Surge Arrester Market Existing and Future Insights in Growth Study Report 2024-2033

A surge arrester, or surge protector, is an electrical device designed to safeguard electronic equipment from sudden voltage spikes and surges. It works by intercepting excessive electrical energy and redirecting it to the ground, shielding connected devices from damage. Surge arresters remain inactive during normal voltage flow but become active during spikes, conducting excess energy to the ground. They are typically installed at entry points of electrical systems, like distribution panels, to protect the entire system. Surge arresters come in various types tailored for different applications, from industrial machinery to residential use. The surge arrestor market size was USD 1,689.7 million in 2023 and is anticipated to reach USD 2,560.5 million in 2033, growing at a rate of 4.3% from 2024 to 2033.

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Market Segmentation

By Voltage: Low, Medium, and High

By Class: Distribution, Intermediate, and Station

By Material: Polymer and Porcelain

By Application: AIS and GIS

By End-user: Residential, Commercial, Industrial, and Utility

By Region:

North America: Includes United States and Canada

Europe: Includes United Kingdom, Germany, France, Spain, Italy, Netherlands, Sweden, Switzerland, Denmark, Finland, Russia, and the rest of Europe

Asia-Pacific: Includes China, India, Japan, South Korea, Australia, Singapore, Indonesia, Taiwan, Malaysia, and the rest of Asia-Pacific

Latin America: Includes Brazil, Mexico, Argentina, and the rest of Latin America

Middle East and Africa: Includes Saudi Arabia, UAE, Egypt, Iran, Qatar, South Africa, and the rest of MEA

Surge Arrester Market by segmentation by voltage, class etc

Market Trends and Drivers

Increasing Need for Dependable and Uninterrupted Power Supply

The surge arrestor market is currently experiencing a notable trend driven by the increasing need for dependable and uninterrupted power supply, particularly in regions grappling with electricity infrastructure challenges like Nigeria and India.

In April 2024, the Minister of Power, Adebayo Adelabu, emphasized the urgent requirement of $10 billion annually for the next decade to rejuvenate Nigeria’s struggling electricity generation, distribution, and supply chain. This substantial investment indicates a concerted effort to address the existing deficiencies in the power infrastructure, thereby creating a significant demand for surge arrestors to safeguard equipment from voltage spikes and ensure reliable power delivery. Similarly, in April 2024, India, another major market for surge arrestors, witnessed a surge in power demand. The Ministry of Power projected a peak power demand of 260 GW for the summer season, surpassing previous records. This heightened demand underscores the necessity for robust power protection measures, including surge arrestors, to mitigate the risks associated with voltage fluctuations and grid instability during periods of peak demand.

Furthermore, the transformation of India’s power sector over the past few years, as highlighted by the Union Minister for Power and New & Renewable Energy in 2023, has resulted in a substantial increase in power generation capacity, ensuring adequate availability of electricity. However, with increased power generation comes the need for enhanced protection against electrical disturbances, driving the adoption of surge arrestors to maintain the integrity of the expanding power infrastructure.

Growing Adoption of Smart Grids

The surge arrestor market is experiencing significant growth propelled by the widespread adoption of smart grids, fueled by substantial investments and technological advancements in digital infrastructure across the globe.

In various major economies, substantial funds are being allocated to modernize and digitize electricity grids. For instance, the European Commission’s EU action plan “Digitalisation of the energy system” outlines investments of approximately EUR 584 billion by 2030, with a significant portion dedicated to grid digitalization. Similarly, China has earmarked USD 442 billion for modernizing its power grids from 2021 to 2025, reflecting a concerted effort to enhance grid efficiency and reliability. Moreover, Japan’s funding program of USD 155 billion and India’s INR 3.03 trillion scheme demonstrate a commitment to upgrading power distribution infrastructure to meet growing demand and improve system resilience. The deployment of variable renewables and electrification in various sectors is placing increasing strain on power systems. Smart grid technologies play a crucial role in addressing these challenges by enabling real-time monitoring and optimization of grid operations. This capability allows for the efficient utilization of existing resources, ensuring grid stability and reliability even amidst fluctuating demand and supply dynamics. As a result, investments in grid-related digital infrastructure are growing, with around 7% increase observed in 2022 compared to the previous year.

