Air Circuit Breaker Market Size, Share & Industry Analysis, By Type (Air Blast Circuit Breaker and Plain Air Circuit Breaker), By Voltage (Low Voltage and Medium Voltage), By End User (Utility, Industrial, Commercial, and Others), and Regional Forecast, 2020-2032

The global air circuit breaker market size was valued at USD 3.24 billion in 2019 and is projected to reach USD 7.17 billion by 2032, exhibiting a CAGR of 6.31% during the forecast period.

ACB is an electrical device used in an electrical circuit to protect from overcurrent and short circuit for a range of 800 Amps to 10K Amps and is used in low voltage applications. It is mostly adopted by industrial users owing to its technical advantages such as high performance, durability, ease of installation, and maintenance. ACB is used for the protection of plants, electrical machines, transformers, capacitors, and generators  against  short circuit, under or over voltage, under or over frequency, reverse power, earth fault, and other faults. Hence, it is mostly adopted in the industrial and commercial sectors, where the demand for these devices is largest.

However, the recent outbreak of COVID-19 is adversely affecting the switchgear market, owing to  decline in investments in the industrial sector, stagnancy in commissioning of new grid expansion projects, and economic slowdown. The decrease in power demand from the industrial & commercial sectors has led to the shutting down of power plants across regions. Hence, the outbreak of COVID-19 restrains the air circuit breaker market growth in the forthcoming years.

MARKET TRENDS

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Rising Need for Reliable and Secure Power Supply Fuel the Market

Increasing urbanization and growth in infrastructure services are driving the need for reliable and secure power, which in turn has propelled the demand for these devices. For instance, in March 2017, the World Bank (WB) approved USD 100 million for large-scale solar parks in India, which facilitated an increase in electricity generated in solar parks and provided reliable and secure power. Hence, increasing investment and the emerging need for secure and dependable power supply are expected to propel the ACB market growth during the forecast period.

Increasing Investment in Industrial Sector to Fuel Market Growth

Increasing investment in the industrial sector and growing investment to leverage the industrial infrastructure is increasing the demand for ACBs. These devices  are predominantly used in the manufacturing and processing industry. According to the World Investment Report 2018, Asia-Pacific received an inflow of  USD 476 billion  from Foreign Direct Investment (FDI) in the year 2017, which was majorly contributed by China and Singapore. Hence, increasing investment from the industrial sector necessitates the deployment of  these devices in various end-use  and manufacturing industries.

MARKET DRIVERS

Increasing Demand for Renewable Power Generation to Aid Market Growth

Increasing awareness about renewable power, which has led to significant adoption of renewable energy and supportive government initiatives, is the prominent factor responsible for the growth of renewable power generation. According to Energy Information Administration (EIA) International Energy Outlook 2019 report, 28% of the global power came from renewable energy in 2018, which was majorly contributed by wind, solar, and hydropower. The EIA forecasts that renewables will account for almost half—49%—of global electricity output by 2050. Further, increasing implications of green energy targets to reduce greenhouse gas emissions are being carried out by various governments across the globe. The main motive for this is to contain the year-on-year temperature rise within manageable  limits. Hence, growth in renewable power generation would help to drive the demand for the air circuit breaker during the projected period.

Growing Demand for Energy Storage and Decentralized Power Generation to Fuel the  Market

Growing electrification needs, along with increasing demand for energy storage globally, is subjected to increase the demand for switchgear industry, which in turn propels this market in coming years. Growing instances of power outages are the major concern faced by end-users globally. The adoption of energy storage technologies in power grids is one of its most feasible solutions available for utility providers to avoid service downtime. Huge electricity loss that takes place during  transmission has led to the emergence of decentralized power generation. According to Bloomberg New Energy Finance (BNEF), the energy storage market is predicted to grow to cumulative 942GW by 2040, attracting an investment of USD 620 billion. Hence, increasing demand for energy storage and decentralized power generation is set to boost the market  in the projected period.

MARKET RESTRAINT

Increasing Competition from the Unorganized Sector to Hinder Market Growth

Increasing investment in advanced ACB technologies has enabled the major players to compete in the global market. Rising competition from the unorganized players to fulfill the demand from industries such as manufacturing, processing, construction, and transportation is likely to act as a major factor restraining the growth of the market during the projected period.

SEGMENTATION

By Type Analysis

Air Blast Circuit Breaker Segment Dominated the Global Market

Based on type, the market is segmented into air blast circuit breaker and plain air circuit breaker. The air blast circuit breaker segment is dominating the market owing to significant advancements in technology, which are  integrated into these circuit breakers. ACB has minimal chances of fire hazards over the oil circuit breaker and plain air circuit breaker. Therefore, it is leading the global market.  The plain air circuit breaker segment is also increasing its market share due to the wide deployment of plain ACBs  in industrial and commercial applications.

