Circuit Monitoring Market

The Circuit Monitoring Market size was valued at USD 659 Million in 2023 and the total Circuit Monitoring Market is expected to grow at a CAGR of 4.7% from 2023 to 2028, nearly reaching USD 829 Million in 2028.

Increasing number of data centers, and rising concern overpower stability for uninterrupted business operation is driving the market for Circuit Monitoring Market.

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Circuit Monitoring Market Dynamics

Driver: Rising concerns over power stability for uninterrupted business operation

Electricity is a vital and fundamental need for economies and industries to operate, but many locations are deprived of stable power distribution infrastructure. As power density in modern industrial and commercial applications increases, more focus would shift toward improving efficiency in the power distribution infrastructure. Circuit monitoring units act as a backbone for the efficient monitoring of power to increase efficiency.

According to the Energy Information Administration (EIA), computers and related equipment were the major consumers of electricity in 2018. Other systems that used electricity in bulk were refrigeration, space cooling, ventilation, lighting, and space and water heating.

Currently, the IT & telecom sector individually accounts for 2–3% of global electricity consumption. With the introduction of the 5G network worldwide, electricity consumption from such sectors is expected to increase. Such energy-intensive industries require 24x7 power supply to run the operations, and power distribution units aid in reliable and stable power supply to the connected outlets. Similarly, the healthcare industry, which includes hospitals and dispensaries broadly, is another electricity-intensive sector as electricity is required every second for critical applications, such as medical machines, lighting and heating needs, and computer operations.

The planning of circuit monitoring systems in buildings and infrastructure facilities is subject to electricity budgeting and maintaining operational expenditure for industries. Such industries drive the demand for circuit monitoring, which acts as an interface between power consumption and power management of industries. In a sustainability report for 2020, Facebook announced that it had used a total of 7.17 million megawatt-hours of electricity in 2020, out of which 6.966 million megawatt-hours were for data centers, and the rest was for its offices, which was ~39% increase over 2019.

Restraint: Decilne in adoption of circuit monitoring due to advancement in energy monitoring systems

An energy management system is installed by data centers and industries, as well as residential and commercial sectors. This system offers various benefits such as faster problem determination, increased safety, high productivity, improved power quality, and increased scalability. These systems also facilitate monitoring of various parameters, such as power quality, generator control, load forecasting, energy cost calculations, and automatic load shedding, for power distribution. Energy management systems have been widely adopted by industries for increasing energy efficiency, improving efficiency of equipment by decreasing power consumption, and reducing energy costs. Circuit monitoring systems only help in monitoring but, to some extent, also assist in measuring the power  quality. Thus, energy management systems provide more features and advantages than circuit monitoring systems, and hence, are being implemented by commercial, data centers, residential, and industrial end users at large. The aforesaid is limiting the adoption of circuit monitoring systems.

Opportunities: Enforcement of stringent regulations to reduce carbon footprint of data centers

Data centers are intense consumers of water and electricity and are responsible for significant carbon emissions. Some regulatory bodies and governments, such as the International Organization for Standardization, American National Standards Institute, and European standards, are imposing sustainability standards on newly built data centers. For instance, in Singapore, the Infocomm Media Development Authority (IMDA) of the government managed the growth of data centers by imposing a moratorium on new data center projects since 2019 and announced a temporary pause in data center development in the country. However, in 2022, the three-year moratorium on new data centers officially ended, with the IMDA and Economic Development Board (EDB) launching a pilot scheme for new applications for calibrated and sustainable growth of data centers in Singapore. On February 16, 2022, the Netherlands' Ministry of the Interior made a preliminary decision on government regulations for hyperscale data centers that prohibit to change the use of grounds and buildings in such way that a hyperscale data center cannot be established until new national conditions for establishing hyperscale data centers have been determined. These developments give investors opportunities to secure data centers with carbon-free energy supplies.

The use of renewable energy is critical for hyperscale data centers. Hyperscale and colocation data center developers have committed themselves to using only carbon-free energy by 2030 to meet sustainability goals. Measurement and monitoring of data center energy consumption is also gaining traction to enhance achieving sustainability goals. Rack PDUs, PDUs, bus drops, busway end feeds, remote power panels, UPS, and building meters help monitor power consumption and improve energy efficiency. Circuit monitoring allows data centers  to manage power usage, enabling them to identify areas where energy is being wasted and make adjustments to reduce energy consumption. By using circuit monitoring  to optimize energy usage, data centers can reduce their carbon emissions and environmental impact. This is particularly important as the demand for data storage and processing continues to grow and data centers become an increasingly important part of the global technology infrastructure.

