Protective Relay Market Size, Share & Trends Analysis Report By Voltage (2 Low, Medium, High), By Application, By End Use (Infrastructure, Industrial, Government, Power, Others), By Region, And Segment Forecasts, 2023 - 2030

Protective Relay Market Size & Trends

The global protective relay market size was valued at USD 3,222.9 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% over the forecast period from 2023 to 2030. As significant investments are channeled into infrastructure projects across various regions, there is a concurrent surge in energy consumption, propelling the popularity of smart grid technologies for effective energy management. Consequently, the demand for protective relays is expected to witness a notable rise, as they play a pivotal role in parallel systems to mitigate the risk of harm arising from potential system failures. The global increase in electricity demand, fueled by infrastructural developments and other contributing factors, is anticipated to drive the demand for safety equipment, including protective relays, in the forthcoming years.

Furthermore, there is a growing emphasis on power quality and reliability, acknowledging the potential implications of voltage fluctuations and frequency variations leading to equipment damage and power disruptions. These factors collectively underscore the increasing significance of protective relays in safeguarding and ensuring the stable operation of power systems.

The COVID-19 pandemic had a significant impact on the market for protective relays. As the pandemic disrupted global supply chains, manufacturers encountered challenges sourcing raw materials and components, resulting in delays in production and delivery of protective relays. The shift towards remote monitoring solutions during the pandemic also increased the interest in protective relays equipped with advanced communication and remote monitoring capabilities. As the pandemic situation improved in some regions and industrial activities resumed, there was a gradual recovery in demand for protective relays in various sectors.

Voltage Insights

The medium voltage segment held the largest market share of 45.7% in 2022. The high share is attributed to an increase in the application of medium voltage protective relays in power systems and substations. The growing population in China, India, Japan, Saudi Arabia, and UAE has resulted in a noteworthy population relocation rate, spurring the demand for residential infrastructure and electricity consumption. Thus, the escalating demand for electricity in these nations is projected to fuel market growth over the coming years.

The low voltage segment is estimated to exhibit a significant CAGR of 5.2% over the forecast period. The proliferation of smart grids, especially in urban areas, has significantly driven the growth of low-voltage protective relays. Smart grids require advanced protection and control systems to efficiently manage and monitor electricity distribution. Low-voltage protective relays safeguard smart grid components, such as distribution lines, transformers, and distribution automation devices.

Application Insights

The feeder protection segment dominated the market with the highest revenue share of 28.7% in 2022. The excessive need for protective relays to protect power transmission lines is foreseen to fuel market growth over the forecast period.

The likelihood of fault incidence in the transmission lines is greater than the other counterparts as these lines are generally lengthy enough and operate in an open environment. Thus, the cables & lines making the feeder system need concentrated protection, or else they can cause damage to the atmosphere.

On the other hand, the breaker protection segment is expected to grow at a significant CAGR of 5.7% over the forecast period. With the growing importance of maintaining a resilient and reliable power supply, utilities, and industries have been investing in upgrading their protective relay systems. Breaker protection relays are designed to respond quickly and accurately to fault conditions, reducing downtime and minimizing damage to equipment. They help improve power systems' overall resilience and reliability, paramount for critical infrastructure and industrial processes.

End Use Insights

The power segment dominated the market with the highest revenue share of 31.8% in 2022. Industrial development and the global upsurge in power production capacity are projected to augment the protective relay. The growing population and the increasing per capita electricity consumption in Asia are some important factors backing the demand over the coming years.

The infrastructure segment is expected to witness significant growth of a CAGR of 5.4%. Urbanization and population growth in many areas have increased electricity demand. It has prompted the expansion of power generation, transmission, and distribution networks to cater to the rising energy needs. With new infrastructure being built or existing infrastructure expanded, the demand for protective relays to safeguard these assets and ensure uninterrupted power supply has grown.

Regional Insights

Asia Pacific dominated the market with the largest revenue share of 31.0% in 2022. Increasing funding in the renewable sector paired with the modernization of grid infrastructure are the key factors expected to fuel protective relay demand in the near future.

Mounting infrastructural development in China and India owing to the rising economic progress in these countries is further projected to spur protective relay market demand over the forecast period. Moreover, events like the Summer Olympics 2020 in Japan will ensue in infrastructural development, propelling the protective relay industry growth.

North America is expected to grow at a significant CAGR of 5.7% during the forecast period. North America, particularly the U.S., has actively promoted grid modernization initiatives to enhance its power infrastructure's reliability, efficiency, and security. These initiatives often involve deploying advanced protective relay technologies to monitor and control power flow, detect faults, and improve grid resilience. Government incentives and funding to upgrade aging grid infrastructure have further boosted the demand for protective relays in the region.

Key Companies & Market Share Insights

Vendors in the market are undertaking numerous strategic initiatives, such as acquisitions and mergers, collaboration, new product development, and partnerships with other prominent players. Continuous R&D to offer product differentiation is expected to be the major success factor for industry participants. For instance, in May 2021, ABB launched a new addition to its Relion product family, the REX610. This advanced offering is designed to deliver secure, intelligent, and eco-friendly electrification solutions. The primary focus of the REX610 is to streamline safety and control for basic energy transmission applications, making them more accessible and efficient.

Recent Developments

• In 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.

• In February 2023, Schneider Electric unveiled new product lines at its manufacturing facility in Bengaluru to meet the increasing demand for protection relays and IoT gateways for power quality digitization and management. These cutting-edge solutions are specifically designed to address the country's electrical infrastructure requirements, the imperative for building decarbonization, and the pursuit of energy efficiency.

• In December 2022, Siemens introduced an innovative Dual Powered Protection Relay-7SR46. As a key component of their extensive range of protection relays tailored for distribution and industrial grids, the Siemens Reyrolle 7SR46 offers dependable overcurrent and earth fault protection specifically designed for medium voltage transformer stations. This advanced relay ensures a reliable and secure operation of the transformer stations, safeguarding critical equipment and enhancing grid stability.

Protective Relay Market Report Scope

Global Protective Relay Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global protective relay market based on voltage, application, end use, and region:

• Voltage Outlook (Revenue in USD Million, 2017 - 2030)

  • Low Voltage

  • Medium Voltage

  • High Voltage

• Application Outlook (Revenue in USD Million, 2017 - 2030)

  • Feeder Protection

  • Generator Protection

  • Bus-Bar Protection

  • Capacitor Bank Protection

  • Breaker Protection

  • Transformer Protection

  • Others

• End Use Outlook (Revenue in USD Million, 2017 - 2030)

  • Infrastructure

  • Industrial

  • Government

  • Power

  • Others

• Regional Outlook (Revenue in USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE