Protective Relay Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.14 Billion |
| Market Size (2029) | USD 2.81 Billion |
| CAGR (2024 - 2029) | 5.98 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Protective Relay Market Analysis
The Protective Relay Market size is estimated at USD 2.14 billion in 2024, and is expected to reach USD 2.81 billion by 2029, growing at a CAGR of 5.98% during the forecast period (2024-2029).
A protective relay acts as a switchgear device to detect faults and guide the circuit breaker to separate the faulty element of an electrical system. Usually, these relays are compact and self-contained devices that detect abnormal conditions within the electrical circuits by constantly measuring the electrical quantities dissimilar in normal and fault conditions.
- Protection relays can be either electronic/microprocessor-based or electromechanical. While electronic or microprocessor relays use digital technology to provide quick, accurate, reliable, and repeatable outputs, electromechanical relays consist of mechanical parts that require routine calibration to stay within intended tolerances.
- Protective relays are widely used in electricity generation and distribution applications. Hence, the growing demand for electricity is anticipated to remain among the major factors driving the market's growth. For instance, according to the International Energy Agency (IEA), the global electricity demand is anticipated to witness a Y-o-Y change of 938 TWh in 2025, compared to 859 TWh in 2024.
- The market for renewable energy has gained significant momentum in recent years. Several factors influence the influx of investments in the renewable energy sector, including the growing impact of global warming, which is forcing the government and other stakeholders to look for reasons and solutions to control environmental emissions. Furthermore, the fluctuating prices and limited availability of fossil fuel-based energy sources across different regions are also creating an ecosystem favorable to the growth of the renewable energy sector.
- However, the higher installation cost of these relays is among the significant factors challenging the market's growth. The protection relays in the sizeable industrial setup often require additional circuitry, increasing the overall cost. They also require regular maintenance, which impacts these relays' operational costs. Furthermore, the growing competition from the unorganized sector also challenges the market's growth.
- Macroeconomic factors play a crucial role in the market's growth, such as the general economic condition of the market or geopolitical issues, which significantly impact the major end-user industries of protective relays, including manufacturing, industrial, utility, among others.
Protective Relay Market Trends
Utilities Segment to Hold Significant Market Share
- Utilities, especially power generation and distribution, are anticipated to remain major end-users for protective relays, considering the growth in demand the industry has witnessed in recent years. For instance, according to the International Energy Agency (IEA), in 2024, the global electricity demand is anticipated to grow by 3.3%.
- The growth in demand for electricity is driven by several factors, including the increasing footprint of urban spaces, rapid industrialization, especially across developing regions, and government initiatives at the regional level to expand electricity infrastructure to remote locations.
- For instance, according to the United Nations Department of Economic and Social Affairs (UN DESA), by 2050, about 68.4% of the global population is expected to live in urban areas. The percentage is expected to remain higher in more developed regions (~86.6% by 2050), while about 65.6% of the population of less developed regions is projected to live in urban areas.
- Furthermore, in recent years, governments across different countries have been running initiatives to expand the reach of electricity to remote locations, which is also influencing the overall electricity demand. For instance, in recent years, the government of India has launched several schemes to achieve its goal of extending the reach of electricity to 100% of rural households, including Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), and Revamped Distribution Sector Scheme (RDSS), among others.
- Similar programs are being run across other countries, which is driving the electricity demand. For instance, in 2023, the Rural Energy Agency of Tanzania announced that the country's program to electrify all 12,318 villages would be completed by June 2024. According to the agency, the electrification program will expand access to electricity to over 70% of the rural population once completed.
- Countries across the globe are, thus, increasing their investments to modernize the power generation and distribution infrastructure to make them suitable for renewable energy and to align them according to the current and future requirements of the power generation and transmission industry.
- According to the International Energy Agency, the share of renewable energy in the power generation sector is anticipated to reach about 42% by 2028, compared to 29% in 2022. As fossil fuel-based energy sources are among the major contributors to carbon emissions, which adversely impacts the environment, increasing environmental awareness remains among the major drivers of the industry's growth.
