Electric fuses and shock!
An electric fuse is an electrical safety device that operates to provide the over-current protection and is generally used as a conduit between an electrical power source and an electrical component. Electric fuses are the essential part of electrical systems in cars, motorcycles, trucks and other types of vehicles and they function to stop electricity from flowing to a particular component as a result of the unsafe electrical condition. Today, automobiles require a lot of electrical fuses for essential activities such as passenger safety and electric car charging stations resulting in a higher demand for electric fuses in the automotive manufacturing industry. The market for electric fuse is expected to increase due to growing industrialization, automobile sector revolution, rising domestic power demand, increasing demand for power transmission equipment.
Growing in-vehicle electronics
Technological advancement in the semiconductor industry has led to the development of electric fuse technologies that are used particularly in the automotive industry. There is an increasing demand for electronic systems within the automotive industry owing to increased attention towards the vehicle-to-vehicle and vehicle-to-infrastructure communications, convenience as well as onboard safety, thus driving the growth of the market during the forecast period. The adoption of electronic systems is growing as technology becomes more widely available on mid-range and entry-level cars, providing another avenue for electric fuse manufacturers to generate higher revenues. In addition, due to the benefits of smart sensors like high reliability, low power consumption and failure detection also boost the demand for vehicle electronics which is further expected to propel the market growth opportunities for the electric fuse market in the coming years.
Significant growth of the world’s electricity transmission and distribution industry
With a growing population, the demand for energy demand continues to increase which is expanding the scope of electric fuse adoption in electricity transmission and distribution. The power delivery system today represents one of the most asset-intensive industries on the planet and a shift of government focus to reinforce the power T&D system in developing countries like India and China also opens up profuse opportunities for the electric fuse market. For instance, the government of India is encouraging investment in transmission and distribution system through schemes such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) that aims to provide power for every village.
Impact of COVID19 pandemic in overall electric fuse market
The disruption in the manufacturing industry due to COVID-19 has severe social, financial, and operational consequences which are forcing manufacturers to reassess risk management and contingency plans and new ways of working opportunities, all at the same time. Also, the current COVID-19 pandemic has drastically affected the consumer electronics industry from initial supply and manufacturing disruptions to upcoming demand shock with the uncertainty of the recovery timeline. Besides, the overall impact of global production shutdowns and collapsing demand coupled with the challenges with components supply will have a major economic impact in the short and medium run. Furthermore, the outbreak has dampened the demand for oil resulting in falling prices and declining production especially in the middle of Russia-OPEC price war. Such trend of falling prices is also observed in the electricity sector as the pandemic caused a tremendous drop in electricity consumption globally as businesses and industrial activities are halted, all such situations have drastically impacted the energy and power industry in the region which is further expected to restrain the growth of the market in short term.
The electric fuse market has been segmented based on voltage, material, end-user, and geography. On the basis of voltage, the segmentation is done as, medium and low. By material, the segmentation is done into copper, silver, and bronze. Based on the end-user industry the classification has been done into energy and power, automotive, manufacturing, consumer electronics, construction, and others. Geographically, the market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
By the end-user industry, the automotive segment is projected to show decent growth during the forecast period on account of increasing investment by major market players. Also, advancement leads to increasing demand for in-vehicle electronics which is further expected to boost the market for electric fuse during the forecast period. In fact, it is estimated that the cost of electronics as a percentage of the overall vehicle cost is expected to increase from 30% in 2005 to 50% in 2030 (source: NXP Semiconductors). However, slowing growth of the automotive industry and a sharp downturn in production and sales from 2018 because of a slump in demand in the world’s biggest market China is expected to slow the growth of the market in short term. Furthermore, the current COVID-19 pandemic has drastically affected the industry from initial supply and manufacturing disruptions to upcoming demand shock with the uncertainty of the recovery timeline.
Geographically, the Asia Pacific region is projected to hold a noteworthy share in the global electric fuse market on account of expanding the automotive and construction industry and the presence of major market players in countries like China who is the world’s manufacturing center and constitute a significant share in global manufacturing output. Furthermore, the growing investment in the manufacturing and energy and power industry also supports the electric fuse market growth in the region throughout the forecast period. In addition, increasing product launches in the European region by major players shows a sign of development and growth in the region. For instance, recently, Mersen announced the launch of Modulostar® fuse-disconnector for application with power cylindrical low voltage fuses.
ABOUT THE AUTHOR:
Rajat Sudan is a Market Research Analyst at Knowledge Sourcing Intelligence, working on estimates and global/regional specific reports on multiple industries ranging from semiconductor to food and beverages, with a special knack for automotive and semiconductor. With the addition of his formal education in Economics, Commerce, and Finance, he is able to provide more light on the macro aspects of the story. To read more articles by him, and for more information regarding multiple global markets, visit www.knowledge-sourcing.com.
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