Circuit Breaker Market Size, Share, Growth, Analysis

Global electricity demand is entering one of its strongest multi-year growth phases, and this shift is directly expanding the addressable market for circuit breakers across transmission, distribution, industrial, and data center applications. According to the IEA, global electricity consumption rose by 4.3% in 2024 and is projected to continue rising at nearly 4% annually through 2027, adding an unprecedented 3,500 TWh over the period. This surge is being fueled by higher industrial activity, the rapid electrification of transport and heating, the widespread adoption of air conditioning in emerging markets, and the accelerated expansion of hyperscale data centers. Emerging economies will generate 85% of the additional electricity demand to 2027, while electrification in China is advancing even faster, with electricity already representing 28% of its final energy consumption—significantly higher than the United States (22%) and the European Union (21%). China’s data center load alone is expected to potentially double by 2027, intensifying the need for modern substation equipment and reliable MV/HV protection systems.

According to the Kyoto Protocol, SF6 is one of the most potent greenhouse gases (GHGs), with a global warming potential (GWP) of 23,000. The Intergovernmental Panel on Climate Change (IPCC) has listed it as a highly harmful GHG. Accordingly, the Kyoto Protocol stipulates the reduction of emissions. Currently, no nearest alternative could work as efficiently as SF6. Thus, high procurement costs and policies against SF6 are expected to hamper growth. Imperfect joints in the manufacturing of SF6 circuit breakers lead to the leakage of the SF6 gas, which is a choking gas to some extent. At the time of leakage in the breaker tank, the SF6 gas settles in the surroundings as it is heavier than air, and this gas precipitation may lead to the suffocation of the operating personnel. The arced form of the SF6 gas is poisonous and can be harmful if inhaled. The US Environmental Protection Agency (EPA) has taken measures to find a solution to detect the leakage of the SF6 gas in the breaker tank of SF6 circuit breakers, as the leakage is destructive when an arc is formed.

A smart grid is a digital technology that modernizes electricity networks by providing 2-way communication between the utility and its customers. Global power utilities are increasingly investing in smart grid technologies to control and protect their power equipment. At the end-user level, smart grids can enable demand flexibility and consumer participation in energy system operations through distributed generation and storage. The expansion of the IoT has fostered the development of smart technologies in fields such as power transmission and distribution systems (as is the smart grid). The network communication infrastructure for a smart circuit breaker system has high requirements in terms of functionality, performance, and security, given the large number of distributed connected elements and the need for real-time information transmission and system management. In addition, smart circuit breakers (SCB) can offer improved protection and “smart” detection and management of grid faults. It also focuses on enhancing the capability of communication over a network for data transmission and remote control. It also offers advantages such as automatic reconnection, high-speed disconnection, data fusion (where one device detects all events), and disconnection in the case of zero-crossing detectors, which reduces the generated perturbations.

Cybersecurity has become a fundamental requirement for any automation project in the power industry. The installation of modernized circuit breakers faces multiple challenges that pose a threat to a country’s economy. Smart devices aid the optimal functioning of the system, but they can also pose a security threat from anti-social elements. Cyberattacks in circuit breakers can become a major concern throughout the grid communication networks and software platforms that operate and manage the entire grid. According to the World Economic Forum, the utility and energy sectors rank the second highest in losing USD 17.2 million per company per year from cybercrime. Circuit breakers face various cyber threats, such as grid instability, data theft, or security breach, which can be done by bypassing securities on remote access, leading to blackouts and power outages. These outages result from incorrect settings in a relay or circuit breaker, which determines the device's response (or non-response). Incorrect settings may have serious effects on the power system operation. This can be avoided by developing dedicated secure networks for monitoring and controlling the devices/equipment. Developing such a network and assuring control of elements poses a challenge as well as providing opportunities for industry players to develop a secure and safe solution for data acquisition and monitoring along with new age devices.