitable for generator operations and industrial applications.

Oil segment by insulation type is estimated to be the fourth largest segment for ac circuit breaker market

Gas-insulated ac circuit breaker systems accounted for a 41.3% market share in 2022. Oil AC circuit breakers use oil as a dielectric or insulating medium for arc extinction. In oil AC circuit breakers, the contacts of the breaker are separated within an insulating oil. When a fault occurs in the system, the contacts of the circuit breaker are opened under the insulating oil, an arc is developed between them, and the heat of the arc is evaporated in the surrounding oil. The oil AC circuit breaker is divided into two categories, namely, bulk oil AC circuit breaker and low oil AC circuit breaker. Oil AC circuit breakers offer the advantage of oil having a high dielectric strength, which provides insulation between the contacts after the arc has been extinguished. The oil used in the AC circuit breaker provides a small clearance between the conductors and the earth components. The hydrogen gas is formed in the tank, which has a high diffusion rate and good cooling properties.

Power generation segment by end-use industry is estimated to be the second-largest segment for ac circuit breaker market

AC circuit breakers protect assets such as generators and transformers used in power generation plants. AC circuit breakers detect faults caused due to a short circuit on the power transmission system and disconnect the equipment from the grid. The need for increased safety and reliability of power plants are the major factors driving the AC circuit breaker market for power generation.

North America is expected to account for third-largest market size during the forecast period.

Key Market Players

The market is dominated by a few major players that have a wide regional presence. The major players in the AC circuit breaker market are Eaton (Ireland), ABB (Switzerland), Schneider Electric (France), Siemens (Germany), and Mitsubishi Electric (Japan). Between 2018 and 2022, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the market.

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Scope of the Report

This research report categorizes the AC circuit breaker market based on insulation type, voltage, installation, end-use industry, and region.

By Insulation Type

• Air
• Gas
• Vacuum
• Oil

By Installation

• Indoor
• Outdoor

By Voltage

• Medium
• High
• Very-High

By End-Use Industry

• Transmission & Distribution Utilities
• Power Generation
• Industrial
• Others

By Region

• North America
• Asia Pacific
• South America
• Europe
• Middle East & Africa

Recent Developments

• In Nov 2021, Siemens Smart Infrastructure is enhancing its Sentron portfolio of air circuit breakers with the new 3WA series. Being an important element of low-voltage power distribution, the 3WA series protects electrical installations in buildings, infrastructure, and industrial facilities from damage caused by overload, short circuits, or ground faults.
• In Jan 2021, ABB India launched Formula DIN-Rail, a complete range of miniature circuit breakers (MCBs), residual current circuit breakers (RCCBs), and isolators for the retail electrical market estimated to be worth USD 250 million in India.  ABB Formula DIN-Rail portfolio, with its contemporary design, provides optimum protection to electrical circuits from possible damages caused by overload, short circuits, and earth leakages in buildings. The MCBs are available with a 7-year warranty. This range meets international standards and is manufactured in ABB India's smart buildings factory in Bengaluru (Karnataka), with a production capacity of 12 million poles of MCBs per year. 
• In September 2019, Eaton launched Power management specialist Eaton announced the global launch at InnoTrans 2018 of ADR, a new product family from Eaton's Heinemann Hydraulic Magnetic Circuit Breakers (HMCB) range.
• In February 2019, Schneider Electric Friday announced the launch of Master pact MTZ, the next generation high-power low voltage circuit-breakers assembled in the Indian market. Master pact MTZ is a first-of-its-kind air circuit breaker that provides customers with enhanced performance, reliability, and safety. A circuit breaker is an automatically operated electrical switch that protects an electrical circuit from damage caused by overload.

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