Surge Arrester Market Size, Share & Industry Analysis, By Type (Porcelain and Polymeric), By Class (Station Class, Intermediate Class, and Distribution Class), By Voltage Level (High, Medium, and Low), By Application (Utility and Industrial), and Regional Forecast, 2024-2032

The global surge arrester market size was valued at USD 1.97 billion in 2023. The market is projected to be worth USD 2.06 billion in 2024 and reach USD 2.99 billion by 2032, exhibiting a CAGR of 4.8% during the forecast period.

A surge arrester is a protection device that discharges, or bypasses surge current to limit voltage on equipment. It prohibits continuing flow to follow current to ground and can perform these operations by ANSI standard C62.11. It does not absorb or stop lightning; it diverts, limits voltage, and protects parallel-installed electronics. It has various applications, from safeguarding to an industrial to a utility substation. They are installed on circuit breakers in residential dwellings, pad-mounted transformers, pole-mounted riser poles, and substations. Rising demand for smart grid infrastructure replaces the existing infrastructure and introduces new end-use industries, especially in renewable energy projects, escalating the surge arrester market growth.

The global impact of COVID-19 has been unprecedented and staggering, with the industry witnessing a negative demand shock across all regions amid the pandemic. Industry leaders anticipated delivery and construction slowdowns, either due to industry closures to minimize coronavirus spread. Many components/parts are sourced from China, the U.S., and Europe. Due to this pandemic, manufacturing difficulties in China and the U.S. could significantly drop the market in the immediate future.

Surge Arrester Market Trends

Enhancing Regulatory Efforts to Boost Investment

In the previous 20 years, energy network regulators' typical approach has been to avoid the risk of over-investing in well-meshed electrical systems, particularly in industrialized economies. Electricity is supplied by a few major utility-scale plants to meet slow-growing consumer demand.

According to IEA, the European Commission's 2030 climate ambition plan, launched in September 2020, calls for USD 70 billion in annual grid investments between 2021 and 2030. Citing another instance, the Fit for 55 plan, released in July 2021, calls for emissions to be 55% lower in 2030 than in 1990 (compared to the previous plan's 40% reduction).

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Surge Arrester Market Growth Factors

Increase in Deployment of Smart Grids Infrastructure Leading Market Growth

Surge arresters are critical components in transmission and distribution networks to protect electrical equipment. They are used in substations, transmission lines, and other electrical network components. Increased investment in transmission and distribution (T&D) networks is one of the primary reasons driving the industry. T&D network expansion and improvement directly impact the market growth. The growing number of electrification projects in China and India and network expansions to support renewable energy integration in the U.S., Europe, and other developed countries are expected to drive the market in the future.

According to the International Energy Agency (IEA), the impressive development plans of state-owned utilities are likely to drive investment, with 2060 net-zero targets and an ambitious 14th Five-Year Plan for renewables on the horizon. The European Union (EU) has made major investments in smart grid projects as part of its targets to modernize and decarbonize the energy sector in the EU. Horizon is an EU research and innovation program that funds various smart grid projects for energy infrastructure, such as the Connecting Europe Facility (CEF).

For instance, in December 2022, the European Commission announced the creation of a digital twin for the European electricity grid by the European Network of Transmission System Operators for Electricity and the Association of European Distribution System Operators. The 2023 Horizon Europe Work Programme includes a proposal of EUR 20 million for this project to improve the management, operations, and resilience of the EU electricity system in support of REPowerEU.

Increasing Investment in Renewable Energy Projects to Boost Market Growth

Global investments in renewable energy technology have increased during the last decade. Rapidly falling installation prices due to rapid technology breakthroughs and various countries converting to green energy power generation are assisting in the rise of renewable energy technologies. This is deployed in the upcoming renewable energy projects at connection points and substations. A substation is a built-in grid-connected renewable energy installation to allow grid connectivity. This is used in these substations. Globally, the proportion of renewable energy generation is expanding, and increased investment in renewable energy projects presents prospects for manufacturers.

According to the IEA (International Energy Agency)’s Renewable Report, the renewable energy capacity added to the total energy systems grew by 50% in 2023 globally. It reached 510 GW, with solar PV accounting for over three-quarters of additions globally. Moreover, at the COP28 climate change conference, more than 130 countries, including the European Union, agreed to work collectively to triple the world’s total renewable energy capacity to at least 11000 GW by the end of 2030.

RESTRAINING FACTORS

Growing Competition From The Unorganized Players Hampering The Market Growth

Major manufacturers face fierce competition from unorganized market competitors that sell low-cost, low-quality items without a license. These small local players sell products made in-house without obtaining the requisite approval. As the grey market grows, the brand names of the market leaders are being tarnished as low-quality goods are marketed under their names. Local key market players are increasing their sales, reducing the chance for global players to boost their profits.

Surge Arrester Market Segmentation Analysis

By Type Analysis

Polymeric Surge Arrester Held the Dominated Share Due to Their Wide Adaptability Across Various Voltage Ranges

Based on type, the market is divided into porcelain and polymeric. The polymeric segment held the largest share in 2023 and is expected to dominate the market during the forecast period. The market for polymeric is likely to increase due to its wide adaptability across various voltage ranges. Compared to porcelain, the product will be more popular due to its ease of handling and installation, dependable performance in challenging settings, inexpensive production, operational costs, and superior breaking resistance under overload situations. Furthermore, growing demand from numerous businesses to effectively combat system faults and significant investments to enhance existing power infrastructure would significantly improve the market globally.

The porcelain segment will also witness a significant share in the global market as it is self-sustaining and resists environmental aging. The product's popularity will rise if it is stable, has low raw material costs, and has good mechanical strength. Industry giants are constantly improving their products' technology to make them more popular at high voltages. This, along with the material's technical maturity, will make it easier for people to use them.

By Class Analysis

Station Class Surge Arrester Held the Dominated Share as its Economic Adaptability

Based on class, the market is divided into station class, intermediate class, and distribution class surge arrester. The station class segment held the largest share in 2020 and is expected to dominate the market during the forecast period. Station class surge arrestors guard against lightning and overvoltage, which occur when an electrical item draws more current than it is designed to manage in the system. These arrestors protect equipment with a voltage greater than 20 MVA. Significant aspects driving the station class market size include high-pressure relief capability, high durability, improved contamination resistance, and outstanding cantilever strength.

Substations have long relied on station and intermediate class, while intermediate arresters perform at levels slightly less robust than station class arresters.  A wide range of industrial substations, big electric utilities, and the ability to protect substation equipment, multiple lines, and cable circuits from surges will continue to drive the intermediate class market share worldwide.

The distribution class segment also held a significant share in the global market. Increased reliability standards and the need to upgrade outdated distribution networks necessitate the development of distribution systems that offer stronger overvoltage protection, increasing the demand for the systems. The growing need for flexible distribution grids with excellent protection, the lowest let-through energy, and zero internal watt loss would positively affect business growth opportunities.

By Voltage Level Analysis

High Voltage Level Surge Arrester Held a dominant share due to its Numerous Utilization in the Utilities and Industrial Sector

Based on voltage level, the market is divided into high voltage, medium voltage, and low voltage levels. The high voltage segment contributes the largest share in 2023 and is expected to dominate the forecast period. The High Voltage segment is intended to protect maintenance and installation staff by allowing the device to be safely earthed. It has a wide application in switchgear, transformer, and over-the-line to project overvoltage transient devices.

The growth of the medium voltage segment will be fueled by economic diversification and the need to protect heavy equipment from voltage surges. Unprecedented demand for transformers and switchgear will add to the industry's landscape. This is because old systems are being replaced and upgraded, which will add to the landscape.

Low-voltage segments can be found in consumer-in-house supplies, distribution transformers, low-voltage overhead lines, and other systems. Increased demand for distribution capacity plans to satisfy rising power demand from rapidly expanding residential and commercial establishments will benefit the business outlook.

By Application Analysis

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Utility Segment Dominated Backed by Demand for Electricity for Enhanced Living Standards and Transportation Electrification.

