Protection Relay Market: Establishment of Newer Power Grids to Have Positive Impact

In recent years, the requirement for strong power grids has led to increased research & development for product innovation that improves the safety of digital substations. This has led to players in the market focusing on technologically-advanced protection relays to be used across applications on power grids. For instance, Siemens AG, a major player in the protection relay market, has developed several protection relays in the Spirotec range, which can also be used for high- and medium-voltage networks.

The increased demand for electricity, globally, and the growing need for transmission lines, have led to governments looking to establish newer and more efficient power grids to keep up with the pace of development. With smart power grids gradually gaining traction, the use of protection relays, a crucial application of power grid infrastructure, is also likely to sire. According to this report by Transparency Market Research on the protection relay market, this transition towards modern power grids is expected to offer opportunities for protection relays for the operational efficiency and reliability of grids.

The global protection relay market witnessed sales of ~11 Mn units in 2018, a figure that is projected to rise over the forecast period ending in 2027, and hit the 23 Mn units mark.

protection relay market infographic

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Contactors More Popular than Protection Relays for High Voltage Applications

The use of protection relays is prevalent across applications and verticals, due to their versatility and efficiency. And while they are primarily used for small- and medium-voltage applications, off grid solar applications and power transmissions, and current high-voltage applications, they remain less preferred. Contactors, which are essentially electromagnetic switches, are increasingly being adopted in high voltage applications due to their high performance and reliability factors.

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However, with technological advances influencing research & development in the protection relay market, the high voltage segment, which lagged behind low and medium voltage applications, is set to grow at a rapid rate of 9.5% over the forecast period. The increasing deployment of high-voltage applications is expected to boost the growth of the protection relay market. 

Asia Pacific – A Lucrative Regional Market

The global protection relay market is likely to grow at a steady pace over the forecast period, due to their increased adoption in transformer and line protection applications. The market in Asia Pacific held the highest share of over one-third of the market by way of revenue in 2018, and this is likely to hold, as APAC remains the fastest-growing regional market in the global protection relay landscape. This can be attributed to the growing population and subsequent increase in investments for the expansion and modernization of power grids, which is propelling the growth of the market. The developed markets of North America and Europe are also expected to hold significant shares during the same period, due to the establishment of smart power grids and increased penetration in these markets.

The global protection relay landscape can be considered as being fairly consolidated, with leading players such as ABB, Eaton, General Electric, Mitsubishi Electric Corporation, and others holding over half of the global share. In order to strengthen their global presence, they are increasingly focusing on research & development into newer products and widening their product range. For instance, in April 2019, Basler Electric, a significant player in the protection relay market, introduced the BE1-11d DC power protection system for DC power applications up to 1,500 Vdc. Key players are also looking at strategic acquisitions to expand their product portfolios. For example, in January 2018, Littelfuse Inc., a major player in the global protection relay market, acquired IXYS Corporation, to widen its consumer base.

protection relay market segmentation


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Analysts’ Viewpoint

Authors of this report estimate that, the protection relay market is set to grow at an above-average pace over the forecast period. The expansion of transmission and distribution networks, coupled with investments in reliable and durable power grids, is expected to drive market growth and open up opportunities for players in the landscape. Manufacturers focusing on efficient and innovative protection relays are likely to do well in this growing market space.

With technology moving at a rapid pace and lucrative prospects in the regional market in APAC, manufacturers should look to make inroads in this region to witness maximum gains in the foreseeable future.

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Protection Relay Market: Overview

  • According to Transparency Market Research’s latest research report on the global protection relay market for the historical period of 2017–2018 and the forecast period of 2019–2027, increase in investments in energy and utility infrastructure as well as growth in awareness regarding the benefits of protection relays are expected to boost the growth of the global protection relay market during the forecast period.
  • In terms of revenue, the global protection relay market is estimated to reach a value of ~US$ 7.4 Bn by 2027, expanding at a CAGR of ~9% throughout the forecast period.
  • In terms of volume, the global protection relay market is projected to reach ~23,400 thousand units by 2027, expanding at a CAGR of ~9% during the forecast period. 

Significant Expansion of Transmission and Distribution Networks: A Key Driver

  • Protection relays are used in power transmission and distribution network systems to detect faults and protect the system from issues such as short circuits and overloading. Protection relays help identify the type of fault and the exact location of the fault. Thus, the use of protection relays in transmission systems is essential to reduce damage.
  • Moreover, with an increase in the demand for electricity across the globe, several organizations are engaging in expansion of transmission and distribution networks. This, in turn, is leading to the growth of the protection relay market.
  • Furthermore, protection relays have a life expectancy of over 20 years, and they protect electric circuits from expensive disruptions and faults. Due to this, they are largely used in applications such as transformer protection, generator protection, and line protection.
  • Thus, significant expansion of transmission and distribution networks is driving the global protection relay market. 

