Automotive Surge Absorber Market Size, Share & COVID-19 Impact Analysis, By Application Type (Power Electronics and Audio & Lighting), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecast, 2023-2030

The global automotive surge absorber market size was valued at USD 1.24 billion in 2022. The market is projected to grow from USD 1.32 billion in 2023 to USD 2.30 billion by 2030, exhibiting a CAGR of 8.28% during the forecast period.

An automotive surge absorber, which is also called a surge protector or surge suppressor, is a component used in automotive electrical systems to protect sensitive electronic components from voltage spikes or surges. These surges are caused by various factors, such as starting the engine, alternator operation, or external events, such as lightning strikes. Surge absorbers are crucial in modern vehicles as they are equipped with numerous electronic systems and components that are susceptible to damage from voltage fluctuations.

Voltage surges are short-duration increases in voltage that can occur in the vehicle’s electrical system. These surges can be of varying magnitudes that can damage electronic components such as sensors, control modules, and entertainment systems.

The surge absorber consists of components, including metal oxide varistors (MOVs) or transient voltage suppressors (TVS diodes). These components are designed to have a very high resistance under normal operating conditions but rapidly decrease their resistance when subjected to a voltage surge. When a voltage surge occurs, this absorber detects the increase in voltage and responds by diverting the excess energy harmlessly to the ground, preventing it from damaging the electronics. Moreover, these absorbers are strategically placed in the vehicle’s electrical system, near sensitive components such as batteries, alternators, and key control modules. These applications and uses of the product altogether are expected to increase the automotive surge absorber market growth over the forecast period.

COVID-19 IMPACT

Disruptions in the Trade Hampered Market Growth During the Pandemic

The novel coronavirus disease (COVID-19) outbreak seriously affected the global automotive industry. Various governments worldwide introduced national lockdown measures to stop the virus’s spread. At the end of 2020, car sales dropped significantly due to strict regulations during the pandemic, this in turn dropped the automotive surge absorber market share globally. For instance, Nippon Chemi-Con's revenue decreased from USD 1.3 million in 2019 to USD 1.11 million in 2020. The national lockdown also significantly led to disruptions in supply chains due to global trade restrictions and reduced raw material consumption. These factors had a significant impact on the global market demand for systems. In addition, automakers temporarily closed or reduced global production capacity to comply with lockdowns and health regulations.

Furthermore, in late 2021, key market players across the globe resumed manufacturing activities, with 50% of the mobilized total workforce adhering to appropriate social distancing norms for the prevention of the virus’s spread. Various nations globally also launched mass vaccination programs to curb the virus's spread. These factors resulted in a gradual increase in automobile demand, boosting the demand for the component.

LATEST TRENDS

Surging Demand for Smart and Adaptive Damping Systems to Boost Market Growth

Smart surge absorber systems are equipped with various sensors, including accelerometers, gyroscopes, and wheel speed sensors. These sensors continuously collect data about the vehicle’s motion, road conditions, and driver inputs. The collected data is processed by onboard control units that use sophisticated algorithms to make real-time adjustments to the damping characteristics of this absorber. This enables the suspension system to respond dynamically to changing driving conditions. These systems can adapt to scenarios such as sharp turns, sudden braking, or uneven road surfaces. They stiffen or soften this absorber to optimize vehicle stability, comfort, and handling.

In addition, the smart surge absorber aims to provide passengers with a smoother and more comfortable ride while enhancing vehicle handling and stability. They can reduce vibrations and body roll, especially in luxury and performance vehicles. Some systems allow drivers to customize their driving experience by selecting different modes that adjust the surge absorber settings accordingly. By improving vehicle stability and handling, smart surge absorbers contribute to enhanced safety, particularly during emergency maneuvers or adverse road conditions. These systems can also optimize energy usage, potentially improving fuel efficiency in traditional internal combustion engine vehicles and extending the range of electric vehicles. Thus, increasing demand for these systems is one of the latest trends in the market.

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DRIVING FACTORS

Increasing Demand for Enhanced Ride Comfort and Vehicle Handling to Foster the Market Growth

Surge arresters absorb shocks and vibrations when a vehicle drives on uneven surfaces. In order to provide passengers with a smooth and comfortable ride, lightning arresters must effectively absorb and dissipate the energy generated by bumps, potholes, and bumpy roads. Moreover, these absorbers help control body roll or the lateral lean movement of the vehicle when cornering. An effective surge absorber reduces body roll and improves vehicle stability and handling, especially during sharp turns and maneuvers. It also ensures the tires are in good contact with the road surface. It is very important for the tire to contact the road surface. These factors drive the growth of this market.

Increasing Demand for Automotive Surge Absorber in Vehicle Telematics to Propel the Market Expansion

Telematics systems in modern vehicles collect real-time data from various sensors and sources, including wheel speed sensors, GPS, accelerometers, and road condition monitoring. This data provides comprehensive insights into the vehicle’s behavior, road conditions, and driver inputs. These absorbers, especially in advanced vehicles equipped with telematics, can use real-time data to adjust their damping characteristics dynamically. For example, if the vehicle detects rough conditions or an upcoming pothole through telematics data, the surge absorber can adapt by increasing damping force to minimize the impact on ride comfort and vehicle stability. These factors are expected to drive the market growth over the forecast period.

RESTRAINING FACTORS

Substantial Production and Research & Development Cost May Hamper the Market Growth

These absorbers must be manufactured to meet strict quality and safety standards. They comprise various components, including steel or aluminium housing, piston rod, seals, hydraulic fluid, and valves. Modern surge absorbers may also include electronic sensors and control systems for adaptive damping. These materials, components, and precision manufacturing processes contribute to significant production costs.

Moreover, developing surge absorber technology, such as adaptive or electronically controlled systems, requires substantial research and development (R&D) investment. R&D costs can significantly burden automotive manufacturers, especially when trying to innovate and stay competitive. These factors are also expected to restrain the growth of the automotive surge market over the forecast period.

SEGMENTATION

By Application Type Analysis

Power Electronics Segment Dominates the Market Owing to the Growing Adoption of Wide Range of Electronics Systems in Modern Vehicles.

Based on application type, the market is segmented into power electronics and audio & lighting.

The automotive industry is experiencing a significant shift toward vehicle electrification, including hybrid and electric vehicles (EVs). These vehicles heavily rely on power electronics for functions such as motor control, battery management, and power distribution. These absorbers are critical in these applications to protect sensitive power electronics components from voltage spikes and transients. Furthermore, the proliferation of EVs has led to increased demand for electric vehicle chargers. Power electronics play a crucial role in these chargers, converting AC power from the grid into DC power for charging batteries. These absorbers are also essential to ensure the safety and reliability of these charging systems.

In addition, electric and hybrid vehicles use regenerative braking systems that convert kinetic energy into electrical energy. These systems involve rapid switching of power electronics devices, which can generate voltage transients. Surge absorbers are used to suppress these transients and protect the power electronic components involved in regenerative braking. The increasing adoption of power electronics in automotive surge absorbers is directly related to the growing electrification of vehicles. These factors are anticipated to maintain the dominance of the power electronics segment over the forecast period.

The audio & lighting segment is expected to hold the second-largest position in the market in 2022 and is expected to continue to show prominent growth in the market during the forecast period. These absorbers in automotive audio systems often include filters and noise suppression components. These components help reduce electrical interference and noise, ensuring clean and clear audio signals. They can block unwanted frequencies and electromagnetic interference. Moreover, some audio systems have overvoltage protection features that monitor the input voltage. If the voltage exceeds a safe threshold, the protection circuitry can disconnect power from the audio components temporarily to prevent damage. This is particularly important in situations where the vehicle’s electrical system experiences voltage surges. Short-circuit protection is another aspect of surge protection in automotive audio. It prevents excessive current flow in the event of a short circuit, helping to avoid damage to the audio amplifier or speakers. These factors are expected to favor the growth of the audio & lighting segment over the forecast period.

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By Vehicle Type Analysis

Passenger Cars Segment to Dominate the Market Owing to Rising Vehicle Production

By vehicle type, the market is categorized into commercial vehicles and passenger cars.

The passenger cars segment dominated the market in 2022 and is expected to continue its dominance during the forecast period. The strict government regulations on equipping vehicles with driver assistance systems that help in vehicle safety improvement are propelling the growth of the passenger cars segment. The increase in global automobile production is also one of the key factors sustaining the dominance of the passenger cars segment in this market. Furthermore, significant investment in research and development by automakers and consistent technological advances have made engine control units (ECUs), infotainment systems, and ADAS systems easier to use and cost-effective in all vehicle models. Moreover, increasing integration of surge absorbers with the introduction of advanced features such as touch screens, navigation systems, and connectivity options are expected to further help passenger cars maintain their dominance during the forecast period. The increasing mandate of safety systems such as ABS and electronic stability control systems is also a factor expected to boost the demand for passenger cars during the forecast period.

Commercial vehicles have a heavy reliance on electronic systems for the management of engine performance, optimization of fuel consumption, and safety assurance. These electronic systems are highly sensitive to voltage surge absorbers, essential to protect them from damage. Moreover, the logistics and e-commerce industries have increased the demand for commercial vehicles with advanced safety features such as adaptive cruise control, lane keep assist, and collision avoidance systems. These systems rely on sensors and control units that require surge protection to ensure their reliable operation and contribute to vehicle safety.

