Circuit Breaker Market Size, Share & Analysis

[271 Pages Report] The global circuit breaker market in terms of revenue was estimated to be worth $6.5 billion in 2023 and is poised to reach $8.6 billion by 2028, growing at a CAGR of 5.5% from 2023 to 2028. The circuit breaker industry is going through remarkable growth and innovation, driven by developments in technology, rising demand for electricity, and the utilizing renewable energy. As a main participant in the energy sector. Specific investments in renewable energy & and grid modernization projects is driving demand for high-voltage circuit breakers. Rapid urbanization and industrialization in the area are driving the need for reliable power distribution systems in between rising electricity consumption.

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Circuit Breaker Market Dynamics

Driver: Growing investments in power generation, specifically from renewable energy sources

With climate change and global warming issues thwarting the environment, reducing CO2 emissions is the need of the hour. Globally, burning fossil fuels has been the primary power source, producing a sizable amount of pollution. Energy is generated through renewables to remedy this since the need for electrical energy is ever-rising. This issue was also addressed in the Paris Agreement. Nearly 174 countries agreed to reduce their carbon footprint to ensure the global temperature rise stabilized at 1.5?C without compromising on the increasing electricity demand. The total investment in renewable generation globally was approximately USD 311 billion in 2019. Asia Pacific has seen the highest investments in the power sector. For instance, the public utility State Grid of China (accounting for around a third of the electricity investment) announced investments worth USD 65 billion), with ultra-high voltage (UHV) projects accounting for 40% of the total investments. The largest US-based solar PV project (690 MW) in North America was approved in May. This project includes a 380-MW battery storage system. In addition, the government signaled the extension of tax credit eligibility for new solar and wind projects after 2020 to assist in accounting for delays; wind installations in Q1 of 2020 doubled compared with Q1 of 2019, and wind construction pipeline rose to record levels.

According to the International Energy Agency (IEA), globally, the expected total investment in renewable generation in 2020 is USD 281 billion. Global investments in the power sector in renewable power were found to be USD 308 billion in 2018. Renewable sources such as photovoltaic and wind generators require a dedicated protection system. Hence, the circuit breaker is required to connect the power generating stations to switchyards and the electrical grid. It is one of an electrical system's most essential and critical components. It ensures power system protection and regulates the power supply. Growing concerns over the reliability of renewable power have boosted the market for renewable generation and distribution, driving the global circuit breaker market. According to the BP Statistical Review of World Energy, in 2019, renewable electricity generation accounted for 2805.51 Terawatt-hours of global electricity generation. Many utilities are focusing on renewable energy integration to decarbonize the power distribution system while ensuring environmental protection. Hence, renewable sources are likely to have a significant share in the total power generation mix in the future. An increase in renewable energy generation is stimulating a rise in demand for circuit breakers, essential for protecting and controlling electrical power systems.

Restraint:  Stringent environmental and safety regulations for SF6 circuit breaker

According to the Kyoto Protocol, SF6 is one of the most potent greenhouse gases (GHGs) with a global warming potential (GWP) of 23,000. It has been listed as an extremely harmful GHG by the Intergovernmental Panel on Climate Change (IPCC). Accordingly, the Kyoto Protocol stipulates the reduction of emissions. Currently, no nearest alternative could work as efficiently as SF6. Thus, high procurement costs, along with policies against SF6, are expected to hamper growth. Imperfect joints in the manufacturing of SF6 circuit breakers lead to the leakage of the SF6 gas, which is a choking gas to some extent. At the time of leakage in the breaker tank, the SF6 gas settles in the surroundings as it is heavier than air, and this gas precipitation may lead to the suffocation of the operating personnel. The arced form of the SF6 gas is poisonous and can be harmful if inhaled. The Environmental Protection Agency (EPA) in the US has taken measures to find a solution to detect the leakage of the SF6 gas in the breaker tank of SF6 circuit breakers, as the leakage is destructive when an arc is formed. The internal parts of SF6 circuit breakers require exhaustive cleaning during periodic maintenance under a clean and dry environment. The sensitive parts of the device are damaged if not cleaned at a regular interval. Special amenities are required for the transportation and maintenance of the quality of this gas. Any deterioration in the quality of the gas would affect its performance, which, in turn, would affect the reliability of SF6 circuit breakers. The innovation of SF6 proved to be a challenge for the circuit breaker and fuse industry, which needs to be addressed by the industry players and technical experts in the industry.

