Sectionalizer Market

Global Sectionalizer Market:

The global sectionalizer market size reached US$ 1,387.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,938.2 Billion by 2032, exhibiting a growth rate (CAGR) of 3.78% during 2024-2032. The rising product applications across the food and beverage (F&B), manufacturing, and healthcare sectors act as a key factor driving the market. Other drivers include favorable government initiatives aimed at power grid modernization, the escalating demand for continuous power supply, especially in rural areas, and the expanding utilization of three phase power systems.

Sectionalizer Market Analysis:

• Major Market Drivers: The escalating demand for electricity across the globe, owing to the elevating urbanization and industrialization levels, the rising need for distribution automation technology, on account of the shifting preferences towards renewable power generation, and the inflating investments in smart grid projects to minimize power interruptions and losses are among the key drivers propelling the sectionalizer market outlook.
• Key Market Trends: The rising product applications across various industries, such as manufacturing and F&B, the increasing need for cost-efficient operation of distribution networks, and numerous government incentives, such as the introduction of performance-based incentive schemes and guaranteed service programs, are the key market trends.
• Competitive Landscape: Some of the major market players in the sectionalizer market include ABB Ltd., Bevins Co., Eaton Corporation plc, Elektrolites (Power) Pvt. Ltd, G&W Electric Company, Hubbell Incorporated, Hughes Power System AB and Schneider Electric SE, among many others.
• Geographical Trends: According to the sectionalizer market overview, North America held the biggest market share since the region boasts a well-established and extensive power distribution infrastructure, necessitating a robust demand for sectionalizers for maintenance, upgrade, and expansion projects.
• Challenges and Opportunities: The major challenges affecting the sectionalizer market are the escalating need for continuous research and development (R&D) activities to meet the constantly evolving needs of modern power infrastructures and the increasing implementation of stringent regulations requiring for electrical components to be sustainable and efficient. Key opportunities include the elevating urbanization levels across countries, the incorporation of renewable energy systems with the grid infrastructures, the growing recognition of the importance of modernizing power grid systems, and the rising advancements in smart grid technologies.
   

Sectionalizer Market Trends:

Rise in Product Applications Across Various Industries

The majority of modern medical devices require electricity to operate leading to the widespread adoption of smart electrical distribution systems across hospitals and clinics. As a result, there is a surge in the demand for automatic sectionalizers in healthcare facilities. Besides this, manufacturers rely on large capacity refrigerators to store and preserve food and beverage items. Therefore, the growing need for continuous power supply for refrigeration and heating purposes in the food and beverage (F&B) industry is anticipated to propel the expansion of the market. This is further augmented by the growing concerns about energy efficiency. For example, in Australia’s F&B sector, energy use accounts for about 15% of the total operational costs as such, automation players, like ABB, are incorporating new-age technologies to optimize energy-intensive processes, from fans and pumps to steam systems and refrigeration devices. Also, there is a high product demand in the manufacturing sector owing to its rising need for uninterrupted power supply and electricity transmission. Moreover, the shifting inclination from isolators toward sectionalizers will catalyze growth during the sectional market forecast period.

Increase in the Trend of Power Distribution Automation

Power distribution automation employs devices, such as reclosers, sectionalizer, switches, and feeder protection and control systems, as crucial components. Since sectionalizer is utilized in combination with reclosers to safeguard circuit from fault currents in a distribution network, a rise in the burden of annual economic losses suffered by utilities due to power interruptions is augmenting the expansion of the market. Furthermore, there is an increase in the trend of power distribution automation that improves power reliability and ensures cost-efficient operation of distribution networks. This technology helps power utilities enhance operational efficiency, power quality, and safety, which makes it essential for all utilities. This has also been accompanied by research into remote control of sectionalizers. For example, in March 2023, students at Goa Engineering College in India developed a mobile messaging facility to control sectionalizes and identify faulty power lines remotely. This was launched by the state’s Power Minister, which also underlines the importance of research and development of advanced sectionalizer variants.