By Voltage Analysis

Medium Voltage Segment to Dominate  the Market

In terms of voltage, the market is segmented into a low voltage and medium voltage.  The medium voltage segment is dominating the market owing to the wide scope of utility of ACBs with medium voltage in industrial, commercial, and power plant applications. The low voltage segment is also leading the market due to the increasing application of these circuit breakers, which include controlling power station auxiliaries, electricity sharing system, and maintaining the switchgear and indoor medium voltage. Growing application of ACB for protecting medium voltage  range which includes industrial plants, electrical machines, transformers, capacitors, and generators. Hence, increasing demand for ACBs  from medium voltage applications is expected to drive the growth of the medium voltage segment during the projected period.

By End User Analysis

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Utility Segment to Dominate the Market during the Forecast Period

The end-user segment is further segmented into utility, industrial, commercial, and others. The utility segment is estimated to hold the largest  share in the global market owing to the extensive application of air circuit breakers in power plants for the protection of electrical machines such as generators, transformers, and capacitors. The industrial segment is holding the second-largest share in the global market due to the increasing deployment of the ACBs in industries for protection and controlling the electrical components & sub-stations and improve the industrial efficiency. The commercial segment is also leading the market share owing to the wide application of ACBs  in shopping malls complexes, hospitals, and universities. The growing demand for these circuit breakers owing to increasing demand from power plants and utilities is projected to increase its share in this market during the forecast period.

REGIONAL ANALYSIS

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Geographically, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East &  Africa. The market is forecasted to gain momentum in Asia- Pacific owing to increasing protection of industrial plants and electrical machines such as generators, capacitors, and transformers through utilization of ACBs. Increasing investment in expanding transmission and distribution networks is driving the demand for ACBs in the region. For instance, in February 2019, IndiGrid, an infrastructure investment trust (InvIT) in the Indian power sector, had signed an agreement for the acquisition of Patran Transmission Company Limited (PTCL) from Techno Electric & Engineering Company Limited for USD 33.90 million. Hence, increasing investment in expansion projects will enable Asia-Pacific to lead the air circuit breaker market share during the forecast  period.

North America is investing in enhancing the overall performance of generation, transmission & distribution of electric power to improve protection against electrical equipment and machines. Many industrial and commercial applications are procuring ACBs  for reliable and efficient power transmission, which might add significant value to the market. Europe will dominate the market due to the increasing expansion of industrial infrastructure and growing investments in power utilities. According to the European Energy Industry Investments report published in 2017, the region is estimated to experience an increase in  investment in transmission and distribution from USD 58.37 billion in 2011-2020 to USD 86.73 billion in 2021-2030. Hence, growing investments in transmission and distribution infrastructure offer lucrative growth opportunities for this  market.

The countries in the Middle East & Africa are highly dominated by oil and gas companies, which require a reliable power supply. Companies operating oil and gas plants are focusing on controlling power station auxiliaries and mitigate the risk of fires and explosions. African countries are mainly focused on increasing their grid infrastructure that will add a positive outlook for the global  market during the projected period.

KEY INDUSTRY PLAYERS

Technological Advancements In The Circuit Breaker Industry To Propel The Competition In The Market

The competitive landscape of the market depicts significant advancements in the circuit-breaker technology  for  protecting  equipment  against short circuit and overcurrent. Growing awareness and adoption of these devices by the utilities and industries for controlling and protecting the power station, auxiliaries, and industrial plants are prominent factors responsible for the dominance of the company.

Players such as Taixi Electric, Super Electrical Co, Roopal Automation Pvt. Ltd, and Square D, among others have entered the market for providing innovative circuit breakers to end-users. This is projected to positively impact the global market as these companies are anticipated to gain market share during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• ABB (Switzerland)


• Siemens (Germany)


• Schneider Electric (France)


• GE (United States)


• Hyundai Electric & Energy Systems Co., Ltd. (South Korea)


• Eaton (Ireland)


• Mitsubishi Electric (Japan)


• Fuji Electric (Japan)


• Terasaki Electric Co. Ltd (Japan)


• Legrand (France)


• Larsen & Toubro (India)


• WEG (Brazil)


• Hitachi Industrial Equipment Systems Co., Ltd. (Japan)


• CBI-electric Group (United States)

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, ABB announced the ReliaGear low voltage switchgear platform incorporating the SACE Emax 2 air circuit breakers with Ekip trip units integrated into the platform. This model is specifically designed for critical power facilities, key industrial segments, and the oil and gas sector.


• In June 2021, To prevent any electricity-related untoward incident in Mumbai during monsoon, Tata Power undertook a unique project to implement several measures for electrical safety, which included installing numerous circuit breakers.


• In June 2021, Siemens Energy and Mitsubishi Electric signed a Memorandum of Understanding (MoU) to conduct a feasibility study on the joint development of switching solutions with zero global-warming potential (GWP) using a 245-kV circuit breaker that will speed up the availability of climate-neutral switching solutions for customers around the globe.


• In February 2021, ARPA-E released USD10 million in funding for six projects as part of the Connecting Aviation By Lighter Electrical Systems (CABLES) topic. CABLES teams will develop medium-voltage (> 10 kV) power distribution cables, connectors, and circuit breakers for fully electrical aviation applications. 

REPORT COVERAGE

The air circuit breaker market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, products, and upcoming developments of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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