Fault Current Limiter Market

• Rising need for improved and sophisticated power grid infrastructure is driving the market growth

Market CAGR for fault current limiter is being driven by the rising need for sophisticated and improved power grid infrastructure and a general inclination for renewable energy applications. Various glass, visitor, diodes, solenoids, copper, and metal wirings are also included in fault current limiters, in addition to other components. 

The price of raw materials for these components is increasing due to an inability to control manufacturing expenses. These factors have increased in the cost of the device's overall assembly, which may limit the market expansion for fault current limiters.

Additionally, modern fault current limiters show increased dependability for industrial lines of the future.  As a result, the global market for fault current limiters is anticipated to grow significantly during the next years. Globally strict laws and government programes encourage market expansion and the use of these systems in the main end-use sectors.

A more reliable and efficient power source is increasingly in demand from consumers. As the T&D system is being upgraded by the government due to the overuse of fuses and the absence of circuit breakers in the system.  The dependability and efficiency of power supplies increase, the market for fault current limiters is anticipated to expand. 

Fault current limiters are predicted to become more necessary as grid interconnections rise due to the current shortage of fuses and circuit breakers. A rising interest in renewable energy applications is anticipated to drive the market for fault current limiters.

For instance, in September 2017, to strengthen its grid business, American Superconductor Corporation paid US$ 3.75 Mn to buy Infinia Technology Corporation (ITC), a cryo-cooling company with headquarters in Washington, U.S. Additionally, Siemens employed superconductors to construct an electrical grid in Augsburg. 

Several players are growing their businesses through strategic mergers and acquisitions, and alliances with various end-use sectors due to the growing market and underlying latent demand. Thus, driving the Fault Current Limiter market revenue.

The Global Fault Current Limiter Market Industry is poised for substantial growth, with projections indicating a market value of 5.91 USD Billion in 2024 and an anticipated increase to 11.9 USD Billion by 2035. This growth represents a compound annual growth rate of 6.61% from 2025 to 2035. Such figures reflect the increasing importance of fault current limiters in modern electrical systems, driven by factors such as urbanization, regulatory support, and technological advancements. The market's trajectory suggests a robust demand for these devices as utilities and industries prioritize grid reliability and safety.

The transition towards renewable energy sources is driving the Global Fault Current Limiter Market Industry. As countries invest in solar, wind, and other renewable technologies, the need for reliable grid infrastructure becomes paramount. Fault current limiters play a crucial role in protecting these systems from overloads and faults. For instance, the integration of renewable energy into existing grids requires advanced protection mechanisms to ensure stability. This shift is expected to contribute to the market's growth, with projections indicating a market value of 5.91 USD Billion in 2024, reflecting the urgency for enhanced grid reliability.

Regulatory frameworks and standards play a pivotal role in shaping the Global Fault Current Limiter Market Industry. Governments are establishing guidelines to enhance grid reliability and safety, which often include the adoption of fault current limiters. For example, the International Electrotechnical Commission has developed standards that promote the use of these devices in electrical systems. Compliance with such regulations is becoming increasingly crucial for utilities and manufacturers. This supportive environment is likely to foster market growth, as stakeholders seek to align with regulatory expectations and enhance system resilience.

The Global Fault Current Limiter Market Industry is experiencing growth due to increased investments in smart grid technologies. Governments and utilities are prioritizing the modernization of electrical grids to improve efficiency and reliability. Smart grids utilize advanced technologies, including fault current limiters, to manage electricity flow and prevent outages. For example, countries like the United States and Germany are implementing smart grid initiatives that incorporate these devices. This trend is anticipated to propel the market, with a projected compound annual growth rate of 6.61% from 2025 to 2035, highlighting the importance of innovative solutions in grid management.

Urbanization is a significant driver of the Global Fault Current Limiter Market Industry. As cities expand, the demand for robust electrical infrastructure increases. New construction projects require reliable power systems that can handle higher fault currents. Fault current limiters are essential in preventing damage to electrical equipment and ensuring uninterrupted power supply in urban areas. For instance, major cities worldwide are investing in infrastructure upgrades to accommodate growing populations. This trend is expected to contribute to the market's growth, with projections indicating a market value of 11.9 USD Billion by 2035, underscoring the need for advanced protection technologies.

