Follow us on LinkedIn - A part of the power protection devices industry, fuses and circuit breakers are critical components in distribution grids designed and developed to offer protection against unexpected power outages resulting from overload, short circuits/fault currents, and/or ground fault. Fuses and circuit breakers are indispensable not only in transmission and distribution of electric power, but virtually every product that utilizes electrical energy such as automobiles, consumer electronics, computers, telecommunication /data communication circuits, handheld devices, and industrial equipment and machinery. These devices are sophisticated in their internal construction and make use of electrical, magnetic, mechanical, chemical and thermal processes to achieve the desired characteristics. With increased deployment of electrical and electronic equipments, the demand for power protection devices including circuit breakers and fuses gained momentum over the last decade. And with issues relating to stable power supply still continuing to irk industries/businesses worldwide, demand is forecast to continue its steady growth into the future. Other factors poised to prop up growth in the market include the buoyant telecommunications industry worldwide, continued expansion in the use of personal computers and other technologically advanced electronic devices, and the relatively higher level of consumer awareness in developed markets, among others.
The financial crisis led world economic recession during the period 2007-2009, left the fuses and circuit breakers market hurting. Fall in the business confidence index, bleeding corporate balance sheets, enterprise skepticism over infrastructure investments, tight liquidity/financial constraints, lack of credit availability, high borrowing rates and capital shortages to fund new investments in telecommunications, IT infrastructure, plants and equipment, together shaved off approximately US$ 1.1 billion in market value between the period 2007 and 2009. Diminished manufacturing and commercial activity and the resulting declines in manufacturing output and industrial production reduced demand for electrical machinery, resulting in weakening demand for fuses and circuit breakers.
The construction end-use sector recorded the steepest fall in demand for fuses and circuit breakers. Cancellation, postponement, and general weakness in new office, commercial and residential building projects as a result of lack of credit and rising vacancy rates, and sharp falls in the number of applications for new building permits, and cost cutting among commercial establishments, and companies, played instrumental roles in negatively impacting demand. Plant closures, capacity idling, scaling back of operating capacity reduced opportunities for fuses and circuit breakers in automotive/transportation end-use sector, where they are used widely in conjunction with numerous high current automotive electronic components/devices/circuits, such as, engine, power windows, climate control systems, sunroofs, heater circuits, power door locks, air conditioning, among others. In the industrial end-use sector, sharp declines in manufacturing activity and lower cash inflows, reduced the focus, although temporarily, on industrial process automation which typically generates demand for power protection devices. The unfavorable market climate trickled down to fuses and circuit breakers, which are indispensable electrical components used in all electronic industrial machinery/equipment. Demand for fuses and circuit breakers in the energy related application market also declined in line with the deterioration in the health of the energy generation sector. Slowdown in electricity demand elicited erosions in sales of switchgears and components, such as, fuses and circuit breakers.
Looking beyond the recent economic turbulence, there is still a lot of untapped potential in the fuses and circuit breakers market, especially MCCB and high power fuses power segments. Key drivers for medium- and high-voltage fuses and circuit breakers include the rising energy consumption, rapid build-out of renewable energy, and the need to upgrade/retrofit grid assets in both developed and developing regions. Post recession, growth is already recovering given that the goal towards establishing a comprehensive power infrastructure has and will continue to remain vital to most governments across the globe. The evolution of smart grids and the resulting focus on reducing energy losses and enhancing efficiency will offer ample opportunities for growth of fuses and circuit breakers in the upcoming years. Besides that demand from commercial and industrial buildings, such as office, hotels, hospitals, shopping malls, condominiums; the increasing consumption of electricity; and resurgence in business climate will aid growth of low voltage fuses and circuit breakers.
As stated by the new market research report, the US and Asia-Pacific account for a major share of the global Fuses and Circuit Breakers market. While growth in the developed markets begin to tame down, developing markets will drive future growth guided by rapid industrialization, expansion of manufacturing, industrial and transportation industry, and continuous shifting of productions bases to low cost developing countries. By segment, Circuit Breakers is the largest contributor to global market revenues. Global market revenues for Fuses are expected to surge at a CAGR of 5.9% over the analysis period. Demand for medium- and high-voltage power fuses and fuse links in the post recession period will surge at the faster rate in line with rebound in construction activity in non-residential and electric power markets. High-power fuses, which extensively depend on the electric utilities market, will experience rapid gains as a result of massive subsidies being doled out to power utilities. Renewable energy sector will also throw up opportunities supported by rising adoption of high-power fuses to protect the step-up transformers in wind farm projects.
Major players in the global marketplace include ABB Group, Bel Fuse Inc, Bourns Inc, Carling Technologies Inc, Cooper Industries Ltd, E-T-A ElektroTechnische Apparate GmbH, Eaton Corporation, Fuji Electric Co Ltd, General Electric Company, Hitachi Ltd, Hubbell Power Systems Inc, Littelfuse Inc, Mersen, Mitsubishi Electric Corporation, Powell Industries Inc, Schneider Electric SA, Sensata Technologies Inc, Siemens AG, SPD Electrical Systems Inc, Tyco Electronics Corporation, among others.
The research report titled Fuses and Circuit Breakers: A Global Strategic Business Report announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (US$ Millions) for major geographic markets including the US, Canada, Japan, Europe, AsiaPacific (excluding Japan), Middle East and Latin America. Key segments analyzed include Fuses, and Circuit Breakers.
For more details about this comprehensive market research report, please visit
http://www.strategyr.com/Fuses_and_Circuit_Breakers_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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