Surge Arrester Global Market Report 2024

The surge arrester market size has grown strongly in recent years. It will grow from $2.12 billion in 2023 to $2.29 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. The expansion observed in the historical period can be attributed to several factors, including the rise in power consumption, increasing government investments to support energy infrastructure, strong economic growth in emerging markets, and growing investments in transmission and distribution (T&D) networks.

The surge arrester market size is expected to see strong growth in the next few years. It will grow to $3.05 billion in 2028 at a compound annual growth rate (CAGR) of 7.5%. Forecasted growth is driven by the increasing demand for electricity, growing investments in renewable energy, and rapid industrialization in manufacturing industries. Key trends include a focus on developing new technological solutions, launching IoT (Internet of Things) connected devices and solutions, expanding production facilities, and engaging in mergers and acquisitions.

The escalating demand for electricity serves as a significant driver for market growth. This increased demand is primarily fueled by expanding populations and the heightened utilization of electrical and electronic appliances, particularly evident in developing nations such as China, India, Brazil, and certain African countries. As per the International Energy Agency (IEA), global electricity demand surged by 6% or approximately 1,500 terawatt hours (TWh) in 2021. Projections indicate Southeast Asia will witness the most substantial growth at an average of 5% between 2022 and 2024, while the Asia Pacific region, including China, is anticipated to experience a 4% increase in electricity demand. North America and Latin America are forecasted to witness a 1% rise in demand during the same period, with Mexico and Canada displaying the most significant annual percentage growth at 3-4%. Europe's projected electricity demand growth is estimated at 1.7% in 2022, followed by a period of stagnant demand in 2023 and 2024. Consequently, the surging demand for electricity is poised to stimulate the establishment of new power generation stations, consequently driving the demand for surge arresters.

The rapid industrialization and expansion of manufacturing industries are set to bolster the surge arrester market. According to the United Nations Industrial Development Organization (UNIDO), global manufacturing production soared by 9.4% in 2021. Notably, the Indian manufacturing sector experienced significant growth, with a 210% surge in the fiscal year 2021–2022 compared to the preceding fiscal year 2020–2021. This sector also witnessed a substantial increase in new investments and ordering activities, marking a remarkable 460% growth in 2021–2022 compared to 2019–2020. This robust growth within manufacturing industries is anticipated to drive the development of electronic devices and equipment, consequently amplifying the demand for surge arresters.

Leading companies within the surge arrester market are intensively focused on pioneering new technological innovations to fortify their market standing. As an illustration, in November 2022, Hitachi ABB Power Grids (Hitachi Energy), a Swiss-based manufacturer and developer specializing in power transformers and substations, introduced a novel digital solution aimed at enhancing grid resilience against wildfires. The Wireless Spark Prevention Unit (SPU) Indicator, a part of this solution, empowers utilities by facilitating remote monitoring. This innovation enables improved maintenance practices and strategic planning for asset replacement, contributing to the preservation of critical assets.

Companies operating in this market are actively launching Internet of Things (IoT)-connected devices and solutions engineered to safeguard equipment and bolster system reliability. For instance, in March 2021, Eaton Corporation, a US-based powerhouse in power management, unveiled the Power Xpert SPD (surge protective device). This IoT-connected surge protective device harnesses advanced connectivity features to shield essential equipment from potentially detrimental surge occurrences. The Power Xpert SPD empowers users to remotely monitor surge data in real-time, allowing for the capture and classification of surge events into low, medium, and high categories. This capability provides enhanced control and proactive measures for safeguarding crucial equipment.

In August 2021, Leviton, a U.S.-based provider of lighting controls, wiring devices, and networking services for residential, commercial, and industrial customers, successfully acquired Berk-Tek for an undisclosed sum. This strategic acquisition is anticipated to establish Leviton as a comprehensive single-source manufacturer offering end-to-end systems, encompassing connectivity and cabling solutions, to customers worldwide. Berk-Tek, the acquired company, is a U.S.-based manufacturer specializing in high-performance and enhanced fiber optic and copper cables designed for the transmission of high-speed data, voice, and power.

Major companies operating in the surge arrester market report are Siemens Energy, General Electric, Schneider Electric, Hubbell, Hitachi, CG Power And Industrial Solutions Ltd., Mitsubishi Electric, Legrand Sa, Eaton Corporation PLC, Meidensha, Valuepower Earthing Private Limited, Ideal Engineers, Pentagon Earthing & Lightning Arrester, Abcot Lighting Protection System Private Limited, Hangzhou Yongde Electric Appliances Co Ltd., Yueqing Sarah Electrical Technology Co Ltd., Wenzhou Yikun Electric Co. Ltd., Yueqing Wortai Electric Co. Ltd., Zhejiang Haivo Electrical Co. Ltd., Zhejiang Zhongneng Electrical Co. Ltd., Otowa Electric Co. Ltd., Ge Oil & Gas, Ngk Insulators, Abb, Emerson Electric, Hakel Spol. S R., Vertiv, Te Connectivity, Lamco, Leviton Manufacturing, Raycap Corporation Sa, Interconexion Electrica, Enel X, Al Yamuna Densons, Dehn, Saudi Electricity Company.

North America was the largest region in the surge arresters market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the surge arrester market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the surge arrester market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of surge arresters are polymeric and porcelain. Polymeric surge arresters are characterized by being lightweight and hydrophobic, making them suitable for the protection of electrical equipment in both indoor and outdoor systems. These are gapless zinc oxide surge arresters designed for the overhead distribution network. Their optimal mechanical strength allows for use in harsh environmental conditions. Surge arresters are classified into distribution class, intermediate class, and station class, with voltage types including low voltage surge arresters, medium voltage surge arresters, and high voltage surge arresters. They find applications in both AIS (air-insulated substation) and GIS (gas-insulated substation). End-users of surge arresters include utilities, industries, transportation, and other sectors.

The surge arresters market research report is one of a series of new reports that provides surge arresters market statistics, including surge arresters industry global market size, regional shares, competitors with a surge arresters market share, detailed surge arresters market segments, market trends and opportunities, and any further data you may need to thrive in the surge arresters industry. This surge arresters market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The surge arrester market consists of sales of Silicon Carbide (SiC) Valve-type surge arresters, and metal-oxide surge arresters (MOSA) including gapless, series-gapped, and shunt-gapped. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.