Surge Protection Devices Market Trends

Growth Drivers

• EV charging expansion: The robust rise in electric vehicle registrations is anticipated to fuel the demand for advanced surge protection systems. The ongoing innovations in EV charging infrastructure are accelerating the applications of surge protection solutions. As per the analysis by the International Energy Agency (IEA), the global number of public EV chargers is projected to cross 16 million by 2030. This highlights lucrative earning opportunities for surge protection device producers.
• Industrial automation and Industry 4.0 trend: The rise in smart manufacturing practices and the Industry 4.0 trend is poised to fuel the deployment of advanced surge protection devices. The global smart manufacturing market is projected to increase at a CAGR of 12.9% during the forecast period. The booming demand for robotics and automated technologies is set to drive high sales of technologically advanced surge protection devices. As companies are employing PLCs and SCADA systems, the need for surge protection technologies is gaining traction.

Technological Innovations in the Surge Protection Devices Market

The technological advancements are set to double the revenues of surge protection device companies in the years ahead. The smart grid modernization is fueling the sales of innovative surge protection solutions. The table below highlights the adoption and outcome of surge protection devices.

AL and ML Integration in the Surge Protection Devices Market

The integration of AI and ML is poised to boost the productivity and effectiveness of surge protection technologies. The digital shift is driving end users to invest in AI and ML-powered surge protection systems. The table below reflects the integration of digital technologies and their outcomes.

Challenges

• Varying regulations: The inconsistent regulations are limiting the adoption of surge protection devices across the world. The distinct compliance standards are delaying the market entry of new products, which is directly hampering the profits of manufacturers. The mandatory certifications increase the compliance costs and create budgetary challenges for surge protection device producers. Thus, the increasing time-to-market and non-recurring engineering (NRE) costs are expected to hamper the overall surge protection device sales growth in the coming years.
• Domestic production trend: The vocal for local initiatives carried out by the majority of countries is expected to hamper the regional expansion of global surge protection device companies. Brazil, Russia, and Indonesia are more focused on favoring local manufacturing through sourcing mandates or import quotas. This is hampering the profit shares of leading companies as they are not able to earn lucrative gains from untapped markets.