Distribution Surge Arrester Market Forecasts to 2030 – Global Analysis By Voltage (Low, Medium and Extra High Voltage), Material (Polymer, Porcelain and Other Materials), End User and By Geography

Distribution Surge Arrester Market Forecasts to 2030 – Global Analysis By Voltage (Low, Medium and Extra High Voltage), Material (Polymer, Porcelain and Other Materials), End User and By Geography

According to Stratistics MRC, the Global Distribution Surge Arrester Market is accounted for $507.6 million in 2023 and is expected to reach $853.16 million by 2030 growing at a CAGR of 7.70% during the forecast period. A distribution surge arc is a vital component of electrical systems designed to protect equipment and infrastructure from voltage spikes or surges. These surges can occur due to lightning strikes, switching operations, or other disturbances in the electrical grid. The surge arrester works by diverting excessive voltage to the ground, thereby preventing damage to sensitive equipment such as transformers, switchgear, and other electrical devices.

According to IEA World Energy Outlook 2020, USD 2.3 trillion was invested globally in the electric network during 2012-2019, with an average annual investment of about USD 283 billion during the same period.

Market Dynamics:

Driver:

Aging electrical infrastructure

The aging electrical infrastructure is a significant driver. As power grids and distribution networks age, they become more susceptible to electrical surges and faults. Surge arresters play a crucial role in protecting this infrastructure by diverting excess voltage and preventing damage to sensitive equipment. With the increasing need to modernize and maintain reliability in power distribution systems, there is a growing demand for surge arresters. This demand is fueled by the necessity to safeguard against disruptions caused by lightning strikes, switching operations, and other transient events.

Restraint:

Complex installation process

Many surge arresters require specialized knowledge and equipment for proper installation, making the process time-consuming and costly. Additionally, the need for trained personnel adds to the expenses and may limit the availability of skilled installers. This complexity could deter potential customers from investing in surge protection systems, especially in regions with limited access to technical expertise. As a result, simplifying installation procedures and providing comprehensive training programs could mitigate this restraint and encourage broader adoption of surge arrester technology.

Opportunity:

Urbanization and infrastructure development

As urban populations grow, so does the demand for reliable electricity distribution systems to support the expanding urban landscape. Surge arresters play a crucial role in protecting electrical infrastructure from voltage surges and transient over voltages, thereby ensuring uninterrupted power supply to densely populated areas. This surge arrester market opportunity is driven by the imperative to enhance urban infrastructure resilience and meet the growing energy needs of urban populations in a sustainable manner.

Threat:

Technological changes

Technological changes pose both opportunities and threats to the distribution surge arrester market. On one hand, advancements in materials, design, and manufacturing processes enable the development of more efficient and reliable surge arresters, potentially expanding the market. However, rapid technological evolution can also disrupt existing market dynamics by introducing innovative solutions or rendering current products obsolete. Companies in the distribution surge arrester market must continuously invest in research and development to stay competitive and adapt to changing technological landscapes.

Covid-19 Impact:

As industries faced disruptions and economic uncertainties, the demand for these essential components fluctuated. Supply chain disruptions, manufacturing shutdowns, and logistical challenges led to delays in production and distribution, affecting the availability of surge arresters. Also, reduced investments in infrastructure projects during the pandemic further stopped market growth. However, with the gradual reopening of economies and increased emphasis on resilient infrastructure, the market is expected to rebound as demand for surge protection devices rises in various sectors such as utilities, telecommunications, and industrial applications.

The polymer segment is expected to be the largest during the forecast period

Polymer segment growth is driven by increasing demand for lightweight, durable, and cost-effective solutions in electrical infrastructure. Advancements in polymer technology have led to improved performance characteristics such as higher energy absorption capacity and better resistance to environmental factors like pollution and moisture. The growing emphasis on renewable energy integration and smart grid initiatives further boosts the demand for surge protection devices, driving the expansion of the polymer segment.

The industrial segment is expected to have the highest CAGR during the forecast period

The industrial segment has experienced substantial growth due to requirement for robust electrical protection systems to safeguard sensitive equipment from voltage surges and transient over voltages. As industries increasingly rely on electronic devices and automation, the demand for surge arresters has surged. Moreover, with the expansion of industrial infrastructure globally, especially in emerging economies, the demand for distribution surge arresters in industrial applications is poised to continue its upward trajectory. Furthermore, advancements in surge arrester technology, such as improved transient response and higher surge current capacity, cater specifically to the needs of industrial environments, further driving market growth in this segment.

Region with largest share:

The growth of the market in North America can be attributed to increasing investments in modernizing and expansion of power distribution infrastructure. The region's vulnerability to severe weather events such as hurricanes and thunderstorms has accentuated the need for robust surge protection systems. Growing awareness among consumers and businesses about the importance of safeguarding electronic equipment from voltage fluctuations has spurred market growth. Additionally, advancements in technology, such as the development of more efficient and durable surge arresters, have further propelled market expansion.

Region with highest CAGR:

The Asia-Pacific region has witnessed significant growth due to rapid urbanization, industrialization, and infrastructure development projects across countries like China and India. Government initiatives promoting renewable energy adoption and smart grid development have further spurred demand for surge arresters. With escalating investments in power infrastructure and growing awareness about the importance of surge protection, the Asia-Pacific market is poised for continued expansion in the coming years.

Key players in the market

Some of the key players in Distribution Surge Arrester market include ABB, CG Power & Industrial Solutions Ltd., CHINT Group, DEHN SE , Eaton, Elektrolites, Elpro, General Electric, Hubbell, Izoelektro, MacLean Power Systems, Orient Electric International Group Limited, Siemens Energy, TDk Electronics AG and TE Connectivity.

Key Developments:

In March 2024, Intelligent power management company Eaton has announced the launch of its new Rack PDU G4 (4th generation) that delivers the high security and business continuity data centre, that operators consider non-negotiable. G4 reflects the in-depth research incorporating customer and marketplace feedback, which brings increases in network and power redundancy, server capacity and operational flexibility.

In September 2023, CATL and CHINT entered into a strategic partnership agreement in Hangzhou. According to the agreement, the two parties will focus on strengthening cooperation in their advantageous areas such as energy storage, continue to expand the scope of cooperation in fields such as the integrated solution of solar, storage and charging, comprehensive energies, smart low-carbon solutions, and intelligent manufacturing.

Voltages Covered:
• Low
• Medium
• High Voltage
• Extra High Voltage

Materials Covered:
• Polymer
• Porcelain
• Other Materials

End Users Covered:
• Residential & commercial
• Utility
• Industrial
• Transportation
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances