The global protective relay market size reached US$ 3.2 Billion in 2023. Looking forward, the publisher expects the market to reach US$ 4.5 Billion by 2032, exhibiting a growth rate (CAGR) of 3.86% during 2023-2032. The increasing infrastructural development activities, aging electrical infrastructure, imposition of strict regulations by governments, rising adoption of automation, and increasing product utilization in smart grid operations are some of the major factors propelling the market.
Moreover, according to the International Energy Agency (IEA), in 2024, global electricity demand is anticipated to grow by 3.3%. 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. Countries across the globe are increasing their investments to modernize the power generation and distribution infrastructure, which in turn is anticipated to drive the protective relay market demand in the coming years.
Moreover, compliance with regulations for electrical installation is bolstering the adoption of advanced protective relays that meet or exceed the established criteria. Various key market players are significantly investing to replace, develop, and deploy improved protective relay solutions. For instance, ABB has launched a retrofit program that aims to replace outdated protection devices with new multi-functional devices.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. Furthermore, failure to comply with such regulations results in hefty fines or legal repercussions for businesses and utilities, providing an additional imperative for upgrading to modern protective relays.
Moreover, compliance with regulations for electrical installation is bolstering the adoption of advanced protective relays that meet or exceed the established criteria. Various key market players are significantly investing to replace, develop, and deploy improved protective relay solutions. For instance, 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. Furthermore, failure to comply with such regulations results in hefty fines or legal repercussions for businesses and utilities, providing an additional imperative for upgrading to modern protective relays.
As per the protective relay market statistics, medium-voltage systems are widely used across various sectors, including industrial, commercial, and utilities, which leads to a higher demand for protective relays in this voltage range. Furthermore, medium-voltage systems facilitate a balance between high performance and cost-effectiveness, which makes them an attractive option for a broad range of applications. Additionally, the implementation of electrical safety standards by various governments, which mandate the use of protective relays in medium-voltage systems to prevent electrical faults and ensure system reliability, is positively influencing market growth.
For instance, the Delhi government has taken a crucial step towards enhancing the safety of students in schools by introducing the Child Safety Monitoring Committee. This committee has been assigned the vital role of overseeing the implementation of the 'Minimum Standards of School Safety,' encompassing a comprehensive checklist aimed at evaluating various safety measures within schools. Moreover, the ongoing innovation in relay technology, which has made medium voltage protective relays more compact, energy-efficient, and feature-rich, is supporting the market growth.
Solid-state relays have no moving parts, which reduces wear and tear and contributes to a longer lifespan compared to electromechanical relays. Furthermore, their increasing application of solid-state relays in the industrial sector on account of their rapid switching capabilities, which ensure quicker response times in fault detection and isolation, is significantly contributing to the growth of this segment. Additionally, the growth of the industrial sector in the last few decades, especially in developing regions such as Asia Pacific and Latin America, is positively impacting the demand for solid-state relays.
For instance, according to the National Bureau of Statistics of China, in August 2022, industrial production in China increased by 4.2% YoY compared with July's reading of 3.8%. It was the fourth straight month of growth in industrial output following the pandemic. Apart from this, solid-state relays can respond to very low-level signals, making them highly sensitive and suitable for applications where precise control is needed. Moreover, solid-state relays can function efficiently over a diverse range of temperatures and environmental conditions, making them versatile for various industrial applications.
Feeder protection is dominating the market growth, as feeders are the primary channels for electrical distribution from substations to transformers and end-users. Furthermore, as per the protective relay market outlook feeders are crucial in maintaining the integrity and efficiency of the electrical distribution system. Any failure or fault in a feeder line can lead to cascading failures, causing widespread outages or damage to equipment. Furthermore, various key market players are increasingly investing in the development of advanced feeder protentional relays to facilitate reliable performance. For instance, 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. Additionally, feeder protection relays are less complex compared to other types of protective relays, which makes them more cost-effective and attractive to budget-conscious operations.
Protective relays are widely used in power generation and distribution systems to ensure the reliability and safety of electrical equipment. The growing demand for electricity is anticipated to remain among the major factors driving the market's growth. According to the International Energy Agency (IEA), in 2024, the global electricity demand is anticipated to grow by 3.3%.
