SURGE PROTECTION DEVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The surge protection devices Market size is valued at US$ 4.11 Billion in 2024 and is expected to reach US$ 7.39 Billion by 2031, growing at a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.

Surge protection devices are equipment used to protect electrical devices and systems from voltage spikes and electromagnetic disturbances. They monitor fluctuations in the power supply and divert excess current to the grounding wire to prevent damage to connected equipment. The growth in the market is driven by increasing demand from industrial sectors due to the need to prevent downtime and equipment failure.

The surge protection devices market is segmented by type end user, and region. By type, the market is segmented into hardwired surge protection devices, plug-in surge protection devices, line cord surge protectors, power control centers, and others. The hardwired surge protection devices segment accounted for the largest market share in 2023 the growth is attributed to their ability to provide dedicated protection for sensitive electrical systems and networks in industries.

Surge Protection Devices Market Regional Insights:

• North America is expected to be the largest market for surge protection devices during the forecast period, accounting for over 38% of the market share in 2024. The growth of the market in North America is attributed to the high adoption of surge protection devices in industrial and commercial sectors.
• Europe market is expected to be the second-largest market for surge protection devices, accounting for over 28% of the market share in 2024. The growth of the market is attributed to rapid industrialization and urbanization in emerging Germany, the U.K., Spain, France, Italy, and Russia

• Asia Pacific market is expected to be the fastest-growing market for surge protection devices, with a CAGR of over 9% during the forecast period. The growth of the market in Asia Specific is attributed to the presence of stringent standards for surge protection in the region.

Figure 1. Global Surge Protection Devices Market Share (%), by Region, 2024

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Analyst Viewpoint:

The Global Surge Protection Devices Market is experiencing growth driven by the heightened demand for safeguarding electronic devices across both residential and commercial sectors. As dependency on these devices escalates, the imperative to shield them from voltage fluctuations and power surges has intensified. The growing concerns about equipment safety among individuals and businesses will drive the demand for surge protection devices. Advanced economies are expected to sustain their large market share owing to the rapid adoption of new technologies. Meanwhile, developing economies in Asia Pacific and Latin America will see higher growth rates aided by expanding middle-class populations and infrastructure development.

However, the market also faces challenges from the growing availability of inexpensive counterfeit surge protection products, mostly originating from Asian countries. This can negatively impact sales of established brands and dampen demand. Fluctuating raw material prices may temporarily impact profit margins of manufacturers. Moreover, energy efficient appliances and renewable energy integration are slowly making conventional surge protection devices obsolete. This may open up opportunities for innovators to develop newer solutions for emerging power system needs. Dominant regional markets include North America and Europe, while China, India, and other Asian countries will dominate revenue growth over the next five years. Overall, the adoption of stringent safety regulations worldwide and growing market penetration into under-penetrated developing markets are expected to drive the global surge protection devices market.

Surge Protection Devices Market Drivers:

• Increasing demand from industrial sector: The industrial sector is expected to be a major driver for the surge protection devices market. Rapid industrialization and the adoption of automation technologies have increased the need for protecting sensitive electrical equipment and systems from voltage fluctuations. Industries such as oil & gas, power, manufacturing, and chemicals extensively use surge protection devices to minimize downtime and operational risks caused by surges. For instance, oil rigs, refineries, and pipelines rely on hardwired and power control center surge protectors to ensure smooth functioning of motors, pumps, generators, and other critical equipment. Similarly, manufacturing facilities utilize surge protection for Programmable Logic Controllers (PLCs), robotics, conveyors, and Heating, Ventilation and Air Conditioning (HVAC) systems. The demand is further driven by the growing emphasis on predictive maintenance and remote monitoring capabilities.

• Rising investments in renewable energy infrastructure: Investments in renewable energy infrastructure such as solar and wind farms are expected to stimulate the demand for surge protection devices. The integration of renewable energy into existing grids requires protection against surges and transients caused by weather disruptions and faults in power electronics equipment. Hardwired and plug-in surge protectors are being deployed extensively in solar and wind farms to safeguard inverters, transformers, switchgears, and cable connections. According to the European Union which has set a binding target of generating 32% of its energy from renewables by 2030, witnessed investment in new renewable energy capacity grow by 4% year-on-year to US$58.20 billion in 2021 as reported by BloombergNEF.

• Expansion of electric vehicle charging infrastructure: The rapidly growing electric vehicle market and initiatives to build EV charging networks across the globe are likely to propel the adoption of surge protection devices. High-powered fast EV charging stations rely extensively on surge protection to ensure uninterrupted operation. Surge protectors safeguard charging station components such as rectifiers, transformers, and power electronics from hazardous transients caused by grid fluctuations and lightning. For instance, by 2030, India targets a 30% share of EVs in new private vehicle registrations, equating to 80 million EVs, requiring 3.9 million public and semi-public charging stations to maintain a ratio of one station for every 20 vehicles.
• Development of smart city infrastructure: Smart city initiatives by governments worldwide focusing on the deployment of communication networks, smart power grids, and intelligent transportation systems are expected to accelerate the adoption of surge protection devices. Advanced power, lighting, and traffic control infrastructure require protection against voltage anomalies to reduce equipment failures. Moreover, smart meters, sensors, controllers, and IoT devices being deployed under smart city development programs also require surge protectors. According to the Multidisciplinary Digital Publishing Institute (MDPI) article, the integration of IoT in smart cities enhances infrastructure resilience by employing surge protection devices that safeguard critical electrical systems from voltage spikes, thus ensuring uninterrupted operation of transportation, utilities, and safety monitoring systems.

Surge Protection Devices Market Opportunities:

• Growing HVAC and building management systems market: The steadily rising global HVAC and building management systems market presents significant growth opportunities for the surge protection devices industry. HVAC systems contain complex controls, circuits, motors, and compressors that are highly susceptible to electrical surges. Hardwired and stand-alone protectors are being extensively integrated into HVAC equipment as well as building electrical service panels to safeguard them from voltage anomalies The market for heating, ventilation and air conditioning rose to US$467.36 billion at a 5.9% compound annual growth rate, according to the cooling industry of India. This is an encouraging indication for other markets, e.g. surge protection devices. The increase in HVAC and refrigeration market expanded deployment of electrical equipment, which necessitates reliable surge protection to safeguard the integrity of systems and ensure operational continuity.
• Rising investments in telecom infrastructure: Telecom networks consist of expensive equipment such as routers, switches, antennas, and controllers that are vulnerable to electrical surges, which can cause signal interference and downtime. Telecom providers across the globe are expected to upgrade their networks to 5G over the coming years. 5G infrastructure relies heavily on small cell towers with sensitive radio electronics that require surge protectors. According to Raycap news, Data and signal line surge protectors protect the data traveling on Power over Ethernet (PoE )lines and coaxial cables. They safeguard against surges traveling through communication lines. Moreover, the expansion of fiber optic networks to support 5G creates the need for high-performance protection against transients for terminal boxes and cabling. These trends are likely to provide growth opportunities for surge protection manufacturers.

