by The electrical enclosure market comprises enclosures that are designed to protect electrical components such as wires, industrial control panels, and switches from external factors such as weather, dust, moisture, corrosion, and other external hazards. Electrical enclosures provide environmental protection to heavy-duty electrical equipment, distribution boards, and stand-alone equipment across various sectors including energy and utilities, industrial, commercial, healthcare, and others. These enclosures protect equipment from shock, faults and ensure safe and hassle-free operations. The growing industrialization and automation trends, along with stringent government regulations pertaining to safety and environment protection are fueling the demand for electrical enclosures globally.
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.
Key Takeaways
Key players operating in the 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. These players are focusing on new product launches and mergers & acquisitions to strengthen their market position. For instance, in 2023, Rittal acquired HSM GmbH + Co. KG, a provider of enclosure and IT infrastructure solutions to expand its presence in the German market.
The growing investments in utility-scale renewable power projects along with rising focus on rural electrification present significant opportunities in the Electrical Enclosure Market Growth . Additionally, the increasing construction of data centers, healthcare facilities, commercial buildings worldwide will further boost the demand.
The global expansion of key players through partnerships, joint ventures, and acquisitions allow them to penetrate new geographies. For example, in 2023, Schneider Electric partnered with AutoGrid to enhance flexibility in electricity grids and accelerate the renewable energy transition across Europe and the U.S.
Market drivers
The rising adoption of electrical enclosures in the energy and utilities industry is one of the key drivers propelling the market growth. Electrical enclosures offer protection to critical power infrastructure from harsh environmental conditions, thereby ensuring uninterrupted power distribution. According to the International Energy Agency, global electricity demand is projected to grow by approximately 60% between 2018 to 2040, mainly driven by developing nations. This rising demand for electricity will significantly fuel the need for robust electrical infrastructure and in turn boost the sales of electrical enclosures globally over the forecast period.
PEST Analysis
Political: Demand for Electrical Enclosure Market Regional Analysis is rising in emerging economies due to government initiatives to develop digital infrastructure and encourage industrial automation.
Economic: Growth in the Electrical Enclosure market is driven by increased infrastructure investment and industrialization globally. Rapid urbanization is also boosting construction activity and the need for safe electrical components.
Social: Growing focus on workplace safety and protection of electrical equipment is driving demand. Enclosures help prevent electrical accidents and equipment failures.
Technological: Advancements in sealing, cooling and modular designs allow enclosures to accommodate newer switchgear and control equipment more efficiently. Digital connectivity options further enhance monitoring and maintenance capabilities.
The geographical regions where the electrical enclosure market is concentrated in terms of value are North America and Europe. Both regions have stringent safety standards and a high degree of industrial automation.
The fastest growing region for the electrical enclosure market is expected to be Asia Pacific due to increasing investments in power infrastructure, rapid industrialization and rising urbanization in countries such as China and India. Greater integration of digital technologies is also contributing to market expansion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Alice Mutum
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn
