Surge Arrester Market is Estimated to Witness High Growth Owing to Rising Demand from the Utilities Sector

Surge arresters, also known as surge protective devices (SPDs), are installed across distribution networks as protective devices. They help safeguard electrical equipment by reducing voltage surges and diverting excess currents to ground. Surge arresters offer protection from transient overvoltages in electrical power systems that are caused due to events such as lightning strikes, switching operations, and load switching. Their demand is rising sharply in the utilities sector owing to stricter grid safety regulations being implemented across various countries.

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, GE, CG Power, Schneider Electric, Mitsubishi, and Line and Trench Systems.

Some Surge Arrester Market Opportunities include development of advanced surge arresters with improved features such as smaller size, lower response time, higher energy absorption, wider operating temperature range, longer life, etc. There is also demand for surge arresters that are suitable for use in renewable energy installations.

The surge arrester market is witnessing rapid global expansion, especially in Asia Pacific and Middle East & Africa regions driven by increasing investments in T&D network upgradation projects and new grid connections. Countries such as India, China, Saudi Arabia, United Arab Emirates are actively working towards strengthening their power infrastructure.

Market drivers

The main driver boosting the surge arrester market is the growing investments by utilities in grid upgradation and expansion projects globally. Ascertaining grid reliability has become a top priority for utilities in both developed and developing nations. Surge arresters provide critical protection to transformers and switchgear equipment against voltage surges, thereby helping reduce equipment downtime and maintenance costs. Ongoing construction of new transmission lines and substations also fuels the demand for surge arresters. Growing integration of renewable energy is another factor contributing to market growth as solar and wind farms require surge protection for safe grid integration.

PEST ANALYSIS

Political: Surge arrester market is influenced by government regulations concerning grid safety and investments in grid infrastructure. Regulations mandate installation of surge arresters at critical grid junctions to prevent grid failures.

Economic: Macroeconomic factors such as GDP growth, disposable income levels, investments in power projects impact demand dynamics of surge arrester market. Growth in power sector projects drives demand.

Social: Urbanization and rising electricity access across developing regions drive demand from power utilities. Surge arresters ensure reliability of power supply.

Technological: Advancements in material science enable development of compact and reliable surge arresters. Introduction of nano-structured materials improves energy absorption and durability of arresters.

GEOGRAPHICAL CONCENTRATION

The surge arrester market in terms of value is highly concentrated in Asia Pacific region. Countries like China, India and Japan have large installed base of transmission and distribution infrastructure which requires maintenance and installations of new surge arresters. Growing investments in power grid modernization and capacity additions across developing Asian economies contribute significantly to the revenues.

FASTEST GROWING REGION

The Middle East and Africa region is expected to witness highest growth in the surge arrester market during the forecast period. This can be attributed to ongoing and planned investments in power transmission and distribution infrastructure across African countries and GCC nations. The extensive grid expansion programs aimed at improving electricity access will drive new installations of surge arresters in the coming years.

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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.