Asia Pacific to Register Major Growth
- China is the largest industrialized economy in the Asia-Pacific region. For instance, according to China's National Bureau of Statistics, the industrial sector contributes about 31.7% to the country's GDP. Manufacturing, steel, construction, and mining are among the major sectors in the country.
- Since the past few decades, China has remained among the global manufacturing hubs, especially in the fields of automotive, consumer electronics, steel, etc. However, the sector has witnessed a slowdown in recent years due to various macroeconomic factors. Hence, the Chinese government has been taking several initiatives to help the manufacturing and industrial sector maintain its dominant position. For instance, recently, the government has launched initiatives such as Made in China 2025, which aims to position China among the significant technology and production hubs.
- Automotive, materials, electronics/semiconductors, etc., are among the major industries in the country. As the level of electrification across these industries is high, a larger footprint of these industries contributes significantly to electricity demand for the country, which, in turn, also favors the demand for protection relays to ensure the safety of costly equipment, machinery, workforce, and other industrial infrastructures.
- Japan is a highly urbanized nation, with about 92% of the population living in urban areas (Source: World Bank). As the demand for electricity is usually higher across urban areas, such trends contribute to a higher electricity demand across the country.
- In recent years, the country's power sector has shifted its focus toward renewable sources to enhance environmental sustainability and reduce its dependency on foreign imports. For instance, according to the Ministry of Economy, Trade and Industry, in November 2023, Japan's crude oil imports from Saudi Arabia reached 33.27 million barrels, or 42.7% of total imports.
- As India is among the largest markets in terms of the number of consumers, these industries are anticipated to continue to grow. According to the India Brand Equity Foundation (IBEF), by 2030, the middle class in India is forecasted to have the second-largest share in global consumption at 17%.
- As the Indian government pushes to enhance the export value across various sectors, vendors operating in the market are anticipated to enhance their investments in advanced production technologies, automation, and robotics to achieve scale and compete at the global level in terms of quality. As per India's new Foreign Trade Policy (FTP) 2023, the government is focused on achieving a total export value of USD 2 trillion through the export of goods as well as services by 2030.
Protective Relay Industry Overview
The protective relay market is highly competitive and fragmented. Some prominent players in the protective relay market include ABB Ltd, Siemens AG, Toshiba Corporation, Mitsubishi Electric Corporation, and Schneider Electric. Companies sustain intense competition by launching products, investing in research and development, forming partnerships, and making acquisitions.
August 2023 - ABB has launched a retrofit program that aims to replace outdated protection devices with new multi-functional devices. The program is designed to increase the lifespan of switch gears and ensure that equipment is future-proofed for an ever-growing electrical grid.
August 2023 - Siemens launched SIRIUS 3UG5 line monitoring relays that monitor grid stability, ensure proper system operation, and extend the service life of components such as motors or compressors. They are ideal for critical areas like hospitals or the process industry that require a high-quality, fail-safe power supply.
Protective Relay Market Leaders
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ABB Ltd.
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Schneider Electric SE
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Mitsubishi Electric Corporation
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Siemens AG
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Bender GmbH & Co. KgG
*Disclaimer: Major Players sorted in no particular order
Protective Relay Market News
- January 2024 - Fanox Electronics succeeded in delivering advanced high-protection relay solutions for diverse applications. Specifically, it presents the SIR-C OverheadControl and FeederProtection system. The SIR-C functions as an overhead control / RTU and feeder protection relay. It incorporates primary and secondary distribution current, voltage, and frequency functions. The relay has an auxiliary power supply of 24 to 230 Vdc/ac, ensuring robust and reliable performance.
- August 2023 - Rockwell Automation developed ArcShield technology for CENTERLINE motor control centers (MCCs) to help increase workforce safety and mitigate arc flash damage. This arc flash safety technology has been expanded for Canadian manufacturers with high-amp applications typical in the oil, gas, mining, water treatment, and power generation industries.