• Growing rack power protection market for data centers: Surge protection devices such as rack PDUs integrated with panels, cords, and receptacles are vital for protecting mission-critical computing infrastructure in data centers. The surge in data center construction globally is expected to propel the adoption of rack-level protection solutions. Data center investments are estimated to exceed US$200 billion annually over the next few years. Colocation providers are also deploying more scalable prefabricated data centers consisting of modular surge-protected rack systems. According to data center dynamics, in the growing market for data center rack power protection, utilizing a knowledgeable design team is vital for optimal building envelope protection. Key considerations include the selection of bonding networks (Mesh-BN, Mesh-IBN, Atar), structural design specifics (metal column, embedded rebars), foundation electrode types, and strategic locations for pop-up points. Integrating these with incoming services like water and gas infrastructure ensures efficient and reliable surge protection for your data center assets.
• Residential sector demand growth: While the residential sector accounts for a relatively small share of the Surge Protection Devices market, it is expected to exhibit steady demand growth. Factors such as smart home automation, proliferating consumer electronics and appliance ownership, and DIY (Do it yourself) culture are catalyzing the adoption of plug-in and connected surge protectors. Advancements such as mobile app-based monitoring, predictive analytics, and smart features are likely to further encourage consumer demand. North America and Europe are likely to be key regional markets, while Asia Pacific holds long term growth potential. According to research by the United Nations Office for Disaster Risk Reduction, weather-related disasters have increased five-fold over the past 50 years, causing extensive economic damage. This highlights the growing need for robust surge protection devices among residential users as a means of mitigating financial losses during emergencies. With urban populations surging rapidly, the residential sector is expected to drive significant future gains for surge protection manufacturers by addressing risk mitigation needs.

Surge Protection Devices Market Trends:

• Integration with remote monitoring systems: The integration of surge protection devices with remote monitoring and predictive analytics is an emerging trend. Built-in sensors and IoT connectivity allow surge protectors to transmit real-time performance data to the cloud. Predictive analytics can help anticipate failures, while remote diagnostics enables timely maintenance. For instance, Schneider Electric is a multinational company specialized in the area of energy management and automation. In order to provide remote monitoring of overcurrent protection health, their EcoStruxure Power Monitoring Expert cloud based software is integrated with their RMC surge protectors. This minimizes downtime and avoids catastrophic failures by taking protection devices offline before they fail. Companies such as ABB, Eaton, Schneider Electric, and Siemens offer surge protection solutions with remote analytics capabilities.

• Rising adoption of integrated rack-level power systems: Integrated rack-level power systems combining Uninterruptible Power Supply (UPS), Power Distribution Unit (PDUs), and surge suppressors into unified rack enclosures are witnessing rising adoption in data centers and edge facilities. By consolidating multiple power protection capabilities, they enhance space utilization. Rack-based systems also allow for scalability to accommodate increasing power densities and computing capacity. Leading providers, including Vertiv, Schneider Electric, and Eaton, offer integrated rack systems combining lithium-ion UPS, intelligent PDUs and surge protection. The growing significance of edge computing and 5G networks will also contribute to this trend. According to the United Nations' 5G Study, over 20% of network transmission equipment is projected to shift from cellular towers to street-level infrastructure such as street lamps and traffic lights by 2025. These distributed edge locations will require robust rack-level power and protection systems for reliability and security. Thus, the rising popularity of integrated rack power solutions is expected to drive consistent demand for surge protection devices in 2024.

• Growing use of gas discharge tubes in low voltage applications: Gas discharge tubes are gaining traction as a compact, low-cost alternative to bulky Metal Oxide Varistor (MOVs) in low voltage residential, commercial, and Universal Serial Bus (USB) surge protection devices. Their high surge current rating, fast response time, and long service life make Global Descriptor Table (GDTs) effective for protecting consumer electronics and 120V AC power connections. Key suppliers, such as Littelfuse, offer a wide range of compact GDT-based surge protection solutions designed for role outlets, power strips, and USB chargers. According to statistics released by the European Semiconductor Industry Association in 2022, the use of GDTs grew by over 15% in telecommunication infrastructure and industrial controls from 2020 to 2021.

• Shifting preference for plug-in and portable surge protectors: End-users across residential, commercial, and industrial sectors are increasingly using plug-in and portable surge suppressors. Their ease of deployment, flexibility, and affordability provide cost-effective protection without requiring major electrical rewiring. Moreover, compact form factors allow plug-in protectors to be installed at multiple access points close to appliances. Portable protectors also enable temporary protection during events and outdoor activities. Leading brands offer surge strips with rotating or spaced outlets to accommodate transformers. According to the data published by the U.S. Bureau of Labor Statistics in 2022, the ownership of electronic gadgets per household in the country has increased by over 20% in the past five years. This underlines how surge protection has become a necessity in modern, digitally driven lives and environments.

