San Jose, California (PRWEB) February 06, 2013
Follow us on LinkedIn – As an important part of the power protection devices industry, fuses and circuit breakers assume critical importance in protecting the electrical and electronic equipment from unexpected power fluctuations resulting from overvoltages, overload, ground faults and short circuits. Increasing focus on efficient power transmission and distribution is the principal factor propelling demand for fuses and circuit breakers worldwide. Additionally, the market, over the past decade has been riding high on the burgeoning adoption of electronic and electric equipment all of which warrant the use of protection devices such as fuses and circuit breakers. Another key factor projected to fuel growth in the market is the growing demand from emerging economies, which are currently in the forefront of establishing new energy infrastructure.
In this regard, as the slowdown of the BRIC countries highlights the popping of the BRIC bubble, CIVETS countries are poised to emerge as the next cluster of developing markets to turbo-charge future growth in the market. The encouraging performance of CIVETS in the first half of 2012, which largely outpaced economic performance in BRICs, is further infusing optimistic hope on the region’s future potential. Countries in this region for instance, require huge amounts of energy to power the rapid industrialization underway and environmental regulations introduced or about to be implemented will influence the need for more efficient power distribution and transmission equipment. Rapid expansion in commercial building and residential units in these countries is also creating new opportunities in this space.
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.
Reduced political focus of cash strapped European governments on renewable energy will also indirectly impact demand for circuit breakers for high voltage direct current (HVDC) used in protecting the transmission system. Mirroring reduced commitment for renewables is the lack of commitment displayed by European countries like France, Italy, and Spain for the Desertec project founded in the year 2009. Reduced willingness of European countries to construct these power stations halves the future market potential of circuit breakers in the energy sector. Although, grid integration (i.e. pan-European grid) and energy infrastructure reforms represent key to Europe’s energy sustainability in the future, the immediate financial challenges will continue to affect Europe’s ability to “Think Big” in balancing the fluctuating stability of its renewables.
Additionally, the cooling down of China’s GDP growth is impacting demand for fuses and circuit breakers in industrial machinery. The growing clout of the Chinese manufacturing industry can be put into sharp relief by the fact that the country currently accounts for over 22% of the world’s economic output. Industrial output in the country is the second largest in the world and accounts for over 49% of the country’s GDP, illustrating the country’s industrial prowess. With its economic might resting on export-oriented manufacturing and industrialization, the slowdown in exports to United States and Europe is hurting the country’s manufacturing sector. There also exist fears that in the long-term the Chinese manufacturing growth will bottom out as a result of the imminent bursting of its manufacturing bubble as a result of rising labor costs and growing production time lags and planned tightening of the country’s foreign investment policy.
As stated by the new market research report, the US accounts for a major share of the global Fuses and Circuit Breakers market. Asia-Pacific represents the fastest growing regional market, largely backed by sustained demand from key end-use industries in burgeoning developing economies. By product, Circuit Breakers represent the largest as well as the fastest growing segment. Revenues from the segment are projected to wax at a CAGR of 6.6% over the analysis period.
Major players in the global marketplace include ABB Limited, Alstom S.A, Automation Systems Interconnect, AVX Corporation, Bel Fuse Inc., Bentek Inc., Bourns, Inc., Carling Technologies, Inc., EPCOS AG, Eaton Corporation, E-T-A Elektrotechnische Apparate GmbH, Fuji Electric FA Components & Systems Co., Ltd., General Electric Company, Hitachi Ltd., Legrand S.A, Littelfuse, Inc., Mersen SA, Mitsubishi Electric Corporation, Schneider Electric SA,SCHURTER AG, Sensata Technologies Inc., Siemens AG, TE Connectivity Ltd., and Vicor Corporation, among others.
The research report titled “Fuses and Circuit Breakers: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (US$) for major geographic markets including the US, Canada, Japan, Europe, Asia–Pacific (excluding Japan), Middle East and Latin America. Key segments analyzed include Fuses, and Circuit Breakers.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
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