Surge Protection Devices (SPD) Market Analysis By Product Type (Type 1, Type 2, Type 3, Type 4), By Power Rating (0-50 kA, 50.1-100 kA, 100.1-200 kA, 200.1 kA & Above), By Application, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global Surge Protection Device (SPD) market size was estimated at USD 1.97 billion in 2016 and is expected to gain traction over the forecast period. The devices enable reduction in electrical equipment downtime and losses incurred due to downtime. The increasing need to safeguard expensive electrical equipment from unexpected electrical surges is expected to drive the market growth.

Global warming has caused significant irregularities in climatic conditions across the globe. These irregularities have increased lighting incidences that cause surges. The intensity of power surges induced by lightning is high, as compared to the other power surges. Thus, the demand for SPDs is expected to increase over the forecast period.

North America surge protection devices market, by application, 2014 - 2025 (USD Million)

High voltages cause early failure of electrical equipment. Smaller surges, on a regular basis, steadily erode electrical components and pose a significant threat to electrical systems. A failure or malfunction in an electrical equipment leads to high financial and operational losses, thereby, affecting the profitability of an organization. These factors are predicted to drive the SPDs market over the forecast.

There is a lack of awareness regarding the benefits of SPDs. This reduced popularity, among consumers, especially in emerging economies, such as India, Mexico, and Brazil, is hindering their growth. As these countries have considerable industrial setups and growing infrastructure investments, a good perception of the benefits is anticipated to increase the growth prospects of the market.

Product Type Insights

The type 1 segment is projected to be the fastest-growing product segment and was valued at USD 478.7 million in 2016. The need to protect electrical equipment, used in newer applications such as solar plants and smart grids, from lightning surges is expected to foster the market growth over the forecast period.

The increasing spending of consumers has propelled the sales of electronic devices such as personal laptops, printers, television, microwave devices, washing machines, and so on. As these electronic devices are sensitive to electrical surges, type 3 SPDs are predominantly used for their protection. Thus, the demand for type 3 SPDs is expected to increase over the forecast period.

Power rating Insights

The power rating factor is one of the critical and the most misunderstood parameters. “Higher the power rating better the surge protection” is one of the most common misunderstandings among the users. An appropriate power rating for a particular location provides the necessary protection and secures cost benefits for users.

The use of higher rating SPDs, such as 100.1 kA and above, is only feasible for applications that are less sensitive to price and are subject to regular high power surges, as SPDs with 50.1-100 kA power ratings are capable of providing the necessary protection and longevity. Thus, the 50.1-100 kA power rating segment is presumed to emerge as the fastest-growing segment and gain traction over the forecast period. It is projected to register a CAGR of 7.4% from 2017 to 2025.

Application Insights

The industrial application segment held the largest market size and was valued at USD 657.2 million in 2016. It is expected to grow at a CAGR of 6.5% over the forecast period. Technological advancements have significantly improved the prevailing manufacturing techniques. The industrial sector has widely supported the use of heavy machinery, automation systems, and high-end electronics to gain higher operational efficiencies. The companies using such electrical equipment are subject to power line abnormalities or heavy lightning that may lead to breakdown of the equipment. Such breakdowns damage the equipment and incur additional costs to the company. Thus, the demand for SPDs has increased and is expected to continue to grow over the forecast period.

Surge protection devices market, by product, 2016

The residential segment is one of the fastest-growing segments, owing to the growing sales of consumer electronics products. Consumers are increasingly spending on comfort and convenient electronics products, owing to their increased purchasing power. Thus, the need to safeguarding expensive electronics from power spikes or surges is expected to fuel the growth of this segment.

Regional Insights

In 2016, North America accounted for a significant share of 39.5% in the global market and is expected to grow at a CAGR of over 5.8% over the forecast period. The region comprises several U.S. states, such as Florida, Louisiana, Mississippi, and Alabama, which are highly prone to lightning strikes. Thus, there is a widespread awareness of the benefits of SPDs, which is anticipated to drive the growth of the market in this region.

Asia Pacific is presumed to emerge as the fastest-growing region with a CAGR of over 7.8% from 2016 to 2025. The growing number of data centers and presence of large-scale electronics manufacturing companies are anticipated to drive the region’s growth.

Competitive Insights

The market is characterized by the presence of dominant players such as ABB Ltd., CG Power and Industrial Solutions Limited, Eaton Corporation PLC, Emerson Electric Co., and General Electric. These market players possess advanced technological capabilities that aid them in achieving high-quality products with required standard specifications. The industry players are primarily focusing on developing sophisticated and innovative products (based on extensive research & development). For instance, in October 2016, Eaton Corporation launched the SPC series, its new surge protection devices. These devices offered configurable surge protection (for industrial and commercial applications), operational flexibility, and ease of maintenance & replacement. The market is competitive with most of the players focusing on enhancing their product portfolios, as quality of the product is the key aspect of this market.

Reports Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the surge protection devices market based on product types, power ratings, applications and regions:

• Product Type Scope (Revenue, USD Million; 2014 - 2025)

  • Type 1

  • Type 2

  • Type 3

  • Type 4

• Power rating Scope (Revenue, USD Million; 2014 - 2025)

  • 0-50 kA

  • 50.1-100 kA

  • 100.1-200 kA

  • 200.1 kA and Above

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • Commercial

  • Data Center

  • Industrial

  • Medical

  • Residential

  • Telecom

  • Transportation

  • Other End-Uses

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa (MEA)