Additionally, the elevating levels of industrialization and urbanization, along with the rising population across the globe, are further segmenting the demand for robust electricity infrastructure. 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. Such a surge in urban population is bolstering the application of protective relays in the power generation and distribution segments. Moreover, recent innovations in the field of power generation, such as smart grids, which require sophisticated protective relays that can handle advanced monitoring and real-time data analytics, are favoring the market growth.
The industrial sector in the Asia Pacific has been expanding at a fast pace, necessitating a robust electrical infrastructure where protective relays play a crucial role. Additionally, the rapid urban development in the region, leading to increased construction activities, is boosting the demand for electrical equipment, including protective relays, to ensure safety and reliability. 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.
Additionally, automotive, materials, electronics, semiconductors, etc. are among the major industries in countries like China and Japan. As the level of electrification across these industries is increasing, a larger footprint of these industries contributes significantly to electricity demand, which, in turn, also favors the market for protection relays to ensure the safety of costly equipment, machinery, workforce, and other industrial infrastructure.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
Protective Relay Market Analysis:
- Major Market Driver: The widespread utilization of protective relays to facilitate the seamless integration of renewable power into the existing grid is positively influencing the market growth. Moreover, the rising product utilization in smart grid operations to ensure efficient management and security is fueling the protective relay market growth.
- Key Market Trend: The rapid pace of innovation in electrical and electronic engineering, which is resulting in smarter, more versatile protective relays, is the primary key market trend. In addition to this, the rising adoption of automation, coupled with the increasing complexity of electrical systems, which require more sophisticated protective relays for system safety, is acting as another significant growth-inducing trend for the market.
- Geographical Trends: Asia Pacific exhibits a clear dominance, accounting for the largest protective relay market share. The rapid urban development in the region, leading to increased construction activities, is boosting the demand for electrical equipment, including protective relays, to ensure safety and reliability. Besides this, several countries in the Asia-Pacific region are investing in infrastructure projects such as railways, airports, and seaports, which require a dependable electrical network.
- Competitive Landscape: Some of the leading market players in the global ABB Ltd., Basler Electric Company, Bender GmbH & Co. KG, Eaton Corporation, Fanox Electronics, General Electric, Littelfuse Inc., Mitsubishi Electric Corporation, NR Electric Co. Ltd. (NARI Technology Development Limited Co.), Schneider Electric, Schweitzer Engineering Laboratories Inc., Siemens Aktiengesellschaft, Toshiba Corporation, Woodward Inc., etc.
- Challenges and Opportunities: The installation of protective relay systems often involves a substantial capital investment, which may pose challenges, especially for small and medium-sized enterprises. However, protective relay market opportunities include increasing demand for electricity, growing investments in power infrastructure, and a rising focus on grid reliability.
Global Protective Relay Market Trends:
The Increasing Product Utilization in Electricity Generation
The ongoing surge in projects across sectors, such as transportation, energy, construction, and telecommunications, is augmenting the need for robust and efficient electrical systems. Protective relays form an integral component of these systems by ensuring their reliability, safety, and operational effectiveness. Moreover, 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 year-over-year change of 938 TWh in 2025, compared to 859 TWh in 2024.Moreover, according to the International Energy Agency (IEA), in 2024, global electricity demand is anticipated to grow by 3.3%. 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. Countries across the globe are increasing their investments to modernize the power generation and distribution infrastructure, which in turn is anticipated to drive the protective relay market demand in the coming years.
The Imposition of Strict Regulations by Governments
Regulatory frameworks across the globe are becoming increasingly stringent regarding electrical system safety and efficiency. Government authorities, key market players, and industry bodies are setting high standards for electrical installations, emphasizing the importance of protective measures such as relays to prevent system failures, reduce environmental impact, and safeguard human lives. For instance, 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.Moreover, compliance with regulations for electrical installation is bolstering the adoption of advanced protective relays that meet or exceed the established criteria. Various key market players are significantly investing to replace, develop, and deploy improved protective relay solutions. For instance, 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. Furthermore, failure to comply with such regulations results in hefty fines or legal repercussions for businesses and utilities, providing an additional imperative for upgrading to modern protective relays.