Challenges: Supply chain constraints and disruptions

The prices of raw materials used for making circuit monitoring components are unstable and raw material providers face multiple disruptions in the supply chain. Several components and parts of circuit monitoring systems come from China, the US, and Europe. Manufacturing disruptions in China and the US could contribute to the slow growth in the circuit monitoring market over the next few years. Due to the inflation and economic crisis, the local currencies of several countries have depreciated, affecting purchase prices of materials that are generally traded in US dollars. There is a misalignment of supply and demand, leading to financial losses to component/part manufacturers.

Post COVID-19, a bullwhip effect-recovery was seen in the market for raw materials owing to a sudden rise in demand for components and raw materials due to massive stimulus injections and federal reserve interventions. This negatively affected component manufacturers that had scaled-down their production due to the pandemic. The impact of the Russia–Ukraine war and COVID-19 reemerging in China has detrimentally affected raw materials and energy prices, which have significantly increased. Ukraine-related transportation restrictions and extended lead times have plagued the supply chain. Moreover, Ukraine and Russia are significant producers of aluminum, copper, and steel. Galvanized steel is a major component typically used to make panelboards. Steel prices are likely to increase significantly in the near future. Circuit breakers use steel or aluminum and copper. With recently moderating copper prices, a smaller price hike can be expected in circuit breakers. Switchgears are large and bulky items. Continuing shipping disruptions is anticipated to affect lead times. Furthermore, surging fuel prices might enhance transport costs, further driving price increases in the near term. Wires and cables use copper and aluminum. Their prices are slowly stabilizing after a huge increase, but are expected to remain high for a few years.

Supply disruptions and increasing raw material costs are anticipated to drive the price increase, furthering the disruptions in the circuit monitoring market.

Circuit Monitoring Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of Circuit Monitoring systems 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 ABB (Switzerland), Schneider Electric (France), Eaton (Ireland), Toshiba International Corporation (Japan), and Legrand (Ireland).

The others segment, by type, is expected to be the largest market during the forecast period.

This report segments the circuit monitoring market based on type into two types: Modular circuit monitoring, and others. The others segment is expected to be the largest market during the forecast period. The others segment include branch circuit monitoring, and multi circuit monitoring. Both multi-circuit monitors and branch circuit monitors are compact and, hence, use lesser space as compared to traditional single-circuit energy meters. These are used by industries, data centers, and commercial and residential end users.

By End User, the data center segment is expected to be the largest during the forecast period

This report segments the circuit monitoring market based on end users into four segments: data centers, commercial, industrial, and residential. The data center segment is expected to be the largest segment during the forecast period. The data centers segment is driven by the heightened adoption of circuit monitoring in data centers for remote monitoring and the determination of power usage effectiveness.

“Asia Pacific”: The fastest in the circuit monitoring market”

Asia Pacific is expected to fastest growing region in the circuit monitoring market between 2023–2028, followed by the Middle East and Africa,  and South America America. Leading companies, including Google (US), Amazon Web Services (US), and Microsoft (US), are investing heavily in Asia Pacific and building regional data center facilities is one of the key factors fostering the growth of the circuit monitoring in the Asia Pacific.

Key Market Players

The circuit monitoring market is dominated by a few major players that have a wide regional presence. The major players in the circuit monitoring market are ABB (Switzerland), Schneider Electric (France), Eaton (Ireland), Toshiba International Corporation (Japan), and Legrand (Ireland). Between 2019 and 2023, 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 circuit monitoring market.

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Scope of the Report

This research report categorizes the circuit monitoring market by type, end user, and region.

On the basis of by type:

• Modular Circuit Monitoring
• Others

On the basis of end user:

• Residential
• Data Centers
• Industrial
• Commercial

On the basis of region:

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

Recent Developments

• In March 2023, Schneider Electric invested USD 42.85 million in a Hungarian factory of 25,000-meter sq. with 500 employees. The site would have 30 electric cars and 25 electric bicycles, Schneider electric charging stations, and Schneider electric sensors to reduce energy waste and airlocks.
• In September 2022, ABB invested USD 13 million for the expanision of facilities in Canada to increase production capacity and establish a research & development facility.
• In July 2022, Eaton acquired 50% circuit breaker business in Jiangsu Huineng Electric Co. Ltd. This would boost the growth strategy of Eaton and capitalize on opportunities in high-growth market segments.
• In March 2021, Eaton completed the acquisition of Tripp Lite, a supplier of power supply systems, rack power distribution units, surge protectors and enclosures for data centers and industrial, medical and communication markets. This acquisition would enhance the breadth offerings of Eaton.

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