Surge Protection Devices Market Size, Share & Trends Analysis Report By Product  (Hard-wired, Plug-in, Line Cord, Power Control Devices), By Type  (Type 1, Type 2, Type 3, Type 4), By Power Rating  (0-50 kA, 1-100 kA, 1-200 kA, 1 kA and Above), By End-use  (Commercial Complexes, Data Center, Industries and Manufacturing Units, Medical, Residential Buildings and Spaces, Telecommunication, Transportation, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global surge protection devices market size was valued at USD 2.6 billion in 2022 and is projected to reach USD 5.2 billion by 2031, registering a CAGR of 8.2% during the forecast period (2023-2031).

Surge protection devices (SPDs) are electrical devices that safeguard electronic equipment and systems from transient voltage spikes or surges. These surges can be caused by various sources, including lightning strikes, power grid oscillations, or switching operations, and they can potentially destroy sensitive devices. Surge protection devices prevent damage and ensure the safety and dependability of electrical systems by diverting excess voltage away from connected equipment.

The increased need for surge protection devices to protect the new, innovative electrical and electronic gadgets being installed in homes and businesses is attributable to the increase in the surge protection devices market share. Other factors projected to boost demand include ambitious alternative energy programs being pursued worldwide, rising operational expenses caused by power quality issues, and frequent equipment breakdowns. Surge protection devices' capacity to reduce electricity bills by reducing the power utilized by gadgets is also predicted to play a significant role in driving market expansion throughout the forecast period.

Market Dynamics

Global Surge Protection Devices Market Drivers:

Increasing Dependence on Electronics and Technology

The increased use of electronic gadgets in daily life and across industries has increased demand for surge protection systems. For example, manufacturing plants in the industrial sector rely largely on automated procedures and sensitive electrical equipment. A voltage surge can disrupt production, cause equipment damage, and cause downtime. The Consumer Technology Association (CTA) estimates that the consumer technology industry in the United States will produce USD 505 billion in retail revenue in 2022. As customers make larger investments in expensive electronic items, the necessity to protect these investments from voltage surges becomes more evident, driving up demand for surge protection devices in the residential sector.

Additionally, the increasing reliance on electronics and technology in both industrial and consumer contexts is a primary driving force in the surge protection device industry. The increasing use of electronic equipment in many businesses and families raises awareness of the significance of surge protection, pushing surge protection device adoption.

Global Surge Protection Devices Market Restraints:

High Initial Cost

The relatively high upfront costs associated with purchasing and installing surge protection devices are one of the key hurdles in the market. In industrial settings, for example, installing surge protection devices includes the devices’ cost and the costs of proper wiring, grounding, and integration with existing electrical systems. This can be a substantial expenditure, particularly for large production operations. Installing surge protection devices correctly necessitates knowledge of electrical systems. Poor installation may result in diminished effectiveness or harm the protected equipment because of this intricacy. To ensure correct installation, businesses may need to hire specialized electricians or technicians, which can increase the entire cost. According to an ESFI survey, poor electrical installations, including surge protection devices, accounted for many electrical mishaps in industrial and residential settings. This illustrates the difficulties in assuring correct installation and the risks of poor protection.

Global Surge Protection Devices Market Opportunities:

Increasing Adoption of Smart Grids and IoT Devices

The surge protection devices market is poised for significant development as smart grid adoption and the Internet of Things (IoT) ecosystem expand. Smart grids are modern electricity distribution systems that use advanced technologies to efficiently and effectively control electricity supply. To monitor and manage energy flow, these grids use a variety of sensors, communication networks, and control systems.

According to IoT Analytics, the number of linked IoT devices worldwide will reach 30.9 billion by 2025. The increased proliferation of IoT devices needs the development of effective surge protection systems to protect these devices from abrupt voltage spikes. The demand for reliable surge protection devices grows as smart grids and IoT ecosystems increase. Surge protection device manufacturers can capitalize on this potential by designing solutions suited to the specific needs of smart grids and IoT deployments. These solutions help ensure the smooth and secure running of key infrastructure and connected devices, propelling the surge protection devices market forwards.

Regional Analysis

The global surge protection devices market is analyzed in North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is predicted to rise at a substantial CAGR of 8.4% throughout the forecast period. The other subcategories of the Asia-Pacific surge protection devices market include China, Taiwan, Japan, and the rest of the region. As a result of sustained economic expansion and increasing urbanization, the construction of hospitals, offices, large retail establishments, and theatres has increased. The governments of the Asia-Pacific region encourage the expansion of airport infrastructure and the development of smart cities. As a result, growing tourism, smart city projects, and construction activity in the region's residential, commercial, and industrial sectors fuel the demand for surge protection devices. The rise can be ascribed to an increasing understanding of the benefits of SPDs in nations such as China, India, and Japan.

