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The protective relay market size is estimated to grow at a CAGR of 5.07% between 2023 and 2028. The market size is forecast to increase by USD 690.09 million. The growth of the market depends on several factors, such as the increasing demand for power, the growing focus on grid modernization, and the increase in number of residential and commercial building projects.
This report extensively covers market segmentation by type (digital and numeric relay, electromechanical and static relay), application (feeder, transmission line, generator, motor, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Protective Relay Market Forecast 2024-2028
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The increase in grid modernization globally stands as a prominent factor fuelling the global protective relay market. The progressing transformation of power grids, fuelled by the need to adapt to a changing energy landscape, plays a crucial role in propelling the demand for protective relay devices. In addition, as electrical grids evolve to incorporate renewable energy sources, they become more complex, with power generation distributed across various geographical locations.
As a result, this shift necessitates advanced protective relay systems capable of managing and safeguarding the grid against the challenges posed by intermittent renewable sources, like wind and solar power. Furthermore, protective relays are crucial in detecting and responding to abnormal grid conditions, helping to ensure grid stability and reliability amid these changes. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
New product developments associated with protective relays are one of the emerging trends in the global protective relay market. In addition, these new products improve grid efficiency, reliability, and sustainability while accommodating the integration of renewable energy sources and the demands of modern, interconnected power systems. For example, in August 2023, a new generation of line monitoring relays was introduced by Siemens.
Moreover, relays make it simple to keep an eye on the quality and stability of the grid in accordance with standards, ensuring proper system operation and a long component life. In addition, in critical areas that need a high-quality, fail-safe power supply, like hospitals or the process industry, grid monitoring relays are used. Furthermore, cranes, elevators, air and air-conditioning compressors, as well as the timber industry, are additional applications. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
There is an increasing integration of Industrial protective relays with digital systems, enabling data exchange and remote monitoring. However, protecting sensitive data from unauthorized access and breaches is a paramount concern. Furthermore, the ability to remotely access and control industrial relays for maintenance and monitoring purposes can create vulnerabilities if not properly secured.
Moreover, unauthorized access to these systems can lead to disruptions and safety risks. In addition, industrial relays are often part of IoT ecosystems which are frequent targets for cyberattacks. Furthermore, industrial systems, including those using protective relays, are susceptible to ransomware and malware attacks such that cybercriminals can encrypt data or disrupt operations, leading to financial losses and downtime. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The digital and numeric relays segment is estimated to witness significant growth during the forecast period. Digital and numeric relay segments represent a significant advancement in protective relay technology, providing a more precise, versatile, and adaptable solution for safeguarding electrical systems. In addition, these relays depend on microprocessors and advanced digital signal processing to provide highly accurate protection, control, and monitoring of power systems.
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The digital and numeric relays segment was the largest segment and was valued at USD 1,434.63 million in 2018. Moreover, the main advantage of digital and numeric relays is their versatility. In addition, they can be easily programmed to perform a wide range of protection functions, making them suitable for complex and critical applications within modern power grids. Furthermore, these relays offer features such as overcurrent protection, distance protection, differential protection, and frequency protection. In addition, this segment can provide real-time measurement and analysis of electrical parameters, enabling rapid response to abnormal conditions and fault detection. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on application, the segment is classified into feeder, transmission line, generator, motor, and others. The feeder segment is a crucial application within the protective relay domain, which emphasizes on ensuring the safe and reliable distribution of electrical power to consumers. In addition, the main functionality of this segment is to detect and mitigate faults or abnormalities within the distribution feeders. These faults comprise short circuits, overcurrent conditions, ground faults, and other disturbances that may disrupt the power supply. Furthermore, feeder protection relays are designed to operate quickly and selectively, isolating the faulty section while maintaining power flow in other parts of the network. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 50% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The APAC region comprises numerous countries, such as India, China, Japan, Indonesia, and Australia, with varying levels of industrialization and energy needs. In addition, the market has emerged as a global economic powerhouse, and with its rapid urbanization and industrial growth, the demand for electrical power has increased significantly. Therefore, factors such as the surge in energy requirements, increasing government focus on grid modernization, and increasing adoption of renewable energy are fuelling the growth of the market in the region. Furthermore, the region is home to some of the world's most populous and rapidly growing countries, such as India, China, and Indonesia. Hence, such factors drive the market growth during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global protective relay market witnessed a significant slowdown due to the closure of industrial and manufacturing units as well as a halt in the production of protective relays in APAC. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in manufacturing units. Such factors are expected to drive the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers protective relay such as numerical relays that are based on the use of microprocessors.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ALSTOM SA, Chongqing Blue Jay Technology Co. Ltd., Contrel elettronica S.r.l., Eaton Corp. Plc, ERLPhase Power Technologies Ltd., ETA Elektrotechnische Apparate GmbH, Fanox Electronic SL, General Electric Co., HNAC Technology Co. Ltd., ISKRA elektro in sistemske resitve d.o.o, Larsen and Toubro Ltd., Littelfuse Inc., Mitsubishi Electric Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Solcon IGEL Group, TERASAKI ELECTRIC CO. LTD., and ZIV Automation.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The protective relay market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Protective Relay Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.07% |
Market Growth 2024-2028 |
USD 690.09 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.6 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC, North America, Europe, Middle East and Africa, and South America |
Key countries |
APAC at 50% |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., ALSTOM SA, Chongqing Blue Jay Technology Co. Ltd., Contrel elettronica S.r.l., Eaton Corp. Plc, ERLPhase Power Technologies Ltd., ETA Elektrotechnische Apparate GmbH, Fanox Electronic SL, General Electric Co., HNAC Technology Co. Ltd., ISKRA elektro in sistemske resitve d.o.o, Larsen and Toubro Ltd., Littelfuse Inc., Mitsubishi Electric Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Solcon IGEL Group, TERASAKI ELECTRIC CO. LTD., and ZIV Automation |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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