Surge Arrester Market Size, Share, Analysis & Trends | 2031

Report Description

The Surge Arrester market size was USD 1.93 Bn in 2021 and is likely to reach USD 3.37 Bn by 2030, expanding at a CAGR of 7.11% during 2022–2030. The market growth is attributed to the increasing disposable income and changing lifestyle of the working population.

A surge arrester is a protective device that protects an electrical power system by arresting surge currents brought by external or internal forces. The surge arrester includes two terminals, which are ground and high voltage. When the electric current travels through the surge arrester from the power system, the high voltage current travels directly to the insulation or else to the ground station to protect the system from damage.

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All electrical devices and appliances have a fixed voltage range. An electrical device is designed to operate inside electric systems without any harm, in which the group of operating voltages indicates the range of voltage for electrical devices. If the voltage received is high as compared to the voltage range, then the device may break down damaging the internal components or even blow up in the worst case.

Non-linear metal oxide resistors are commonly used surge arresters that come in silicone rubber or porcelain housing. These types of surge arrestors are fitted parallelly to the protected object with a connection to the earth grid. Surge arresters are usually classified into secondary surge arrester, station arresters, intermediate arresters, and distribution arresters.

A secondary surge arrester is rated under 1000V and provides additional surge protection in a house service transformer. A station arrester is used to handle the potential for high voltages. An intermediate arrester is used in small substations where there is a need for ground cable protection. A distribution arrester has the lowest capabilities for protection and they are only used in medium voltage network transformers that are cubicle-mounted and elbow.

COVID-19 Impact on Surge Arrester Market

The COVID-19 pandemic has negatively impacted the surge arrester market growth, due to the delay and cancellation of several surge arrester projects. The pandemic resulted in the prevalence of strict social distancing and restrictions as urged by the governments in various economies all over the world. Various industries reduced power demand during COVID-19, which impacted the growth of the market. With the relaxation in pandemic-related restrictions in recent years, several production and manufacturing industries have resumed their production again, which improves the surge arrester market.

Surge Arrester Market Dynamics

The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global surge arrester market analysis report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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Key Trends

Surge arresters are critical in transmission and distribution (T&D) networks to protect electrical equipment, which is installed in power lines, substations, and other electrical equipment. Increasing investments in transmission and distribution networks is the major factor boosting the market. According to the International Energy Agency, the global grid investment was around USD 2.3 Trillion from 2012-2019. The average annual investment is around USD 283 Billion during the same period. The expansion in transmission & distribution is expected to boost the surge in arrester demand for the market.

Drivers

Increasing Investments in Renewable Energy Projects

Increasing renewable energy integration in various industries and rising investments in renewable energy projects have grown in recent years. Various developed countries are slowly inclining towards energy power, which is facilitating the rise of renewable energy power technologies. Rapid technology breakthroughs lead to a decline in prices in the energy and power industries. Substations and connection points are the upcoming renewable energy projects. A substation is built in grid renewable energy installations to allow grid connectivity. Increasing investments and expansions in renewable energy projects are expected to drive the global market in the coming years.

Rise in Power Generation

The increasing demand for power generation and rising demand for power usage in various industries boost the global market growth. Rising concerns over depleting energy resources are expected to increase the production of electricity demand from non-renewable resources, which is anticipated to drive the growth of the market during the forecast period.

Restraints

Growing Competition from Unorganized Players

Major market manufacturers are facing fierce competition from unorganized market players, who are supplying low and cheap-quality products without a license. Small local players sell manufactured goods, which are made in-house, without obtaining proper authorization. The brand name of the big market players is being tarnished by the local supply market players as the grey market grows. Cheap quality goods are sold under big brand names, which makes it difficult for the global big market players to achieve success. Local market players are increasing their sales and profit, which hampers the growth of the global market.

Time Consuming

Power transmission and distribution projects are time-consuming and have long lead times, which are the major factor restraining the market. Distribution and power transmission take a longer period for large-scale projects. Manufacturing developments are challenging for the manufacturers, due to the continuous delays in grid expansion projects, which restrains the growth of the surge arrester market. 

Opportunities

The demand for electrical energy is increasing to assist global development, which requires heavy requirements in power supply generation. The global market has witnessed a rapid surge in arrester sales in recent years, due to the high adoption of these arresters in various industries. This is likely to offer increasing growth opportunities for the surge in arrester market players in recent years.

Scope of Surge Arrester Market Report

The surge arrester market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Surge Arrester Market Segment Insights

Which Major Factors Influence the Significant Growth of the Polymer Segment?

Based on type, the global surge arrester market analysis is divided into porcelain and polymeric. The polymer surge arrester segment holds the largest market share and is expected to dominate the market during the forecast period, due to its extensive suitability over the distinct voltage range.

