Global Arc Fault Circuit Interrupter (AFCI) Market By Type (Branch/Feeder AFCI, Combination AFCI (CAFCI)), By Application (Residential Sector, Commercial Sector), By Region, And Segment Forecasts, 202...
Report Id: 44240 | Published Date: Jul 2024 | No. of Pages: 10 | Base Year for Estimate: Jul 2024 | Format:
Arc Fault Circuit Interrupters are a type of fire protection equipment that prevents fires caused by sparking or arcing. Arc faults can also occur due to poor connections, wire branches, shorted wires, stressed or overheated electrical wires, and other electrical issues. AFCI is used in both industrial and residential applications to detect dangerous arcs and reduce risks.
The global arc circuit interrupter was valued at USD 3.8 billion in 2023 and is projected to reach USD 5.6 billion by 2025, growing at a CAGR of 5 % from 2023-2025. Stricter safety regulations and increased consumer, builder, and regulatory body awareness of electrical fire hazards are driving demand for AFCIs. The technology is being developed to increase sensitivity, dependability and compatibility with various electrical systems, ensuring comprehensive protection in a range of applications.
Global Arc Fault Circuit Interrupter (AFCI) Market
Drivers: Stringent building codes & regulatory mandates, insurance industry requirements and technological advancements.
-Many countries are implementing stricter building codes that mandate the installation of AFCIs in new construction projects, particularly in bedrooms and other high-risk areas.
-Some insurance companies offer premium discounts or require AFCI installation for coverage, further incentivizing their adoption in homes and businesses.
-Advancements in AFCI technology lead to more reliable detection, reduced nuisance tripping, and integration with smart home systems for remote monitoring and control.
Restraints: Higher installation & maintenance costs, compatibility concerns and limited product standardization.
-Compared to traditional circuit breakers, AFCIs can be more expensive to install and maintain. This can be a barrier for cost-conscious consumers or in regions with limited budgets for building projects.
-AFCI compatibility with existing electrical wiring systems can be a concern, especially during retrofits in older buildings. Additional wiring upgrades may be necessary.
-Lack of complete standardization across the market can create confusion and raise concerns about the quality and effectiveness of some AFCI devices.
Opportunities: Focus on developing smart AFCIs, advancements in technology and expansion in emerging markets.
-Developing cost-effective AFCI solutions and implementing government subsidies or tax breaks can increase affordability and encourage wider adoption.
-Advancements in AFCI technology can improve device durability, minimize false alarms, and enhance user trust in the technology.
-Emerging markets, particularly in Asia-Pacific and Latin America, offer significant growth opportunities for the AFCI market. Increasing urbanization, rising disposable incomes, and growing awareness about electrical safety in these regions are driving demand for AFCIs.
Market By Arc Fault Circuit Interrupter (AFCI) Type Insights:
Based on device type, the market is segmented into Branch Feeder AFCI and Combination AFCI. Branch Feeder AFCIs are expected to lead the market in 2024 due to their widespread use in residential and commercial branch circuits, cost-effectiveness compared to Combination AFCIs and building codes requiring their installation in specific circuits like bedrooms and living areas.
Market By End-Use Insights:
Based on end-use, the residential sector is projected to dominate the global AFCI market. The dominance is driven by a focus on home safety, stringent building codes requiring AFCIs in new homes and rising public awareness of electrical fire prevention, boosting demand for AFCIs in renovations and upgrades,
Market By Region Insights:
Based on regional coverage, the market is segmented into North America, Europe, Latin America, Asia-Pacific, Middle East and Africa. North America held a significant market share due to government regulations on arc fault circuit interrupters and increasing electrification in the US and Canada. Asia-Pacific is also the fastest-growing market, driven by rising construction in India and China, with Japan and China as key contributors.
Competitive Scenario:
Major players in the market include ABB, Eaton, Fonrich New Energy, Legrand, GE, Amphenol ICC, SolarBOS, Leviton, Santon Holland B.V., Schneider Electric, Siemens, and I.M.O. and Precision Controls Ltd.
Scope Of Work-Global Arc Fault Circuit Interrupter (AFCI) Market
Key Market Developments:
June 2021- Huawei has launched its green inverter with intelligent AFCI function support, which automatically shuts down within 0.5 seconds to ensure active system safety.
June 2022-Growatt, a Chinese inverter manufacturer, has launched a new high-power inverter, the M.A.X. 100-125KTL3-X LV. It is designed for heavy-duty solar power plants with companion units that produce 500 W or more. It includes an AFCI function for added protection due to the growing demand for AFCI.
Frequently Asked Questions (FAQs)
What is the size of the global AFCI market?
Ans. As of 2023, the global arc circuit interrupter was valued at USD 3.8 billion
What are the key drivers of the AFCI market?
Ans. Key drivers include stringent building codes & regulatory mandates, insurance industry requirements and technological advancements.
What are the major challenges in the AFCI market?
Ans. Challenges include higher installation & maintenance costs, compatibility concerns and limited product standardization.
What are the significant growth opportunities in the AFCI market?
Ans. Opportunities include a focus on developing smart AFCIs, advancements in technology and expansion in emerging markets.
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