The surge arrester market is estimated to be valued at USD 1.85 Bn in 2024 and is expected to reach USD 2.73 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.72% from 2024 to 2031. Growing grid infrastructure projects and stringent regulations regarding grid reliability & safety are fueling growth of the surge arrester market.

Market Driver - Rising Demand for Electronic Applications in Residential, Commercial, and Industrial Sectors

The surge arrester market has been witnessing significant growth in demand owing to the rising usage of various electronic devices and equipment across different end-use industries. Widespread proliferation of electronics has substantially increased the vulnerability of such equipment to voltage fluctuations, surges, and other power issues.

In light of this, ensuring reliable power quality has become imperative to minimize downtime and equipment repair/replacement costs. Surge arresters offer effective protection against voltage transients and surges by clamping or limiting the voltage surge to a safe level. Their installation has thus become common practice across industrial facilities, commercial buildings, and residential spaces for safeguarding various electronics.

Several industrial verticals have significantly automated their production processes and operations with industrial automation solutions involving PLCs, drives, sensors, HMIs, and other electronic control systems. At the residential front, consumer appliances, home theaters, smart home devices, and other electronics in every household need shielding from power issues. This is expected to contribute to growth of the surge arrester market.

Market Driver - Growth of Smart Homes and Advanced Electronic Appliances

Rising consumer affluence and digital connectivity trends are fueling massive growth in the smart home appliances and electronics market globally. With smart capabilities and network connectivity, modern appliances have become more vulnerable to power quality issues and voltage transients. Meanwhile, lightning strikes during thunderstorms pose a bigger risk than before of frying sensitive internal circuitry of networked appliances if surge arresters are not installed.

Surge arresters play a vital role in safeguarding the electronics and ensuring the reliable operation of smart home devices and systems. Their installation provides robust protection against over-voltage transients from off-site sources such as utility switches and lightning, thereby preventing costly device replacements.

Surge arresters help provide surge immunity so that users can continue enjoying smart home conveniences without disruptions. With lifestyle priorities shifting towards household automation and smart home technologies, growth prospects in surge arrester market will keep surging in the coming years.

Market Challenge - Competition from Alternative Technologies like Voltage Regulators and Active Power Conditioning Systems

One of the key challenges being faced by the surge arrester market is intense competition from alternative technologies like voltage regulators and active power conditioning systems. These technologies provide flexible solutions to voltage regulation and surge protection needs of end users. Voltage regulators are actively used regulators that control the output voltage in a circuit by comparing it with a reference voltage.

Similarly, active power conditioning systems not only protect against transient over-voltages but also improve power quality through harmonic filtering, voltage regulation etc. Given their advanced functionality, end users are inclined to adopt these alternative technologies in lieu of traditional surge arresters.

Manufacturers in the surge arrester market need to focus on enhancing the performance of their products to counter the functional advantages offered by regulators and active conditioners. They also need to customize solutions as per specific industry and application needs of customers to remain competitive.

Market Opportunity - Increasing Emphasis on Renewable Energy Sources

One of the major opportunities for the surge arrester market is the increasing emphasis on renewable energy sources, particularly in industrial and residential applications. The integration of renewable energy like solar and wind into power grids has been rising substantially driven by climate change concerns and renewable targets of nations.

However, renewable energy generation is more susceptible to atmospheric disturbances that can induce high voltages and surges. Effective surge protection through arresters thus becomes critical for reliable power transmission from renewable plants as well as protection of downstream electrical infrastructure.

With more renewable capacities expected to come online globally, the demand for surge arresters from solar and wind plant operators as well as industrial & residential consumers of renewable energy is likely to witness strong growth. Surge arrester manufacturers need to proactively tap into this opportunity by developing customized solutions for renewable applications and collaborating with renewable project developers and utilities.

Focus on technological advancements - Major players like ABB, Schneider Electric, Eaton, GE, Siemens etc. have continuously invested in R&D to develop advanced surge arrester technologies. For example, in 2020 ABB launched a new modular surge arrester system called SMARTSURGE for gas insulated switchgear applications.

Partnerships and acquisitions - Players have expanded their product portfolio and geographical presence through strategic partnerships and acquisitions. For example, in 2018 Siemens acquired a surge arrester company Areva T&D to enhance its portfolio of products and services for grid equipment.

Customization as per application - Leading companies customize their surge arrester solutions as per specific industrial and utility applications like transmission lines, transformers, motors etc. For example, Eaton supplies customized embedded and integrated surge protection solutions for wind turbines, data centers, renewable plants etc.

