Protective Relay Market size is poised to reach USD 5 Billion by 2036, growing at a CAGR of 6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of protective relay was USD 3 Billion. The reason behind the growth is due to the growing demand for energy across the globe owing to the precipitous increase in the global population, growing industrial activity, and advances in both developing and developed countries.
According to estimates, by 2050, global demand is expected to reach over 650 quadrillion Btu, an increase of around 14% from 2021.
The growing advancements in smart grid technology are believed to fuel the market growth. The smart grid presents an unparalleled chance to usher in a new era of upgraded networks for the energy sector owing to its features such as advanced control, metering, and communication technologies that can supply electricity.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
~6% |
Base Year Market Size (2023) |
~ USD 3 Billion |
Forecast Year Market Size (2036) |
~ USD 5 Billion |
Regional Scope |
|
Voltage (Low, Medium, High)
The medium segment in the protective relay market is estimated to gain a robust revenue share of 40% in the coming years. Relays for medium voltage which are usually between 2.4 kV and 38 kV are designed especially for systems that operate at levels of medium voltage. Power distribution networks' dependability and safety are guaranteed by medium voltage protection relays, which are typical for utility, commercial, and industrial uses. Protection relays for medium voltages are made up of various essential parts such as current transformers, voltage transformers, microprocessors, and trip coils.
The medium voltage protection relay (MV) market is an important player in the electrical infrastructure space as it aids in identifying faults, abnormalities, and disturbances and isolating the impacted components to prevent potential damage, and also plays a critical role in safeguarding electrical systems, guaranteeing medium voltage power systems dependability and security.
In addition, low voltage relays function by determining when the electrical current falls below a predetermined threshold, and are widely used in both commercial and residential settings to safeguard electrical systems at voltages of up to 1 kV. Besides this, high voltage relays are electromechanical devices, which have a longer contact life since they are constructed of sturdy materials have a lot of insulation, and are found in substations and, most often, control houses.
Application (Feeder Protection, Transmission Line Protection, Transformer Protection, Generator Protection, Motor Protection, Emergency Shutdown Systems (ESD))
The motor protective relay market is set to garner a notable share shortly. The purpose of motor protection is to stop internal and external defects from wearing down electrical motors which necessitates the use of a motor protection relay to offer primary protection for both synchronous and asynchronous motors and can be used to prevent motor burnout in the event of an overload or locked rotor. Moreover, it is an electrical device that guards the motor and is mainly used for motor applications where dependability and efficiency are crucial.
In addition, a feeder protection relay's primary function is that of a sensor and helps in finding the problem's location before turning on the circuit breaker, and works as a tool used to guard power system feeders against several kinds of malfunctions, such as short circuits.
End-User (Utilities, Industries, Railways, Government)
The utilities segment in the protective relay market is poised to garner a noteworthy share in the coming years. Sophisticated protective relays are necessary to provide utilities with the dependability and resilience they demand as power networks become increasingly complicated, and can protect the zones within the power system to automatically identify a malfunctioning circuit and system variable.
Our in-depth analysis of the global market includes the following segments:
Application |
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Voltage |
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End-User |
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Technology |
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APAC Market Forecast
The protective relay market in Asia Pacific is predicted to account for the largest share of 46% by 2036 impelled by the increasing spending on infrastructure development. India's infrastructure industry is expected to grow at the fastest rate in the nation and is anticipated to emerge as the primary catalyst for the nation's economic expansion owing to increased government investment and development programs. In terms of total spending, the government has given priority to transportation infrastructure, and over the previous four years, capital spending on railroad infrastructure has climbed considerably. For instance, it is predicted that for the following seven fiscal years, or until 2030, India's infrastructure spending will reach around USD 1 trillion.
In addition, by 2024, investments in renewable energy projects in India are expected to have increased by more than 80%, reaching over USD 16 billion as the country has declared that it wants to meet half of its electricity needs from renewable energy sources and achieve net zero emissions by 2070. These factors are expected to drive the market growth in the region.
North American Market Statistics
The North American protective relay market is estimated to be the second largest, during the forecast period. led by the growing investment in power infrastructure. For instance, to aid in the transformation of the American electrical infrastructure to clean energy, the President of the region has ordered the construction of three additional interstate power lines at a cost of around USD 1 billion. Moreover, to reach its climate targets by 2030, the US will need to invest over USD 350 billion in clean power generation.
Author Credits: Abhishek Verma, Hetal Singh
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