Medium Voltage Protection Relay Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Medium Voltage Protection Relay Market Size

Medium Voltage Protection Relay Market Trends & Drivers

Growing Awareness and Usage of Renewable Energy Sources

The dependence of both developed and developing nations on fossil fuels for energy needs has been consistently high throughout. However, the burning of fossil fuels leads to the emission of a tremendous amount of greenhouse gases into the atmosphere. According to the U.S. Environmental Protection Agency (EPA), there has been a more than 90% rise in CO2 emission levels as compared to the 1970s. Moreover, owing to the abundant and eco-friendly nature of renewable energy sources, such as wind and sun, awareness regarding their utilization has been on the rise. Moreover, as per a report by the International Energy Agency (IEA), renewables are expected to account for almost 90% of the global electricity capacity expansion over the next five years.

Therefore, electrical product companies are introducing various solutions that are compatible with renewable energy sources. For instance, for the seamless integration of renewables in the power system and its management, companies, such as ABB Ltd., offer protection relays that comply with the grid codes and maintain stability during power disturbances. Similarly, Schweitzer Engineering Laboratories Inc. has a range of protection relays for renewable energy with varied tripping features.

Swift Electrification of Railway Networks

China and European countries run massive freight across their electrified rail. In Europe, 60% of the rail network is electrified, and approximately 80% of traffic runs on those lines. Similarly, in China, more than 70% of the rail system has been electrified. Moreover, in India, the government is aiming for 100% electrification of the railway network, to reduce their dependence on fuel imports. As of February 2023, approximately 85% of India’s routes have been electrified. Electrification will lead to an increase in the demand for various electrical systems, such as transformers, conductors, insulators, and, subsequently, protection relays to prevent damage to the transmission and distribution setups.

To meet the surging demand, companies have been involved in introducing new products and technologies in the market. For instance, ABB Ltd. launched a relay retrofit program for replacing selected relays in January 2023. Similarly, in February 2023, Schneider Electric SE introduced new production lines in India. Likewise, in March 2021, Schweitzer Engineering Laboratories Inc. unveiled the SEL-487E transformer protection relay with enhanced Time-Domain Link technology.

Rising Demand for Power Supply

The ever-increasing population, especially in emerging economies, is generating a high demand for power supply. The accelerating rate at which commercialization and industrialization are progressing is subsequently generating a voluminous demand for electricity.

In 2021, as per the U.S. Energy Information Administration (EIA), the generation of electricity from utility-scale gensets in the country was about 4,116 billion kWh. In addition, it was estimated that another 49.03 billion kilowatt-hours (kWh) were produced by small-scale solar photovoltaic (PV) systems. Further, cities such as Shanghai reported a growing electricity consumption in the initial weeks of May 2022 as compared to May 2021. China and the U.S. are the two largest consumers of electricity, accounting for approximately 30% and 16% of the global total, respectively.

The protection relay detects abnormalities in the power system and aids in cutting off the faulty section, to prevent an adverse impact on the system. Thus, the high demand for power supply is indicative of a significant expected rise in the demand for electrical safety equipment, including medium voltage protection relays.

Medium Voltage Protection Relay Market Analysis

Energy & Utilities Holds the Largest Share in the Industry

The energy & utilities category generated the highest revenue, of USD 777.0 million, in 2022, and it is also expected to witness the same trend over the next few years. The utilization of protection relays in various energy & utility applications, such as feeders, transformers, transmission lines, and substations, is quite substantial because the cost of these pieces of electrical equipment is quite high, and to ensure their longevity, companies are investing in safety equipment. Furthermore, the development of smart grids, owing to the rising demand for power for residential as well as commercial needs, is expected to propel the demand for protection relays in the energy & utilities sector.

Secondary Substation Category To Record Faster Growth

The secondary substation category is expected to grow at a higher growth rate during the forecast period. This can be because secondary substations are meant for handling the interconnections between medium- and low-voltage transmission equipment, which is why they require a large number of medium voltage protection relays.

Regional Analysis

Asia-Pacific Region Is the Market Leader

APAC accounted for the largest market share, of 41.3%, in 2022, and it is expected to hold the same position in the coming years as well. This is due to the rising demand for power supply in the region, especially in developing countries, such as China and India. The demand for power supply has constantly been increasing over the years. For instance, in 2022, electricity demand in the region increased by approximately 3.4%.

In addition, the development of grids and transmission systems compatible with renewable sources of energy is being done at a rapid pace, to improve energy access across the region. Smart grids are being deployed to achieve various objectives, such as easier access to electricity, management of peak load, conservation of electricity, and tracking as well as management of energy usage. Thus, these factors drive the regional market growth.

Europe Holds a Significant Market Share

Europe is expected to hold a significant market share during the forecast period. This can be driven by a continuous transition toward renewable energy sources, various smart grid projects underway, increasing demand for power supply, and aging power infrastructure in the region. For instance, according to Eurelectric, about one-third of the EU’s grids are over 40 years old. Further, approximately 20% of the energy consumed in the EU was from renewable sources of energy in 2021.

Additionally, since the Russia–Ukraine war began, it has become important for Europe to reduce its dependence on Russia for its energy needs and focus on renewable sources to fulfill them. According to a report by the Sandbag Climate Campaign CIC (now known as Ember), the energy transition has accelerated, and in 2022, wind and solar generated a record fifth of the European Union (EU)’s electricity (22%), overtaking fossil gas (20%) for the first time and remaining above coal (16%).

The transition toward sustainable practices is also reflected in the growing popularity of EVs in the region. In Nordic countries, EVs accounted for more than half of all the cars sold in 2021. Hence, the surging demand for power supply and the rising usage of electrical equipment would propel the demand for medium voltage protection relays in Europe.

Market Breakdown

This report offers deep insights into the medium voltage protection relay industry, with size estimation for 2019 to 2033, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based on Use Location

• Primary Substations
• Secondary Substations

Based on End User

• Energy & Utilities
• Industrial
  • Automotive
  • Oil & gas
  • Chemical
  • Marine
  • Food & beverages

Based on Application

• Transformers
• Motors
• Busbars
• Generators
• Feeders
• Transmission Lines
• Ring Main Units

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Medium Voltage Protection Relay Companies