Market Trends of Arc Flash Protection Industry
Utility Sector to Witness Significant Growth
- Arch flash protection system consists of relays, breakers, and fault current limiters. The system controls the flow of current to the electrical equipment and protects it from any electrical accident that may arise due to flaws in a network.
- The utility sector will likely witness significant growth during the forecast period, owing to increasing uses of safe electrical and electronic equipment to maintain international safety standards.
- From power generation to transmission and distribution, the utility sector puts huge investments and workforce to maintain and operate a power grid. Safety is a prior concern in the prevention of unnecessary incidents, so the installation of an arc flash protection system is very much necessary within a power grid.
- To prioritize the safety of the industry and the workforce, an organization such as OSHA (Occupational Safety and Health Administration) and NFPA (National Fire Protection Association) has set different codes and standards for flames and electric arcs and a mandate in many countries to abide by it, to have clearance for project development and installation.
- In 2022, global electricity generation was around 29165.1 terawatt-hours. Of the total electricity production, utility sectors such as fossil fuel and renewable have different contribution shares. With the growing concerns regarding environmental impacts, renewable sectors such as solar and wind are expected to grow further, increasing the use of safety protection equipment such as arc flash during the coming years.
- Thus, owing to the above points, the utility sector is expected to witness significant growth in the market.
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North America to Dominate the Market
- The growing industrial safety norms and energy projects are expected to significantly drive the arc flash protection market in the region, mainly due to the United States being an early adopter of industry standards.
- The region is the second leading manufacturing hub after China, which contributes nearly 16.6% of the global manufacturing output. With high manufacturing and mandate safety standards, the region is estimated to have a high installation of arc flash protection systems.
- Additionally, the region has a significant oil and gas industry presence. With 21573 Thousand barrels daily of refining capacity and the highest crude and natural gas production in the United States during 2022, it was estimated to have the highest number of arc flash protection systems in the country.
- There is significant penetration of smart commercial buildings or infrastructure in North America, owing to the growing security concerns and awareness of energy conservation. The technological advancements in safety electrical devices and the adoption of those devices in infrastructure are expected to act as opportunities for the arc flash market in the region.
- Further, the government of the United States has a target of 30 GW of offshore wind by 2030. To achieve the target, the commissioning of projects, along with the power grid from transmission and distribution, is likely to install electrical safety and protection equipment, which is expected to boost the arc flash protection market during the upcoming years.
- Thus, owing to the above points, North America is expected to dominate the market in the forecast period.
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