by The electrical enclosure market consists of enclosures that provide protection and safeguarding against dust, moisture, adverse weather conditions, and mechanical damage of electrical components and devices from external factors. Electrical enclosures protect electrical conductors, devices and components ensuring safety. They are made up of materials like metal, plastic or Fiberglass to provide fire protection and are designed according to NEMA standards. The growing adoption of renewable energy sources and need for connected systems have driven demand for secure enclosures to protect electrical devices operating in harsh environments.
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. Growing investment in renewable energy projects and smart infrastructure is expected to drive the demand for electrical enclosures. Additionally, the need for secure and durable enclosures in harsh industrial environments will further propel the market growth.
With increasing industrialization and automation across regions, companies are focusing their efforts on global expansion plans to strengthen their foothold. Major players are establishing manufacturing facilities or partnering with local players in high growth regions including Asia Pacific, Middle East, and South America.
Market key trends
One of the key trends witnessed in the Electrical Enclosure Market Demand is the growing focus towards sustainable enclosures. With rising environmental concerns, market players are increasingly developing enclosures made from recycled plastic or other eco-friendly materials. For instance, Rittal offers enclosures made from renewable, recyclable materials like OrganoTEK that delivers sustainability with aesthetics and durability. Additionally, innovations in enclosure design with modular and customizable features allow for ease of installation and maintenance, improving operational efficiency. This helps reduce carbon footprint of electrical systems over their lifecycle.
Porter’s Analysis
Threat of new entrants: High capital costs and economies of scale act as barriers for new players to enter the Electrical Enclosure Market Regional Analysis.
Bargaining power of buyers: Large buyers have significant bargaining power which puts pressure on manufacturers to reduce costs and improve quality.
Bargaining power of suppliers: Suppliers have moderate bargaining power as key raw materials like steel are available from many suppliers worldwide.
Threat of new substitutes: Potential threat from emerging solutions like liquid cooling or edge computing enclosures.
Competitive rivalry: Intense competition among industry giants to offer innovative solutions at competitive prices.
Geographical Regions
North America holds the largest share of the electrical enclosure market in terms of value as many key manufacturers are based in the US and Canada. The region witnesses high demand from industries like oil & gas, manufacturing, mining etc.
Asia Pacific is expected to witness the fastest growth during the forecast period driven by rapid industrialisation and infrastructural development in China, India, Indonesia and Vietnam. Government initiatives in these countries to boost manufacturing sector will further propel the demand.
*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
