I googled a lot, but I did not find the exact straight forward answer with an example.
Any example for this would be more helpful.
I think Michelle Poolet describes it in a very clear way:
A surrogate key is an artificially produced value, most often a system-managed, incrementing counter whose values can range from 1 to n, where n represents a table's maximum number of rows. In SQL Server, you create a surrogate key by assigning an identity property to a column that has a number data type.
http://sqlmag.com/business-intelligence/surrogate-key-vs-natural-key
It usually helps you use a surrogate key when you change a composite key with an identity column.