Based on the application, the market can be segmented into utility and industrial. The utility segment held the largest share in 2023 and is expected to dominate the market during the projection period. These are primarily used in the utility because of the magnitude of the utility's electrical network, which is more significant than the industrial electric infrastructure. The best place to put the device is on the leading service or panel that feeds the facility, where it is often positioned. Because the overhead line system is operated at 25 thousand volts, adequate electrical clearance must be accounted for throughout the design and installation stages to ensure the electrification infrastructure does not experience unnecessary flashovers between live conductors and the structure. In this method, if an overvoltage occurs (perhaps due to lightning strikes), the voltage can be limited to a level consistent with the electrical clearance values between the overhead line and structure.

The industrial segment is expected to contribute significantly during the forecast period. Increasing attention to power quality issues in industrialized economies due to widespread voltage spikes and surges will substantially impact the adoption of these units. In addition, as the economy grows and develops, electricity's part in total industrial energy consumption is expected to rise.

REGIONAL INSIGHTS

The regional global market analysis has been done across five key regions, including North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Asia Pacific holds the largest share of the global market. Electricity demand is surging, and utilities in these countries are investing in transmission and distribution facilities. A rise in EHV and UHV transmission investments in China and India fuels Asia's Pacific market growth. The region has seen exceptional growth in recent years, which is projected to continue. In recent years, China and India have increased their electricity generation to accommodate burgeoning populations and industrial and commercial sectors. China's energy generation climbed from 4207.2 TWh in 2010 to 7511.4 TWh in 2020. India's electricity generation increased from 937.5 TWh in 2010 to 1381.8 TWh in 2020. This increase is likely to continue in the forecast period, boosting the market in the region.

North America is the second-largest global market. The region's significant industrial and electrical infrastructural growth is projected to increase demand for replacements and new installations. Furthermore, North America was an early user of this technology, a critical factor in this region's stronghold in the market.

Europe is expected to contribute significantly during the forecast period. European utilities are reassessing their assets and focusing on long-term sustainable business. The region's power generating, transmission, and distribution infrastructures are mature. The growth of the grid deployment business will increase investments in modernizing the smart grid infrastructure due to stricter EU regulations. International Energy Agency (IEA) estimates that the EU's 2030 climate ambition plan issued in September 2020 foresees yearly grid investments of over USD 70 billion from 2021 to 2030. (more than double 2011-2020 spending).

Latin America is another potential market for surge arresters. Automation and digitalization will create a wide range of new growth avenues for market participants in this region. It is owing to the govt. Initiatives and increasing grid expansion projects have been approved for electrification in countries such as Mexico, Brazil, and others are the key factors accelerating the growth in this region.

The Middle East & Africa is expected to grow significantly globally. Rapid industrialization, the upgrade of the aging electricity infrastructure, and the power network expansion to meet electricity requirements are the prime drivers of growth in this region.

List of Key Companies in Surge Arrester Market

Key Participants to Concentrate on Technical Advancements

The global market is highly fragmented due to many regional and international key players. Most companies are concentrated on enhancing their production capabilities and investing in research & development by adding advanced features to the system. For instance, in January 2021, Hitachi ABB introduced a wireless monitor for surge arresters. These technological advancements will provide clients with quick, actionable data to ensure the reliability of their substations and electrical equipment.

List of Key Companies Profiled:

• Hitachi ABB (Switzerland)


• Siemens (Germany)


• Schneider Electric (France)


• General Electric (U.S.)


• Eaton (Ireland)


• Mitsubishi Electric (Japan)


• Toshiba (Japan)


• Hubbell (U.S.)


• Legrand (France)


• CG Power (India)


• Meidensha (Japan)


• Tripp Lite (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2021 – Hitachi ABB Power Grids opened a new surge arrester factory in Xiamen, Fujian Province, east China, to address safety demand for transmission and distribution systems.


• September 2021 – Toshiba will increase polymer-based production. Toshiba announced that its current polymer-based capacity would nearly triple by April 2022. Toshiba ESS manufactures a surge arrester that protects electricity transmission/distribution infrastructure and equipment from lightning-induced overvoltage and operates circuit breakers for Hamakawasaki Operations in Japan.


• March 2021 – Eaton has completed its acquisition of Tripp Lite, which will grow Eaton's power quality business in the Americas. The goal of leveraging power management technologies and services is to improve people's lives and the environment.

REPORT COVERAGE

The surge arrester market analysis research reports provide a detailed market analysis focusing on key aspects such as leading companies and the application. Besides this, the report offers insights into the surge arrester market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

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