Opportunity: Increasing adoption of smart grid technologies to protect and control power equipment

A smart grid is a digital technology that emphasizes updating electrical networks by providing two-way communication between the utility and customers. Global power utilities are investing in smart grid technologies to control and procure power equipment. At the end-user level, smart grids can enable demand flexibility and consumer involvement 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 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 circuit breakers (SCB) are capable of offering not only improved protection but also “smart” detection and management of grid faults. It also focuses on enhancing the capability of communication over a network for data transmission and remote management. It also offers benefits such as automatic reconnection, high-speed disconnection, data fusion and disconnecting in the case of zero-crossing detectors, which diminishes the generated perturbations. Governments across the world have implemented several supportive policies and mandates, focusing on the implementation of smart grids and spreading consciousness about energy conversation. These regulations drive the smart grid market in application areas such as industrial, commercial, and residential sectors. Heavy investments are being made for the development of the smart grid. For instance, the ARRA, part of the US federal government, allocated USD 3.4 billion for smart grid investment grants to utilities and USD 615 million for smart grid demonstration projects. The NERC is a regulatory authority established to assess the reliability of bulk transmission power systems in North America.

Challenge: Risk of cyberattacks on modern circuit breakers.

Cybersecurity has become a fundamental requirement for any automation project in the power industry. The installation of modernized circuit breakers faces multiple challenges that pose a threat to a country’s economy. Smart devices aid the optimal functioning of the system, but they can also pose a security threat from anti-social elements. Cyberattacks in circuit breakers can become a major concern throughout the grid communication networks and software platforms that operate and manage the entire grid. According to the World Economic Forum, the utility and energy sector ranks the second highest in losing USD 17.2 million per company per year from cybercrime. Circuit breakers face various cyberthreats 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 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 on 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.

Circuit Breaker Market Ecosystem

The market is described by the presence of leading companies that are well-settled, sound financial standing, and have broad experience in the manufacturing of circuit breakers and its components. These companies have a powerful market position and offer a varied range of products globally. They make use of innovative technologies and have international networks for marketing and sales. Some of the prominent companies in this market include Eaton (Ireland), ABB (Switzerland), Siemens (Germany), Mitsubishi Electric (Japan), and Schneider Electric (France).

By insulation type, the gas circuit breaker segment is the largest contributor in the circuit breaker during the forecast period.

In the course of the forecast period, the gas circuit breaker segment is expected to rule the circuit breaker market. Low space requirements and high dielectric property are the market drivers for gas circuit breakers. Due to increasing financial commitments in renewable energy, the market for SFG-based gas-insulated switchgear is anticipated to be driven by the demand for upgrades of existing substations or the installation of new ones. Asia Pacific is predicted to hold the largest share of the global market for gas circuit breakers, followed by Europe.

By voltage, the high voltage segment is expected to be the largest market for circuit breaker during the forecast period.

In terms of voltage, circuit breaker market share largest in 2022 was possessed by the high voltage group. Driven by outlays made on the electrical transmission infrastructure. The market for high-voltage circuit breakers is anticipated to be driven by the Many utilities are spending money on high-voltage circuit breakers to provide an extremely stable power source and fulfill the increasing demand for power in residential areas. Their ability to switch between open or closed states without generating hazardous voltage levels makes them a trustworthy choice. The growth of advanced circuit breaker further increases their allure because of their enhanced safety features and performance.