As compared to porcelain, the demand for polymer surge arrester products is expected to stimulate, due to easy handling & installation, low manufacturing, reliable performance in challenging environments, and superior breaking resistance under overload conditions. Moreover, the growing demand for porcelain surge arresters from several industries to overcome the system faults and significant investments to enhance the existing electricity demand infrastructure is expected to improve the market business during the forecast period.  

The porcelain surge arrester segment is expected to witness significant market growth, due to its self-supporting and resistance to environmental aging features. Factors such as low raw material cost, mechanical strength, and capability to perform stable operations are expected to boost the porcelain surge arrester demand in the coming years. Various industry giants are constantly offering technological advancements along with material-technical maturity, which is expected to enhance their adoption during the forecast period.

What are Major Reasons for Rising Sales in High Voltage?

On the basis of voltage, the global market is segregated into high voltage, medium voltage, low voltage, and extra high voltage. The high voltage segment holds the largest market share and is expected to dominate the market during the forecast period.

High voltage devices are used to protect the installation and maintenance staff by allowing the device to be safely earthed. It has a wide range of applications in transformers, switchgear, and electricity line to project high voltage devices. The medium voltage segment is expected to boost both economic diversity and the need to protect heavy equipment from surge voltages. Demand for unmatched switchgear and transformers to replace and upgrade old systems is expected to spur the growth of the segment in the coming years.  

The low voltage segment is expected to witness a significant growth market, due to the increasing electrification of rural areas in developing economies. Low voltage systems are used in applications such as distribution transformers, consumer-in-house supplies, low voltage overhead lines, and other systems. The rapid expansion of residential establishments across the globe boosts segment growth.

What is Expected Growth Rate of the Commercial Segment?

Based on application, the global surge arrester market analysis is segmented into industrial, residential, and commercial. The commercial segment is expected to expand at a CAGR of around 8.50% in the coming years, due to the increasing demand for the deployment of electrical equipment and electrical appliances.  An increase in electricity generation and rising activities of replacing existing infrastructure of electricity with new one is estimated to fuel the segment in the coming years.

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What are Main Aspects for Boosting the Station Class Segment?

On the basis of class, the global market is divided into station class, distribution class, and intermediate class. The station class segment holds the largest market share and is expected to dominate the market in the coming years. When an electrical item takes an electrical current beyond its limit, it damages the electrical item and the system it is attached to.

Station class surge arresters are used to protect such electrical items from overvoltage and lighting. These power generators protect the equipment with a high voltage of over 20 MVA. High durability, outstanding strength, high-pressure capability, and improved contamination resistance are the significant aspects of station class, which boost the market.

The distribution class segment holds a significant market share and is expected to grow by around 7% in size in the coming years. The rising need for flexible distribution grids with enhanced protection and the low let-through energy & internal watt loss positively impacts the market growth. Increasing reliability and modification requirements of the outdated distribution networks demands the development of distribution systems that provides overvoltage protection and spurs the market.

How is Utility Segment Generating More Revenue Share in the Surge Arrester Market?

Based on end-user, the global surge arrester market is segregated into transportation, utility, and others. The utility segment is holding the largest market share and is expected to dominate the market in the coming years. The utility industry is the most common end-user for the market, due to the sheer magnitude of the electrical network controlled by the industry as compared to industrial and transportation infrastructure. Surge Arresters help in protecting utility electrical networks by keeping the voltage levels consistent, as utility systems usually operate at 25 thousand volts.

The industrial segment is expected to grow significantly during the forecast period. The widespread problems of voltage spikes and increasing attention toward power quality issues in industrialized economies are expected to significantly enhance the adoption of these units.  As the economy grows and develops, the electricity item in industrial energy is expected to increase the penetration of the system during the forecast period. 

What are Key Factors Driving the Asia Pacific Surge Arrester Market?

In terms of region, the global surge arrester market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to be the largest market share, due to the rising need for increased renewable energy generation capacity. Rising electricity demand in countries such as China and India to invest in transmission and distribution infrastructure boosts the market in the region. Increased investments in extra high voltage (EHV) and ultra-high voltage (UHV) transmission projects in Asia Pacific propels the market growth in the region.

North America holds the second-largest position in the global market. The significant growth of industrial and commercial sectors in the region as well as infrastructure activities are expected to increase the demand for new installations and replacements of electric systems. The US is anticipated to increase investments toward capital additions merged with rising security compliance standards in the utility sector and boost the growth of the market during the forecast period.

The surge arrester market in Europe is expected to expand by around 6% by 2025, due to surging investments toward the modernization of smart grid infrastructure. These investments are driven by strict European Union regulations related to grid deployment is expected to drive the market in the region. 

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