Distribution Surge Arrester Market

Distribution Surge Arrester Market Size

The global distribution surge arrester market was at USD 543.1 million in 2024 and is estimated to reach the value of USD 921.5 million by 2034, growing at a CAGR of 5.3% from 2025 to 2034. Rise in reliable supply of electricity coupled with protection infrastructure from voltage transients and power grid modernization has resulted in an expansion of the market.

Utilities are prioritizing grid protection technologies, which has increased the adoption of patently advanced surge protection methods. The market growth is supported by strict regulatory requirements for power quality and system reliability. The U.S. Department of Energy announced a USD 13 billion investment in grid resilience and modernization programs under the Grid Resilience and Innovation Partnerships (GRIP) in October 2023, complementing the product penetration.

Infrastructure development in emerging economies is increasing the demand for distribution surge arresters. The market evolution is further supported by technological improvements, including polymer-housed arresters that deliver enhanced performance and durability. In 2023, CHINT Electric made available the NXU-II Surge Arrester, designed for AC440V. It ensures efficient protection of the incoming cabinets and electrical systems with reliable surge and lightning protection in residential, commercial, and industrial settings.

However, the market is affected by the volatility of the prices of the raw materials and disruptions in the supply chains. Participants are trying to strengthen their position in the market by focusing on new innovations, forming strategic alliances, and expanding to new regions. In December 2023, the European Commission funded electricity infrastructure projects with the amount of USD 642.47 million under the program Connecting Europe Facility (CEF).

Distribution Surge Arrester Market Trends

• The distribution surge arrester industry is experiencing important trends, including increasing adoption of polymer housed arresters due to their lightweight, high durability, and good insulating properties. In 2023, the U.S. DoE invested USD 220 million in the Grid Modernization Initiative to infrastructure improvements that included cost enhancement of surge protective devices.
  
• Moreover, the increasing adoption of smart grid technologies is driving the need for intelligent surge protection devices with advanced real-time monitoring and reporting features. The development of green arresters that reduce environmental impact is being driven by ecosystem factors.
  
• The growth of installations for renewable energy sources is increasing the need for surge protection devices for grid stabilization purposes. In 2024, with the spending of USD 324.60 billion, REPowerEU planned for grid infrastructure modification and surge protection systems deployment with renewables integration.
  
• The implementation of digital and IoT-enabled monitoring systems improves predictive maintenance capabilities, reduces system downtime, and enhances operational efficiency. Companies in the market are focusing on research and development to develop cost-effective, high-performance products, while industry consolidation through mergers and acquisitions continues to reshape the competitive environment.
  
• For instance, the U.S. Department of Energy (DOE) Advanced Research Projects Agency-Energy (ARPA-E) made an award of USD 147 million for 49 projects aimed at developing spectacular technology innovations that will bolster America’s energy future in January 2025.
  

Distribution Surge Arrester Market Analysis

• The voltage segment of distribution surge arrester industry includes low and medium voltage, which shows significant developments due to grid modernization and reliability enhancement initiatives. The market was valued at USD 470.7 million, USD 506.7 million and USD 543.1 million in 2022, 2023 and 2024 respectively.
  
• Furthermore, there is an expected increase in the integration of renewable resources and electric power utilities within the medium voltage category, which is expected to reach over USD 555 million by 2034, as a means of protection against the risks of transient over voltage.
  
• Surge protection for electronics and complex equipment by residential, commercial, and industrial clients continues to drive the low voltage segment growth. VAL-SPP series surge protective devices launched by Phoenix Contact in 2024 are highly reliable and safe with an advanced level of system safety features including disconnection miswiring protection and reinforced insulation while operating in extreme conditions up to 5,000 meters for AC and PV applications.
  
• Both segments reveal higher market penetration of smart polymer housed arresters with enhanced mechanical strength and dielectric strength. The market also indicates the purchase of advanced smart surge protective devices with monitoring features that allow for predictive maintenance to reduce service interruption and other downtimes. Industries strive to deliver economically viable solutions that still meet the expected performance standards on the grid.
  

• The material segment in the distribution surge arrester market highlights diverse trends across polymer and porcelain segments. The porcelain segment held the market share of 51% in 2024 and is projected to grow at over 4.5% CAGR till 2034.
  
• Surge arresters made from polymers are becoming more accepted in the market as they are lightweight, mechanically strong, and resistant to dirt and weather. They are easy to install, which is beneficial to adoption rate in renewable energy sources and in urban power distribution systems.
  
• In 2024, Japan planned to increase its share of renewable energy from 10.4% in 2011 to 21.7% in 2022, with a target of 36 to 38% by 2030. Efforts include rooftop solar expansion and offsite power purchase agreements, which creates a growth scenario for the polymer surge arrester market.
  
• Porcelain surge arresters maintain their position in applications that require mechanical robustness and thermal stability, particularly in substations and industrial environments. The use of composite insulation technology enhances the efficiency and economizes the construction of polymer arresters.
  
• In order to meet the requirements of current grid shielding standards, manufacturers focus on research and development that enhances the efficiency and longevity of the products. In 2024, Germany planned to allocate an annual investment of USD 36.77 billion towards the strengthening of electricity grids to achieve climate neutrality by 2045, assigning portions of the budget to both transmission and distribution grids.
  

• The U.S. distribution surge arrester market has experienced significant growth in 2022, 2023 and 2024 and was valued at USD 80.2 million, USD 86.5 million and USD 92.8 million respectively. The U.S. market is estimated to exceed USD 155 million by 2034.
  
• The increasing focus on the incorporation of renewable energy and the investment of smart technologies into the electric grid is what drives the market. Utilities are adopting polymer housed arresters to improve performance and durability. In the U.S., approximately 25% of the electricity is generated from renewable sources in 2023, which indicates the surging demand for the arresters.
  
• The integration of IoT-enabled monitoring solutions improves predictive maintenance capabilities. Regulatory requirements and extreme weather conditions increase the need for advanced surge protection solutions.
  
• The distribution surge arrester market in Europe grows due to grid reliability regulations, renewable energy adoption, and smart grid expansion. Germany strengthens its leadership position with its market through the deployment of its energy transition programs, modernization of the power infrastructure, and investments made in surge protection systems.
  
• By the end of 2023, Germany aims to improve its transmission grid’s range from 440 km to 900 km with a goal of reaching 4,400 km by 2025, in order to better link wind power located in the north with industrial centers located in the south and west.
  
• The Asia Pacific surge arrester market is driven by urbanization, expansion of the grid, and a growing demand for electricity. China dominates the regions market share due to the increasing investments in transmission and distribution of networks, the rising use of renewable energy, and supporting government policies pertaining to grid surges and resiliency programs. For instance, The National Energy Administration of China announced a USD 391 billion investment plan for grid infrastructure enhancement in 2023.
  
• The Middle East & Africa distribution surge arrester market grows through power infrastructure investments, electricity demand, and grid protection requirements against weather conditions. Saudi Arabia continues its dominance in the market through utility projects, government-backed power outage protection systems, and the development of renewable sources of energy.
  
• In 2024, Public Investment Fund (PIF) signed three Envision Energy, Jinko Solar, and TCL Zhonghuan Renewable Energy for the localization of wind turbine and solar component manufacturing in Saudi Arabia which supports renewable goals of Vision 2030.
  

Distribution Surge Arrester Market Share

The top 6 firms in the distribution surge arrester industry include ABB, Eaton, Siemens Energy, Hubbell Power Systems, MacLeand Power Systems, and Hitachi Energy, which collectively have a market share of over 38% in 2024. These companies sustain their market share through portfolios with complete surge protection products, advanced technologies, and international scope in marketing surge protection devices.

ABB Ltd. maintains a substantial market share in the distribution surge arrester segment through its worldwide operations, diverse product range, and ongoing development of electrical components, including surge protection devices.

