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The industrial enclosures market size is forecast to increase by USD2.4 billion at a CAGR of 5.27% between 2023 and 2028. The market is experiencing significant growth due to the increasing adoption of renewable energy sources, such as wind and solar power, for pollution-free and sustainable energy production. The market is driven by the expanding wind energy and solar power plants, which require robust and reliable enclosures for housing various components, including power conversion systems, electronics cooling, and EMC shielding. Seismic protection is another crucial factor driving the market's growth, especially in areas prone to earthquakes. Multi-component systems, which integrate various functions into a single enclosure, are gaining popularity due to their cost-effectiveness and ease of installation. However, the market faces challenges such as increasing price competition due to volatile input costs and the need for corrosion-resistant materials to ensure longevity. The market is expected to witness steady growth due to the increasing demand for renewable energy sources, the need for reliable and efficient enclosures, and the adoption of advanced technologies to enhance performance and durability.
The industrial electrical enclosures market plays a vital role in safeguarding electrical components and ensuring workforce safety in various energy-intensive industries. With the increasing global energy consumption, the demand for electrical enclosures is expected to grow significantly in sectors such as fossil fuels, nuclear energy, and alternative energy sources. Safety standards are of utmost importance in industries that handle electrical components. Electrical enclosures provide a protective barrier against electrical shock, ensuring non-hazardous conditions for the workforce. In contrast, hazardous conditions can lead to severe accidents and downtime, negatively impacting productivity and profitability.
Electrical enclosures are essential for various electrical components, including distribution boards, contactors, control panels, and switches. These components are integral to the smooth operation of industrial processes. Seismic protection is another critical feature of electrical enclosures, ensuring the safety of electrical equipment in areas prone to earthquakes and other natural disasters. Fossil fuel industries, such as oil and gas, consume vast amounts of energy and require robust electrical enclosures to protect their components from harsh operating conditions. Nuclear energy plants also rely on electrical enclosures to maintain the safety and efficiency of their complex systems. Alternative energy sources, such as solar and wind energy, are increasingly becoming essential contributors to the global energy landscape.
The integration of renewable energy sources into the power grid necessitates the use of electrical enclosures to protect sensitive electronic equipment from environmental factors and ensure their optimal performance. Protective battery enclosures are a crucial component of the industrial electrical enclosures market, particularly in industries that rely on battery-operated equipment. These enclosures shield batteries from dust, moisture, and other environmental hazards, ensuring their longevity and reliability. Standard operating procedures (SOPs) are essential for the proper installation, maintenance, and usage of electrical enclosures. Adhering to SOPs helps ensure the safety of the workforce and the longevity of the electrical components.
In conclusion, the industrial electrical enclosures market plays a crucial role in safeguarding electrical components and ensuring workforce safety in various energy-intensive industries. The increasing global energy consumption and the integration of renewable energy sources into the power grid are driving the demand for electrical enclosures. Adhering to safety standards and implementing proper installation, maintenance, and usage procedures are essential for the optimal performance and longevity of electrical enclosures.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The process segment is estimated to witness significant growth during the forecast period. Industrial enclosures play a crucial role in safeguarding switches, knobs, displays, and other electrical components from environmental hazards such as dust, moisture, and electrical shock. In the US market, the process industry segment led the market in 2023, contributing significantly to its revenue growth. Key industries within this segment include power generation, oil and gas, chemical and petrochemical, food and beverages, and pharmaceuticals. Process industries require continuous operation of machinery such as HVAC systems, compressors, motors, conveyors, pumps, and other process equipment. Any damage to motor control units or switchboards due to environmental factors can disrupt the entire manufacturing process, resulting in decreased output and increased operational expenses.
To mitigate these risks, industrial enclosures made of both metallic and non-metallic materials are employed to protect against potential electrical hazards and harsh environmental conditions. In the telecommunication industry, the demand for industrial enclosures is driven by the need to protect communication equipment from external factors, ensuring uninterrupted service. The energy sector also relies on industrial enclosures to safeguard electrical components in power generation and distribution applications. By investing in robust industrial enclosures, industries can minimize downtime, reduce maintenance costs, and ensure the longevity of their critical electrical equipment.
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The Process segment accounted for USD 4639.50 million in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in Asia Pacific (APAC) is experiencing significant growth, driven by the expanding process industries such as oil and gas, power, healthcare, and pharmaceutical. APAC is currently the fastest-growing market for industrial enclosures, with a higher Compound Annual Growth Rate (CAGR) than other regions. This shift can be attributed to the increasing investments in process and discrete industries, leading to an increase in demand for protective enclosures for sensitive electrical components. In the power generation sector, APAC's renewable energy, nuclear energy, and hydroelectric energy industries are key contributors to the market's growth. The region's focus on reducing CO2 emissions and transitioning to cleaner energy sources is driving the demand for industrial enclosures in the renewable energy sector.