Rising Use of Protective Relays in Automotive Industry
Regulatory frameworks across the globe are becoming increasingly stringent regarding electrical system safety and efficiency. Government authorities, key market players, and industry bodies are setting high standards for electrical installations, emphasizing the importance of protective measures such as relays to prevent system failures, reduce environmental impact, and safeguard human lives. For instance, 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.Moreover, compliance with regulations for electrical installation is bolstering the adoption of advanced protective relays that meet or exceed the established criteria. Various key market players are significantly investing to replace, develop, and deploy improved protective relay solutions. For instance, 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. Furthermore, failure to comply with such regulations results in hefty fines or legal repercussions for businesses and utilities, providing an additional imperative for upgrading to modern protective relays.
Protective Relay Market Segmentation:
The publisher provides an analysis of the key trends in each segment of the global protective relay market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on voltage, type, application, and end-use.Breakup by Voltage:
- High
- Medium
- Low
Medium voltage dominates the market
As per the protective relay market statistics, medium-voltage systems are widely used across various sectors, including industrial, commercial, and utilities, which leads to a higher demand for protective relays in this voltage range. Furthermore, medium-voltage systems facilitate a balance between high performance and cost-effectiveness, which makes them an attractive option for a broad range of applications. Additionally, the implementation of electrical safety standards by various governments, which mandate the use of protective relays in medium-voltage systems to prevent electrical faults and ensure system reliability, is positively influencing market growth.
For instance, the Delhi government has taken a crucial step towards enhancing the safety of students in schools by introducing the Child Safety Monitoring Committee. This committee has been assigned the vital role of overseeing the implementation of the 'Minimum Standards of School Safety,' encompassing a comprehensive checklist aimed at evaluating various safety measures within schools. Moreover, the ongoing innovation in relay technology, which has made medium voltage protective relays more compact, energy-efficient, and feature-rich, is supporting the market growth.
Breakup by Type:
- Electromagnetic Relays
- Solid-State Relays
- Microprocessor Relays
- Others
Solid-state relays hold the largest share in the market
Solid-state relays have no moving parts, which reduces wear and tear and contributes to a longer lifespan compared to electromechanical relays. Furthermore, their increasing application of solid-state relays in the industrial sector on account of their rapid switching capabilities, which ensure quicker response times in fault detection and isolation, is significantly contributing to the growth of this segment. Additionally, the growth of the industrial sector in the last few decades, especially in developing regions such as Asia Pacific and Latin America, is positively impacting the demand for solid-state relays.
For instance, according to the National Bureau of Statistics of China, in August 2022, industrial production in China increased by 4.2% YoY compared with July's reading of 3.8%. It was the fourth straight month of growth in industrial output following the pandemic. Apart from this, solid-state relays can respond to very low-level signals, making them highly sensitive and suitable for applications where precise control is needed. Moreover, solid-state relays can function efficiently over a diverse range of temperatures and environmental conditions, making them versatile for various industrial applications.
Breakup by Application:
- Feeder Protection
- Transformer Protection
- Motors Protection
- Generators Protection
- Busbar Protection
- Others
Feeder protection holds the largest share in the market
Feeder protection is dominating the market growth, as feeders are the primary channels for electrical distribution from substations to transformers and end-users. Furthermore, as per the protective relay market outlook feeders are crucial in maintaining the integrity and efficiency of the electrical distribution system. Any failure or fault in a feeder line can lead to cascading failures, causing widespread outages or damage to equipment. Furthermore, various key market players are increasingly investing in the development of advanced feeder protentional relays to facilitate reliable performance. For instance, 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. Additionally, feeder protection relays are less complex compared to other types of protective relays, which makes them more cost-effective and attractive to budget-conscious operations.
Breakup by End-Use:
- Power Generation and Distribution
- Industrial Equipments and Systems
- Railways
- Others
Power generation and distribution holds the largest share in the market
Protective relays are widely used in power generation and distribution systems to ensure the reliability and safety of electrical equipment. The growing demand for electricity is anticipated to remain among the major factors driving the market's growth. According to the International Energy Agency (IEA), in 2024, the global electricity demand is anticipated to grow by 3.3%.
Additionally, the elevating levels of industrialization and urbanization, along with the rising population across the globe, are further segmenting the demand for robust electricity infrastructure. 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. Such a surge in urban population is bolstering the application of protective relays in the power generation and distribution segments. Moreover, recent innovations in the field of power generation, such as smart grids, which require sophisticated protective relays that can handle advanced monitoring and real-time data analytics, are favoring the market growth.
