Market Trends of North America Surge Arresters Industry
This section covers the major market trends shaping the North America Surge Arresters Market according to our research experts:
Industrial Segment to Witness Significant Growth
- Surge arresters are widely utilized in a large number of residential, commercial, and industrial applications. Among them, the industrial application segment holds the largest share of demand.
- The North American region is home to one of the largest industrial manufacturing globally, especially in terms of automobiles, aerospace, and defense equipment. Such industrial facilities consist of expensive equipment, some of which are sensitive to power surges, which need to be protected due to aging transmission and distribution networks.
- The industrial sector accounted for 36% of total end-use energy consumption and 33% of the total energy consumption in the United States, signifying a large industrial segment in the country and a large market for surge arresters.
- In March 2022, Samsung Electronics picked Taylor, Texas, as the location for a new USD 17 billion plant to make advanced chips for mobile, 5G, etc. The construction is expected to start in the first half of next year, and production will start in the second half of 2024. The plant will employ surge arresters to protect sensitive equipment from power surges and aid in the growth of the market in the region during the forecast period.
- Further, in March 2022, Stellantis and LG Energy Solutions announced an investment of USD 4.1 billion through a joint venture to establish the first large-scale domestic electric vehicle battery manufacturing facility in Canada, with the operations to begin in the first quarter of 2024. Manufacturing of electric vehicle batteries requires mission-critical equipment sensitive to power fluctuations. Thus, surge arresters are employed to keep voltage and current surges under check.
- Many industrial plants are in various stages of development. These plants will employ surge arresters, aiding in the growth of the North American surge arrester market.
- Owing to the abovementioned factors, the industrial segment is likely to dominate the North American surge arrester market in the future.
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United States to Dominate the Market
- The United States is the largest country in the region in terms of population, industrial manufacturing capacity, commercial setups, and electricity demand, making it the biggest market for surge arresters devices.
- The electricity consumption in the United States stood at 3.8 trillion kilowatt-hours in 2020, whereas the Canadian electricity consumption stood at 549.7 TWh in the same year.
- The United States is also witnessing increased spending on the aging transmission and distribution grids, along with the growing expansion of electrical networks. Such measures are likely to support the growing installed base of the surge arrester market in the country.
- With the rapid installation of renewable energy-based power plants in the United States, growing from an installed capacity of 194.9 GW in 2015 to 325.391 GW in 2021, the surge arrester market will likely gain a significant boost. Such devices are required to manage electrical power when renewable energy power plants, such as solar PV power plants, start feeding electricity into the grid when the sun rises over the horizon and stop feeding when the sun sets down. Surge arrester devices manage these fluctuations.
- For example, in March 2022, Enel Green Power North America commenced the construction of a 300-MW wind park in Oklahoma consisting of 107 wind turbines. The plant is expected to be up and running by the end of 2022.
- Furthermore, in March 2022, the Slate facility started commercial operations in California, combining 390 MW of solar power and 561 MWh of energy storage capacity. The plant can produce enough power to meet the annual demand from 126,000 households.
- Thus, the United States is likely to dominate the North American market during the forecast period.
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