In contrast, the nuclear energy sector requires industrial enclosures to protect against harsh environmental conditions and ensure the safety of sensitive components. Moreover, the automotive, electronics, and semiconductor industries in APAC are transitioning from metallic to non-metallic industrial enclosures due to their lightweight, corrosion-resistant, and insulating properties. This trend is expected to continue as these industries invest in production plants to meet the rising demand for industrial enclosures. Despite the market's growth, electricity supply remains a challenge for many developing countries in APAC. However, the increasing focus on industrialization and infrastructure development is expected to address this issue and further boost the demand for industrial enclosures in the region.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing use of electrical and electronic equipment in manufacturing processes is the key driver of the market. In the industrial sector, energy efficiency has gained significant importance in recent years due to increasing global energy consumption and the need to reduce operational expenses. Energy-intensive industries, such as manufacturing and construction, require the use of various electrical components, including batteries, mechanical devices, electromechanical devices, and solid-state devices. To ensure the safety of these components and adhere to safety standards, end-users rely on various safety devices. Variable frequency drives (VFDs), vacuum contactors, motor control centers (MCCs), and motor controllers are essential safety devices used to protect electrical components in industries. These devices not only enhance the performance and efficiency of electrical systems but also help in reducing energy consumption.
Industrial electrical enclosures serve as housing units for these safety devices and electronic components, ensuring their protection from external environmental factors. The implementation of safety regulations in the energy generation sector and other industries has further increased the demand for industrial electrical enclosures. These enclosures provide a secure and controlled environment for electrical components, ensuring the safety of the workforce and the overall productivity of the industry. Therefore, the market for industrial electrical enclosures is expected to grow significantly in the coming years, driven by the increasing focus on energy efficiency and safety standards.
Growth in the smart cities market is the upcoming trend in the market. The implementation of advanced technologies in smart cities is driving the need for industrial enclosures that can protect sensitive electronic equipment from environmental hazards. These enclosures provide a controlled environment for devices such as sensors, wireless networks, and intelligent lighting systems, safeguarding them from dust, water, and extreme temperatures. The integration of renewable energy sources like wind and solar power in smart cities further increases the importance of industrial enclosures for power conversion and electronics cooling. Seismic protection and EMC shielding are additional features that ensure the reliable operation of these systems. Industrial enclosures play a crucial role in the efficient functioning of multi-component systems in wind and solar power plants, making them an essential component of renewable energy infrastructure.
By offering a secure and protected environment, industrial enclosures enable the seamless communication and data exchange between various devices in traffic management systems, thereby enhancing the overall performance and functionality of smart cities.
Increasing price competition due to volatile input cost is a key challenge affecting the market growth. Industrial enclosures play a crucial role in ensuring workplace safety for various industries, including construction and manufacturing. Employers must prioritize safety measures to prevent incidents such as falls and electrocution. Fabricators of industrial enclosures serve as tier suppliers to provide protective solutions for equipment and batteries. A standard operating procedure is essential for these suppliers to maintain consistent quality and meet the demands of their clients. The production of industrial enclosures relies heavily on raw materials like stainless steel, rigid plastics, and aluminum. The cost instability of these materials can significantly impact the manufacturing process. To mitigate this risk, major companies establish long-term contracts with suppliers.
However, smaller companies may not have such arrangements, making them more susceptible to price fluctuations. Industrial enclosures are primarily manufactured using welded steel mono-blocks, with most accessories being made of steel parts. Consequently, any price changes in steel have a direct impact on the overall cost of industrial enclosures. This is particularly relevant for industries that rely on fossil fuels, nuclear energy, and alternative energy sources, such as solar energy, to power their operations. Therefore, maintaining a stable supply chain and cost structure is essential for industrial enclosure manufacturers to remain competitive and meet the evolving demands of their clients.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The market caters to the demand for protective housing solutions for various industrial applications. These enclosures safeguard electrical components and control systems from harsh environments, ensuring optimal performance and longevity. Key players in this market offer a wide range of customizable options to meet specific industry requirements, including temperature control, waterproofing, and impact resistance.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Industrial enclosures play a crucial role in safeguarding electrical components and electromechanical devices in various industries, including energy-intensive sectors like manufacturing and construction. With increasing global energy consumption, the demand for industrial enclosures is on the rise, particularly in the energy generation sector. These enclosures ensure workplace safety by protecting against electrical shock, falls, and electrocution. Safety standards are paramount in the design and fabrication of electrical enclosures. They come in both metallic and non-metallic materials to cater to diverse applications. Mechanical devices and electromechanical systems in industries such as fossil fuels, nuclear energy, and renewable energy sources require protective battery enclosures and cabinets for optimal performance.
Safety regulations mandate the use of standard operating procedures and stringent quality checks. In addition, industrial enclosures offer seismic protection, EMC shielding, electronics cooling, and corrosion resistance. Solar power plants and wind power plants rely on multi-component systems, including distribution boards, switches, knobs, and displays, protected by robust enclosures. The industrial process industry, telecommunication industry, and power distribution companies require electrical enclosures for non-hazardous and hazardous conditions. Renewable energy sector growth, infrastructure projects, and automation drive the demand for IoT-enabled electric enclosures. However, trade barriers, tariffs, and importing electric enclosures pose challenges for global markets. The power generation sector, including hydroelectric energy, biogas energy, and CO2 emissions reduction, also benefits from these enclosures.
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Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.27% |
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Market growth 2024-2028 |
USD 2398.3 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.91 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 34% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., AZZ Inc., BCH Electric Ltd., Berkshire Hathaway Inc., Chatsworth Products Inc., Eaton Corp. Plc, Emerson Electric Co., Friedhelm Loh Stiftung and Co. KG, HTE Technologies, Hubbell Inc., IMS Companies LLC, Industrial Enclosure Corp., KDM Steel, Legrand, nVent Electric Plc, Phoenix Contact GmbH and Co. KG, ROLEC Gehause Systeme GmbH, Rose Systemtechnik GmbH, Sanmina Corp., Schneider Electric SE, and TAKACHI ELECTRONICS ENCLOSURE Co. Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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