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

Market Challenges And Opportunities

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 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.