Surge Arrester Market

Increasing investments in T&D networks are driving the market growth

Surge arresters are essential to protect electrical equipment in transmission and distribution networks. They are installed in substations, transmission lines, and other parts of electrical networks. One of the prime factors driving the surge arrester market is increasing investments in transmission & distribution (T&D) networks. Expansion and upgrade of T&D networks have a direct impact on market growth. 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.

Investment in electrical networks is necessary to meet the towering electricity demands reliably. With the growing electrification of traditionally non-electric sectors, such as transportation, due to the adoption of electric vehicles, the electricity demand is expected to further augment during the forecast period. This factor drives the Market CAGR.

Additionally, investments in renewable energy technology have increased during the last decade. Rapidly falling installation prices due to rapid technology breakthroughs and various countries converting to green energy power generation are assisting in the rise of renewable energy technologies. This is deployed in the upcoming renewable energy projects at connection points and substations. A substation is a built-in grid-connected renewable energy installation to allow grid connectivity. This is used in these substations. Globally, the proportion of renewable energy generation is expanding, and increased investment in renewable energy projects presents prospects for manufacturers.

Furthermore, energy network regulators' typical approach has been to avoid the risk of over-investing in well-meshed electrical systems, particularly in industrialized economies. Electricity is supplied by a few major utility-scale plants to meet slow-growing consumer demand. Thus, driving the lightning arrester market revenue.

The Global Surge Arrester Market Industry is projected to experience substantial growth in the coming years. With a market value of 2.72 USD Billion anticipated in 2024, the industry is set to expand significantly, reaching an estimated 4.03 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate (CAGR) of 3.64% from 2025 to 2035, reflecting the increasing demand for surge protection solutions across various sectors. The market's expansion is driven by factors such as technological advancements, rising infrastructure development, and the growing awareness of electrical safety.

Rapid urbanization and infrastructure development across the globe are propelling the Global Surge Arrester Market Industry. Governments are investing heavily in modernizing electrical grids and building new facilities, which require reliable surge protection systems. For example, the expansion of smart cities and the construction of high-rise buildings necessitate advanced surge arresters to protect sensitive electronic equipment. This infrastructure boom is likely to enhance market growth, with an anticipated increase in market value to 4.03 USD Billion by 2035, indicating a sustained demand for surge protection solutions.

The transition towards renewable energy sources is driving the Global Surge Arrester Market Industry. As countries invest in solar, wind, and other renewable technologies, the need for surge protection becomes paramount. For instance, the integration of solar panels and wind turbines into the grid necessitates robust surge arresters to safeguard equipment from voltage spikes. This trend is expected to contribute to the market's growth, with projections indicating a market value of 2.72 USD Billion in 2024, reflecting the urgency for protective devices in renewable energy installations.

The rapid expansion of telecommunication networks globally is contributing to the growth of the Global Surge Arrester Market Industry. As the demand for high-speed internet and mobile connectivity increases, telecommunication infrastructure is being upgraded and expanded. This growth necessitates the installation of surge protection devices to safeguard sensitive communication equipment from voltage spikes. The proliferation of data centers and mobile towers further emphasizes the need for reliable surge arresters. Consequently, this sector is expected to play a pivotal role in the market's expansion, ensuring the protection of critical telecommunication assets.

The growing awareness of electrical safety among consumers and industries is a key driver for the Global Surge Arrester Market Industry. As electrical systems become more complex, the risks associated with power surges are increasingly recognized. Educational campaigns and regulatory measures are prompting businesses and homeowners to invest in surge protection solutions. For instance, industries are mandated to comply with safety standards that require the installation of surge arresters in critical applications. This heightened awareness is likely to boost market growth, as more stakeholders prioritize the protection of their electrical systems.

Innovations in surge protection technology are significantly influencing the Global Surge Arrester Market Industry. The development of advanced materials and designs, such as metal oxide varistors and gas discharge tubes, enhances the performance and reliability of surge arresters. These advancements not only improve the efficiency of surge protection but also reduce maintenance costs for end-users. As industries adopt these cutting-edge technologies, the market is expected to witness a compound annual growth rate (CAGR) of 3.64% from 2025 to 2035, reflecting the growing preference for high-performance surge protection devices.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Surge Arrester market will dominate due to significant industrial and electrical infrastructural growth, projected to increase demand as replacements and new installations will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Surge Arrester Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Surge Arrester market accounts for the second-largest market share due to the Region's power generating, transmission, and distribution infrastructures being mature. The grid deployment business's growth will increase investments in modernizing the smart grid infrastructure due to more strict E.U. regulations. Further, the German Surge Arrester market held the largest market share, and the U.K. Surge Arrester market was the fastest-growing market in the European Region.

The Asia-Pacific Surge Arrester Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increase in their electricity generation to accommodate burgeoning populations. Moreover, China’s Surge Arrester market held the largest market share, and the Indian Surge Arrester market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Surge Arrester market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Surge Arrester industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s use in the Surge Arrester industry to benefit clients and increase the market sector. The Surge Arrester industry has offered some of the most significant advantages in recent years. Major players in the Surge Arrester market, including Siemens (Germany), G.E. Oil & Gas (U.S.), Hubbell (U.S.), Schneider Electric (France), Mitsubishi Electric (Japan), C.G. Power (India), NGK Insulators (Japan), ABB (Switzerland), Eaton (Republic of Ireland), Legrand S.A (France), Emerson Electric (U.S.), HAKEL spol. S r. (Czech Republic), Vertiv. (U.S.), T.E.

Connectivity (Switzerland), Lamco (India), Leviton Manufacturing (U.S.), Raycap Corporation S.A. (U.S.)., and others are attempting to increase market demand by investing in research and development operations.

Hitachi ABB Power Grids today announced that it will be evolving to become Hitachi Energy in October 2021. The decision to change the name has board and shareholder consent and coincides with the business' first anniversary since it started operations on 1 July 2020. Hitachi ABB Power Grids opened a new surge arrester factory in Xiamen, Fujian Province, east China, to address safety demand for transmission and distribution systems.

The headquarters of the Japanese multinational company Toshiba Corporation, also known as Toshiba and stylised as TOSHIBA, are in Minato, Tokyo. Toshiba to increase Polymer-based production. Toshiba announced that its current polymer-based capacity would nearly triple by April 2022. Toshiba ESS manufactures a surge arrester that protects electricity transmission/distribution infrastructure and equipment from lightning-induced overvoltage and operates circuit breakers for Hamakawasaki Operations in Japan.