PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1607760
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1607760
Global surge arrester market is projected to witness a CAGR of 5.01% during the forecast period 2025-2032, growing from USD 1.93 billion in 2024 to USD 2.85 billion in 2032. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.
Surge arresters are crucial protective devices that are used in electrical systems to prevent damage caused by high-voltage surges. Several factors propel the demand for surge arresters, such as renewable energy integration, infrastructure modernization, smart grid development, and industrial automation, driving its market size. Moreover, the growth in population and industrialization, necessitating enhanced electrical infrastructure, elevates the adoption of surge protection devices. The upcoming trends related to grid modernization create a favorable environment to boost investment in surge protection solutions across various sectors.
Furthermore, governments and regulatory bodies are implementing stricter power quality and safety regulations in industrial applications, which mandate the use of surge protection devices in critical operations. The new regulatory environment enhances the adoption of surge arresters. In addition, integrating renewable energy technologies into the electrical grid is creating a heightened need for surge protection in different regions. Renewable energy sources are prone to voltage fluctuations, which make surge arresters essential for safeguarding associated equipment. In addition, manufacturers are engaged in the production of high-tech surge arresters, which will drive market demand in the coming years.
For instance, in June 2023, Littelfuse, Inc. launched NEMA-style Surge Protective Device (SPDN) series to safeguard equipment from transient overvoltage events lasting microseconds and help mitigate costly damage and downtime. This development helped the company to increase its revenue and product portfolio.
Rise in Adoption of Smart Grid Technology to Augment Market Growth
Globally, the utility sector is looking to modernize the power infrastructure, leading to the adoption of smart grid technology. The deployment of smart grid technologies enhances the efficiency and reliability of power distribution. Smart grids are able to integrate different sources of energy into a single grid and can manage power fluctuations. Surge arresters are essential components in protecting the smart grid against voltage fluctuations that could occur during the integration of renewable energy sources. Moreover, surge arresters are becoming an indispensable tool for grid resilience and management, which boosts their demand in different applications.
Real-time data enables utility providers to proactively address potential issues and optimize the operation of electrical infrastructure, which boosts the demand for smart grids in the market. Incorporating smart grids with advanced monitoring and control capabilities improves the overall performance of the ecosystem and provides real-time data on system performance and health.
In conclusion, smart grids play a critical role in enhancing the reliability and performance of power infrastructure. As the utility sector embraces smart grid solutions to meet the evolving needs of the energy mix, it will continue to boost the demand for surge arresters. By investing in smart grid technologies, the utility sector could strengthen the electrical systems and deliver a more reliable and resilient power supply service to different end-users.
For instance, in October 2024, Schneider Electric Inc. decided to launch new smart grid solutions at Enlit Europe 2024. The new innovative solution will strengthen grid resiliency and flexibility and manage net-zero targets. The company launched the product by entering a partnership with Elektrilevi. This development will help increase the company's product portfolio and adopt smart grid technology in different applications.
Inclination Towards Power Protection Equipment Elevate the Market Share
Industries focus on the financial risks of equipment damage due to power surges. The rise in reliance on electronic-operated equipment in industrial applications drives the need for robust surge protection tailored solutions in different industries. Surge arresters are essential for protecting the equipment from transient overvoltages, ensuring safe and efficient operation. Surge arresters provide a reliable means to mitigate voltage fluctuation risks, making the device essential for large equipment.
With the rise in industrial automation, the reliance on sensitive electronic equipment has increased, which could be adversely affected by voltage spikes. Manufacturing plants have a variety of electrical equipment, which could impact power fluctuations. Surge arresters are crucial in grids for protecting the equipment, leading to higher demand for surge arresters in industrial sectors. In addition, stricter regulations regarding electrical safety and power quality are prompting industries to adopt protection measures. Compliance with the standards often necessitates the installation of surge arresters in the critical infrastructure of industries.
Globally, industries are upgrading outdated electrical systems to improve reliability and efficiency. The upgradation and modernization of grids often includes the installation of protection equipment to protect against voltage surges, thereby driving demand for surge arresters in the market.
For instance, in 2023, the committees of the National Fire Protection Association (NFPA) published the updates for the National Electrical Code (NEC) regarding safe electrical design, installation, and inspection to protect assets and property from electrical hazards. The increase in protection rules will increase the market adoption of power protection devices.
