Market Trends of North America Protective Relays Industry
This section covers the major market trends shaping the North America Protective Relays Market according to our research experts:
Increasing Adoption of Renewable Energy Will Increase the Demand of Protective Relays
- Renewable energy has been chosen as an alternative power source primarily because it is eco-friendly, eco-green, and mainly due to its sustainable nature. The North American region has been showcasing increased application areas for protective relays owing to the increased focus on renewable energy projects and the rapid growth in a number of solar and energy plants. Moreover, according to the American Public Power Association report, around 44.3% of the total electricity generation capacity was derived from natural gas in 2020.
- Further, according to the US Energy Information Administration's (EIA) Annual Energy Outlook (2021), the share of renewable energy in the US electricity generation mix may rise from 21% in 2020 to 42% by 2050.
- On the other hand, Canadian, renewable energy production, majorly hydropower, accounts for a significant share of electricity generation. According to the Government of Canada Portal, around 67% of Canada's electricity comes from renewable sources and 82% from non-GHG emitting sources. Further, Canada is one of the largest producers of hydroelectricity.
- The Canadian Government is investing in renewable energy and upgrading its electricity grid to make clean, affordable electricity options more accessible in communities across Canada. In June 2021, the Canadian Government launched a USD 964 million program to support smart renewable energy and grid modernization projects that will lower emissions by investing in clean energy technologies, like wind, storage, hydro, solar, geothermal, and tidal.
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United States is Expected to Hold Major Market Share
- The United States electric power industry continues to transition towards cleaner energy by modernizing its energy grids to smarter grids. This will enable electric companies to enhance the grid's resilience and operations and help in gaining more visibility into the system operations and thereby avoid outages in the region.
- The upgradation of aging infrastructure is expected to drive the growth of the market. For instance, as of July 2021, the United States' aging power grid and clean energy sector were set to get major boosts under a USD 550 billion bipartisan infrastructure deal planned by the White House and the Senate.
- Various governments are undertaking modernization drives to upgrade their power grid, driving the demand for protective relays in the region. For instance, the Missouri Public Service Commission made a utility investment of USD 6.3 billion for grid modernization, which was taken up by Ameren, and the company finished around 900 projects as of Feb 2020.
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