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ARC Fault Circuit Interrupter (AFCI) - Global Market Trajectory & Analytics

  • ID: 5140430
  • Report
  • January 2021
  • Region: Global
  • 250 Pages
  • Global Industry Analysts, Inc
Potentially Deadly Arc Flashes Are Often Underestimated & the Danger Overlooked. Growing Awareness Will Lead a US$ 5 Billion Opportunity for ARC Fault Circuit Interrupter.

The global market for ARC Fault Circuit Interrupter (AFCI) is expected to slump by -9.2% in the year 2020 before recovering to reach US$ 5 billion by the year 2027, trailing a post COVID-19 CAGR of 4.9%, over the analysis period 2020 through 2027. Electrical arcing is a phenomenon that occurs when electrical current jumps between two electrodes or a gap in the circuit. Such arching has the potential to produce arc flash that can cause electricity to flow or discharge over unintended path. These flashes are capable of igniting particulates in the environment including gas or gas. Arc flashes can occur wherever there is flow of electrical current. About 35% of arc flashes are known to occur in electrical enclosures and panels, mainly because of the varying types of circuits, connections and buses contained by the panel. Arcing generally occurs due to overloading and overheating of the circuit. The overheating is not just attributed to the circuit breaker but also due to it being connected to the bus. Damage can cause circuit breaker to malfunction and allow electricity to continue flowing between the connections rather than trip. While a circuit breaker is intended to break or trip the circuit connection until the resolution of the issue, a damaged circuit breaker causes continues flow of electricity, raising the threat of arcing. Electrical arcing is also attributed to severed or disconnected wiring, damaged or exposed wire insulation, over-fusing, or faulty equipment or component.

The increasing adoption of AFCIs as against the traditional circuit breakers presents considerable growth opportunity for the market in the post COVID-19 period. A key factor driving demand for AFCIs is the growing concern about safety of electrical equipment in residential sector. Arc faults are identified as a major cause of fire incidents in homes, and can cause considerable damage to property, and injuries to people. With the recent years witnessing a surge in number of such fire incidents attributed to arc faults, few countries have adopted mandatory requirements for deployment of AFCIs, given the role of such components in reducing risk posed for fire incidents. In addition to residential sector, demand for AFCIs is also anticipated to grow in the commercial buildings and houses, as concerns grow over safety of such facilities due to fault electrical wiring or equipment. Some countries like the US, Germany and Canada have adopted mandatory regulations that are aimed at ensuring adoption of AFCIs in ongoing as well as upcoming construction projects. Such regulations, aimed at ensuring safety of residential and commercial spaces, will ensure sustained growth in the global AFCI market. By application, residential segment is expected to witness high growth over the analysis period led by the growing adoption of AFCIs in the sector and propelled by the mandatory regulatory compliances of governments that will fuel adoption.

North America and Europe represent the leading regional markets in the global arc fault circuit interrupters market. In developed regions, governments are increasingly realizing the huge financial cost and human damage attributed to arc fires, prompting adoption of mandatory safety measures to be deployment and hence presenting favorable outlook for the AFCI market. Government support for and implementation of measures to ensure safety of electrical networks specifically in residential spaces is expected to fuel growth in the global AFCI market. Developing economies of Asia-Pacific are also witnessing growing emphasis on safety of buildings, due to the rapid growth of construction activity in the recent times particularly in countries such as India, China and Australia. To ensure safety of new construction projects, governments in Asian economies are implementing mandatory regulations to ensure deployment of safety features like AFCIs in electrical networks. Though the subdued economy and slowdown in construction activity are being witnessed in the region due to ongoing COVID-19 pandemic, the recovering GDP and rise in consumer incomes will once again present opportunities for AFCI devices in Asia-Pacific. The growing awareness about safety of residential spaces is also expected to foster growth. In Middle East, the growth of construction sector is expected to fuel demand for AFCIs in the coming years. Rising threat presented by fire breakouts, both accidental and those created with an intention of causing damage, especially reiterate the need for houses, buildings and office spaces to be equipped with fire protection equipment. Electrical fires are a common occurrence in residential and commercial settings. As per the Electrical Safety Foundation International, each year more than 50,000 home electrical fires are known to occur, leading to around 500 deaths and more than 1400 injuries, and property damage exceeding $1 billion. As electrical fires become increasingly common, residential and commercial customers are required to adopt measures to prevent the same.

Select Competitors (Total 16 Featured):

  • ABB Ltd
  • Eaton Corporation
  • Fonrich (Shanghai) New Energy Technology Co., Ltd.
  • Legrand SA
  • Leviton Manufacturing Company, Inc.
  • Santon Holland BV
  • Schneider Electric SE
  • Siemens Corporation
  • SolarBOS
Frequently Asked Questions about the Global Market for ARC Fault Circuit Interrupter (AFCI)

What is the estimated value of the Global Market for ARC Fault Circuit Interrupter (AFCI)?

The Global Market for ARC Fault Circuit Interrupter (AFCI) was estimated to be valued at $4.0 Billion in 2020.

