Low Voltage Protection Control Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The low voltage protection control market is projected to register a CAGR of over 2.5% during the forecast period.

The COVID-19 pandemic negatively impacted the market in 2020. Presently, the market has reached pre-pandemic levels.

Key Highlights

• Over the medium term, factors such as an increase in power consumption, the rising influx of renewable sources in the energy mix, and the rising number of data centers and electric vehicles are expected to drive the market during the forecast period.
• On the other hand, the high cost of monitoring devices and the rising stability of electricity supply, which further reduces the need for switching equipment like circuit breakers, are likely to restrain the growth of the low voltage protection control market in the coming years.
• Nevertheless, the increasing closures of fossil-fueled generation, an influx of wind, solar, small-hydro, and other renewables-based power generation, rising electric vehicle and heat pump demand, and increasing export requirements via interconnectors have resulted in increased requirements for installation of transmission and distributions (T&D) lines, creating several opportunities for major companies.
• Asia-Pacific has dominated the low voltage protection control market in recent years. It is expected to witness significant market growth during the forecast period, with majority of the demand coming from China and India.

Low Voltage Protection Control Market Trends

Industrial Sector to Dominate the Market

• The motor or generator protection is still a novelty not a priority among users. The high numbers of faults that occur in industries are mainly due to overloads, locked rotors, phase failure or imbalance, heavy bursts of long duration or high duty cycle of operations, or overheating.
• Hence, to overcome these faults, certain switchgear equipment is used in any sector, such as circuit breakers, disconnectors, load-break switches, fuses, etc.
• Factors such as growing electric vehicle infrastructure (EVs) and data center establishments, along with their operations, are expected to drive the low voltage DC circuit breakers, further driving the industrial segment for the low voltage protection control market.
• Globally, the insatiable demand for data center space remained robust throughout the last few years. Due to the growth in digitalization and networking systems, multi-cloud adoption continues to drive demand across markets. Multi-cloud adoption may be compounded with the advent of 5G network connectivity. The global datasphere is expected to grow from 79 zettabytes in 2021 to more than 181 zettabytes of data by 2025.
• In the industrial sector, users of switchgears are available in industrial load applications. Oil and gas, pharmaceuticals, metal, power, paper, and data centers are the major industries that are expected to drive the market as protection and control can be handled through these equipment.
• According to the World Steel Association, in 2021, Canada’s crude steel production was about 12,770 thousand metric ton, significantly higher than the previous year, i.e., 10,986 thousand metric ton. This factor may directly aid the gas-insulated switchgear market.
• Overall, the demand for low voltage protection control devices is expected to increase during the forecast period with the growth of the industrial and manufacturing sectors worldwide.

Asia-Pacific to Dominate the Market

• Asia-Pacific dominated the low voltage protection control market in 2021. It is expected to continue its dominance in the coming years as well.
• Asia-Pacific is one of the fastest-growing regions in the world because of the increasing population, urbanization, and industrialization. As a result, the demand for guaranteed power supply is high. For addressing this demand, many countries are investing in the renewable energy sector and transmission and distribution infrastructure.
• The region is also the fastest-growing market in renewable energy deployment, led by China and India. Due to the rapid rise in renewable power generation, grid stability has become a significant issue in countries with a high level of renewable integration in their grids, thus requiring the modernization of older T&D infrastructure. As renewable power generated from sources such as solar and wind provide variable power output, traditional T&D systems may not be suitable for renewable energy transmission and distribution and require up-gradation or retrofitting.
• Accordingly, the Chinese government has set a target to add at least 570 gigawatts (GW) of wind and solar power in the 14th five-year plan (FYP) (2021-2025), more than doubling its installed capacity in just five years.
• China has taken the lead over global peers in data center construction, with more enterprises looking to scale up their data centers to ensure the reliability and stability of data services. In February 2022, the National Development and Reform Commission (NDRC) planned four additional data center clusters, doubling the number of clusters sanctioned by the government. In order to move facilities out of constrained locations like Beijing, the 'Eastern Data Western Calculation' initiative aims to build data centers in economically poorer but energy-rich western provinces.
• On the other hand, India’s data center and telecom industries are thriving. The country contains several data center clusters providing plenty of colocation opportunities. The primary colocation data center markets in India are Mumbai, Bangalore, Chennai, Hyderabad, and New Delhi.
• In January 2022, Adani Group planned to invest more than USD 620.58 million in two data center projects in Uttar Pradesh (UP), India. According to the government, the two data centers are expected to be built in Noida sectors 62 and 80. The group also formed a subsidiary, Adani-EdgeConneX Indian Joint Venture, to create a data center in Mumbai. In addition, the company aims to develop 1 GW of data center capacity in the next 10 years in various cities in India, including Chennai, Navi Mumbai, Noida, Vizag, and Hyderabad. Such projects are expected to aid the growth of the low voltage protection control market in the coming years.​
• Therefore, due to these factors, Asia-Pacific is likely to propel the demand for low voltage protection control during the forecast period.

Low Voltage Protection Control Market Competitor Analysis

The low voltage protection control market is fragmented. Some of the major players (in no particular order) in the market include ABB Ltd, Eaton Corporation PLC, Fuji Electric Co. Ltd, Rockwell Automation Inc., and Toshiba Corporation.

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