The global electrical enclosure market size is expected to hit around USD 79.58 billion by 2032 from USD 47.12 billion in 2022 and is poised to grow at a CAGR of 5.38% during the forecast period 2023 to 2032.
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An electrical enclosure is generally a housing that encloses electronic or electrical equipment that helps in preventing electrical shock. Enclosures are designed to protect against non-hazardous, hazardous, and other specific environmental conditions. Enclosures offer protection for electrical equipment in building/construction sites, industrial, and utility applications. Electric enclosures are used to protect various types of equipment such as distribution boards, contactors, control panels and switches.
The growth of the electrical enclosures market is driven by the rising adoption of electrical enclosures across various industries, the increasing need for protection in the workplace, the growing need for enclosures in the renewable energy sector, rising industrial maintenance costs, and increasing concerns over safety across the globe. Governments across the globe are actively participating in the installation of electrical enclosures in residential, commercial, and industrial complexes to prevent uncertain accidents and casualties.
Additionally, the market has grown as a result of the increasing need for enclosures in the renewable energy sector. Furthermore, the increasing significance of customer services and demand for IoT-enabled electric enclosures are projected to expand the electrical enclosures market in the coming years.
| Report Coverage | Details |
| Market Size in 2023 | USD 49.66 Billion |
| Market Size by 2032 | USD 79.58 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 5.38% |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2023 To 2032 |
| Segments Covered | By Material, By Mounting Type, and By End-user |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Driver:
Rapid infrastructural development
The rapid rise in infrastructure projects around the world and the increasing adoption of automation in industries are expected to spur the demand for electric enclosures to protect electronic components in several applications which in turn is likely to boost the growth of the electric enclosure market. According to the IEA, in 2022, Investment in electricity grids increased by nearly 8%. Most of the infrastructure investment is done in advanced and developing economies accelerating investment to assist and enable the electrification of industry, buildings, and transport as well as the integration of renewables. For instance, in 2022, India launched a USD 36.8 bn scheme for power distribution companies to advance and strengthen distribution infrastructure which includes the mandatory installation of smart meters, and it is expected to cover 250 million devices by the end of 2025.
Restraint:
Fluctuations in the prices of raw materials
Continuous changes in the prices of materials used for and in electric enclosures are projected to hamper the global electrical enclosure market's growth. Fluctuations in the prices of raw materials used in electric enclosures can highly impact manufacturing costs as well as profitability. Trade barriers and tariffs adversely affect the market. Tariffs increase the cost of imported electric enclosures and make them expensive for consumers. Moreover, continuously fluctuating prices change consumer behavior towards the product. Thus, the element is expected to act as a restraint for the market.
Opportunity:
Increasing demand for renewable energy and nuclear energy
The rising focus on the renewable energy and nuclear energy sector is expected to present multiple opportunities for the growth of the electric enclosures market. Power generated by solar or other renewable sources uses electrical components which are highly sensitive. Thus, the power generation sector uses electrical enclosures for safety purposes. Moreover, rising concerns about environmental issues also promote the utilization of renewable energy in industries.
Nuclear and renewables (solar, hydroelectric, wind, and biogas) are anticipated to increase their shares, with declining shares for fossil fuels (coal, oil, and natural gas). The deployment of renewables for electricity generation plays an important role. Electricity generation from renewables is nearly 40 percent of the total renewable energy supply. In 2022, Key policies were announced to support the expansion of renewable energy such as the United States introduced Inflation Reduction Act (IRA), which is expected to support renewable energy in the next 10 years through tax credits and other measures.
By material, the metallic segment is projected to hold the largest share of the market during the forecast period. Metal electric enclosures are solid metal cases or covers that are engineered or manufactured to suit a specific application. The metal enclosure is designed to accommodate several switches and control assemblies. Aluminum electrical enclosures are generally the most popular although each material has benefits in various industrial applications. Aluminum enclosures are highly demanded due to their unique combination of lightweight, strength, and corrosive resistance.
Generally, outdoor industrial enclosures are made from steel, stainless steel, or aluminum. There are many factors that are taken into consideration while determining the best metal for the application such as weight, heat dissipation, ruggedness, exposure to corrosive elements, and others. Metallic electrical enclosures are made in a way to get protected against hazardous, non-hazardous, and other harsh environmental conditions.
On the other hand, the non-metallic segment is expected to witness a significant increase during the forecast period. Non-metallic enclosures refer to the protective covering or the case manufactured from non-metallic materials such as fiberglass, polycarbonate, ABS, and polyester non-metallic enclosures are easy to modify, highly durable, corrosion-resistant, cost-effective, and can withstand extreme weather conditions such as wind and rain. These enclosures are used to safeguard electronic components from any environmental interventions. Regular advancements are being made in plastics technology.
The wall-mounted enclosure segment is expected to continue its dominance during the forecast period. The wall-mount enclosure is easy to install, does not need enough space to place, and can be mounted directly onto a wall or onto a piece of equipment. Wall-mounted enclosures have several applications, from home to industry. Wall-mounted enclosures are considered important in protecting electronics in residences and industries like telecommunications, IT, and others.
On the other hand, the free-standing enclosure segment is expected to show steady growth. Free-standing electrical enclosures are manufactured in a way to stand on their own and offer mobility. Free-standing electrical enclosures are fitted with casters, wheels, or leveling feet. Relocation of the enclosure is possible, especially in industrial applications.
The energy and power segment is the leading segment of the market owing to the increasing demand for electricity across the globe. Several environmental issues related to fossil fuels give rise to renewable energy sources, such as wind and solar energy. Wind and solar energy are pollution-free, renewable energy, more secure, sustainable, and affordable energy systems. Countries across the globe are rapidly embracing this technology, places where energy production from these two sources works well.
Electrical enclosures help to protect the electrical and electronic components as well as systems of solar and wind power plants. The rapid expansion of renewables is the major contributor to CO2 emission reductions up to 2030 in Net Zero Emissions (NZE). According to the IEA’s latest electricity market report, the share of renewables in the global power generation mix is expected to increase from 29 percent in 2022 to 35 percent in 2025.
North America accounted for the largest share of the electrical enclosure market in 2022; the region is anticipated to continue its growth during the forecast period. North American electrical enclosure market is growing due to the growth in industrial automation and smart home integration. Increasing penetration of smart homes in North America due to the increasing security concerns and awareness of energy conservation. In 2022, about 4.24 trillion kWh of electricity were generated at utility-scale electricity generation facilities in the US, 18 percent was from nuclear energy, and 22 percent was from renewable energy sources, as per the US Energy Information Agency.
Moreover, the substantial support from the government also acts as a driver for the market in the region. For instance, the federal government of the United Stated introduced the Inflation Reduction Act in 2022. The act aims to support the utilization of renewable energy sources in the next 10 years.
On the other hand, Asia Pacific is the fastest-growing region for the electrical enclosure market due to the increasing demand for electricity and the rapid progress of industrialization. For instance, according to the report published by IEA, in 2022, In India electricity demand increased by 8.4 percent driven by a combination of high summer temperatures and its strong post-pandemic economic recovery.
The global electrical enclosure market is fragmented with multiple small-scale and large-scale players, few prominent companies in the global electrical enclosure market are:
Segments Covered in the Report:
By Material
By Mounting Type
By End-user
By Geography
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