The surge arrester market will grow at highest pace owing to increasing investments in smart grid technologies

The surge arrester market will grow at highest pace owing to increasing investments in smart grid technologies

Surge arresters are passive protection devices that play a vital role in the safety of electric power systems by diverting over-voltage surges in equipment and facilities to the ground. They are tubular metal-oxide components that block the flow of current below a certain voltage threshold and conduct rapidly when the voltage exceeds that limit. Surge arresters protect valuable insulation materials in electric power systems from over-voltages caused by switching, lightning strikes or other transients. Their ability to divert transient over-voltages makes them indispensable for safeguarding transformers, circuit breakers and other expensive electrical equipment from insulation damage. Increasing investments in smart grid infrastructure and rising deployment of distributed renewable energy systems are majorly driving the demand for surge arresters.

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.

Key Takeaways
Key players operating in the surge arrester market are ABB, Siemens, Eaton, Schneider Electric, General Electric, Mitsubishi Electric Corporation, Crompton Greaves, Emersen Electric.

Rising investments in transmission and distribution infrastructure projects across developing economies will continue to drive the Surge Arrester Market Demand. Asia Pacific region accounted for the largest market share in 2021 owing to increasing industrialization and rapid urbanization.

Advancements in materials science have led to development of newly formulated zinc oxide compounds that boost the performance of surge arresters. Nanocoatings and 3D printing technologies are also being explored to enhance their thermal dissipation and withstand higher over-voltages.

Market Trends
Decentralized generation is a major trend driving investments in smart grid technologies. Surge arresters play a key role in safely integrating renewable energy sources like solar and wind into the grid.
Investments in medium voltage switchgear and metering infrastructure are also propelling the demand from utilities. Surge arresters protect sensitive electronic components in meters and controllers from voltage spikes.

Market Opportunities
Rising focus on microgrids and off-grid solutions in remote areas presents new growth prospects. Surge arresters provide robust protection for solar home systems, community power stations and mini-grids.
Adoption of Internet of Things (IoT) devices is another emerging opportunity. Surge arresters are necessary to safeguard IoT sensors and controllers installed outdoors from surges caused by lightning strikes.

Impact of COVID-19 on Surge Arrester Market Growth
The outbreak of COVID-19 pandemic has significantly impacted the surge arrester market. The imposition of lockdowns across major economies led to halt in construction and infrastructure development activities. This adversely affected the demand for surge arresters from utilities sector. Moreover, disruptions in the supply chain networks made it difficult for manufacturers to meet the supply requirements during the initial months of pandemic.

As economies are gradually opening up and business activities are resuming operations, the surge arrester market is projected to witness steady recovery over the coming years. Major focus on development of resilient grid infrastructure and integration of renewables is expected to drive the demand. Manufacturers are focusing on development of efficient and sustainable surge protection solutions to tap growth opportunities. Investments in T&D network expansion in developing nations would further aid the market expansion.

Adoption of advanced digital solutions and remote monitoring systems is emerging as a new trend. Market players are developing smart surge arrester solutions integrated with IoT and cloud computing. This enables condition monitoring of assets from remote locations. Focus on rural electrification programs in Asia Pacific and Latin American nations is likely to drive the post pandemic demand for surge arresters.

Concentration of Surge Arrester Market Value in Key Geographical Regions
The North America region accounts for a significant share in the global surge arrester market value. This is attributed to well-established T&D infrastructure and ongoing investments towards modernization of grid assets in countries like United States and Canada. Additionally, rising renewable energy installations are necessitating greater protection of grid components.

Asia Pacific represents the fastest growing regional market for surge arresters. Developing economies like China, India are heavily investing in grid upgradation and expansion of transmission networks. Rural electrification programs are further propelling the demand. Latin America and Middle East & Africa are also lucrative markets, driven by investments in new power generation facilities and inter-regional interconnectivity projects.

Fastest Growing Region for Surge Arrester Market
Asia Pacific region is projected to emerge as the fastest growing regional market for surge arresters over the forecast period. This growth can be attributed to factors like rapidly expanding power sector infrastructure, integration of renewable energy, and focus on rural electrification in major economies.

China dominates the Asia Pacific surge arrester market with significant investments planned for smart grid projects and modernization of aging assets. India is also presenting sizable opportunities backed by the country's commitment towards sustainable development and energy access for all. Other developing Asian countries like Vietnam, Indonesia, and Philippines are anticipated to offer substantial untapped opportunities with increasing power demand.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.

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