What is the growth rate of the Global Market for ARC Fault Circuit Interrupter (AFCI)?

The growth rate of the Global Market for ARC Fault Circuit Interrupter (AFCI) is 4.9%, with an estimated value of $5.6 Billion by 2027.

What is the forecasted size of the Global Market for ARC Fault Circuit Interrupter (AFCI)?

The Global Market for ARC Fault Circuit Interrupter (AFCI) is estimated to be worth $5.6 Billion by 2027.
Note: Product cover images may vary from those shown
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Impact of COVID-19 Pandemic and Looming Global Recession
  • Pandemic Crisis Weakens Economic Environment, Triggering Negative Tide in GDP
  • EXHIBIT 1: World Economic Growth Projections (Real GDP, Annual % Change) for 2019, 2020 & 2021
  • An Introduction to ARC Fault Circuit Interrupter (AFCI)
  • Types of Arc Fault Circuit Interrupters
  • Global Market Prospects & Outlook
  • Developed Regions Lead Global AFCI Market
  • Recent Market Activity

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • Growing Risk of Fire Incidents Attributed to Faulty Electrical Wiring or Equipment Drives Focus onto AFCIs
  • EXHIBIT 2: Number of Fire Incidents in the US for 2009-2018
  • Common Causes of Electrical Fire
  • EXHIBIT 3: Leading Causes of Residential Building Fires in the US (in %) for 2018
  • EXHIBIT 4: Leading Causes of Non-Residential Building Fires in the US (in %) for 2018
  • Rising Concerns over Safety of Electrical Equipment and Need to Prevent Fire Incidents in Residences Drives Market
  • Surging Demand for Electricity and the Consequent Pressure on Electrical Systems & Wiring Enhances Fire Risk, Fueling Need for AFCIs
  • EXHIBIT 5: Global Electricity Generation in Billion kWh for the Years 2010, 2020, 2030, 2040 and 2050
  • EXHIBIT 6: China and India Lead the Global Rise in Demand for Electricity: Change in Gross Electricity Demand in TWh for 2017-50
  • Mandatory Regulations for Implementation of Arc Fault Circuit Interrupters in Construction Projects to Fuel Market Prospects
  • NEC Requirements Related to AFCIs
  • Rising Prominence of AFCIs in Commercial Buildings
  • Role of AFCI in Protecting Solar PV Systems in Buildings
  • EXHIBIT 7: COVID-19 Impact on Solar Industry: Solar PV Capacity Additions (in GW) by Sector for 2019 and 2020
  • EXHIBIT 8: Solar PV Capacity Additions (in GW) by Sector for China, Europe, USA and India: 2019
  • Introduction of Analysis Tools for Identifying Tripping Type for Reducing Risk of AFCI Incidents Drives Growth
  • AFCI and GFCI Dual Combinations in Single Unit Presents Growth Opportunity
  • AFCI Not a Replacement to GFCI
  • Construction Industry: A Vital Determinant of Growth in AFCI Market
  • EXHIBIT 9: World Construction Industry (in US$ Trillion) for the Years 2017, 2019 & 2022
  • Investments in Infrastructure Projects
  • EXHIBIT 10: Projected Infrastructure Investment Needed (in US$ Trillion) by Region Over the Period 2016-2040
  • EXHIBIT 11: Global Infrastructure Spending: Projected Infrastructure Investment Needs (in $ Trillion) by Sector Over the Period 2016-2040
  • Challenges Facing Arc Fault Circuit Interrupters (AFCIs) Market

4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • GEOGRAPHIC MARKET ANALYSIS
  • UNITED STATES
  • Market Poised for Decline Amidst the COVID-19 Pandemic
  • Current Negative Trend in the Residential Construction Sector Discourages the Market
  • EXHIBIT 12: Key Indicators for US Residential Construction Market
  • As Electrical Faults Emerge as a Key Reason of Home Fires, AFCI Installations Become Imperative
  • EXHIBIT 13: Home Fires Attributed to Electrical Failure/ Malfunction by Type of Equipment Causing Ignition for the Period 2012-2016
  • EXHIBIT 14: Type of Electrical Distribution or Lighting Equipment in Home Fires for 2012-2016
  • Electrical Codes and Standards
  • Market Analytics
  • CANADA
  • JAPAN
  • CHINA
  • EUROPE
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • SPAIN
  • RUSSIA
  • REST OF EUROPE
  • ASIA-PACIFIC
  • AUSTRALIA
  • INDIA
  • SOUTH KOREA
  • REST OF ASIA-PACIFIC
  • LATIN AMERICA
  • ARGENTINA
  • BRAZIL
  • MEXICO
  • REST OF LATIN AMERICA
  • MIDDLE EAST
  • IRAN
  • ISRAEL
  • SAUDI ARABIA
  • UNITED ARAB EMIRATES
  • REST OF MIDDLE EAST
  • AFRICA

IV. COMPETITION
  • Total Companies Profiled: 37
Note: Product cover images may vary from those shown