The Protective Relay Market is expected to grow from USD 5.088 billion in 2025 to USD 6.511 billion in 2030, at a CAGR of 5.06%.
The adoption of smart grid technology for efficient energy management is being driven by the simultaneous increase in energy usage and the large expenditures being made in infrastructure projects across different regions. As a result, there will likely be a significant increase in demand for protective relays because they are essential to parallel systems' ability to reduce the risk of damage from any system failures. Moreover, the growing usage of protection relays in power transmission and distribution network systems and the substituting of modern numerical relays for old electromechanical and static relays will also accelerate the market's growth rate.
The main factor driving demand for protective relays over the projection period is the growing requirement for solar power as well as the extended installation and modernization of the smart grid. Protective Relaying Devices (PRD) are used by a smart grid in a range of applications and operational layers to automatically prevent or lessen service interruptions, power condition problems, and power outages. They are designed to ensure that, if a network component fails, the supply to end users is not disrupted.
Further, rapid industrialization and the power industry's growing need for sustainable energy resources are two major factors driving the market's growth. The increasing use of renewable electrical resources has increased product utilization at different operating phases in the smart grid network, with the aim of preventing or reducing power disruptions. Furthermore, market expansion is supported by the global expansion of power substation structures. India's power consumption rose by 8.687% yearly to 1,624.158 billion units (BU) in 2022-23, according to data from the Power Ministry. This increase was largely driven by a rise in thermal generation.
Moreover, the International Energy Agency (IEA) projects that global renewable power generation will rise by over 75% from 2020 levels to around 2,400 GW between 2024 to 2027. This amount is equivalent to the current global capacity of nuclear and conventional fuels combined. The increase in global electricity capacity until 2026 is anticipated to come from renewable sources, with solar photovoltaics accounting for almost all of it at over half. Consequently, during the projected period, the growing use of renewable energy sources is anticipated to fuel market expansion.
The growing need to update outdated power infrastructure and meet growing electricity demand is driving the protective relay industry in the United States. The deployment of sophisticated relay technology is driven by smart grid initiatives, integration of renewable energy sources, and strict regulatory compliance. Growing apprehensions over cybersecurity and grid resiliency also fuel industry expansion. Protective relay systems are becoming more appealing to utilities due to ongoing technology improvements and an increased focus on power quality.
Segmentation: