27 August 2012 – On-going economic expansion and urbanisation across Brazil, Russia, India and China (BRIC) are expected to be the major drivers for growth in the global medium and high voltage (MV and HV) protective relay market, says power industry analyst GlobalData.

It refers to the important part played by developing countries in the global protective relay industry, which is expected to more than double in value before the end of the decade, from a 2011 valuation of US$2.2 billion to US$5.2 billion by 2020.

The massive industrialisation of countries such as China and India has led to the increased demand for electricity. Correspondingly, power grid improvements involving the widespread employment of protective relay installments have been necessary, sustaining the global market. China alone accounted for 27% of the worldwide MV and HV protective relay industry in 2011 and GlobalData predicts this share to grow substantially. It says the Chinese portion of the market will swell from a US$705million 2012 valuation, to US$2.1 billion by 2020, representing a compound annual growth rate (CAGR) climb of 14.9%.

In comparison, the US protective relay industry is expected to display relatively modest growth, from US$566 million in 2012 to US$777 million by 2020, at a CAGR of 4%.

Cumulatively, power consumption in the BRIC nations increased at a CAGR of 7.9% during 2006 to 2011, and is forecast to continue at a CAGR of 6% from 2012 to 2020 – outstripping the predicted global growth rate of 4%.

While market growth in the developing nations will be served by new protective relay installations, mature markets such as the US, Germany and the UK will be driven by the retrofit and replacement sectors. These countries have a higher share of aged equipment that require upgrades to meet stricter emission regulations and support renewable power generation.