Breakup by Region:
- North America
- United States
- Canada
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Latin America
- Brazil
- Mexico
- Others
- Middle East and Africa
Asia Pacific exhibits a clear dominance, accounting for the largest protective relay market share
The industrial sector in the Asia Pacific has been expanding at a fast pace, necessitating a robust electrical infrastructure where protective relays play a crucial role. Additionally, the rapid urban development in the region, leading to increased construction activities, is boosting the demand for electrical equipment, including protective relays, to ensure safety and reliability. 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.
Additionally, automotive, materials, electronics, semiconductors, etc. are among the major industries in countries like China and Japan. As the level of electrification across these industries is increasing, a larger footprint of these industries contributes significantly to electricity demand, which, in turn, also favors the market for protection relays to ensure the safety of costly equipment, machinery, workforce, and other industrial infrastructure.
Competitive Landscape:
Top manufacturers are focusing on the development of advanced protective relays with better accuracy, lower maintenance, and real-time monitoring capabilities. Additionally, they are acquiring smaller players and forming partnerships with companies offering complementary services to diversify their offerings and enter new markets. Furthermore, companies are leveraging advanced technologies to develop smart protective relays that can offer predictive maintenance and real-time analytics. In addition, leading players are investing in educating the market about the importance and advancements in protective relay technologies through seminars, webinars, and whitepapers.The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- ABB Ltd.
- Basler Electric Company
- Bender GmbH & Co. KG
- Eaton Corporation
- Fanox Electronics
- General Electric
- Littelfuse Inc.
- Mitsubishi Electric Corporation
- NR Electric Co. Ltd. (NARI Technology Development Limited Co.)
- Schneider Electric
- Schweitzer Engineering Laboratories Inc.
- Siemens Aktiengesellschaft
- Toshiba Corporation
- Woodward Inc.
Global Protective Relay Market News:
- 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.
- February 2023: ABB introduced new functionality for the REX640, its all-in-one protection relay tailored for advanced power generation and distribution applications. This enhanced version can now serve as a high-speed transfer device (HSTD), offering continuous supervision of the main feeder. This process guarantees an optimal transfer with minimal disruption to the manufacturing process and eliminates the risk of equipment damage, ultimately leading to cost and time savings.
Key Questions Answered in This Report:
- How big is the protective relay market
- How has the global protective relay market performed so far, and how will it perform in the coming years?
- What are the protective relay market opportunities, drivers, and restraints in the global protective relay market?
- What is the impact of each driver, restraint, and opportunity on the global protective relay market?
- What are the key regional markets?
- Which countries represent the most attractive protective relay market?
- What is the breakup of the market based on voltage?
- Which is the most attractive voltage in the protective relay market?
- What is the breakup of the market based on type?
- Which is the most attractive type in the protective relay market?
- What is the breakup of the market based on application?
- Which is the most attractive application in the protective relay market?
- What is the breakup of the market based on end-use?
- Which is the most attractive end-use in the protective relay market?
- What is the competitive structure of the global protective relay market?
- Who are the key players/companies in the global protective relay market?
Table of Contents
1 Preface3 Executive Summary12 Value Chain Analysis14 Price Indicators
2 Scope and Methodology
4 Introduction
5 Global Protective Relay Market
6 Market Breakup by Voltage
7 Market Breakup by Type
8 Market Breakup by Application
9 Market Breakup by End-Use
10 Market Breakup by Region
11 SWOT Analysis
13 Porters Five Forces Analysis
15 Competitive Landscape
List of Figures
List of Tables
Companies Mentioned
- ABB Ltd.
- Basler Electric Company
- Bender GmbH & Co. KG
- Eaton Corporation
- Fanox Electronics
- General Electric
- Littelfuse Inc.
- Mitsubishi Electric Corporation
- NR Electric Co. Ltd. (NARI Technology Development Limited Co.)
- Schneider Electric
- Schweitzer Engineering Laboratories Inc.
- Siemens Aktiengesellschaft
- Toshiba Corporation
- Woodward Inc.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 141 |
| Published | August 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 3.2 Billion |
| Forecasted Market Value ( USD | $ 4.5 Billion |
| Compound Annual Growth Rate | 3.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 14 |
