India Surge Arrester Market Assessment, By Type, By Voltage Range, By Application, By End-user, By Region, Opportunities and Forecast, FY2018-FY2032F

India surge arrester market is projected to witness a CAGR of 7.10% during the forecast period FY2025-FY2032, growing from USD 70.44 million in FY2024 to USD 121.94 million in FY2032. 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. Surge arresters provide specialized protection to devices and equipment that are used in different industries, ensuring accuracy and functionality while safeguarding from potential damage. The rise in demand for surge arrester devices is primarily driven by various factors such as industrialization, urbanization, renewable energy integration, government safety initiatives, the proliferation of electronic devices and equipment, and a rise in focus on smart grid technologies.

Utility and industrial sectors are becoming highly aware of the risks associated with power surges, which emphasizes investing in surge protection solutions to prevent equipment damage and operational disruptions. Moreover, the adoption of smart grid technology for integration of renewable energy requires advanced surge protection solutions to manage complex electrical loads and prevent damage which further propelling grid technology for the integration of renewable energy requires advanced surge protection solutions to manage complex electrical loads and prevent damage, which further propels the market growth. The country is highly investing in the development of power infrastructure for rural electrification projects, which amplifies the demand for advanced surge arresters in the market. In addition, the rise in the use of electronic applications across residential, commercial, and industrial sectors drives demand for surge arresters in different end-users.

For instance, in October 2024, the Cabinet Minister for Power and Housing & Urban Affairs launched the National Electricity Plan in which over 1,91,000 km (circuit kilometer) of transmission lines and 1270 GVA of transformation capacity is planned to be added during the ten-year period from 2022-23 to 2031-32. The transmission plan highlights new technology options in the transmission sector, like hybrid substations and monopole structures, which will increase the demand for high-quality surge arrests in the market.

Rise in Investment in Transmission and Distribution Infrastructure Expediting the Market Share

The expansion and modernization of transmission and distribution (T&D) networks to meet rising electricity demands drive the surge in arrester market share. Surge arresters are essential to expand distribution networks as devices are installed in substations and along transmission lines to protect large electrical equipment from overvoltages. In addition, India is undertaking extensive electrification projects to improve access to electricity in rural areas. The new projects require robust T&D infrastructure with reliable protective equipment, which drives the demand for surge arresters in the market.

India is witnessing significant industrial growth, leading to an increased need for power distribution systems. Large power distribution systems are deployed with surge arresters in Industrial and commercial applications. A surge arrester device is essential for protecting sensitive industrial equipment from voltage spikes, which drives its demand in the market. Rapid urbanization in India is leading to higher electricity consumption in urban areas, which requires reliable power infrastructure, including surge protection devices, to safeguard against transient overvoltages.

Furthermore, the country is focusing on replacing aging electrical infrastructure with modern systems that are capable of handling high current loads, which boosts the demand for surge arresters in the market. The modernization often includes installing advanced surge protection devices to enhance system reliability and safety, thereby boosting market growth.

For instance, in February 2024, Power Grid Corporation of India (POWERGRID) approved investments in two projects of amount around USD 79.03 million. The projects are related to establishment of transmission and distribution infrastructure. This development will increase the demand for surge arresters in the development of transmission and distribution infrastructure in the forecast period.

Integration of Renewable Energy Accelerating the Market Growth

Every sector is firmly pursuing the adoption of renewable energy sources into the electrical grid. Governments and companies are setting up ambitious renewable energy targets as part of the climate commitments and sustainability goals, which could be attained by adopting the proper energy mix. As regions focus on shifting toward decarbonization and energy transition results in high demand for technologies which could integrate the different energy sources by maintaining the reliability of power supply. The surge arrester assists in overcoming challenges and requirements of managing a more complex and variable energy landscape. Surge arresters provide a safeguard against voltage spikes that could occur during the integration of renewable energy into the grid.

The investments in renewable energy have surged, with substantial funding directed toward solar and wind projects, which is driving the demand for smart grids with protection devices such as surge arresters. The upcoming renewable energy projects are connected to the grid and surge arresters are installed at connection points and substations to safeguard against surges caused by switching operations. The device provides protection during the operations, which is critical to maintaining the integrity of both renewable installations and the broader electrical network. Thus, with the rise of transition to cleaner energy is expected to drive the demand for surge arrests in the market.

