How to Improve the ROI on Circuit Breaker Monitoring Solutions

May 14, 2025

Circuit breaker monitoring solutions have become more critical in the large-scale industrial and energy sectors, where downtime equates to revenue loss, and asset failure can result in safety hazards or environmental violations. The primary function of a circuit breaker is to interrupt excessive current during electrical faults by switching automatically or manually and safeguarding systems in diverse applications such as substations, railways, and transmission lines. Consequently, a power grid’s operational stability and efficiency depend on this critical asset’s reliable performance.

Like any other asset, they too are susceptible to failures after consistent usage. These failures stem from various environmental, mechanical, and electrical stressors such as:

Mechanical Wear & Tear
Insulation Degradation
Partial Discharge
Overheating, and
Hotspots

All of which translate to significant financial and operational setbacks. These consequences over time can be staggering, not just in terms of repair and replacement costs but also in broader ramifications like reputational damage, compliance penalties, and productivity losses. In industries where downtime costs run into thousands of dollars per minute, reliable breaker performance can mean the difference between profit and loss.

But how much do these failures actually cost?

Each of these faults slowly chips away at breaker reliability, and when they culminate in failure, the costs accumulate quickly:

Unplanned Downtime: For critical industries like oil and gas or pharmaceuticals, downtime can cost between $10,000 and $250,000 per hour and potentially even more for larger operations.
Collateral Damage: Failure to isolate faults in time can lead to cascading failures of other components like transformers, generators, or capacitors.
Safety and Legal Liabilities: Malfunctioning breakers can cause electrical fires or injuries, leading to lawsuits and penalties.
Operational Disruption: Delay in fault diagnosis prolongs downtime and increases labor costs.

These risks have prompted industries to reconsider conventional, time-based maintenance schedules in favor of innovative, real-time circuit breaker monitoring solutions.

The Shift Towards Proactive Circuit Breaker Monitoring Solutions

Condition monitoring, particularly for critical electrical assets like circuit breakers has seen great success with Industry 5.0 technologies such as AI, Digital Twins, and Edge Devices. By developing more independent, predictive, and robust circuit breaker monitoring solutions, companies are, in effect, investing in smarter capital allocation that significantly reduces downtime and improves ROI.

This trend has also been captured by several industry reports which specify the growing investments in grid modernization projects. According to a market forecast published by future market insights, the global circuit breaker revenue is estimated to reach $6.19 billion by 2034, growing at a CAGR of 7.6% from 2024 to 2034.

This global demand for circuit breakers also reflects why more companies are investing their capital into condition monitoring solutions that are data-driven and reduce operational risks and total cost of ownership (TCO).

But What Drives This Sudden Shift in Circuit Breaker Monitoring Solutions?

The above figures cumulatively acknowledge the significance of proactive circuit breaker monitoring solutions. Several Industry 4.0 factors have been the justification to trigger this change. Such as:

Grid Complexity and Decentralization- Most industrial power grids function around the clock, necessitating advanced monitoring solutions to ensure reliability.
Increased Energy Costs- With the growing demand and supply of electricity, operational efficiency has become a financial imperative. An electrical asset as crucial as a circuit breaker can make or break this reliability, enabling more financial burdens. Thus, there is a need for proactive circuit breaker solutions.
Workforce skill shortage- Automation and predictive maintenance measures compensate for lacking human resources.
Regulatory Pressures- Safety and compliance standards are non-negotiable to ensure asset and personal safety.

Collectively, these drivers are pushing circuit breaker monitoring solutions to adopt a more competitive edge in technological advancements.

To further enhance ROI, various industry reports have stated that these five technologies give businesses the cutting-edge they require in circuit breaker condition . These are:

Industrial Internet of Things (IIOT)

Due to Industry 4.0, industrial IoT sensors have gained significant traction as a strategic investment to boost operational efficiency and reliability. IIoT sensors are integral to circuit breaker solutions, tracking critical parameters such as temperature, partial discharge, and hotspots in real-time. By providing real-time data analytics and connectivity, they help identify potential failures before they escalate, enabling proactive maintenance.