ELECTRICAL ENCLOSURE MARKET ANALYSIS

The global electrical enclosure market size was valued at USD 5894.4 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 4.20% from 2022 to 2030. Various applications and end use industries are driving the growth of the electrical enclosure market. Electrical enclosures protect internal components of electrical devices from environmental influences. The growth of this market can be attributed to the increase in the demand for safe and clean energy. The need for upgrading the conventional infrastructure also contributes to the growth of the electrical enclosures market. The demand for enclosures in the oil and gas industry is expected to continue to grow in the near future.

Global Electrical Enclosure Market: Regional Insights

The global electrical enclosure market is geographically divided into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.

Among regions, North America is expected to dominate the global electrical enclosure market over the forecast period. This is due to rise in number of renewable energy projects in the U.S., availability of skilled labor, and increased demand for solar thermal energy plants. Moreover, growing installation of power stations that run on renewable sources in Canada is driving the demand for energy and power from commercial as well as residential sector in the country. This in turn is supporting growth of the global electric enclosure market during the forecast period.

Furthermore, Asia Pacific is projected to witness significant growth in the global electrical enclosure market over the forecast period, owing to high demand in China due to rise in electricity and energy demand, and growing industrialization in the country. Moreover, increasing government initiatives and increasing focus on protection and management of electrical infrastructure in Japan is also anticipated to boost the market growth in Asia Pacific region.

Figure 1. Global Electrical Enclosure Market Share (%), by Region, 2021

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Global Electrical Enclosure Market Drivers:

Rise in consumption as well as capacity of renewable energy across the globe is expected to augment growth of the global electrical enclosure market over the forecast period. Renewable energy offers several cost and environmental benefits due to which, many of the governments worldwide are focusing on increasing their capacities. Along with this, investments in renewable energy sector are increasing globally. For instance, as per the UNEP, during 2010 to 2019, the global investment in renewable energy capacity was more than US$ 2.6 trillion. Thus, this factor is likely to aid in growth of the market in the near future.

Furthermore, increasing number of old power generation and distribution networks is anticipated to boost growth of the global electrical enclosure market over the forecast period. The global power generation and distribution networks function with aging and old-fashioned infrastructures. Several governments around the globe are aiming to replace these infrastructures with new ones, for which several government initiatives are taking place in this sector. Moreover, investment in T&D infrastructure is increasing all over the world from private and public sectors. This in turn is expected to aid in growth of the market during the forecast period.

Global Electrical Enclosure Market Opportunities:

The adoption of renewable energy is increasing across the globe, which is expected create several growth opportunities in the global energy enclosure market over the forecast period. Along with the increasing adoption of renewable energy, the technological development is also growing, due to which existing infrastructures are becoming outdated. This further creates the demand for modernization and in turn boosts the demand for electrical enclosure. Thus, these factors are providing several growth opportunities for market players.

Moreover, increasing demand for IoT and relevance of customer services is expected to generate lucrative opportunities in the global electrical enclosure market during the forecast period. The adoption of IoT in electrical enclosures is increasing rapidly and along with this, the significance of customer services is growing in the industry, which encourages better services. These factors are hence creating multiple opportunities for market players in the global electrical enclosure market.

Global Electrical Enclosure Market Trends:

Rapidly increasing technological developments in electrical enclosure is one of the major trends in the global electrical enclosure market. Due to technological developments, electrical enclosures have become a vital part of IoT solutions. This is further encouraging companies to invest in advancement of electrical enclosure in order to offer better and efficient solutions protecting power and electrical distribution equipment. For instance, Schneider is involved in the development of enclosures suitable and compatible for industrial IoT-based solutions of the company.

Moreover, non-metallic type enclosures are gaining traction in end-users industries such as energy & power, metals & mining, and oil & gas industries. The research and development activities for non-metallic materials for enclosure applications in such end-users industries are growing all over the world. Due to increasing research as well as product innovations, many manufacturers are launching various non-metallic enclosure products. This, trend is likely to continue in the global electrical enclosure market over the forecast period. 

Global Electrical Enclosure Market Restraints:

Various industries are witnessing economic slowdown and this is expected to impede growth of the global electrical enclosure market over the forecast period. Industries account for a major share of power-consuming facilities. Furthermore, enterprises that are conduct industrial activities invest a major revenue share in infrastructure. However, due to the global economic slowdown, industrial outputs are reducing. And this in turn is hampering growth of the global electrical enclosure market.

Moreover, high cost and seal leakage difficulties in electric enclosures are likely to obstruct growth of the global electrical enclosure market over the forecast period. Concerns regarding quality and safety of electric enclosures pose a risk of affecting the demand for electric enclosure negatively. The seal leakage incidences of electric enclosure have been observed in various parts of the world. Moreover, the competitiveness in cost of these enclosures also affect their adoption in various industries. These factors are thus expected to hinder growth of the global electrical enclosure market during the forecast period.

Figure 2. Global Electrical Enclosure Market Share (%), by Segment Type, 2021

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Global Electrical Enclosure Market Segmentation:

The global electrical enclosure market report is segmented into Material Type, End-User, and Region.

Based on Material Type, the market is segmented into Metallic, Non-metallic. Out of which, Metallic is expected to dominate the global market over the forecast period and this is attributed to various benefits of metallic enclosures. Metal enclosures and created in a way for accommodating different types of switchgear as well as control gear assemblies so that they are compatible for different types of electrical installation in light and commercial industrial premises. Due to their benefits, metallic electrical enclosure are still being used in various industries, which further supports growth of this segment.

Non-Metallic segment is also expected to witness significant growth in the near future and this is owing to the increasing R&D activities of non-metallic materials for enclosure application that are important and favorable features. Non-metallic electrical enclosures are high in demand as they are advancing technologically. This segment is thus witnessing strong demand and growth in the market.

Based on End-User, the market is segmented into Energy and Power, Industrial, Process Industries, Metal and Mining, and Other End-user Industries. Out of which, Energy and Power is expected to dominate the global market over the forecast period and this is attributed to the increase in investments in transmission, distribution sector, and increasing applications.

Industrial segment is also expected to witness significant growth in the near future and this is owing to the emergence of automation leading to high consumption of power. This is further boosting the demand for electrical equipment and electrical enclosure in the industrial sector.

Global Electrical Enclosure Market: Key Developments

In October 2019, Schneider Electric SE, announced the developed intelligent enclosure for EcoStrucxure Foxboro distributed and EcoStruxure Triconex safety control systems. The enclosure is developed for petrochemical, oil and gas, chemical and other hazardous industrial environments.

In November 2019, Legrand completed acquisition of Connectrac, a company working in floor cable management. With this acquisition, Legrand can increase market share of the company in electric enclosure by leveraging Connectrac’s client base.

Global Electrical Enclosure Market: Key Companies Insights

The global electrical enclosure market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global electrical enclosure market are Adalet (Scott Fetzer Company), Schneider Electric SE, Rittal GmbH & Co. Kg., Legrand SA, Nvent Electric PLC,  Hubbell Inc., Siemens AG, Emerson Electric Co., Austin Electrical Enclosures, ABB Ltd., AZZ Inc., Eaton Corporation, and Eldon Holding AB.

*Definition:

Electrical enclosures are cabinets for electronic or electrical equipment to mount knobs, displays, and switches and for preventing electrical shock to user of equipment, as well as to protect the contents from the environment. Electrical enclosures are built according to NEMA standards. These standards specify the types of enclosures that can be used, as well as the performance criteria for these enclosures.