Protective Relay Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Impact of Macro Trends on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Growth in Electricity Consumption
- 5.1.2 Increasing Use of Renewable Energy Sources
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5.2 Market Challenges/restraints
- 5.2.1 Higher Cost and Increasing Competition from Unorganized Sector
6. MARKET SEGMENTATION
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6.1 By Voltage Range
- 6.1.1 Low-voltage
- 6.1.2 Medium-voltage
- 6.1.3 High-voltage
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6.2 By End User
- 6.2.1 Utilities
- 6.2.2 Industrial
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6.3 By Geography
- 6.3.1 North America
- 6.3.1.1 United States
- 6.3.1.2 Canada
- 6.3.2 Europe
- 6.3.2.1 United Kingdom
- 6.3.2.2 Germany
- 6.3.2.3 France
- 6.3.3 Asia
- 6.3.3.1 China
- 6.3.3.2 Japan
- 6.3.3.3 India
- 6.3.4 Australia and New Zealand
- 6.3.5 Latin America
- 6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 ABB Ltd.
- 7.1.2 Schneider Electric SE
- 7.1.3 Mitsubishi Electric Corporation
- 7.1.4 Siemens AG
- 7.1.5 Bender GmbH & Co. KG
- 7.1.6 Eaton Corporation PLC
- 7.1.7 General Electric Company
- 7.1.8 Rockwell Automation
- 7.1.9 Littelfuse Inc
- 7.1.10 Toshiba Corporation
- 7.1.11 Schweitzer Engineering Laboratories
- 7.1.12 L&T Electrical & Automation (Schneider Electric SE)
- 7.1.13 Fanox Electronics
- 7.1.14 NR Electric Co. Ltd
8. MARKET OUTLOOK
Protective Relay Industry Segmentation
A protective relay is a device designed to trip a circuit breaker when an electrical fault is detected. It triggers an alarm if any abnormality is found within the electrical circuit. These protective relays can be differentiated on several factors, such as actuating parameters based on applications.
The protective relay market is segmented by voltage range (low-voltage, medium-voltage, high-voltage), by end-user (utilities, industrial), and by Geography (North America [United States, Canada], Europe [United Kingdom, Germany, France, Rest of Europe], Asia-Pacific [China, Japan, India, Rest of Asia-Pacific], Latin America, Middle East and Africa]). The report offers market forecasts and size in value (USD) for all the above segments.
| By Voltage Range | Low-voltage | |
| Medium-voltage | ||
| High-voltage | ||
| By End User | Utilities | |
| Industrial | ||
| By Geography | North America | United States |
| Canada | ||
| By Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| By Geography | Asia | China |
| Japan | ||
| India | ||
| By Geography | Australia and New Zealand | |
| Latin America | ||
| Middle East and Africa |
Protective Relay Market Research FAQs
How big is the Protective Relay Market?
The Protective Relay Market size is expected to reach USD 2.14 billion in 2024 and grow at a CAGR of 5.98% to reach USD 2.81 billion by 2029.
What is the current Protective Relay Market size?
In 2024, the Protective Relay Market size is expected to reach USD 2.14 billion.
Who are the key players in Protective Relay Market?
ABB Ltd., Schneider Electric SE, Mitsubishi Electric Corporation, Siemens AG and Bender GmbH & Co. KgG are the major companies operating in the Protective Relay Market.
Which is the fastest growing region in Protective Relay Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Protective Relay Market?
In 2024, the North America accounts for the largest market share in Protective Relay Market.
What years does this Protective Relay Market cover, and what was the market size in 2023?
In 2023, the Protective Relay Market size was estimated at USD 2.01 billion. The report covers the Protective Relay Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Protective Relay Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Protective Relay Industry Report
Statistics for the 2024 Protective Relay market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Protective Relay analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