Surge In Favorable Government Initiatives

Various initiatives undertaken by governments of numerous countries, such as the introduction of performance-based incentive schemes and guaranteed service programs. Such agencies are also adding a reliability component to these schemes wherein the distributors might face a penalty for not meeting their standards or receive a bonus for exceeding them. For instance, in May 2023, regulators in Michigan, USA, updated service quality and reliability standards for power utilities. The new rules lower the threshold for unacceptable performance during power outages and increased bill credits for power customers forced to go without electricity. These schemes and rules are offering direct control to governing bodies and regulators to improve reliability standards as most guarantees are related to outage restoration times and the provision of information about outages such as expected service restoration time. Such favorable government initiatives are expected to fuel the adoption of protective equipment like sectionalizers by distribution operators, thereby driving the market growth during the forecast period.

Sectionalizer Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global sectionalizer market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on phase type, control type, and voltage rating.

Breakup by Phase Type:

• Single Phase
• Three Phase
   

Three phase represents the most popular phase type

The report has provided a detailed breakup and analysis of the market based on the phase type. This includes single phase and three phase. According to the report, three phase represented the largest segment.

A three-phase power system is known for its efficiency in power distribution, and it significantly reduces the copper or aluminum needed for electrical distribution, making it economically attractive. Given that a vast majority of the world's industrial machinery and large electrical installations operate on three-phase power, sectionalizers for these systems are naturally higher in demand. Consequently, the widespread use of three-phase power systems in industrial, commercial, and large-scale residential applications is fueling the segment growth. Furthermore, three-phase systems evenly distribute electrical loads, ensuring smoother operation of machinery and reducing wear and tear. Therefore, the reliability and operational benefits of three-phase systems catalyze the demand for three-phase sectionalizers. As more regions continue to industrialize and urbanize, the adoption of efficient and reliable power distribution systems like the three-phase becomes indispensable, further driving the growth of this segment. For example, in 2022, the Tamil Nadu Electricity Regulatory Commission (TNERC) in India directed electricity Tangedco to ensure the 24x7 supply of three-phase electric power in rural areas of the state. Such demands will invariably increase as developing countries urbanize further.

Breakup by Control Type:

• Resettable Electronic Sectionalizer
• Programmable Resettable Sectionalizer
   

Resettable electronic sectionalizer holds the largest share in the market

A detailed breakup and analysis of the market based on the control type has also been provided in the report. This includes resettable electronic and programmable resettable sectionalizers. According to the report, resettable electronic sectionalizer accounted for the largest sectionalizer market share.

Resettable electronic sectionalizers have gained immense popularity in recent years owing to their advanced features and versatility. Unlike traditional sectionalizers that may need manual intervention or replacement after operation, resettable electronic variants offer the ability to automatically reset after isolating fault conditions, enhancing system reliability and reducing downtime. This automated resetting capability can be invaluable in scenarios where quick restoration of power is crucial. Moreover, these electronic devices come with advanced monitoring and diagnostic capabilities, enabling real-time insights into the network's health and performance. This assists in proactive maintenance and reducing operational costs. Additionally, as the world shifts toward smarter and more interconnected grids, the integration capability of resettable electronic sectionalizers with modern grid infrastructure further makes them an attractive option. Thus, the combination of reliability, operational efficiency, and compatibility with smart grid technologies is propelling the growth of the segment.

Breakup by Voltage Rating:

• Up To 15 KV
• 16-27 KV
• 28-38 KV
   

The report has provided a detailed breakup and analysis of the sectionalizer market based on the voltage rating. This includes Up To 15 KV, 16-27 KV, and 28-38 KV. 

Up To 15 KV sectionalizers are designed to operate in systems with a voltage rating of 15 kilovolts (KV) or less. They are typically found in low voltage networks, commonly serving residential areas, small commercial establishments, and certain rural distributions. Given their voltage range, these sectionalizers are more prevalent in regions with a dense population of low-rise buildings and lower industrial presence.

Sectionalizers in the category of 16-27 KV are tailored for medium voltage networks. They are commonly used in urban and suburban power distribution, serving both residential and commercial areas. In addition, they might be found in certain light industrial settings. Their design allows them to handle a broader voltage spectrum, making them suitable for a wider range of applications compared to the lower voltage counterparts.