Technological innovations are transforming the Global Fault Current Limiter Market Industry. Advances in materials and design are leading to more efficient and reliable fault current limiters. For instance, the development of superconducting fault current limiters offers enhanced performance compared to traditional devices. These innovations are attracting interest from utilities looking to improve grid stability and reduce maintenance costs. As technology continues to evolve, the market is expected to benefit from increased adoption of these advanced solutions, further driving growth in the coming years.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Fault Current Limiter market anticipated to dominate the market. Current limiters have higher energy efficiency and minimal maintenance costs. Utilising cloud, analytics, and mobile technology, the integrated digital utility transformation also aids in reinventing.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Fault Current Limiter Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Fault Current Limiter market accounts for the second-largest market share due to mart grid technology and upgrading its existing infrastructure for more dependable and efficient networks. Particularly at high voltage networks, conventional protective systems have had limited ability to deal with increasing capacity. The increased demand for fault current limiters in Europe has a wider potential range due to the technical split. 

Governments are making large investments in the UK by giving DECC (Department of Energy and Climate Change) a sizeable sum for creating next-generation fault current technology. Further, the German Fault Current Limiter market held the largest market share, and the UK Fault Current Limiter market was the fastest growing market in the European region

The Asia-Pacific Fault Current Limiter Market is expected to grow at the fastest CAGR from 2023 to 2032 due to increasing mergers and acquisitions by major market player. Moreover, China’s Fault Current Limiter market held the largest market share, and the Indian Fault Current Limiter market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Fault Current Limiter market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. 

To expand and survive in a more competitive and rising market climate, Fault Current Limiter industry must offer cost-effective items.

The government and private businesses are making significant investments in R&D for technological advancements in the global Fault Current Limiter industry to benefit clients and increase the market sector. In recent years, the Fault Current Limiter industry has advantages such as the requirement for efficient interconnection mechanisms in the power utility grid and the extent of the demand for reliable electricity supply. 

Major players in the Fault Current Limiter market, including Rongxin Power Electronic Co. Ltd., Applied Materials, American Superconductor Corporation,  Alsto,  Zenergy Power Electric Co., and Nexans among others are attempting to increase market demand by investing in research and development operations.

From a fledgling business to one of the most recognised organisations in the world, Applied Materials underwent a transformation. The company is responsible for putting the "silicon" in Silicon Valley and are fundamental to the development of the electronics sector. "The brains" of the electronics employed in practically every area of our lives, semiconductor devices known as chips are created by systems. 

Advances in semiconductor and display technology hold the potential of innovative applications that will alter sectors like consumer electronics, transportation, communications, and healthcare. With more than 17,300 patents and an annual investment in R&D of more than $2.8 billion, Applied has the strongest IP portfolio in sector. In July 2023, across many industries, there is a striking interest in creating and implementing digital twins to enable and expedite smart manufacturing.

In order to address the demand for smarter, cleaner, and better energy around the world, American Superconductor Corporation (AMSC) develops the concepts, technology, and solutions. Through its Windtec Solutions division, AMSC offers engineering services, designs, and electronic controls and systems for wind turbines that lower the cost of wind energy. 

The engineering planning services and advanced grid technologies that maximise network dependability, efficiency, and performance are offered by AMSC through its Gridtec Solutions. Gigawatts of renewable energy are currently powered by the company's solutions, which are also improving the efficiency and dependability of power networks in more than a dozen different nations. 

AMSC (American Superconductor), which was established in 1987, is based close to Boston, Massachusetts, and has activities throughout Asia, Australia, Europe, and North America. The products included in the company’s portfolio such as generators & drivetrains, turbine designs, electric control systems, power converters, renewable interconnectivity solutions, software, utility & industrial resilience, and modernization solutions, and utility voltage solutions. 

In July 2023, $34 million worth of new energy power systems orders were announced by a major system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the gridTM and safeguard and enhance the capability of our Navy's fleet.