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Market Restraints and Challenges

Substitute Technologies for Surge Arrestors

The surge arrestor market faces several restraints, particularly in the form of substitute technologies that offer comparable or alternative surge protection solutions, thereby challenging the market’s growth and profitability.

The presence of substitute technologies offering surge protection capabilities. While surge arrestors have long been the go-to solution for safeguarding electrical systems against voltage spikes, alternative technologies such as voltage regulators, lightning rods, or integrated circuit-based surge protection devices are gaining traction. These substitutes often offer similar surge protection capabilities and may even provide additional functionalities or advantages, such as faster response times or integration with smart grid systems.

The emergence of substitute technologies poses a competitive threat to traditional surge arrestors, leading to market fragmentation and pricing pressures. As consumers and businesses explore alternative surge protection options, manufacturers and suppliers of surge arrestors may face challenges in maintaining market share and sustaining profit margins. Moreover, the availability of substitute technologies may lead to commoditization within the surge protection market, with a focus on price rather than product differentiation or innovation.

Navigating the Grid: Challenges of Long Lead Times and Project Delays

In December 2023, the surge arrestor market faced persistent challenges stemming from long lead times and project delays, as evidenced by data indicating a decline in the share of delayed central infrastructure projects for the second consecutive month. According to a November 2023 report by the Ministry of Statistics and Programme Implementation (MOSPI), which encompasses projects valued at Rs 150 crore or above, approximately 46.1% of projects faced delays. While this marked a slight improvement from previous months, the prevalence of project delays remained a significant concern for the industry.

The MOSPI report revealed that out of a total of 845 delayed projects, the average delay stood at 36.6 months as of November. This prolonged delay significantly impacts the surge arrestor market, as projects requiring the installation of surge protection equipment experience setbacks in implementation and completion timelines. Moreover, the distribution of delays across different time frames further underscores the magnitude of the challenge, with 38% of projects delayed for 25-60 months, 24% for 1-12 months, 23% for 13-24 months, and 14% for more than 60 months.

COVID-19 Impact

Pre-COVID-19 Pandemic Scenario

The surge arrestor market experienced significant developments and increased awareness of surge protection devices in the pre-COVID-19 era, driven by advancements in technology and growing concerns over electrical system vulnerabilities. In 2018, Insulect Australia Pty Ltd introduced Polymer Surge Arresters, expanding their Switchgear product range to include Medium Voltage options. These surge arresters aimed to provide optimal protection for transformers and other medium voltage equipment against overvoltage transients caused by lightning and switch surge events. By 2019, the integration of electrical systems across workplaces and industries highlighted the importance of surge protection. Excess voltage posed a significant risk to electrical appliances, necessitating the installation of surge arresters to mitigate potential damage. Companies like Schneider Electric offered a range of surge protection devices, including electrical surge arresters and plug-ins, designed to ensure safety and improve the lifespan of electrical devices. Surge arresters played a crucial role in protecting electrical installations and delicate devices from induced or conducted surges.

COVID-19 Pandemic Scenario

The COVID-19 pandemic had a profound impact on the surge arrester market, causing disruptions in development and hindrances to growth. Industry leaders anticipated slowdowns in delivery and construction activities as a result of closures aimed at minimizing the spread of the coronavirus. Manufacturing challenges in key regions like China and the U.S. due to the pandemic posed significant threats to the market in the immediate future. Furthermore, the pandemic led to a depreciation of several countries’ local currencies, resulting in financial losses for metal manufacturers. This, coupled with increased component costs due to the use of US dollars for acquiring significant components, led to a rise in overall manufacturing costs. Consequently, the surge arrester market faced hurdles in its growth trajectory. Moreover, the pandemic-induced delays affected electrification projects globally, pushing back their completion dates and hampering surge arrester production. For instance, according to data from the U.S. Energy Information Administration (EIA), COVID-19 mitigation efforts resulted in more delays than average in the commercial operation dates of proposed electric generator projects in 2020.

