A new market intelligence report by Transparency Market Research (TMR) estimates that the global protection relay market will expand at a CAGR of around 9% over the next eight years to 2027, driven by the siginficant expansion of energy transmission and distribution markets.
A protection relay is a device designed to trip a circuit breaker when fault is detected in an electric system. Protection relays are being increasingly used in various industrial applications, owing to their capability to protect machinery and electric circuits from damage. In an electric transmission and distribution network, protection relays are employed to identify the fault of the location. Protection relays are of multiple types, such as electromagnetic relays, solid-state relays, and microprocessor relays.
Selection of the protection relay depends upon various applications such as line protection, generator protection, transformer protection, and motor protection. Protection relays are largely used in the global energy & utility industry, especially in power distribution networks, for safety purposes. Furthermore, the demand for technologically-advanced microprocessor relays is increasing, owing to their high reliability at high voltage ranges. This, in turn, is expected to boost the global protection relay market during the forecast period.
Increased demand for protection relays for use in the safety of utility infrastructure is expected to fuel the adoption of these relays significantly during the forecast period. The primary use of protection relays is to detect faults in electric circuits and associated equipment.
Using protection relays helps energy companies protect high-cost equipment and utility infrastructure from damage. Also, the ability of protection relays to detect faults at an early stage is helpful in improving the lifespan of electric equipment.
Protection relays are used in numerous applications. In transformer protection applications, medium- and high-voltage relays are largely used.
The rising demand for safe power transformers compels manufacturers innovate and find better technological solutions to fulfill the needs of customers. The rising number of progression and power transformer installations, worldwide, is expected to promote the growth of the global protection relay market in the next few years. Growing number of renewable energy plants across the globe is estimated to have a significantly positive impact on the global protection relay market during the forecast period. Various steps are being taken by governments around the world to reduce carbon footprint. The demand for protection relays for use in high-voltage applications is expected to increase in the next few years, as several manufacturers are working toward the development of highly reliable microprocessor relays for use in smart grid infrastructure.
Asia Pacific is the dominant region of the global protection relay market. Growth of the market in the region can be attributed to high investments in expansion of transmission and distribution lines by manufacturers operating in the region, and rising adoption of medium-voltage and high-voltage protection relays in developing economies in Asia Pacific, led by technological advancements and cost efficiency. Developing countries in the region are witnessing infrastructure development, and hence, the number of power substations and transformers in the region is increasing. Also, the energy and utility industry in Asia Pacific is witnessing significant investments. This is likely to boost the demand for microprocessor relays in the region between 2019 and 2027.
The market in North America is estimated to witness significant growth during the forecast period, owing to high investments in the installation of smart grid networks to replace the old networks in the region. The protection relay markets in the Middle East & Africa and South America are expected to witness moderate growth in the near future.
Key players operating in the global protection relay market are ABB, Basler Electric, Eaton, GENERAL ELECTRIC, Littelfuse, Inc., Mitsubishi Electric Corporation, NR Electric Co., Ltd., Orion Italia s.r.l., Rockwell Automation, Inc., Schneider Electric, Siemens, and TE Connectivity.