A protective relay is a tool that detects the fault and initiates circuit breaker operation to isolate the faulty part from the rest of the system. Such relays work together to achieve the desired purpose with control and sensing instruments.
What is the global market size for protective relay?
Protective relay market size
The global protective relay market is expected to reach approximately US$ 4.4 billion by the end of 2026 from US$ 3 billion in 2019.
Analysis of the protective relay market
Protective relays play a key role in different sectors, such as power generation, transmission & distribution and security of equipment. Relay is used to minimise electrical failures due to the fault currents passing through the circuit.
The increasing investment in distribution and transmission networks to reduce power reduction and to replace the old equipment along with diverse safety standards within the power industry is a key factor in boosting the global market for protective relays.
The urbanisation and industrialisation have increased the demand for power which is helping the demand for protective relays at the same time. The increasing demand for electricity has seen the creation of new transmission grids and the introduction of the rural electrification program which will also increase the growth of the global market for protective relays.
Apart from this, the growing importance of smart grid technology coupled with rising demand for renewable energy projects is expected to propel the protective relay demand further. The carbon footprint reduction initiatives in various countries would boost the need for efficient transmission components in the years ahead. Thus, it will fuel the global demand for protective relays.
Moreover, the increased demand for defensive relays to protect expensive industrial machinery from harm in the event of electrical short-circuits or other circumstances would continue to support the global protective relay market.
However, the high installation costs and constant maintenance requirements for the safety relay system would hinder the market growth.