The global circuit breaker market was valued at $12.4 billion in 2018 and is expected to register a revenue of $20.6 billion by 2026, at a growth rate of 6.5%. A circuit breaker is an automatically operating safety switch designed to cut down the flow of irregular power in industrial applications.
In the preceding years, the global circuit breaker market has witnessed exponential growth due to a growing emphasis on operational safety and the integration of reliable electrical infrastructure. In 2020, the global market is expected to experience a negative impact due to the massive transmission of COVID-19. However, the global industry will eventually restore due to the major significance in high scale setups, such as data centers, construction projects, and shopping centers. Moreover, extensively rising global spending on smart city initiatives is expected to raise the need for circuit breakers, which will create huge opportunities in the global market.
|Recovery By||Realtime BPS||*Estimated market Size, 2020,
|**Real Time market Size, 2020,
|6.9%||6.5%||Q1/Q2 2023||43||USD 14.1 Billion||USD 9.9 Billion|
* The numbers are estimated prior to the COVID-19 Pandemic in 2020
** The data will vary depending on upcoming developments announced by the operating players
KEY ASPECTS OF THE INDUSTRY
BOOMERS AND DECLINERS
The significant expansion of energy access in developing economies is anticipated to boost the demand for circuit breakers; which will ultimately drive the growth of the global market, in the analysis period. For instance, as per the recent publication of the world bank, the global electrification rate has reached up to 89%, with 153 million people gaining access to electricity every year. Moreover, a growing concern for industrial safety in telecommunication, electronic, automotive, and electrical equipment is also projected to foster the growth of the global market, during the forecast period.
However, stringent environmental policies regarding circuit breakers are expected to hamper the growth of the global market. Contrary to this, growing construction project activities, technological breakthroughs, and government initiatives for the development of smart cities are expected to drive the growth of the global circuit breaker market, during the forecast period. For instance, in 2018, the government of India has started a flagship initiative known as ‘smart city mission’ to develop 100 sustainable cities across the country. Thus, due to an increase in the smart cities the electricity consumption will also increase. Therefore, the need for the prevention of over-heating of wires and components will eventually increase, which will help to drive the growth of the circuit breaker market, during the forecast period. Such factors may create a significant impact on the growth of the circuit breaker market, during the forecast time frame.
The apocalypse of COVID-19 has made it clear that the spread of the virus across the borders of countries is drastically impacting the global market. All governments across the globe have imposed a complete shutdown in order to curb the severe impact of this disease. The complete shutdown of industries has led to a major decline in industrial operations such as disruption in the supply chain. This will ultimately lead to obstructing the demand for the circuit breaker in the global market. Thus, most of the companies have established flexible plans and crisis management centers in order to provide direction and information to people, suppliers, customers, and broader ecosystem partners about immediate actions to mitigate risks.
Though there is a complete lockdown implemented in multiple developed as well as developing economies, most of the significant leaders are opting for effective business strategies such as technology invention, launching of newest products to sustain in this chaotic situation. In March 2020, Phoenix Contact, the innovative manufacturer of industrial interconnection, has launched a thermomagnetic circuit breaker. The highly advanced thermomagnetic circuit breakers are mainly useful to protect electrical MCC Panels. Execution of such strategic plans can help in the re-establishment of the market during this COVID-19 outbreak.
MANAGING SUCCESS AMIDST
THE PANDEMIC STRESS
According to a recent report published by Research Dive, the global circuit breaker market is projected to continue its huge growth in the upcoming years, post the COVID-19 situation. After the drastic downfall in 2020, the global market shall foresee profitability by Q1/Q2 2023. Increasing spending on innovation and R&D, rising peak load demand, increasing number of strategic alliances, and expansion of micro-grid networks are anticipated to propel the growth of the global circuit breaker market, after the end of pandemic.
Furthermore, the growing emphasis on the fourth industrial revolution along with significantly growing urban infrastructure in developed as well as developing countries is also a stimulus for sustainable growth of the circuit breaker market during the period of forecast. For instance, as per the recent publication of the united nations (UN), almost 68% of the global population expected to live in urban areas by the year 2050. These favorable conditions of post-pandemic impact can create lucrative opportunities for the circuit breaker market in the coming years.
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- Long-term and Short-term impact of Covid-19 on the market
- Cascading impact of Covid-19 on the Circuit Breaker Market , due to the impact on its extended ecosystem
- Understanding the market behaviour pre- and post-Covid-19 pandemic
- Strategic suggestions to overcome the negative impact on your business or turn the positive impact into an opportunity