Upcoming Technological Innovations Creates Market Opportunity
Ongoing innovations in surge arrester technology include improvements in materials and design, higher surge current ratings, and faster response times, which enhance the grid's effectiveness and reliability. Furthermore, technological advancements lead to enhanced safety features, including thermal protection and fault detection capabilities. The improvements in devices ensure better protection for modern electronic devices and grids, which drives the demand for surge arresters in the market.
Moreover, the upcoming innovations in modular and scalable designs allow surge arresters to be customized for specific applications. The flexible nature enables more manageable maintenance and upgrades, creating opportunities for surge arresters across different sectors. In addition, the surge arrester market is becoming increasingly competitive as several manufacturers are looking to invest in research and development activities to innovate the surge arrester product offerings.
The utility and industrial sectors seek tailored solutions that could grow and drive the demand for customized surge arresters, which presents a valuable opportunity for surge arrester manufacturers in the market. Manufacturers are able to offer custom-tailored solutions regarding protection levels and energy capabilities, which opens new avenues within niche markets.
For instance, in November 2022, Hitachi Energy launched a wireless spart prevention unit (SPU) indicator, which boosts grid stability and reduces the risk of fire. The new technology enables remote monitoring and improved maintenance. This development enhanced the company's revenue and product portfolio in the surge arrest market.
Dominance of Distribution Arrester Globally is Expected to Drive the Market
The distribution arrester has a high adoption rate, which makes the segment dominate the market. The distribution arresters are a vital safeguard for electrical systems as devices protect equipment from transient over voltages. The sudden spikes in power voltage, often caused by lightning strikes or switching operations could pose a serious threat to the integrity of the grid. Thus, installing distribution arresters at strategic points along the distribution lines provides protection and efficient working of the power grid. The distribution arrester diverts excess energy to the ground and prevents costly damage to equipment and downtime.
Distribution arresters play a crucial role in strengthening electrical infrastructure and ensuring the smooth operation of the smart grid. Furthermore, with the rise in complexity of electrical infrastructure, the utilities sector is adopting innovative technologies to enhance reliability and efficiency. Maintaining grid stability drives the demand for distribution arresters in the market.
Asia-Pacific Region Leads the Surge Arrester Market
Asia-Pacific has dominated the surge arrester market and is expected to continue during the forecast period. The region includes developing countries such as China, India, and Japan, which make the region dominate the global market. Countries are looking to invest in smart grid and renewable energy production technologies that will help reduce greenhouse gas emissions in the region. In addition, the government is also pushing the industry sector to adopt advanced energy protection technology, which boosts the demand for surge arrester market size in the Asia-Pacific. In recent years, the renewable energy sector has experienced robust growth due to the high adoption rate of energy mix in different applications.
Moreover, there is a growing emphasis on maintaining power quality in industrialized economies due to frequent voltage spikes and surges, which drives the adoption of surge arresters as a preventive measure. Rapid urbanization leads to higher electricity demand in urban areas, necessitating robust power infrastructure, including surge protection devices.
Future Market Scenario (2025 - 2032F)
Ongoing improvement in technology and design of surge arrester will improve grid efficiency, which will enhance power distribution efficiently.
Innovations in surge arrester technology, including the development of smart surge protection devices with real-time monitoring capabilities, are enhancing their efficiency and reliability.
Utility sector heavily invests in power protection technologies to ensure a reliable power source.
Favourable government policies to improve electrical safety standards and modernize infrastructure are propelling the surge arrester market forward.
Key Players Landscape and Outlook
Continuous innovation characterizes the landscape of surge arrester globally, as the companies compete in terms of energy efficiency, product life, and unique features. The market outlook remains positive, owing to increased demand for the integration of renewable energy. Surge arrester players are concerned with supply chain resilience, energy efficiency, and environmental practices, which will define the industry's future. Product launches, agreements, business expansions, collaborations, and developing technologies are projected to increase competition in the fast-paced market.
For instance, in July 2024, DEHN, Inc. acquired parts of ABB Inc. surge protection business in the United States. This strategic move will drive business development throughout the country and region as well as for establishing a production facility for the American market.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.