Global Electric Fuse Market Anticipated to Generate a Revenue of $7,848.9 Million, Growing at a CAGR of 8.2% from 2021 to 2028Download Sample Reports Overview
The global electric fuse market size is estimated to be valued at $7,848.9 million by 2028, surging from $4,295.0 million in 2020, at a noteworthy CAGR of 8.2%.
COVID-19 Impact on Electric Fuse Market
The COVID-19 epidemic has caused damage on the worldwide industrial sector and material and product supply chains, affecting the global electric fuse business. This downturn is mostly due to economic contractions caused by a halt in investments from a range of end-use industries.
However, the governments across the world and international organizations are instrumental in investments across renewable energy sector. Renewable energy sources account for the biggest share of investment in power generation, according to the International Energy Agency (IEA), with investment of over USD 350 billion by 2023. These developments are likely to propel the market growth in the post-pandemic period.
Global Electric Fuse Market Analysis
Mechanical drives, boilers, furnaces, heating, ventilation, and air-conditioning (HVAC) systems, and other energy-intensive industries require enormous amounts of fuel and electricity to operate. Non-electric sources of energy were previously used in fossil fuel-based boilers, IC engines, and furnaces, among other things. Industries are progressively electrifying in order to transition to a low-carbon future and assure reliable operations. This tendency is particularly noticeable in industrialized places like Europe and North America, where governments are actively seeking carbon-neutral targets. Even in other places, industries have begun to electrify in order to save money, resulting in greater investments in the process. Companies can cut their energy and overhead costs while also achieving sustainability goals by electrifying..
Upgrading and constructing a transformer is one of the key constraints of electrical fuse, which is a capital-intensive process. Electric fuse and circuit breaker joints have a low tensile strength and fatigue strength. However, in order to reduce the cost of producing electric fuse, new and environmentally friendly technologies are emerging.
Due to an increase in an individual's disposable income, the electronic and electrical industry has been noted to rise at a very fast rate. Consumer electronics, electric industrial equipment, and other items utilized in smart homes and automated industries are all part of the electronics and electrical business.
Global Electric Fuse Market, Segmentation
The global electric fuse market is segmented based on voltage, end-use, and region.
The voltage segment is further divided low, medium, and high. The low sub-segment of the global electric fuse market is projected to have the fastest growth and surpass $1,854.6 million by 2028. Low voltage fuses provide a number of benefits, including safeguard and protection against short circuit damage. Such benefits are propelling the low voltage fuse industry forward. Easy construction, assembly, and disassembly are also advantages of low voltage fuse devices, all of which can contribute to market expansion.
Based on end-use, the electric fuse market has been divided into residential, commercial, industrial, and transportation of which the transportation sub-segment is projected to generate the revenue of $974.4 million by 2028, with the fastest compound annual growth rate of 9.4% during the forecast period. Because of the increasing growth and development of the worldwide public transport such as railways, and electric buses, electric fuse market demand has grown rapidly. Furthermore, the rising commercialization of transportation infrastructure in emerging countries, such as electric trains and metros, is driving demand for electric fuse.
The electric fuse market for the North America region is projected to witness a substantial growth. This market generated a revenue of $1,004.9 million in 2020 and is further projected to reach up to $1,726.4 million by 2028. The electric fuse market forecast in North America has a lot of promise. As the US government prepares to rebuild infrastructure and produce environmentally friendly energy distribution and transmission management systems, the use of electric fuse is projected to rise in the region. Grid interconnection standards needs to be consistent, as per the North American Electric Reliability Corporation (NERC). Owing to which, numerous electric utility companies are investing in transmission line restoration, upgrade, and maintenance.
Key Players in the Global Electric Fuse Market
- ABB Ltd.
- Siemens AG
- Schneider Electric SE
- Fuji Electric Co., Ltd
- Eaton Corporation Plc
- Littelfuse, Inc.
- Mersen S.A
- Bel Fuse Inc.
- SCHURTER AG
- Conquer Electronics Co., Ltd.
Along with company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Electric Fuse Market:
- Bargaining Power of Suppliers: As raw materials are plentiful and businesses have a wide range of procurement options, suppliers' bargaining strength is limited. Due to the low switching costs for electric fuse manufacturers and the lack of opportunity for backward integration, the supplier's overall negotiating strength drops.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: As the industry delivers a greater selection of electric fuse options from a big number of manufacturers, buyers gain tremendous bargaining power. Buyers also have more bargaining power because of the low switching costs and little product differentiation supplied by corporations.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: Because of economies of scale, the electronics industry has little entry barriers, allowing new entrants to start their business. However, the introduction of new startups would be hampered by the key manufacturers' technologically advanced products.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: Circuit breakers, as part of the replacements, can be employed as a safety device in the event of a power surge. The alternative, however, cannot be regarded a complete switch because an electric fuse is far less expensive and effective.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: With a big number of small businesses and a limited number of large players, the market is predominantly fragmented. Because of price differential, low entry barriers, and cheap capital expenditure, market competition is expected to be fierce over the projection period.
Therefore, competitive rivalry in the market is high.