Development of Rapid Transmission Line Protection Relays - Latest Market Trend

  • Several organizations are engaged in the manufacture of ultra-high-speed protection relays for use in the detection of faults in power systems, in a short time.
  • For instance, in March 2017, Schweitzer Engineering Laboratories at Pullman, Washington (the U.S.), released the SEL-T400L time-domain line protection relay. It is a microprocessor-based relay that operates at ultra-high speed.
  • Time-domain line protection relays are ultra-high-speed relays deployed for the protection of critical transmission lines.
  • Ultra-high-speed protection relays are based on traveling waves and incremental quantities. The average operational time required for these relays ranges from 2 to 7 milliseconds, depending upon the source-to-line impedance ratio and the fault location.
  • Thus, with increasing use of ultra-high-speed protection relays, the operational life of the existing transmission infrastructure can be increased, which results in cost savings. Owing to this, the use of time-domain line protection relays is expected to increase prominently during the forecast period, as such, boosting the growth of the global protection relay market. 

Inability to be Used for High-voltage Applications a Major Challenge

  • In several electric applications, protection relays are used to protect the electric circuit or device from failure caused by voltage fluctuations, overcurrent, or frequency fluctuations. Protection relays are usually employed in low- and medium-voltage applications.
  • However, for high-voltage-range applications, a contactor is used, especially in motor starters, generator sets, agricultural pumps, and street lighting applications. The impact of this factor is expected to be medium in the short term, and low in the long term, on the global protection relay market space. 

Global Protection Relay Market: Competition Landscape

  • Detailed profiles of the providers of protection relays have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies.
  • Key players operating in the global protection relay market are
    • ABB
    • Basler Electric
    • Eaton
    • GENERAL ELECTRIC
    • Littelfuse, Inc.
    • Mitsubishi Electric Corporation
    • NR Electric Co., Ltd.
    • Orion Italia s.r.l.
    • Rockwell Automation, Inc.
    • Schneider Electric
    • Siemens
    • TE Connectivity. 

Global Protection Relay Market: Key Developments

Key providers of protection relays, such as General Electric, ABB, and Basler Electric, are focusing on product innovation and development to win more customers. Some other key developments in the global protection relay market are as follows:

  • In April 2018, ABB added a new product called REX640 to its family of protection and control relays for digital switchgears. REX640 has the capability to provide protection for several industrial applications.
  • In April 2019, Basler Electric introduced the BE1-11d DC power protection system with the help of its vast experience in DC excitation systems and AC utility grade protective relays.

In the report on the global protection relay market, we have discussed individual strategies, followed by the company profiles of the providers of protection relays. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global protection relay market.

Protection Relay Market: Scope of the Report

A new study on the global protection relay market was published by Transparency Market Research (TMR). It presents detailed information of key market dynamics, including the market drivers, trends, and challenges for the global protection relay market, as well as its structure. TMR’s study offers valuable information on the global protection relay market in order to illustrate how the market is expected to expand during the forecast period, i.e. 2019–2027.

Key indicators of market growth, which include value chain analysis and compounded annual growth rate (CAGR), are elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret the quantitative growth aspects of the global protection relay market.

An extensive analysis of the business strategies adopted by leading market players is also featured in TMR’s study on the global protection relay market. This can help readers understand the key factors responsible for the growth of the global protection relay market. In this study, readers can also find specific data on avenues for the qualitative and quantitative growth of the global protection relay market. This data would guide market players in making apt business decisions in the near future.

Key Questions Answered in TMR’s Study of the Global Protection Relay Market

  • What would be the Y-o-Y growth trend of the global protection relay market between 2019 and 2027?
  • What is the influence of the changing trends on the global protection relay market?
  • Would Asia Pacific continue to remain the most profitable regional market for providers of protection relays in the next few years?
  • Which factors would hinder the growth of the global protection relay market during the forecast period?
  • Which are leading companies operating in the global protection relay market?

Research Methodology

A unique research methodology is utilized by TMR to conduct comprehensive research on the global protection relay market, and arrive at conclusions on the future growth prospects of the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.

Secondary research sources referred to by analysts during the production of the report on the global protection relay market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who have contributed to the production of TMR’s study on the global protection relay market, as a primary research source.

These primary and secondary sources provided exclusive information during interviews, which served as a validation from leading players operating in the global protection relay market. Access to an extensive internal repository as well as external proprietary databases allowed this report to address specific details and questions about the global protection relay market with accuracy. The study also uses a top-down approach to assess the numbers for each segment, and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on the future prospects of the global protection relay market more reliable and accurate.

Segmentation of Protection Relay Market

TMR’s study of the global protection relay market divides the market into five segments based on type, voltage range, application, end-use industry, and region. Changing market trends and other crucial market dynamics that are associated with these five segments of the global protection relay market have been discussed in detail in TMR’s study.

Type

Electromagnetic Relays

Solid-state Relays

Microprocessor Relays

Others

Voltage Range

High Voltage

Medium Voltage

Low Voltage

Application

Line Protection

Generator Protection

Transformer Protection

Motor Protection

Others

End-use Industry

Energy & Utility

Industrial (Automotive, Oil & Gas, Food & Beverages, and Others)

Commercial & Institutional

Region

North America

Europe

Asia Pacific

Middle East & Africa

South America