Focus on after-sales services - Players provide a wide range of services like installation, commissioning, maintenance, repair, retrofitting etc. alongside arrester solutions. For example, ABB launched an advanced monitoring and diagnostics system in 2019 that remotely monitors the health of surge arresters.

Insights, By Voltage: Increasing adoption of Surge Arresters in industrial facilities

In terms of voltage, medium voltage segment is projected to account for 48.4% share of the surge arrester market in 2024. Medium voltage arresters in the range of 1-35kV are highly suitable for protecting industrial equipment and machinery from power surges. Growth of the manufacturing industry across major economies has led to a significant increase in the number of industrial plants and factories globally.

Medium voltage arresters offer robust protection against transients caused by load switching, lightning strikes, and other disturbances that are very common in industrial settings. Their rugged metal oxide block and gap construction makes them withstand frequent surge events without failure.

Leading industrial segments like oil & gas, petrochemicals, mining, automotive etc. rely heavily on medium voltage surge protection to shield electronics, PLCs, drive panels and other critical assets from high transient over voltages. As industrialization continues to rise in developing nations, the medium voltage segment is expected to remain the core contributor in surge arrester market growth.

Insights, By Class: Growing Demand for Reliable Surge Protection in Distribution Networks

In terms of class, distribution class is projected to hold 52.2% share of the surge arrester market in 2024. This is due to the urgent need for robust surge protection across power distribution networks. Distribution class arresters or pole mounted arresters rated between 5-35kV are extensively used across medium voltage distribution networks to shield transformers and feeders from lightning surges.

Power outages caused by surges undermine grid reliability and cause heavy financial losses for utilities if not contained in time. To ensure uninterrupted transmission and supply of electricity, distribution networks across regions have been installing these arresters prolifically at critical points.

In addition, rapid electrification programs aimed at expanding power access in rural areas have fueled demand from cooperatives and utilities setting up new distribution infrastructure. This will drive important trends in the surge arrester market.

Insights, By Application: Surge Protection Requirements of Residential & Commercial Sectors

In terms of application, residential & commercial contributes the highest share of the surge arrester market led by increasing surge protection needs of these sectors. Low voltage arresters used across homes, apartments, and commercial buildings play a vital role in guarding sensitive electronic devices like ACs, refrigerators, LED lights, computers, AV systems, and other appliances.

Growing affordability of consumer electronics coupled with high dependence on these gadgets has raised surge-related concerns among homeowners and facility managers. The residential & commercial applications segments require surge protection solutions that provide defense from direct or indirect lightning strikes as well as surges induced during storms, power outages or faults in distribution lines.

Furthermore, stricter safety norms by insurance agencies necessitating SVCs for coverage have boosted arrester installations. This will drive growth of the surge arrester market.

• Smart homes and electronic systems are becoming more common, requiring devices like surge arresters to safeguard sensitive electronics from power surges.
• The industrial sector is undergoing rapid modernization, further boosting demand for surge arresters in distribution and transmission systems.
• Key players in surge arrester market are focusing on product innovation to differentiate their offerings in an increasingly competitive landscape. Significant growth opportunities exist in renewable energy, where surge arresters are essential for protecting solar and wind power installations.

The major players operating in the surge arrester market include Siemens AG, ABB AG, General Electric (GE), Schneider Electric SE, Eaton Corporation, Hubbell Incorporated, Megger Group Limited, Furse Surge Protection, Ingeteam, and CIRCUTOR.

• In April 2024, Ideal Power Inc. received a purchase order for its B-TRAN™ semiconductor power switch from a global leader in power semiconductor and power electronics solutions. This customer purchased B-TRAN™ devices along with a circuit breaker evaluation board.
• In April 2024, SES officially activated its second-generation software-enabled satellite system, O3b mPOWER, marking the start of its global high-performance connectivity services. This system, which operates in medium Earth orbit (MEO) at about 8,000 km above Earth, features six of an eventual thirteen satellites, offering high-throughput and low-latency services.
• In April 2024, Safran Electrical & Power launched GENeUSCONNECT, a high-power electrical harness to support electric aircraft systems. This harness is designed to support the new generation of all-electric and hybrid aircraft, capable of handling voltages up to 800 volts DC.
• In April 2024, President Ferdinand R. Marcos Jr. introduced the Mobile Energy System (MES) as part of efforts to enhance the resilience of energy systems in the Philippines. This initiative was launched alongside the Energy Sector Emergency Operations Center, aimed at ensuring continuous power supply during emergencies, especially in disaster-prone areas.
• In March 2024, Solar Power Systems launched a tool called the "Find Solar Installers Near Me" service, aimed at helping users locate optimal solar companies based on their location and specific needs. This service features a large collection of U.S. solar installers' reviews and ratings.

• By Voltage
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