Surge Protection Devices Market Restraints:

• Presence of low-quality and counterfeit products: The presence of low-quality and counterfeit surge protection devices poses a major challenge for the market. Inferior components and flawed designs limit their effectiveness in handling surges, leading to premature failures. To counterbalance the issues of inferior components and flawed designs in SPDs, manufacturers can invest in R&D for robust designs, employ stringent quality control, promote adherence to international standards, and offer comprehensive warranties to assure effectiveness and enhance consumer confidence in the surge protection device market. Strict quality control and after-sales support are crucial for suppliers to tackle this restraint.

• Lack of awareness among residential consumers: Many residential users remain unaware of electrical surge risks and the importance of protectors for consumer electronics and appliances. The lack of knowledge leads consumers to believe their equipment is already protected or underestimate potential hazards. Moreover, the notion that surges are infrequent discourages adoption. Suppliers need to enhance educational marketing by highlighting surge occurrence data and the potential costs of electronics damage to increase awareness. Lucrative warranty offerings also help attract consumers.

• High costs hampering adoption in developing regions: While industrial and commercial facilities drive most of the demand, the high costs of surge protection devices constrain adoption by smaller enterprises and residential users, especially in developing economies. Installing dedicated hardwired or power control center surge protection requires substantial upfront investment, which is challenging for budget-constrained end-users. Suppliers need to provide low-cost plug-in and portable protectors to suit developing world markets. Local manufacturing and partnerships with utilities for discounted offerings can improve affordability.

Recent Developments:                                                 

New product launches:

• In June 2023, Raycap is a technology innovator and manufacturer of connectivity, industrial surge protection, power management, and custom enclosure/cabinet solutions, launched a surge protection device for PV power systems and electric vehicle charging stations, ProTec PV Box 7y. It stands out as the most compact three-string solution available in the market, providing a notable advantage when it comes to installing solar panels on rooftops with limited space.
• In January 2022, Eaton Corporation plc is an American-Irish multinational power management company, announced the launch of its arc flash relay to enhance electrical safety. The product provides remote triggering and switching capabilities to reduce risks.

• In September 2022, Siemens is a German multinational technology conglomerate, introduced Sivacon S8 low-voltage switchboard with integrated surge protection. It optimizes plant availability and minimizes risks.

Acquisition and partnerships:

• In December 2023, Blackstone, the world’s largest alternative asset manager,announced that private equity funds affiliated with Blackstone have closed the acquisition of Power Grid Components, Inc. (“PGC”), is a leading domestic designer and manufacturer of a wide range of critical components for protection, monitoring, and safety applications in electrical substations, from Shorehill Capital LLC.
• In January 2021, Emerson provides the engineering services for industrial, commercial, and consumer markets has  acquired Progea Group is an international sales and distributor network, an industrial IoT company, to enhance its surge monitoring and predictive analytics capabilities.

• In November 2020, nVent connect and protect with inventive electrical solutions, acquired CIS Global, a provider of surge protection systems, to strengthen its position in critical infrastructure markets.

Figure 2. Global Surge Protection Devices Market Share (%), by End User, 2024

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Top companies in Surge Protection Devices Market:

• ABB
• Belkin
• Eaton
• Emerson
• General Electric
• Hubbell
• Littelfuse
• Mersen
• Schneider Electric
• Siemens

Definition: The surge protection devices market refers to the industry and products related to protecting electrical and electronic devices and systems from voltage spikes and electromagnetic disturbances. Surge protection devices monitor fluctuations in power supply and divert excess currents safely to the ground, preventing damage to connected equipment and infrastructure.

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