Market Trends of Molded Case Circuit Breaker Industry
Industrial Segment Projected to Dominate the Market
- The oil and gas industry is one of the leading industries where maximum instruction and safety standards are issued and followed to reduce fire accidents. Any ignition or spark within the operational area may lead to severe losses to the industry. Further, such losses may include human lives, and the company would need to bear several compensations and penalties in case a fire accident occurs.
- In the oil and gas industry, the major applications of molded-case circuit breakers include refineries, where they ensure the safe and reliable operation of motors, generators, and heavy machinery used in the processing of crude oil and natural gas. MCCBs used to carry out these functions typically have electrical ratings ranging from 50 to 250A, depending upon the type of application.
- The downstream sector of the oil and gas industry is a complex and highly capital-intensive industry that includes electrical equipment such as pumps, compressors, motors, control systems, SCADA systems, and several other critical components used in harsh, high-temperature, and compact environments. Operation of such equipment requires a power supply with safety devices. A number of upcoming new refinery projects and expansion of existing refinery projects are underway, which is expected to increase the demand for MCCBs over the forecast period.
- For instance, according to the Energy Institute Statistical Review Of World Energy, the global refining capacity reached 103,498 thousand barrels per day in 2023, an increase of over 2.1% compared to 2022. In contrast, the annual average growth rate in the past decade was approximately 1%, signifying the growth of the downstream sector in the oil and gas industry.
- Other industries where molded-case circuit breakers are used include food and beverage, wastewater treatment plants, and pharmaceuticals. Several companies are investing in the food and beverage industry globally, which is expected to boost the demand for MCCB in the coming years. For instance, in July 2024, North America had around 66 new projects in the food and beverage industry. Nearly 24 were likely to be new plants, while 16 would be expansion projects.
- The largest project belongs to Nature’s Bakery, which intends to allocate USD 237 million toward the construction of a 339,000-square-foot processing plant in Salt Lake City, Utah, United States. The project is anticipated to conclude by the summer of 2025. Therefore, such investment plans in the food and beverage industry are expected to promote growth in the utilization of industrial molded case circuit breakers globally in the upcoming years.
- Therefore, as per the aforementioned developments, the industrial market segment is expected to witness significant growth during the forecast period.
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Asia-Pacific Projected to Dominate Market Growth
- India's rapid urbanization, marked by millions migrating to cities annually, is fueling demand for electricity across residential, commercial, and industrial segments. This demand underscores the necessity of molded case circuit breakers (MCCBs) as pivotal electrical protection devices that safeguard circuits from overcurrents, preventing overloads or short circuits.
- As per JLL's June 2024 report, the Indian market’s residential segment was poised to witness sales of 290,000 to 300,000 units, buoyed by robust demand and quality launches. The mid-price segment led sales, while the premium tier surged by 22% annually. Luxury segment sales skyrocketed by 83%, prompting developers to launch projects aligning with this demand. This upsurge in the luxury real estate segment is a direct response to evolving consumer tastes and technological advancements.
- China, the world's second-largest economy by GDP, saw a 5.2% growth in 2023, with its GDP hitting USD 17.89 trillion. However, this growth has begun tapering off due to an aging population and the economy shifting from manufacturing to services while transitioning from external to internal demand. Notably, the economy is pivoting from an investment-driven model to one led by consumption.
- Given China's robust growth in renewable power generation, commercial infrastructure, and other industries, it is poised to emerge as a leading market for molded case circuit breakers (MCCBs). This trend is set to continue, underlining the pivotal role MCCBs play in these industries.
- In December 2023, China unveiled plans to construct 100 underwater data centers, the first near Hainan Island in the South China Sea. These unique data centers, set underwater, will require specialized, remotely controlled devices to manage their power supply, amplifying the demand for MCCBs.
- Thus, in line with the abovementioned developments, Asia-Pacific is expected to dominate the market during the forecast period.
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