Protective Relay Market Size, Share & Industry Report [2031]

Report Description

The global protective relay market size was valued at USD 3.16 Billion in 2022 and is likely to reach USD 4.99 Billion by 2031, expanding at a CAGR of 5.2% during the forecast period, 2023–2031. The market growth is attributed to the increasing share of renewable energy sources, rapid growth in the industrialization sector, and expansion of transmission & distribution networks.

A protective relay is a switchboard or switchgear device that senses any fault in the electrical system. The protective relay directs the circuit breaker to isolate the faulty part of the electrical system. It can be installed in the electric system to absorb the abnormal conditions in the circuit.

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Essentially, a protective relay can check the system and find out if the system is normal or in a faulty condition. A protection relay works as a sensor, that senses abnormal conditions and it closes directly. It is an intelligent device that receives inputs, compares them with standard points, and provides output. Inputs might be voltage, temperature, current, or resistance.

The output can be a visual response, including control warnings, communication, alphanumeric display, indicator lights, and turning the power on and off. There are several types of protective relays such as overcurrent relays, electromechanical relays, directional relays, differential relays, distance relays, and pilot relays.

COVID-19 Impact on Protective Relay Market

The market report finds that the COVID-19 pandemic has affected the global protective relay market, due to the slowdown of operations in various industries and the decline in product demand. The strict lockdown and social distancing measures from various governments resulted in the decline of system installations.

The COVID-19 pandemic has declined the growth of major economies such as India, China, the U.S., Japan, and Germany. Globally several countries have faced a significant economic impact, owing to which investments in the electrical system have been reduced, which also hampered the global market.

Protective Relay Market Dynamics

The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The protective relay market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.

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Trends

The demand for renewable energy solutions is increasing, which is one of the major trends in the global market. The most dependable renewable energy sources are solar energy and wind power plants. Renewable energy solutions can lead to reduced short circuit currents and insensitivity of the protection solutions.

Renewable energy leads to major changes in the operating mode of the power system. The growing implementation of renewable energy solutions is expected to boost the demand for relay protection and other automation devices for controlling electrical systems.

Drivers

Increasing Demand for Electricity Supply Line

The demand for electricity supply lines is increasing due to the growing utilization of electricity in households and industrial sectors. This is expected to drive the growth of the global market. The electricity demand is consistently increasing in various countries around the world. The transmission grids are being set up and electrification programs are being carried out around the world.

This increased installation of electrical supply lines has increased demand for protective relays and is expected to expand the growth of the global market. In addition, solar electricity coupled with rising investments and revamping the smart grid is expected to boost the growth of the global protective relay market.

Demand for Timely Investment and the Internet of Things

The demand for timely investment and the Internet of Things (IoT) are some of the major factors driving the growth of the global protective relay market. The rise in IoT applications, including smart cities, industrial internet of things (IIoT), smartphones, machine-to-machine communications, and others, are expanding the market. The demand for energy safety in advanced industries needs timely investment, which is expected to further boost the market.

Restraints

High installation and maintenance costs are the major factors restraining the growth of the global protective relay market. The high capital cost involved in the installation of the relay systems is expected to restrain the protective relay market. The regular maintenance required by electric systems for better system health and efficiency can hinder the growth of the global market.

Opportunities

The demand for power and investments in smart grid infrastructure is increasing and is expected to create lucrative opportunities for the growth of the global protective relay market. The high investment can support and enable the wide electrification of industry, buildings, and transport. Also, it is expected to improve various renewable power systems.

Scope of Protective Relay Market Report

The global protective relay market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Protective Relay Market Segment Insights

Application Segment Analysis

Based on application, the global protective relay market is divided into the transmission line, generator, busbar, feeder, transformer, breaker, motor, and others. The motor segment is expected to expand at a significant growth rate during the forecast period, due to the increasing demand in the manufacturing and commercial sectors.

High demand in commercial sectors and growth in the industrial segment especially in manufacturing sectors of developing countries such as China, Japan, India, and South Korea are expected to boost the demand for the motor segment.

The transformer relay segment is anticipated to hold a key share of the market during the forecast period. The transformer protection relay is a unit protection scheme for one winding of the transformer. Buchholz relay is used for the protection of transformers.

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Technology Segment Analysis

On the basis of technology, the global market is segregated into digital & numerical relay, electromechanical & static relay, and Electromagnetic Relay. The digital & numerical segment is projected to register a considerable CAGR during the forecast period, due to the increasing focus on substation automation, distribution & transmission infrastructure, and smart grid installation.

The digital & numerical devices are advanced relays that combine several protection functions, self-testing, metering, communication, and others. These relays are also known as microprocessor protective relays and these relays use the software-based protection method to detect problems.

The electromagnetic relay segment is anticipated to account for a major market share in the coming years, due to their fast operation, high reliability, and high functionality. Electromagnetic is a type of magnetic switch which uses for creating a magnetic field. The magnetic field uses for opening and closing the switch.

Voltage Segment Analysis

Based on voltage, the global protective relay market is segmented into high, medium, and low. The medium voltage segment is expected to account for the largest market share during the forecast period. The segment growth is attributed to the rising demand for protection devices in residential and commercial areas.

The high demand from substations and power systems for efficient system controlling measures is expected to increase the medium protective relay. Protective relays are commonly used in control panels and manufacturing and building automation.

It is used to control power in the circuit by switching smaller current values. In emerging countries such as China, Japan, India, UAE, and Saudi Arabia. The growing population has resulted in a significant rate of urbanization, relocation, electricity consumption, and demand for residential infrastructure.

The high voltage segment is expected to hold a considerable CAGR rate during the forecast period. The high-voltage relays are electromechanical devices. The purpose of electromechanical devices is to switch high-voltage signals and high-frequency applications. It is used in several technical devices that require voltages that go up to 10,000 V and up to 30 A currents.

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End-user Segment Analysis

On the basis of end-user, the global market is divided into industrial, utility, railway, power, and others. The utility segment held the largest share of the market in 2021 and is expected to grow at a high CAGR during the forecast period.

The segment growth is due to the rise in the development of distribution networks and grid expansion projects across global nations. The protective relays are used in several utility applications such as feeders, transformers, and others.

The power segment is expected to grow at a substantial pace in the market during the forecast period. Industrial development coupled with higher power production capacity across the world is expected to expand the power segment in the global market.

Regional Analysis

In terms of region, the global protective relay market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The Asia Pacific is projected to dominate the global market during the forecast period, due to the increasing use of energy and rising residential infrastructure in highly populated countries of the region such as China and India.

Demand for residential infrastructure projects and electricity consumption is increasing in emerging countries such as India, Japan, and China. This rising demand for electricity in emerging countries is a major factor driving the demand for the global market. In addition, the growing focus on substation automation under IEC 61850 standard and grid infrastructure activities are anticipated to drive the market in the region.

The market of North America is anticipated to expand at a rapid pace during the forecast period. The increasing transmission grids and the upgradation of the existing infrastructure in the region are likely to drive the market in North America.

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