Protective Relay Market revenue to cross USD 5 Billion by 2036, says Research Nester

Key protective relay market players include ABB Group, Schneider Electric SE, Siemens, General Electric Company, Mitsubishi Electric, Siemens AG, NR Electric, Toshiba, LARSEN & TOUBRO LIMITED, Basler Electric Company, Rockwell Automation, Inc., and Mitsubishi Electric Corporation.

New York , March 13, 2024 (GLOBE NEWSWIRE) -- The global protective relay market size is predicted to grow at a CAGR of over 6% from 2024 to 2036. The market is projected to garner a revenue of USD 5 billion by the end of 2036, up from a revenue of USD 3 billion in the year 2023. 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.

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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. Protective relays are devices that monitor the electrical parameters in power systems and, when necessary, trip circuit breakers to isolate faulty equipment. They play a critical role in ensuring the reliability and stability of electrical networks. The integration of renewable energy sources, such as solar and wind, into the power grid creates new challenges for system protection. Protective relays help manage the unique characteristics of these energy sources.

Protective Relay Market: Key Takeaways

  • Market in Asia Pacific to propel highest growth
  • The medium segment to garner the highest growth
  • Market in North America to grow at a highest rate

Increasing Adoption of Renewable Energy Sources across the Globe to Boost Market Growth

Relay protection for energy systems that use hydrogen energy storage devices and renewable energy sources such as wind, solar, and hydropower would lessen pollution in the environment. For instance, by 2025, the proportion of renewables in the global power-generating mix is expected to increase by over 30%. Protective relays guard electrical equipment from harm caused by variations in voltage and also monitor the voltage of the electrical flow. In the case of an electrical issue, protection relay solutions keep passengers and rail vehicles safe, and are designed to meet all of the railway network protection needs. Many regions are investing in the modernization of their power grids. This includes the deployment of advanced protection and control systems, driving the demand for innovative protective relay technologies. The industry has seen a shift towards digital protective relays, offering enhanced communication capabilities, real-time monitoring, and advanced analytics for more efficient power system management. The integration of Internet of Things (IoT) and Artificial Intelligence (AI) technologies allows for predictive maintenance and improved fault detection, making protective relays more intelligent and responsive. 

Protective Relay Industry: Regional Overview

The global protective relay market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.

Increasing Electricity Demand to Drive the Market Growth in Asia Pacific Region

The protective relay market in Asia Pacific region is estimated to garner the largest revenue by the end of 2036. As the population and economies in the Asia Pacific region continue to grow, there is a corresponding increase in electricity consumption. This surge in demand necessitates the deployment of advanced protective relays to ensure the reliability and stability of power systems. Electricity demand in the Asia Pacific region is expected to grow at an annual rate of 5%, reaching a total consumption of 15,000 terawatt-hours by 2030. The integration of renewable energy sources poses unique challenges to power systems. Protective relays play a crucial role in managing the variability and intermittency of renewable sources, ensuring a smooth and secure integration into the grid. The ongoing and planned infrastructure projects, including the development of smart cities and industrial zones, contribute to the growth of the protective relay market. These projects require advanced protection systems to safeguard electrical assets. Grid modernization involves the deployment of intelligent and technologically advanced solutions, including protective relays. 

Growing Industrial Expansion and Modernization to Propel the Growth in the North America Region

The North America protective relay market is estimated to garner the highest CAGR by the end of 2036. Industrial growth increases the demand for reliable and efficient electrical systems. Protective relays are essential in safeguarding industrial equipment and minimizing downtime due to electrical faults. North American industries plan to invest USD 50 billion in expanding and modernizing manufacturing facilities, leading to a 15% increase in electricity consumption by 2024. Stricter regulations regarding power reliability and quality drive utilities to invest in advanced protective relay systems. Compliance with these standards is a key factor propelling the growth of the protective relay market. The rise in electric vehicle adoption increases the demand for charging infrastructure. Protective relay systems are essential for the safe and efficient operation of electric vehicle charging stations, supporting the growth of this segment. Grid resilience is crucial for minimizing the impact of disruptions and ensuring a continuous power supply. Protective relays are integral to these initiatives, helping utilities quickly identify and isolate faults for faster restoration.

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Protective Relay Segmentation by Voltage

  • Low
  • Medium
  • High

The medium segment in global protective relay market is anticipated to hold the largest revenue share during the forecast period. 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.

Protective Relay Segmentation by End User

  • Utilities
  • Industries
  • Railways
  • Government

The utilities segment in the global protective relay market is anticipated to hold a significant share over the forecast period. As utilities aim to integrate a substantial share of renewable energy into their grids, they need to invest in advanced technologies. This includes smart grids, energy storage solutions, and grid management systems, fostering growth in the utilities segment. Global renewable energy capacity is expected to reach 3,000 gigawatts by 2030, accounting for 50% of total installed capacity. Aging infrastructure poses challenges to utilities, necessitating investments in modernization efforts. Smart grids, advanced metering infrastructure, and digital control systems become imperative, driving growth in the utilities segment. The rise of electric vehicles increases the demand for charging infrastructure, requiring utilities to expand their networks. Investments in electric vehicle charging stations contribute to the growth of the utilities segment. Utilities play a key role in promoting energy efficiency among consumers and industries. Programs such as energy audits, demand-side management, and the adoption of smart appliances contribute to the overall growth of the utilities sector. With the increasing frequency of extreme weather events, utilities focus on resilience planning.

Protective Relay Segmentation by Application

  • Feeder Protection
  • Transmission Line Protection
  • Transformer Protection
  • Generator Protection
  • Motor Protection
  • Emergency Shutdown Systems (ESD)

Protective Relay Segmentation by Technology

  • Electromagnetic & Static Relay
  • Digital & Numerical Relay

Few of the well-known market leaders in the global protective relay market that are profiled by Research Nester are ABB Group, Schneider Electric SE, Siemens, General Electric Company, Mitsubishi Electric, Siemens AG, NR Electric, Toshiba, LARSEN & TOUBRO LIMITED, Basler Electric Company, Rockwell Automation, Inc., Mitsubishi Electric Corporation, and other key market players.

Recent Development in the Market

  • Littlefuse, Inc. introduced the CPC1561B Solid State Relay (SSR) to offer a durable solution for demanding applications that aren't achievable with conventional SSRs and electro-mechanical relays and is perfect for markets and applications where overcurrent, overtemperature, or electrical stress cannot cause a prolonged outage.
  • ABB Group announced the introduction, REX610 utilizing ABB's rich history of freely programmable multifunctional relays to support only six variants for all fundamental power distribution applications, making it simple to order, set up, use, and maintain.

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