New Energy Sparks Growth Opportunities in the Fuse Industry

Ensuring circuit safety requires a combination of controller and protection devices. Fuses act as current protection devices, automatically cutting off or suppressing abnormal currents or voltages to protect circuits and equipment. Circuit controllers utilize mechanical and electronic switches, while protection devices utilize fuses to trigger the fusing of relevant parts or other physical changes when detecting overcurrent, overvoltage, or overheating.

Fuses consist of a melt, arc extinguishing medium, M-effect point, insulating shell, contact terminal, and indicator. During operation, the fuse allows load current to flow through the circuit. If the circuit experiences a short-circuit or overload, the thermal effect generated by the current will melt or vaporize the fuse, causing a physical fracture. This fracture generates an arc, which the fuse then extinguishes, effectively cutting off the faulty circuit and protecting the rest of the system.

(1)Market Dominance: Overseas Manufacturers Hold Majority Share

Fuse, as a crucial component of circuit safety protection, faces certification and market barriers. Due to the requirement for high reliability in circuit safety protection, fuse products need to undergo extensive verification and long-term application to establish a brand reputation.

Therefore, the fuse industry has evolved into an oligopoly market over the course of its more than 100-year history. According to Paumanok Publications Inc., the global fuse market was valued at US $2.204 billion in 2019, with American, Japanese, and European companies such as Litteluse, Eaton/Bussmann, Merson/Mersen, PEC, SCHURTER, ABB, and SOC holding around 90% of the market share.

Despite Chinese companies such as ASWT(Xiamen Apollo Stamping Welding Technology CO., LTD) and China Melt Electric being among the top 10, they only account for 1.2% and 1.3% of the market share, respectively, highlighting the significant gap between the market share of overseas industry leaders and Chinese enterprises.

(2)Comparison between Electronic Fuses and Power Fuses

Fuses can be categorized into electronic fuses and power fuses based on the power strength and voltage requirements. Electronic fuses protect small energy circuits and electrical signals and are suitable for low voltage and low power circuits. They find applications in household appliances, electronic products, miniature power supply equipment, battery power supply circuits, and low-voltage circuits in automobiles. Power fuses, on the other hand, protect large energy circuits and are designed for high voltage and high power circuits. They are commonly used in power generation and storage equipment, transmission cables, transformers, high voltage circuits of new energy vehicles, industrial power supplies, and other similar scenarios.

In general, electronic fuses are smaller in size and have faster response times than power fuses cap. They are designed to protect sensitive electronic components from overcurrent or short-circuit events. Power fuses, on the other hand, are larger in size and can handle higher currents and voltages. They are typically used to protect power systems from faults and overloads that could cause equipment damage or system failures. Both electronic and power fuses play critical roles in circuit protection and are necessary components in modern electrical systems. Choosing the right fuse for a particular application requires careful consideration of factors such as current and voltage ratings, response time, and operating environment.