Furthermore, rising disposable income levels in the Asia-Pacific area allow individuals to spend on premium consumer gadgets such as LED television sets, washing machines, and refrigerators, among other things. The emphasis on smart manufacturing practices is a prominent trend influencing the market. According to IBEF data, the Government of India set an ambitious objective of boosting manufacturing production contribution to GDP to 25% by 2025, up from 16%. The Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Udyog Bharat 4.0 program aims to raise awareness about Industry 4.0 in the Indian manufacturing industry and assist stakeholders in addressing smart factory concerns. Over the projected period, the significant consumer attention on securing these devices is expected to boost regional market expansion.

North America holds a sizeable global market share and is expected to boost at a CAGR of 8.1% during the forecast period. The region is known for being an early user of cutting-edge technologies. The region also has a high level of awareness regarding the benefits of SPDs. In the United States, residential and commercial power use accounts for around 37% of electricity usage. The United States also has states like Florida, Louisiana, Mississippi, and Alabama prone to lightning strikes. As a result, the use of SPDs to safeguard electronic appliances against rapid energy swings is widespread in these states. As a result of all of these factors, North America has emerged as the largest regional market. Furthermore, the widespread adoption of smart homes and the growing demand for electric cars (EVs) are boosting the demand for surge protection in residential and charging infrastructure. The risk of voltage spikes injuring smart appliances, home automation systems, and EV charging stations grows as homes install them.

Europe is one of the largest markets for surge protection device growth. Increased automation investment and rising use of domestic electronic equipment will drive demand for surge protection devices. A German manufacturing facility specializes in precision machinery for export. They rely on sensitive electronic equipment and automated manufacturing procedures to ensure the excellent quality of their products. Surge protection devices are installed at various places in their electrical infrastructure to protect their equipment from voltage fluctuations and power surges. This preventive approach ensures that their machinery runs consistently and reduces the chance of costly disruptions.

Segmental Analysis

The global surge protection devices market is segmented based on type, product, end-user, power ratings, and region.

For better understanding, type is further segmented into Type 1, Type 2, Type 3, and Type 4.

Type 2 holds the major share of the market.

Type 2

Surge protection devices of type 2 are intended to guard against indirect lightning strikes and other transient voltage surges. They are commonly found in interior applications such as computers and home appliances.

Type 1

Surge protection devices of type 1 are intended to guard against direct lightning strikes. They are primarily utilized outside, such as electricity lines and telecommunications equipment.

Based on product, the market can be categorized into Hard-wired, plug-in, line cord, and power control devices.

Hard wired owns the highest share in the market.

Hard-wired

These surge prevention devices are permanently installed in a building's electrical system. They are usually built into the main electrical panel or distribution board. Hard-wired SPDs provide a centralized and robust method for safeguarding a facility's electrical network from surges. They are frequently employed in industrial environments, commercial structures, and huge residential complexes.

Plug-in

Plug-in surge protectors are simple to install and can be inserted into regular electrical outlets. They safeguard individual outlets as well as the gadgets hooked into them. Plug-in surge protectors are a practical solution for homes and small companies that require localized surge protection for certain devices or equipment.

By end-user, the segment can be further bifurcated into Commercial complexes, data centers, industries and manufacturing units, medical facilities, residential buildings and spaces, telecommunication infrastructure, transportation systems, and other categories.

Industries and manufacturing units led the market.

Industries and manufacturing units

Manufacturing plants house various gear and equipment, many susceptible to electrical surges. Surge protection is critical for preventing production process disruptions and consequent machine damage.

Commercial complexes

Surge protection is critical for commercial structures such as office buildings, retail stores, and shopping malls. These complexes frequently include sensitive electronic equipment, such as computers, servers, and point-of-sale systems requiring surge protection.

Based on power rating, the market is sub-segment into 0-50 kA, 50.1-100 kA, 100.1-200 kA, 200.1 kA, and Above.

100.1-200 kA is the major income generator in the market.

100.1-200 kA

This category of surge protection devices is designed for more demanding industrial and commercial applications. These devices can manage higher surge currents and protect larger electrical systems, such as those in factories, manufacturing plants, and larger office complexes.

50.1-100 kA

This category includes devices that have a higher capacity to handle medium-level surges. Such devices are frequently used in commercial and industrial settings where the electrical networks are more sophisticated and may include vital equipment that requires powerful voltage spike protection.

Recent Developments

• August 2023- Schneider Electric introduced Managed Security Services for operational settings.

• July 2023- ABB and Microsoft collaborated to introduce generative artificial intelligence to industrial applications.

• August 2023- GE Vernova acquired Greenbird to accelerate GridOS® innovation and assist utilities in reducing the complexity of energy data integration.