For instance, in April 2024, the Indian states of Gujarat and Karnataka are well prepared to continue the electricity transition and have integrated renewables into the power sectors. This development highlights the rise in demand for surge arresters for the development of renewable energy integration infrastructure in the coming year.

Improvement in Electrical Safety Standards Creates Market Opportunity

Governments and regulatory bodies implement electrical safety standards in the country. The Utility and industrial sectors must comply with the regulations to ensure safe operations. Surge arresters are essential components in meeting the standards, as they protect electrical systems from transient overvoltages. The regulatory push drives demand for surge arrester devices in the market.

Furthermore, rising awareness of electrical hazards and potential consequences of accidents puts emphasis on the installation of safe electrical equipment. Improved safety standards mandate the use of surge arresters to prevent damage to equipment and reduce the risk of electrical fires caused by voltage spikes. The heightened focus on safety translates into investments in surge protection solutions in the market. The enhanced safety standards necessitate the installation of surge arresters to ensure the integrity and reliability of electrical systems, further driving market growth.

Various government initiatives to improve electrical safety standards and modernize infrastructure contribute to the rising adoption of surge arresters in critical infrastructure projects. Standards such as IEC 60099-5. IEC 60099-5:2018 provides information, guidance, and recommendations for the selection and application of surge arresters to be used in different applications.

For instance, as per Odisha Power Transmission Corporation Limited (OPTCL), the surge arrester, in general, shall comply with IEC 61462 and IEC 62217 standards. This development will improve the production standards of the surge arresters in the market.

For instance, in 2024, updates have been received related to the MEP (Mechanical, Electrical, Plumbing) industry, which significantly boosts the demand for safety equipment in different applications. The regulatory bodies are updating standards to ensure the highest levels of electrical safety in the industrial sector.

Distribution Arrester to Dominate the Market

The distribution arrester has a high adoption rate, making the segment dominate the market. A distributed surge arrester device contributes to improved power quality by limiting voltage spikes that could disrupt sensitive electronic equipment. Utility and industrial sectors are becoming more reliant on advanced technology for maintaining high power quality for operational efficiency. Moreover, investment in distributed surge arresters could lead to significant cost savings as devices prevent damage to electrical equipment and reduce maintenance costs associated with surge-related failures. The financial benefit makes the device an attractive option for businesses seeking reliable protection solutions.

In addition, the Indian government has implemented various regulations aimed at improving electrical safety standards. In several industrial applications, the use of distributed surge arresters is often mandated to ensure compliance with regulations, which makes the device a necessary component thereby driving the market growth in the near future.

West and Central Region dominate Indian Market

West and central regions have dominated the surge arrester market in India, and this is expected to continue during the forecast period. The demand for surge arrester is on the rise due to various factors such as industrialization, power infrastructure development, and government initiatives. The region has numerous manufacturing units, IT parks, utility companies, and industrial corridors, which drives the demand for surge arresters to manage power distribution flow efficiently. With the growing emphasis on safety compliances in utility and industrial sectors boosts the need for surge arrester devices in the market. Moreover, the government is focusing on industrial growth and renewable energy integration, which further propels the demand for surge arresters in the market.

Future Market Scenario (FY2025 - FY2032F)

Industries and utilities prioritize the protection of the equipment from voltage transients which makes surge arresters an essential component in electrical installations and drive its market in coming years.

The Indian government is actively promoting the development of smart grids to enhance electricity distribution and management, due to which surge arresters will gain significance.

With the rising awareness among consumers and businesses regarding the importance of electrical safety and surge protection driving the demand for surge arrester.

Innovations in surge arrester technology, such as the development of polymeric and gapless designs, are enhancing performance and reliability, creating the opportunity for the market.

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 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, CG Power & Industrial Solutions Ltd. Company has gained the certification related to ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 standards, which help the company to produce quality electrical devices. Certified products help the company to increase revenue and market share in different regions of the country.