By installation, the outdoor segment is expected to be the largest contributor during the forecast period.

By installation in 2022, the outdoor segment had the largest circuit breaker market share. The market is anticipated to expand as more wind and solar power infrastructure are installed. Additionally, as infrastructure upgrades are made in nations with elevated urbanization rates. There is a growing need for outdoor circuit breakers. The product's performance will be further optimized by technological innovation and advancement, increasing its use in downstream applications.

By end user, the T&D utilities segment is expected to be the largest contributor during the forecast period.

The circuit breaker market share held by the Transmission and Distribution (T&D) Utilities segment in 2022 was the highest. The increasing need to upgrade the infrastructure and the growing need for electricity consumption are cited for their dominance. It is anticipated that the market will keep expanding as T&D utilities Invest more rigorously in smart grid technologies that improve power distribution safety, effectiveness, and reliability. Distribution utilities stand to gain benefit of a substantial market share by expanding their networks to meet changing energy needs, which makes these investments especially important.

Asia Pacific held the largest circuit breaker market share in 2022.

In 2022, Asia Pacific held the largest circuit breaker market share worldwide. The region has been divided into China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific. China is the region's biggest and fastest-growing market. China is considered as the global leader in power transmission and distribution. The region’s primary focus is on developing transmission lines capable of transferring high loads over long distances and developing a dependable power system across the entire country. Renewable energy projects like wind and solar are expanding and developing quickly in China. In addition, the Chinese government recently passed the Renewable Energy Law, which sets a 2020 goal of 20% of primary energy consumption coming from renewable sources. In the Gansu province, the Chinese government has begun construction on the wind project Three Gorges on Land, which can produce 22 GW of electricity. Therefore, it is likely that as the number of renewable energy projects rises, so will the number of installations in substations.

Key Market Players

ABB, Schneider Electric, Siemens, Mitsubishi Electric, and Eaton are prominent players in the circuit breaker market, known for their industry expertise and innovative solutions. Additionally, CG Power and Industrial Solutions, XIGAO Group, LS ELECTRIC, Huayi Electric, Myers Power Products, Larsen & Toubro, TE Connectivity, Meidensha, Toshiba, Powell Industries, and other companies also operate in the global market, contributing to its competitive landscape.

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Scope of the Report

This research report categorizes the circuit breaker market size based on Insulation Type, Voltage, Installation End User, and Region.

Based on the insulation type:

• Vacuum Circuit Breaker
• Air Circuit Breaker
• Gas Circuit Breaker
• Oil Circuit Breaker

Based on the voltage:

• Medium Voltage
• High Voltage

Based on the installation:

• Indoor
• Outdoor

Based on the end user:

• T&D Utilities
• Power Generation
• Renewables
• Railways

Based on the region:

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

Recent Developments

• In Nov 2021, Siemens Smart Infrastructure is improving the Sentron line of air circuit breakers With the launch of the new 3WA series. The 3WA series protects electrical installations in buildings, infrastructure, and industrial facilities from danger brought on by overload, short circuits, or ground faults. It is a crucial component of low-voltage power distribution.
• In Jan 2021, ABB India introduced Formula DIN-Rail, a full line of isolators, residual current circuit breakers (RCCBs), and miniature circuit breakers (MCBs) for the retail electrical market, which is estimated to be worth USD 250 million in India. With modern design, ABB Formula DIN-Rail portfolio offers the best protection for electrical circuits against potential harm accured because of overload, short circuits, and earth leakages in structures. A 7-year warranty is offered with the MCBs. This product line is manufactured in Bengaluru (Karnataka), ABB India's smart buildings factory, and it complies with international standards. This factory has a yearly production capacity of 12 million MCB poles. 
• In September 2020, Siemens the type SDV-R non-arc-resistant and type SDV-R-AR arc-resistant outdoor distribution circuit breakers was introduced which is specifically designed for renewable energy applications, including wind power generation.

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