The GCC protective relay market size was valued at USD 237.7 million in 2015 and is expected to witness growth at a CAGR of 5.4% over the forecast period.
Saudi Arabia Protective Relay Market, By End-Use, 2010 - 2024 (USD Million)
The growth is primarily attributed to the growing investments in the transmission & distribution infrastructure in the GCC region.
The power sector is anticipated to emerge as the largest end-use segment and is predicted to grow at a CAGR of over 6.0% from 2016 to 2024. The rapid industrialization coupled with the rise in power generation capacity in the GCC region is expected to act as a key driver fueling the GCC protective relay market growth. The growing population together with the increasing per capita electricity consumption in GCC are some vital factors backing the demand over the next eight years.
The infrastructure segment is also anticipated to emerge as a key application segment, which is expected to grow at a CAGR exceeding 5.0% over the forecast period. The increasing commercial and residential projects coupled with a rise in the set-up of several industrial plants in GCC are likely to drive the demand for the product over the next eight years.
The medium voltage segment accounted for over 35% of the GCC market in 2015. The high share is attributed to an upsurge in the usage of medium voltage protective relays in medium voltage substations and power systems. The growing population in Saudi Arabia, UAE, Kuwait, and Qatar has led to a significant rate of population migration, thereby increasing the demand for residential infrastructure as well as electricity consumption. Thus, the rising demand for electricity in these countries is expected to spur the industry growth over the forecast period.
The feeder protection segment accounted for over 20% of the total revenue share in 2015. The extensive usage of protective relays to safeguard electrical power transmission lines is anticipated to drive the industry growth over the next eight years.
The probability of fault occurrence in the electrical power transmission lines is much higher than the other power system components as these lines are usually long enough and run through an open atmosphere. Thus, the lines and cables forming the feeder system require maximum protection else they can cause harm to the surroundings. The growing demand for feeder protection across the power, infrastructure, and industrial sectors is anticipated to have a positive impact on the industry growth over the projected period.
In 2015, Saudi Arabia was the largest market accounting for over 40% of the total market share in the same year. The modernization of grid infrastructure coupled with huge investments in the renewable sector are a few factors significantly contributing towards the industry growth in this country. Infrastructure development in the residential, commercial, and industrial sectors is expected to further drive the Saudi Arabian industry over the forecast period.
Although Saudi Arabia remains the largest segment, UAE is projected to witness a healthy growth over the forecast period. The increase in transmission & distribution equipment exports, paired with the substation automation in this country, is expected to fuel the industry growth.
The GCC protective relay industry is consolidated with few key players holding over 60% of the total market share. Key players such as ABB, Siemens, GE-Alstom, Schneider undertake the merger & acquisitions to withhold their strong market position. For instance, in August 2016, General Electric announced the acquisition of Alstom’s (France) energy business to strengthen its industry position with Alstom’s complementary global capability, technological capabilities, installed base, and talent.
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