Surge Protection Devices Market to Reach $4.27 Billion By 2028

According to a recent report published by Allied Market Research, titled, “Surge Protection Devices Market By Type, Power Range, Component, and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2028,”. The global surge protection devices market size was valued at $2.81 billion in 2020, and is projected to reach $4.27 billion by 2028, growing at a CAGR of 5.4% from 2021 to 2028. The hard-wired devices and line chord devices segment collectively accounted for nearly half of the market share in 2020 and is expected to maintain this trend during the forecast period.

The key factor that drives the surge protection devices market share includes increase in demand for usage of electrical and electronics appliances in commercial & residential sectors. High costs incurred due to electrical equipment downtime have also encouraged the adoption of SPDs as it provides safety in industries and in the domestic sector. 

The key factors that hamper the surge protection devices market growth of this market are low awareness among small scale manufactures and competition from uninterrupted and non-fluctuating power supply systems. The opportunity lies in the increasing awareness for the need of whole house surge protector, rapid industrialization, and power supply issues in developing countries.

Based on product type, it is further fragmented into plug-in devices, hard wired devices, line cord device, and power control center. Among all product types, line chord devices were the highest revenue generating segment that accounted for $687 million in 2020. However, the hard-wired device segment is expected to witness the fastest growth at a CAGR of 6.40% during the forecast period.

According to surge protection devices market trends, the commercial segment is the fastest growing application segment, to register a CAGR of 6.80%, during the forecast period. However, the industrial segment is the highest revenue-generating segment that accounted for $1092.4 million in 2020.

Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America was the highest revenue-generating segment that was valued at $837.9 million in 2020. This region is further expected to attain a market value of $ 1223.5 million by 2022, to grow at a CAGR of 4.90%. Moreover, North America is expected to maintain its dominant position during the forecast period. Europe and Asia-Pacific are the second and third leading regions of the surge protection devices market, respectively.

Covid-19 Impact Analysis

COVID-19 has caused the overall semiconductor industry to mobilize quickly and make short-term decisions with long-term implications. Semiconductor companies operate in a complex ecosystem, working across the value chain with numerous raw materials, assembly, test, package, and equipment suppliers & partners across the globe. 

Demand from the wireless communication segment is expected to increase, owing to factors such as rise in broadband usage, higher demand for cloud services, and video streaming. In addition, in the medium to long term, COVID-19 is expected to further drive the demand for digital transformation and technologies, such as 5G, IoT, AI, and intelligent edge computing, for future optimization.

Some of the power surge protectors manufacturers have witnessed temporary delays in surge protection devices production, increased costs, and revenue losses due to the pandemic. 

The manufacturing sector witnessed severe loss, and thus no new orders have been placed during the pandemic. In addition, this impact is estimated to continue till 2021. Moreover, international consumer electronics and electric devices markets are in a very weak state, owing to lockdowns imposed to tackle the pandemic. Although the markets in the U.S. and Europe witnessed mild recovery in the second half of 2020, they are still significantly down on pre-crisis levels. Therefore, the surge protection devices market is facing major obstacles from the emergence of COVID-19 pandemic. 

The overall impact of the pandemic is impacting the production process of several industries, including semiconductor and electronics. Trade barriers are further constraining the demand and supply outlook. As governments of different countries have already announced total lockdown and temporary shutdown of industries, the overall production process is adversely affected.

Key Findings Of The Study

• The industrial segment is projected to be the major end user during the forecast period. 
• Asia-Pacific and North America are expected to dominate the surge protection devices market analysis.
• Asia-Pacific is anticipated to witness highest growth rate during the forecast period.
• U.S. was the major shareholder in the North America surge protection devices market.

The key players profiled in this report include ABB Ltd, Belkin International, Eaton Corporation, Emerson Electric Co., General Electric Company, Hubbel Incorporated, Littelfuse Inc, Mersen, Schneider Electric Co., and Siemens AG. These key players have adopted several strategies, such as new product launch & development, acquisition, partnership & collaboration, and business expansion, to increase their footprint in the surge protection devices industry during the forecast period.