Post-COVID-19 Pandemic Scenario

The post-COVID-19 pandemic period is expected to bring significant opportunities for the surge arrestor market, fueled by substantial new funding initiatives aimed at modernizing and digitalizing electricity grids across several major economies. In Europe, the European Commission’s action plan “Digitalisation of the energy system,” introduced at the end of 2022, outlines a comprehensive investment strategy totaling EUR 584 billion by 2030. A significant portion of this investment, approximately EUR 170 billion, will be allocated for digitalization initiatives such as smart meters and automated grid management, presenting a lucrative opportunity for surge arrestor manufacturers to integrate their products into modernized grid systems. Similarly, countries like China, Japan, India, the United States, and Canada have also announced ambitious funding programs to promote investments in smart power grids. China’s plan to invest USD 442 billion by 2025, Japan’s funding program of USD 155 billion, India’s INR 3.03 trillion scheme, the United States’ Grid Resilience Innovative Partnership (GRIP) Program with USD 10.5 billion in funding, and Canada’s USD 100 million investment through its Smart Grid Program collectively signal a surge in demand for technologies like surge arrestors to support grid expansion and enhancement efforts.

Segmental Analysis

The report analyses the Surge Arrester Market based on material, class, voltage, application, end-user, and region.

Surge Arrester Market by Material

On the basis of material, the Surge Arrester Market is segmented into polymer, and porcelain. Among these, in 2023, the porcelain segment in the surge arrester market has witnessed significant growth owing to its superior material properties. The porcelain was valued at USD 583.7 Million in 2023 and it is anticipated to grow further to USD 897.5 Million by 2033, at a CAGR of 4.5% during the forecast period. The polymer material segment in the surge arrester market is experiencing significant growth, driven by several key factors. One of the primary catalysts is the increasing demand for renewable energy sources to achieve carbon neutrality. As countries worldwide strive to transition to cleaner energy sources, there is a heightened emphasis on ensuring the reliability and resilience of power grids. This heightened focus underscores the importance of surge arresters in protecting power transmission and distribution facilities from overvoltage caused by lightning strikes, ultimately bolstering the demand for these protective devices.

Surge Arrester Market by Class

On the basis of class, the Surge Arrester Market is segmented into distribution class, intermediate class, and station class. Among these, in 2023, the distribution class segment has emerged as a noteworthy driver of growth over the past year. The distribution class segment is anticipated to dominate the market during the forecast period. The segment was valued at USD 811.7 Million in 2023 and it is anticipated to grow further to USD 1,294.0 Million by 2033, at a CAGR of 4.8% during the forecast period. This is attributed to the expanding demand across various distribution class segments. This surge in growth can be attributed to the increasing awareness and adoption of advanced technologies to safeguard electrical systems from voltage spikes and transient overvoltages. In particular, the distribution class segment has witnessed a notable uptick as utilities and industries recognize the critical importance of reliable surge protection in enhancing the overall resilience of their power distribution networks. This trend is expected to persist as the market continues to evolve, with ongoing developments in technology and a heightened emphasis on ensuring uninterrupted power supply across diverse applications.

Surge Arrester Market by Voltage

On the basis of voltage, the Surge Arrester Market is segmented into low voltage, medium voltage, and high voltage. Among these, in 2023, the high voltage segment has emerged as a noteworthy driver of growth over the past year. The High voltage segment I accounted for the largest market share in the year 2023. The segment was valued at USD 830.2 Million in 2023 and it is anticipated to grow further to USD 1,292.8 Million by 2033, at a CAGR of 4.8% during the forecast period. This is attributable to the increased demand for robust voltage protection solutions. As industries and infrastructure continue to expand, there is a growing need to safeguard electrical systems from voltage surges and transient overvoltages. The high voltage surge arrester segment is witnessing a surge in adoption due to its ability to effectively mitigate the risks associated with elevated voltage levels, ensuring the reliability and longevity of electrical equipment. This trend is indicative of a broader emphasis on enhancing the resilience of power distribution networks and sensitive electronic devices, ultimately contributing to the overall advancement of electrical safety measures in various applications.