The company's established reputation for delivering reliable and high-quality products strengthens its market leadership. In April 2024, ABB invested in GridBeyond to enhance its AI-driven energy management solutions, optimizing distributed energy resources and industrial loads to support customers' net-zero transition.

Distribution Surge Arrester Market Companies

Major players operating in the distribution surge arrester industry are:

• ABB
• AK Power Solutions
• CHINT Group
• CG Power & Industrial Solutions
• DEHN
• Eaton
• Elektrolites
• Elpro
• Ensto
• General Electric
• Hubbell
• Izoelektro
• MacLean Power Systems
• Nanyang Jinniu Electric
• Orient Electric International Group
• Rex Power Magnetics
• Siemens Energy
• Surgetek
• TDK Electronics
• TE Connectivity

• Eaton’s distribution surge arresters excel in reliability and performance. With the company’s global presence, its solutions to surge protection can be deployed everywhere, which improves grid resilience on a global scale. In 2022, Microsoft and Eaton established a partnership to build grid-interactive data centers that combine degrees of efficiency, stability, and sustainability with intelligent power management and cloud technology.
  
• Siemens Energy makes surge arresters for the most commonly used voltage levels in distribution. The products serve both utility and industrial customers as they protect electrical infrastructure from transient overvoltage events through the company’s established distribution networks. In 2024 Siemens introduced a new software product that allows for increased digitization and improves the stability of low voltage grids.
  
• Hubbell Power System designs surge protection equipment intended for longevity within a power distribution network. In 2024 they recorded net sales of USD 5.6 billion USD. They attribute their profits to robust product development and quality standards for their surge arresters that shield them from lightning and switching surges.
  
• MacLean Power Systems focuses on reliability in surge arrester applications and manufactures protection devices tailored for distribution networks. Their products are used by utilities and industrial operators for infrastructure overvoltage protection. Centerbridge Partners purchased a majority equity stake in MacLean Power Systems in October 2022. The goal of this partnership is to accelerate MPS’s production of engineering items for transmission, distribution, substations, and communications infrastructure.
  
• Hitachi Energy creates solutions for surge protection in power distribution systems. Understanding the systems’ electrical components, the company’s surge arresters reduce system downtimes while enhancing stability, all in the focus of sustainable technologies. To aid in reducing wildfire threats, Hitachi Energy created the Wireless Spark Prevention Unit (SPU) Indicator in 2022 so that surge arresters could be monitored remotely, thus improving resiliency of the grid.
  

Distribution Surge Arrester Industry News

• In March 2025, Siemens Smart Infrastructure and Reactive Technologies partnered to improve grid resilience through the integration of Reactive's GridMetrix technology with Siemens' Gridscale X software (PSSE). This collaboration offers insight into grid inertia and system strength, allowing operators to effectively mitigate power outages and increase renewable energy integration.
  
• In October 2024, DEHN launched the DEHNguard EZ50-S protects NEMA 4X equipment from surges with Type 1 service and maintenance made easy. This device offers unparalleled surge protection, making it optimal for use in industrial and commercial systems, data centers, energy systems, and even EV charging stations. It also improves the reliability of a system while minimizing ever-increasing outages. This solution effectively reduces costs by providing strong AC power protection to critical systems to maintain proper functionality.
  
• At InnoTrans 2024 in October, Hitachi Energy unveiled new transformers featuring built-in surge arresters designed to improve overall reliability and reduce the incidence of failures. With the arrestors in place, the windings of the transformer are protected from damaging voltages. This results in reduced resistance to failure, collateral damage, and prolonged periods of downtime. This advancement is utilized in power systems of metros across India and Europe where stability is needed under severe conditions.
  

This distribution surge arrester market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million & ‘000 Units” from 2021 to 2034, for the following segments:

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Market, By Voltage

• Low
• Medium

Market, By Material

• Polymer
• Porcelain

Market, By Application

• Residential & commercial
• Industrial
• Utility

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
• Latin America
  • Brazil
  • Argentina