28-38 KV are high-end medium voltage sectionalizers mainly used in heavy industrial areas, large commercial establishments, and in portions of the grid that serve a large number of consumers or have high power demands. Due to their higher voltage capacity, these sectionalizers are crucial for ensuring consistent power delivery in regions with significant industrial activities.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest regional market for sectionalizer.

North America held the biggest market share since the region boasts a well-established and extensive power distribution infrastructure, necessitating a robust demand for sectionalizers for maintenance, upgrade, and expansion projects. Moreover, the rising emphasis on grid modernization, particularly in the United States and Canada, has spurred investments in advanced distribution equipment, including resettable electronic sectionalizers. For example, in the third quarter of 2023, all 50 US states, as well as the District of Columbia and Puerto Rico, undertook actions related to grid modernization, with a total of 468 grid modernization actions reported during this period. This modernization aims to enhance grid reliability, accommodate renewable energy integration, and ensure resilience against natural calamities and external threats. Furthermore, the industrial and commercial sectors in the North America region are vast and continuously evolving, requiring consistent and efficient power distribution, which further escalates the product demand. Another contributing aspect is the region's regulatory framework and standards, emphasizing safety and efficiency in power distribution, which have indirectly fostered the sectionalizer market growth. The amalgamation of these factors contributes to the leading position of the market.

Competitive Landscape:

The market is experiencing stable growth due to a substantial rise in demand and new product launches. Various key players are implementing strategic initiatives and engaging in merger and acquisition (M&A) activities to expand their geographical footprint and customer base across the globe. The market is witnessing an increase in research-related efforts and investments by the leading manufacturers resulting in technological advancements, improved supply chain as well as the optimum utilization of raw materials for making high quality products at lower costs. We also expect the market to witness new entrants, consolidation of product portfolios, and a rise in strategic partnerships and collaborations among key players to drive healthy competition within the sectionalizer industry during the forecast period.

The report has provided a comprehensive analysis of the competitive landscape in the global sectionalizer market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• ABB Ltd.
• Bevins Co.
• Eaton Corporation plc
• Elektrolites (Power) Pvt. Ltd
• G&W Electric Company
• Hubbell Incorporated
• Hughes Power System AB
• Schneider Electric SE
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Sectionalizer Market News:

• December 2023: Florida-based manufacturer, Carrier Global Corporation, which specializes in intelligent climate and energy solutions, entered into a definitive agreement to sell its commercial refrigeration business to its joint venture partner Haier for an enterprise value of US$ 775 million. With more than 4,000 employees, Carrier Commercial Refrigeration has a sales and service network spanning the Asia Pacific and European regions, with brands that include Profroid, Celsior, Green & Cool, etc.
• December 2023: The United Nations Environment Programme (UNEP) called for stringent energy efficiency standards to reduce emissions from the refrigeration sector. Adopting this measure and related steps could cut the cooling sector’s greenhouse gas emissions by 60% by 2050, the agency said. Presently, this sector accounts for 20% of electricity usage. Sectionalizers can be critical in ensuring the efficiency of energy systems, and they are widely used in refrigeration systems.
• September 2023: Eurelectric, the sector association that represents the European electricity industry, called for increasing investments in the region’s aging grid infrastructures by 84% annually until 2050. The group said that existing infrastructures are not suited for accommodating renewables, electric vehicles, smart grids, etc. Sectionalizers are important components of modern grid systems.

Sectionalizer Market Report Scope:

Key Questions Answered in This Report:

• How has the global sectionalizer market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global sectionalizer market?
• What is the impact of each driver, restraint, and opportunity on the global sectionalizer market?
• What are the key regional markets?
• Which countries represent the most attractive sectionalizer market?
• What is the breakup of the market based on the phase type?
• Which is the most attractive phase type in the sectionalizer market?
• What is the breakup of the market based on the control type?
• Which is the most attractive control type in the sectionalizer market?
• What is the breakup of the market based on the voltage rating?
• Which is the most attractive voltage rating in the sectionalizer market?
• What is the competitive structure of the global sectionalizer market?
• Who are the key players/companies in the global sectionalizer market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the sectionalizer market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global sectionalizer market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the sectionalizer industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.