Furthermore, the adoption of telematics and fleet management systems in commercial vehicles has grown significantly. These systems rely on continuous connectivity and real-time data processing, making surge absorbers crucial to maintaining uninterrupted communication and accurate data. This factor is expected to drive the commercial vehicles segment growth over the forecast period.

REGIONAL INSIGHTS

Regionally, the market is categorized into Europe, the Asia Pacific, North America, and the rest of the world.

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The Asia Pacific currently dominates this market with the largest share. The market was valued at USD 0.54 billion in 2022 and is projected to reach USD 0.90 billion by 2030, at a CAGR of 6.70% over the forecast period.

The region is also expected to dominate this market during the forecast period. The rising demand for increased automobile production and sales from countries such as India, Japan, China, and South Korea is responsible for the dominance of the Asia Pacific’s market. Modern vehicles manufactured in the region consist of an increasing number of electronic components and systems. Moreover, there is a growing integration of advanced features such as a touchscreen infotainment system, navigation, smartphone connectivity, and an advanced audio system. Surge protection is essential to maintain uninterrupted operation of these functions. In addition, the growing demand for electric and connected cars from countries such as China and Japan, which account for 65% of the electric vehicle market share, is helping the region maintain its dominance in the market.  

North America market for automotive surge absorber is anticipated to hold the second-largest position during the forecast period. The region’s automotive industry has witnessed significant advancements over the past several years. Moreover, customers in the region increasingly demand feature-loaded applications that give them more control over their vehicles. In addition, infotainment systems have witnessed drastic changes over time, with automotive companies increasingly providing large touch panels in vehicles, primarily cars, enabling the users to interact with the application more efficiently. This factor is increasing the demand for these absorbers in the region. Furthermore, to ensure vehicle safety and compliance with regulations, automakers in this region are increasingly incorporating surge protection measures into their vehicles, particularly for safety-critical systems such as airbags, ABS, and electronic stability control. These factors are expected to help maintain the second-largest position of North America market during the forecast period.

European market is expected to witness decent growth during the forecast period. The demand for electric and hybrid vehicles is increasing in Europe due to environmental concerns and government incentives. Surge protectors play an important role in protecting the power electronics and sensitive components of these vehicles. In addition, government authorities in the region have strengthened vehicle evaluation systems, requiring manufacturers to produce vehicles that meet government safety standards. Furthermore, sensor-based technologies are on the rise in the automotive sector to meet government safety standards. Therefore, the demand for advanced driver assistance systems (ADAS) is expected to increase the demand for these absorbers during the forecast period.

KEY INDUSTRY PLAYERS

Companies are Focusing on Strategic  Decisions and Robust Portfolio to Gain a Competitive Edge

Some leading players dominate the global market due to their critical strategic decisions, robust product portfolio, and market share dominance. These include a group of four to five key companies with more extensive geographical presence and persistent R&D, resulting in secure regulatory approvals.

LIST OF KEY COMPANIES PROFILED:

• Panasonic Industry Co.,Ltd (Japan)


• Mitsubishi Materials Corporation (Japan)


• Littelfuse Inc., (U.S.)


• Viking Tech Corporation (Taiwan)


• Infineon Technologies AG (Germany)


• Semitec Corporation (Japan)


• Thinking Electronics Industrial Co. Ltd. (Taiwan)


• Bourns, Inc. (U.S.)


• Nippon Chemi-Con Corporation (Japan)


• Kestar Electronic (China) Co., Ltd. (China)

KEY INDUSTRY DEVELOPMENTS

• September 2023: Huawei Technologies announced its collaboration with Chery Automobile to introduce their first-ever electric vehicle (EV) model called the S7. The S7 is anticipated to launch in November 2023. Increasing adoption of and growing partnerships of major players to develop advanced EVs is expected to boost the demand for surge absorbers over the forecast period.


• May 2023: Toyota and BYD entered into a partnership to collaborate on the production and sale of electric vehicles. Toyota aims to leverage the expertise of the well-established local company, BYD, and benefit from its advanced battery technology in the joint venture.


• April 2023: Pepsi unveiled its latest fleet of Tesla Semi EVs. Along with local routes, these semi-EV trucks are planned to be used for long-haul deliveries. Increasing adoption of semi-EVs in the commercial vehicle segment to boost the demand for these absorbers.


• April 2022: Denso Corporation and United Semiconductor Japan Co. Ltd. partnered to jointly develop power electronics at USJC’s 300mm fabrication facility. This partnership will help Denso to serve the growing demand for power electronics globally. 


• March 2022: ‘Danfoss announced its intent to partner with Semikron, one of the major manufacturers of power semiconductor components. Under this partnership, the company is focused on developing power electronics.

REPORT COVERAGE

The market research report provides a detailed analysis of the industry and focuses on key aspects such as leading companies, vehicle types, and component types. Besides this, the market report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market growth in recent years. 

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