The global circuit breakers market has been forecast to reach a value of US$15.6 billion by the year 2018, primarily driven by the increasing focus on efficient production and distribution of electricity and sustained demand from end-use industries.
A circuit breaker is an automatically operated electrical switch designed to protect an electrical circuit from damage caused by overload or short circuit. Its basic function is to detect a fault condition and interrupt current flow.
Unlike a fuse, which operates once and then must be replaced, a circuit breaker can be reset (either manually or automatically) to resume normal operation.
As an important part of the power protection devices industry, circuit breakers assume critical importance in protecting electrical and electronic equipment from unexpected power fluctuations resulting from overvoltages, overload, ground faults and short circuits.
Increasing the focus on efficient power transmission and distribution is the principal factor propelling demand for circuit breakers worldwide. Additionally, the market, over the past decade has been riding high on the burgeoning adoption of electronic equipment all of which warrant the use of protection devices.
Demand stands threatened by the still unresolved threat of sequestration cuts in the United States, which flaunts the potential to impact all end-user industries ranging from energy/utilities, automobiles, industrial machinery to construction and electronic equipment.
The sequestration cuts can reduce the government budgets for energy programs and infrastructure, leading to possible rejection of energy policy proposals. Also, increased taxes can reduce corporate CAPEX spending in industrial machinery and consumer spending on consumer durables like automobiles.
In Europe, the ongoing debt crisis is already impacting demand. The weak residential and non-residential construction industry in Europe, which has shrunk by over 30% and 18% respectively from the peak witnessed in the year 2006, is impacting demand for fuses and circuit breakers used in household circuits.
The US accounts for the majority share of the circuit breakers market, while Asia-Pacific represents the fastest growing regional market, largely backed by sustained demand from key end-use industries in developing economies.
For more information on the global circuit breakers industry, see the latest research: Circuit Breakers Industry
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