PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1453929
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1453929
According to Stratistics MRC, the Global Surge Arrester Market is accounted for $1.59 billion in 2023 and is expected to reach $2.47 billion by 2030 growing at a CAGR of 6.5% during the forecast period. A surge arrester is a protective device designed to safeguard electrical equipment from voltage spikes or surges. It operates by diverting excess voltage to the ground, thereby preventing damage to sensitive components. They find extensive use in electrical systems, such as power distribution networks, telecommunications networks, and electronic devices, ensuring reliable operation by mitigating the risks associated with lightning strikes, switching events, or other transient voltage fluctuations.
According to International Energy Agency (IEA), smart grid investments are estimated to reach USD 290 billion in 2021, up from USD 270 billion in 2019, and even surpassing it.
Rising demand for electricity
With modern lifestyles relying heavily on electronic devices and appliances, any disruption in power supply due to voltage surges can result in significant economic losses, downtime, or damage to equipment. Surge arresters play a pivotal role in protecting electrical infrastructure from transient overvoltage caused by lightning strikes, switching surges, or other disturbances. Moreover, as utilities and industries strive to meet the escalating demand for electricity while ensuring grid stability and reliability, the importance of surge protection becomes paramount. These factors drive market demand.
High initial cost
Surge arresters, particularly those equipped with advanced features and high-quality materials, often entail substantial upfront investment for procurement and installation. Moreover, the high initial costs of surge arresters may be exacerbated by additional expenses associated with engineering, integration, and maintenance. End-users, including utilities, industries, and commercial entities, may hesitate to invest in surge arresters due to concerns about the initial capital outlay and the perceived return on investment. Overall, high initial costs are a significant factor hindering market expansion.
Growing focus on safety and risk mitigation
With increasing awareness of the potential dangers posed by transient overvoltages, organizations prioritize the implementation of robust electrical protection systems to safeguard personnel, equipment, and infrastructure from damage and downtime. Surge arresters play a pivotal role in this regard, providing critical protection against lightning strikes, switching surges, and other electrical disturbances. Overall, the growing focus on safety and risk mitigation drives the demand for surge arresters in the market.
Substitution by alternative technologies
Alternatives such as electronic filters, EMI suppressors, or active power conditioners pose a challenge to the dominance of surge arresters by providing comparable or even superior protection capabilities in certain applications. However, advancements in innovative solutions may lead end-users to consider alternative options that offer benefits such as faster response times and higher efficiency with modern electrical systems. As a result, surge arrester manufacturers face the risk of losing market share to competitors offering alternative solutions, thereby experiencing a decline in` sales and revenue.
Covid-19 Impact
The COVID-19 pandemic had a mixed impact on the surge arrester market. Initially, the market experienced disruptions in supply chains, manufacturing operations, and project timelines due to lockdowns, travel restrictions, and workforce limitations imposed to curb the spread of the virus. However, the increased reliance on remote working, online communication, and digitalization during the pandemic highlighted the importance of reliable electricity supply and robust electrical infrastructure.
The polymeric segment is expected to be the largest during the forecast period
The polymeric segment is estimated to hold the largest share. Polymeric surge arresters offer several advantages; their lightweight and compact construction makes them easier to install and handle, reducing labor costs and logistical challenges during deployment. Additionally, polymer materials exhibit excellent resistance to environmental factors such as moisture, UV radiation, and pollution, ensuring long-term performance and reliability even in harsh operating conditions.
The substation applications segment is expected to have the highest CAGR during the forecast period
The substation applications segment is anticipated to have lucrative growth during the forecast period. Substations serve as key nodes in the power grid, facilitating the transmission, transformation, and distribution of electricity from power plants to end-users. Surge arresters deployed in substations play a crucial role in protecting equipment and assets against transient overvoltage that can occur due to lightning strikes, switching operations, or other disturbances. Surge arresters help minimize the risk of equipment failure, costly repairs, and unplanned downtime, thereby ensuring the continuous and reliable operation of the electrical grid.
Asia Pacific commanded the largest market share during the extrapolated period owing to rapid industrialization, infrastructure development, and increasing demand for electricity. In particular, the burgeoning urban population and expanding industrial sectors in Asia-Pacific countries fuel the need for reliable and uninterrupted power supply, creating a strong demand for surge protection solutions. Furthermore, governments across the region are implementing regulations and standards to enhance electrical safety and reliability, thereby incentivizing the adoption of surge protection devices.
North America is expected to witness profitable growth over the projection period. Industries such as manufacturing, telecommunications, healthcare, and IT services rely heavily on uninterrupted power supply to maintain operations, making surge protection a critical priority. Furthermore, stringent regulations and standards set by regulatory bodies such as the National Electrical Code (NEC) and the Institute of Electrical and Electronics Engineers (IEEE) mandate the use of surge protection devices in various applications.
Key players in the market
Some of the key players in the Surge Arrester Market include Siemens AG, Legrand S.A, ABB, CG Power & Industrial Solutions Ltd, Vertiv Group Corp., Schneider Electric, Emerson Electric Co, Leviton Manufacturing Co., Inc., Lamco Industries Pvt Ltd, General Electric, Toshiba Corporation, Hitachi ABB Power Grids, Eaton, Hubbell and Mitsubishi Electric.
In December 2023, Siemens AG, a leading technology company, and Intel Corporation, one of the world's largest semiconductor companies, have signed a Memorandum of Understanding (MoU) to collaborate on driving digitalization and sustainability of microelectronics manufacturing.
In March 2023, Eaton and Sunverge, the provider of an industry-leading distributed energy resource (DER) control, orchestration and aggregation platform, announced expanded collaboration to enable dynamic utility management of home electric vehicle (EV) charging infrastructure.
In April 2021, Hitachi ABB Power Grids announced that it has signed a Collaboration Agreement with, Atlas Renewable Energy, a leading renewable energy company in the Americas, to jointly develop and execute Battery Energy Storage Systems (BESS) at a utility scale level for Atlas' renewable projects.