Surge Arrester Market by Application

Based on application, the Surge Arrester Market is segmented into air insulated substation (AIS), and gas insulated substation (GIS). Out of these, in 2023, gas insulated substation (GIS) segment emerging as a key contributor to this expansion. The Air Insulated Substation segment is anticipated to dominate the market during the forecast period. The segment was valued at USD 1,077.3 Million in 2023 and it is anticipated to grow further to USD 1,698.8 Million by 2033, at a CAGR of 4.7% during the forecast period. This expansion can be attributed to the increasing adoption of GIS technology in power distribution systems, where space constraints and environmental considerations are critical factors. GIS provides a compact and efficient solution, enhancing the overall reliability and performance of substations. As the need for reliable power transmission and distribution infrastructure rises globally, the surge arrester market, particularly in the GIS segment, is poised for continued growth, driven by the imperative to ensure the uninterrupted and safe operation of electrical networks.

Surge Arrester Market by End-user

Based on end-user, the Surge Arrester Market is bifurcated into residential, commercial, industrial, and utility. Among these, in 2023, the residential segment in the Surge Arrester Market has witnessed remarkable growth. The utility segment is anticipated to dominate the market during the forecast period. The segment was valued at USD 878.7 Million in 2023 and it is anticipated to grow further to USD 1,392.7 Million by 2033, at a CAGR of 4.8% during the forecast period driven by increased awareness and demand for enhanced electrical protection among end-users. As homeowners become more cognizant of the potential risks associated with power surges, such as damage to sensitive electronic devices and appliances, the adoption of surge arresters has seen a significant uptick. This surge in demand can be attributed to a growing emphasis on safeguarding residential electrical systems against voltage fluctuations and lightning-induced surges. The residential segment’s expansion in the surge arrester market underscores the importance that end-users place on securing their homes from electrical disturbances, contributing to the overall positive trajectory of the industry.

Geographical Analysis of Surge Arrester Market

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. The Asia Pacific region is anticipated to dominate the market during the forecast period. The region was valued at USD 676.0 Million in 2023 and it is anticipated to grow further to USD 1,058.0 Million by 2033, at a CAGR of 4.6% during the forecast period. The Asia Pacific (APAC) region is experiencing significant growth in the surge arrester market due to several key trends and drivers. One significant trend is the increasing demand for electricity, driven by rapid urbanization, industrialization, and infrastructure development across emerging economies. As countries in APAC continue to invest in power generation, transmission, and distribution infrastructure to meet rising energy demands, the need to protect electrical equipment and systems from transient over voltages becomes paramount, thereby driving the demand for surge arresters. For instance, a recent analysis by Wood Mackenzie projects that the Asia Pacific (APAC) region will invest a substantial $3.3 trillion in power generation over the next ten years. Nearly half of this investment, about 49%, is predicted to be directed towards wind and solar energy projects, with an additional 12% allocated for energy storage initiatives. India and China are anticipated to take the lead in these investment efforts.

Major Players in the Surge Arrester Market

The surge arrester market is characterized by a high degree of consolidation, with a limited number of key players dominating the market. Major contributors include TE Connectivity, ABB Ltd., CG Power & Industrial Solutions Ltd., CHINT Group, DEHN SE, Eaton, Ensto, Elpro, General Electric Company, Hubbell, INAEL, S.A., Izoelektro, Raycap Corporation SA, Siemens Energy, Surgetek, Schneider Electric SE, Leviton Manufacturing Company, Inc.,, TDK Electronics AG, Mitsubishi Electric Corporation (Mitsubishi Electric), and Maclean Power Systems among others.

Recent Developments

In July 2023, The city of Charleston is close to finalizing a design agreement with the Army Corps of Engineers for constructing a storm surge protection barrier on the peninsula. According to Chief Resilience Officer Dale Morris, the city has been conducting studies over the past few years to determine the feasibility of the project. These studies have recently concluded, confirming that the project is indeed viable and can be built.

