PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627789
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627789
The global circuit breaker market is projected to grow at a CAGR of 6.94% over the forecast period, thereby reaching US$10.428 billion in 2030 from an initial value of US$7.457 billion in 2025.
A circuit breaker is an electrical safety device that interrupts a current flow to prevent overloading, thereby preserving the overall electrical system. Unlike a fuse, which works only once, a circuit breaker allows normal operations to be continuous. The ability of such devices to detect faults in current flow makes them an integral part of vital electrical infrastructure, thereby driving their applicability in power girds, residential, industrial, and commercial establishments.
The key market growth influencers include electricity demand and reliable power delivery along with the booming electricity consumption fuelled by fast economic development and investment to bolster power distribution followed by technological development. For instance, according to the IEA, the percentage of electricity in total energy consumption increased from 18% in 2015 to 20% in 2023.
Further, to bolster the overall energy supply, more capacity and modernized networks are required, due to which governments and commercial organizations are directing the addition of circuit breakers and fuses as device protection components. Power fluctuations can damage electric equipment, including industrial machinery, electric tools, home appliances, and IT products.
Global circuit breaker market drivers
One of the prominent causes of the circuit breaker market growth is the growing demand for energy-efficient infrastructure and renewable energy sources to optimize the overall process of power distribution, which has led to various strategic collaborations and government investment in this direction. Post such investments in necessary infrastructure development, the demand for circuit breakers, which are vital in transmission and distribution, is also anticipated to increase.
Additionally, smart power grid developments are also anticipated to propel market expansion. For example, until 2023, anticipated energy investments totaled about USD 2.8 trillion, which showcased significant growth over the past four years. Clean energy, which includes nuclear power, storage, grids, low-emission fuels, renewable energy, efficiency enhancements, end-use renewables, and electrification, has been allocated more than USD 1.7 trillion.
Additionally, circuit breakers are crucial devices that automatically disconnect electrical power when it exceeds safe limits to prevent hazards such as electrical fires or appliance damage due to excessive voltage levels in the raw main supply lines. Growing demand for reliable power supply plus increased awareness about electricity safety and regulation spurs the circuit breakers market growth. Global regulatory bodies are enforcing strict safety regulations, including the requirement that circuit breakers be used in electrical installations.
Circuit breaker market geographical outlook
Geography-wise, the market of Global circuit breakers is divided into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. Growing investment inflows in commercial establishments such as business premises, healthcare centers, offices, and hotels have accelerated the demand for circuit breakers, thereby augmenting the market growth in the North American region.
As one of the most developed economies in the world, the United States stands at the forefront of industrial progression, power generation and supply, and rapid urbanization. The ongoing investments in new commercial establishments, including offices, data centers, and business premises, have escalated the volume of electricity demand in the county, which is expected to stimulate the circuit breaker's demand simultaneously. Furthermore, the constant growth in transportation and residential end-users has also added more to the overall electricity consumption.
According to the International Energy Agency's "Electricity Mid-Year July 2024" report in 1H 2024, the electricity demand in the United States experienced 3.8% growth. Moreover, the same source states that in 2023, the electricity demand in the United States stood at 4,262 TWh, which is expected to reach 4,392 TWh in 2024 and 4,475 TWh in 2025. Thus, the report showcases 3% year-on-year growth for 2023/2024 and 19% for 2024-2025.
Likewise, the ongoing investments in improving grid infrastructure and safeguarding it from external factors are further propelling the regional market expansion. For instance, on 6th August 2024, the U.S Department of Energy, as per the "America's Agenda" announced an investment of US$2.2 billion for eight power projects across 18 US states that would catalyze the additional grid capacity and will also facilitate the upgradation of transmission infrastructure & technology. Additionally, the well-established presence of major market payers, namely ABB Ltd, Eaton Corporation, Larsen & Turbo Ltd, and Atom Power Inc, which offer an extensive range of circuit breakers, has further augmented the overall market expansion at the country level.
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