Brazil Circuit Breakers Market: Key Insights
Robust infrastructural development and the rising demand for energy derived from solar power augur well for circuit breakers sales across Brazil. As per Transparency Market Research (TMR), the Brazil circuit breakers market is poised to surge at a positive CAGR of 6.3% between 2015 and 2021. Favorable policies encouraging rising spending in residential, public, and commercial construction fuel will considerably boost sales of circuit breakers across Brazil.
Contrary to this, the rising availability of counterfeit products will limit the scope of circuit breakers sales, despite the prevalence of lucrative opportunities in the country. Nevertheless, TMR forecasts, the growth run of the market to continue as demand for smart technologies rise in Brazil.
As per TMR, the Brazil circuit breakers market was valued at US$437.8 mn in 2014. The market is projected to reach US$645.9 mn by the end of 2021. By volume the market is expected to rise from 190.3 hundred units in 2014 to 241.1 hundred units in 2021, exhibiting 4.1% CAGR during the forecast period.
Urbanization in Brazil to Fuel Demand for Circuit Breakers from the Construction Sector
Based on application, the Brazil circuit breakers market constitutes automotive, construction, oil and gas, industrial, power generation, and other sectors. Of these, the power generation industry emerged dominant in the market in 2014. The segment held over 37.1% of the market in the year. The increasing installation of smart grids across Brazil is expected to seal the dominance of the power generation industry in the market. As per TMR, the power generation segment stood at US$162.4 mn in 2014. Rising at a CAGR of 6.9%, it is expected to reach US$248.1 mn by the end of 2021.
The circuit breakers market in Brazil will significantly gain from the rising demand from the oil and gas industry. It is expected to emerge as the second-largest application segment in the market exhibiting a CAGR of 6.6% during the forecast period. The rising construction activities in Brazil is also projected to boost the sales of circuit breakers. Brazil being a developing economy, considerable focus is given on planning the country’s urbanization. The consumption of electricity is thus likely to surge exponentially, fuelling demand for circuit breakers in response.
Besides this, the use of circuit breakers is also expected to increase in the automotive sector and other industrial purposes. In the automotive sector, the rising demand for electric and smart vehicles will fuel demand for circuit breakers.
Demand for Air Circuit Breakers to Rise due to their Economical Pricing
Based on arc quenching media, air circuit breakers emerged as the largest contributor to the Brazil circuit breakers market. It held a share of over 54.6% in the market in 2014. Accounting for around 24.1% of the market, the SF6 circuit breakers emerged as the second-largest segment in the same year. The increasing use of air circuit breakers to protect electrical machines such as capacitors, generators, motors, and transformers fuels their sales across Brazil. Their demand is likely to surge further in the forthcoming years, as air circuit breakers are available at a comparatively economical price.
By revenue, TMR pegs the air circuit breakers segment in the Brazil circuit breakers market at US$239.0 mn in 2014. Rising at a CAGR of 6.0%, the segment is projected to reach US$348.1 mn by the end of 2021.
With a share of around 9%, vacuum circuit breakers constituted the second-largest segment in the market in 2014. This type of switchgear are used in low voltage and medium voltage applications. Their demand is expected to increase significantly in the forthcoming years due to their environmental friendliness.
Some of the prominent companies operating in the Brazil circuit breakers market include General Electric (U.S.), Schneider Electric SE (France), Toshiba Corporation (Japan), Eaton Corporation (Ireland), Mitsubishi Electric (Japan), Maxwell Technologies (U.S.), Siemens AG (Germany), and others.
Circuit breakers are electric switches that protect an electrical circuit or electrical distribution systems from damage caused by overload, abnormal voltage fluctuation or short circuit. These devices are used to detect malfunction and interruption in current flow. The Brazilian market for circuit breakers by voltage level is segmented into low voltage, medium voltage and high voltage. By arch quenching media, the circuit breakers market is bifurcated into air, vacuum, SF6, and others (CO2, DCB, and oil). Circuit breakers are used in construction, automotive, industrial, oil and gas, power generation industries and others (healthcare, mining and food & beverages). Manufacturers of circuit breakers are significantly investing in research and development activities for innovation in latest technologies.
Growth in industrial and construction activities is primarily driving the circuit breakers market in Brazil. Circuit breakers are widely used in residential and commercial construction projects. This increase in demand is driven by large spending on projects related to housing, rail transport, roads, water supply, airport development, and ports. From a policy perspective, the boom of private-public partnerships (PPP) in Brazil has decreased complexities regarding project financing and delay in project completion in infrastructure and construction sectors. Increased focus on efficient and reliable power transmission and distribution coupled with installation of new energy infrastructure in emerging economies such as Brazil are likely to boost the circuit breakers market during the forecast period. In Brazilian utilities sector, electric distribution systems are vulnerable to failure due to power fluctuations and harsh environment conditions; hence, government is taking help of leading circuit breaker vendors to deploy circuit breakers at different voltage level to ensure steady power supply across the country.
Electric vehicles, smart meters, and solar energy are estimated to be the emerging markets for circuit breakers. There is a need for circuit breakers to protect devices from overheating, right from window lift motors to cooling fans in automation devices. Usage of smart grids helps update electric grids with reliability and efficiency. Persistent adoption of smart grid technologies is expected to provide growth opportunities for the circuit breakers market during the forecast period.
However, growth opportunities for the Brazilian low voltage switchgear and circuit breakers market have been restricted due to increase in counterfeits and illegal copying of patented technology. These counterfeited switchgears are of poor quality and less reliable. Chances of fire accidents get increased while using these fake switchgears and circuit breakers in chemical plants, public utility sectors, and the oil and gas industry. Furthermore, the major trends which lifted the economy of Brazil during the past decade are gradually losing stream and are unable to sustain growth over the long term. Both government and private consumption are increasing, but most of it has been driven by taxes and debt.
The research report on the circuit breakers market in Brazil offers detailed analysis of circuit breakers products and helps to understand the driving forces behind the popularity of this market. Detailed analysis of major segments and sub-segments of the Brazilian circuit breakers market are provided for the next six years. Moreover, the report includes exhaustive analysis of the drivers, restraints, market trends and future outlook of the industry. The strategies and imperatives of stakeholders for succeeding in the business have been comprehensively assessed in the report. The market has been segmented on the basis of voltage level, arc quenching media and applications.
Some of the leading players in the circuit breakers market are General Electric (U.S.), ABB Ltd. (Switzerland), Pennsylvania Breaker, LLC (U.S.), Schneider Electric SE (France), Alstom S.A. (France), G&W Electric Company (U.S.), Eaton Corporation (Ireland), Toshiba Corporation (Japan), Mitsubishi Electric (Japan), Siemens AG (Germany), Maxwell Technologies (U.S.) and WEG S.A. (Brazil).
The report segments the circuit breakers market as:
Brazil Circuit Breakers Market by Voltage Level
- Low Voltage
- Medium Voltage
- High Voltage
Brazil Circuit Breakers Market by Arc Quenching Media
Brazil Circuit Breakers Market by Application
- Oil and Gas
- Power Generation