In March 2023, ABB is strengthening its presence in the US market and utility sector by establishing a new manufacturing facility in Albuquerque, New Mexico, for its Installation Products Division, previously known as Thomas & Betts. The construction of the 90,000 square-foot facility is in progress, representing a $40 million investment. This new site will generate 55 job opportunities and manufacture cable products utilized by electric utility providers for grid enhancement and resilience projects. As the US is expected to have over 75,000 miles of underground cabling by 2040, ABB’s facility will cater to the growing demand for its Elastimold® solutions, crucial for wildfire prevention and grid reinforcement initiatives. Equipped with ABB Robotics technology and digital automation, the Albuquerque plant is projected to produce over 1 million additional units annually upon its completion in 2024, with the majority serving customers in the US.

In November 2021, Hitachi ABB Power Grids inaugurated a state-of-the-art surge arrester manufacturing facility in Xiamen, situated in the Fujian Province of Eastern China.

In September 2021, Toshiba Energy Systems & Solutions Corporation (Toshiba ESS) has announced plans to significantly increase its production capacity for polymer housed surge arresters by April 2022. These surge arresters protect power transmission and distribution equipment from overvoltage caused by lightning strikes. With the growing demand for renewable energy and the need for reliable power grids, the importance of surge arresters is on the rise. Polymer housed surge arresters offer advantages such as durability, lightweight design, and resistance to pollution and seismic activity. Toshiba ESS’s surge arresters, equipped with zinc oxide elements developed in-house, are known for their high reliability and lightning energy absorption capability. Since introducing these surge arresters in 2001, Toshiba has supplied over 50,000 units worldwide, with continuous improvements in lightning impulse-withstanding capability.

In July 2021, Infineon Technologies, based in Munich, and Amber Solutions, based in California, have joined forces to bring solid-state technology to the market for controlling electricity digitally using silicon with embedded intelligence. Amber’s solid-state technology is expected to find applications in various devices such as smart circuit breakers, light switches, dimmers, and outlets used in both residential and commercial buildings worldwide. This technology offers intelligent power management in a compact silicon chip, which will be combined with Infineon’s power switch and control technologies. The partnership with Infineon provides a significant boost to the small-sized Amber, which has its base in Dublin, California. Despite having a workforce of 22 employees, Amber has secured $12 million in investments between 2020 and 2021. Over the past four years, Amber has been developing its solid-state technology and has already filed over 40 patents based on its core technologies, with several grants secured. Infineon’s acquisition of U.S.-based Cypress Semiconductor in April 2020 has further strengthened its position in the semiconductor industry, making it one of the top 10 largest semiconductor companies globally with revenues exceeding $10 billion in fiscal 2020 and a workforce of 46,000 employees.

In July 2021, General Electric (GE) successfully clinched a supply agreement with GSI Helmholtzzentrum für Schwerionenforschung, a renowned research institution that manages an ion accelerator complex situated in Darmstadt, Germany. Within the framework of this contract, GE is furnishing the research facility with its cutting-edge LV8 platform, encompassing a diverse array of elements including power transformers, medium voltage switchgear, surge arresters, and various other components.

Research Scope:

Estimates and forecast the overall market size for the total market across type, application, and region

Detailed information and key takeaways on qualitative and quantitative trends, dynamics, business framework, competitive landscape, and company profiling

Identify factors influencing market growth and challenges, opportunities, drivers, and restraints

Identify factors that could limit company participation in identified international markets to help properly calibrate market share expectations and growth rates

Trace and evaluate key development strategies like acquisitions, product launches, mergers, collaborations, business expansions, agreements, partnerships, and R&D activities

Thoroughly analyze smaller market segments strategically, focusing on their potential, individual patterns of growth, and impact on the overall market

To thoroughly outline the competitive landscape within the market, including an assessment of business and corporate strategies, aimed at monitoring and dissecting competitive advancements

Identify the primary hydrogen electrolyzer market participants, based on their business objectives, regional footprint, product offerings, and strategic initiatives

Data Sample:

Our research report offers comprehensive deep segmental analysis, local competitive insights, and market positioning tailored to your needs. It includes detailed local market analysis and company analysis, alongside SWOT assessments to identify strengths, weaknesses, opportunities, and threats. The report is enhanced with an Excel data dashboard for seamless analytics and efficient data crunching, providing a user-friendly interface for in-depth examination. This robust toolkit empowers businesses to make informed decisions, stay ahead of competitors, and strategically position themselves in the market.