Medium Voltage Protection Relay Market To Generate $2,971.4 Million Revenue by 2033

The global medium voltage protection relay market size is expected to advance at a CAGR of 7.5% during 2022–2033, to reach USD 2,971.4 million by 2033. The growth can be mainly driven by prompt industrialization, the increasing demand for power supply, the rapid development of smart grids and railway infrastructure systems, and the surging need to supply reliable energy.

Rapid Urbanization and Industrialization

According to data from the World Bank, almost 56% of the world’s population resides in cities, and about 80% of the global gross domestic product (GDP) is generated from the same. The major reason for the growing urbanization is the presence of employment opportunities and other social benefits. There are various manufacturing units and service-sector organizations in and around cities, which offer employment and, ultimately, help people realize their dreams of a better life.

Additionally, industrial production grew at an average of 3.57% from 1920 to 2023 in the U.S., whereas China's industrial production advanced by 2.4% Y-o-Y in January–February 2023, faster than the 1.3% gain in December 2022, but slower than the market forecasts of 2.6%. The growing industrialization eventually leads to the expansion of the economy. As production increases, the demand for various related products and services, such as transportation, power supply, packaging, and equipment, will rise. Thus, industrialization is expected to drive the demand for protection relays to ensure the safety of electrical equipment.

Development of Smart Grids

Smart grids involve the use of digital and other modern technologies for monitoring and managing electricity transmission from the source to end users. The advent of smart grids and the deployment of advanced tools, equipment, and control systems for power systems are expected to create a high requirement for protection relays. Also, the transmission and distribution systems are being modernized, owing to the addition of utility-scale renewable capacity. For instance, in China, an investment of about $74.5 billion in power grid development was done in 2022, and globally, investment in energy storage and smart grid was approximately $25 billion in the January–September 2022 period. Advanced variants of protection relays are thus expected to remain in high demand during the forecast period.

North America Holds a Significant Market Share

The North American region holds a significant market share. This is attributed to the rising demand for power supply, the development of smart grids, and the increasing adoption of EVs. For instance, the demand for power supply was increased by 2% in 2022 in the U.S. Moreover, the need for renewable energy has also been increasing significantly, to reduce GHG emissions and pollution levels. According to the EIA, in 2021, the share of renewable sources of energy was approximately 12.4% of the total U.S. primary energy consumption.

Furthermore, the U.S. has about 9,200 electric-producing units, which have around 1 million megawatts of producing capacity and connections to over 600,000 miles of transmission lines. The grid is being modernized to ensure that electricity is accessible in a much more stable manner and power outages are reduced, and in case they occur, restoration can be quick. For this, protection relays are used. They sense and recover from faults in substations automatically. Also, advanced functionalities of protection relays aid in maintaining the efficiency of operations of new grids and power systems, by protecting as well as controlling them.

Some of the major players operating in the medium voltage protection relay market are Schneider Electric SE, ABB Ltd., Siemens AG, General Electric Company, Toshiba Energy Systems & Solutions Corporation, Eaton Industries GmbH, TE Connectivity, Schweitzer Engineering Laboratories Inc., Mitsubishi Electric Corporation, and CHINT Group Corporation.