Global Protective Relay Market
Protective Relay Market size is estimated at USD 3.36 Billion in 2024 and is expected to reach USD 7.12 Billion by the end of 2037, growing at around 6% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of protective relay is evaluated at USD 3.36 Billion.
The demand for protective relay is set to be influenced by the expansion of the renewable energy infrastructure to detect any dangerous, or intolerable conditions. As per a report published by the International Energy Agency, the capacity of renewable energy in 2023 increased by 50% in contrast to 2022 across the globe. Consequently, the adoption of protective relay is poised to rise.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6% |
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Base Year Market Size (2024) |
USD 3.36 Billion |
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Forecast Year Market Size (2037) |
USD 7.12 Billion |
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Regional Scope |
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Application (Transmission & Distribution, Generator Protection, Motor Protection, Feeder Protection, Transformer Protection, Bus-Bar Protection, Others)
Transmission & distribution segment in the protective relay market is poised to reach USD 1.34 Billion by the end of 2037, up from a revenue of USD 0.6171 billion gathered in the year 2024. The use of protective relays in transmission and distribution networks is expected to rise substantially in the coming years. Relays such as these provide a significant function in protecting lines, transformers, and other equipment against problems such as overloads, short circuits, and electrical irregularities.
Moreover, according to the IEA, around the world demand for energy is projected to grow at an average yearly pace of 3.4% through 2026, fueled by economic expansion and electrification efforts, emphasizing the need for efficient safety measures. Consequently, with the growth in this segment, the protective relay market is poised to rise.
End-User (Utilities, Industrial, Commercial & Residential, Renewable Energy, Government, Others)
In protective relay market, utilities segment is estimated to cross USD 2.35 Billion by 2037, which is the largest in contrast to revenue gathered in the year 2024 of USD 1.08 billion. Protective relays detect malfunctioning devices and hazardous conditions, maintaining the electrical grid's safety and reliability.
In addition, the growing focus on energy security and the need to control the fluctuation of renewable energy sources requires smarter and more connected grids, which increases the need for protective relay systems. Utilities are making investments in high-quality control and protection relays to increase grid stability, reliability, and efficiency.
Furthermore, the residential & commercial segment is also set to grow at the highest CAGR of 6.44% over the forecast period. This growth of the segment is expected to be encouraged by growing residential and commercial infrastructure which is further boosting the need for energy. For instance, in 2022 there were approximately 93,000 office buildings across the globe.
Our in-depth analysis of the market includes the following segments:
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Product Type |
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Application |
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End-User |
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European Market Statistics
Europe protective relay market revenue is set to exceed USD 2.51 Billion by the end of 2037. This market in this region is predicted to capture revenue of USD 1.12 billion in the year 2024. This growth of the market in this region is poised to be dominated by a rising urban population. For instance, the European Commission states that in 2021, over 38.9% of the individuals were residing in urban areas. Hence, this has further boosted the demand for electricity in this region.
Among this region, the market for protective relay is the UK is predicted to generate a revenue of USD 5.33 billion for the year 2037 which is also the highest compared to all other nations in Europe. This growth is set to be driven by the growing production of wind energy in this region.
Moreover, the German market is also projected to have exponential growth in this region owing to growing investment in smart grid adoption.
Furthermore, with the rise in net zero initiatives the market for protective relay in France is additionally projected to rise at a faster pace over the forecast period.
Latin America Market Analysis
The Latin America protective relay market is expected to expand over the forecast period. The major element to influence the market growth in this region is the growing electricity generated by hydro plants. As per the EIA report, hydropower is the major source to generate electricity in most countries in Latin America, accounting for 45% of the electricity supply from the region in total. As a cause of this factor, the demand for protective relay is predicted to experience a surge in this region.
Further, the Brazilian market for the protective relay in this region is poised to observe a rise in revenue amounting to USD 1.48 by the end of 2037. This could be owing to the rise in population in this region.
Moreover, the market in Mexico for protective relay is also estimated to rise along with Brazil owing to the rising funding to this nation to build efficient power supply sources.
Additionally, Argentina nation is experiencing a rise in non-hydro renewable projects which is further predicted to expand the market for protective relay in this area.
The market for protective relays is set to expand owing to the presence of number of a key player who are continuously working on a number of initiatives to boost their product performance. These key players include:
Author Credits: Abhishek Verma
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