Electrical Enclosures Market Size (2024 – 2030)

The Global Electrical Enclosures Market size was exhibited at USD 49.66 billion in 2023 and is projected to hit around USD 71.67 billion by 2030, growing at a CAGR of 5.38% during the forecast period from 2024 to 2030.

Contract processing companies offer Electric Enclosureing as a crucial service, responding to high demand for particle size reduction in various industries such as pharmaceuticals, cosmetics, paints and pigments, and industrial chemicals. This process utilizes high-pressure gas to impact raw material particles at considerable speed, effectively breaking them into smaller fragments. Electric Enclosure achieves both particle size reduction and air classification in a single step, adept at finely grinding friable materials like polymers, chemicals, and ceramics without contamination.

An Electric Enclosure, categorized as a fluid energy mill, operates by grinding heat-sensitive materials into exceptionally fine powders using high-pressure compressed air, gas, or superheated steam. These enclosures are instrumental in grinding materials that demand high purity. A notable attribute of Electric Enclosures is the substantial increase in surface area, facilitating faster reaction times, accelerated burning rates, and improved product production. Moreover, Electric Enclosures possess the capability not only to grind but also to mix powders.

The rising popularity of Electric Enclosures can be attributed to several advantages, including easy-to-clean components, constant temperature maintenance, absence of heat generation and wear, controlled particle size, and minimal contamination due to the absence of blades, media, knives, or screens. Materials processed through jet milling encompass a diverse range, such as herbicides and fungicides in pesticide catalysts, chemical chlorides in chemicals, ferrite in glasses and ceramics, bauxite and mica in minerals, carbon black in paints, and titanium dioxide and amino acids.

Key Market Insights:

From 2024 to 2030, the electric enclosure market is poised for substantial growth, driven by the increased adoption of safety standards for equipment across diverse industry verticals. The expansion of industrial production, propelled by rapid urbanization and a growing population, leads to heightened demand for electricity, thereby fostering market growth. Emphasis is placed on enhancing the efficiency of enclosures, driving the development of innovative technologies aimed at bolstering electricity supplies and improving reliability.

Additionally, the embrace of industrial and factory automation necessitates the enclosure of various devices, including mechanical and electromechanical components, to ensure safety. According to the National Electrical Manufacturers Association (NEMA), an enclosure is a constructed surrounding case designed to offer a level of protection to personnel against accidental contact with equipment while adhering to specified environmental considerations.

A report by The Economic Times notes the stock exchange listing of numerous companies in the electronic enclosure market, such as Schneider Electric and Adalet (Scott Fetzer Company). This listing is attributed to their growth in introducing new technology within the electronic enclosure sector, as reported by NEMA.

Global Electrical Enclosures Market Drivers:

The market is experiencing growth propelled by the increasing trend of industrialization and automation.

The heightened adoption of automated machinery and control systems in diverse industries is creating a demand for electrical enclosures. These enclosures play a crucial role in safeguarding advanced systems from environmental factors such as dust, heat, and moisture. The evolution of modern industrial automation involves intricate electrical systems, prompting a need for highly customizable and adaptable electrical enclosures. Additionally, the integration of IoT devices in industrial settings necessitates protective enclosures for sensitive sensors and data communication hardware, further contributing to market growth. The market is also favorably influenced by the escalating requirement for certified and compliant electrical enclosures that adhere to industry-specific regulations.

The surge in data center construction is a key driver for market expansion.

The growth of data centers, driven by the increasing demand for cloud computing, big data analytics, and digital services, is positively impacting the market. These data centers house servers, networking equipment, and other electrical components that demand effective and reliable electrical enclosures. Furthermore, the need for enclosures with built-in cooling systems to dissipate heat and ensure smooth electrical component functioning is shaping a positive market outlook. The market is witnessing innovation in electrical enclosure design, driven by the growing emphasis on energy efficiency in data centers.

The market is also flourishing due to its growing adoption in renewable energy projects.

The global population's increase and the rising demand for electricity are driving market growth. The focus on renewable energy solutions is contributing to a favorable market outlook. Renewable energy installations, operating in challenging environments like offshore wind farms or desert solar fields, require robust electrical enclosures capable of withstanding elements such as saltwater, high winds, and extreme temperatures. Governments and organizations worldwide investing heavily in renewable energy projects are further boosting the demand for high-quality electrical enclosures. Additionally, the integration of smart technology and monitoring systems in renewable energy projects underscores the necessity for enhanced protection for sensitive electronic components like sensors and communication modules.

Global Electrical Enclosures Market Restraints and Challenges:

The market faces challenges from the volatility in raw material prices.

The continuous fluctuations in the prices of materials employed in the manufacturing of electrical enclosures are anticipated to impede the growth of the global electrical enclosure market. These price fluctuations can significantly impact manufacturing costs and overall profitability. Trade barriers and tariffs pose additional adverse effects on the market, increasing the cost of imported electric enclosures and rendering them more expensive for consumers. Moreover, the constant shifts in prices influence consumer behavior toward the product, acting as a restraining factor for the market.

Inadequate quality of electrical enclosures hinders market expansion.

The electrical enclosures industry is likely to encounter growth constraints due to the presence of suppliers offering poor-quality electrical enclosures. While the production of protective units adheres to government regulations, countries lacking stringent measures for monitoring regulatory compliance experience a prevalence of low-quality product producers. This situation can lead to severe consequences, including loss of life and resources.

For example, according to a recent report by DNA India, approximately 30 people die daily due to electrocution in the country. Furthermore, factors such as increasing corruption, negligence among stakeholders regarding product quality and maintenance, and diminishing regard for human life and safety contribute to the approval and circulation of low-grade products in the live market.

Global Electrical Enclosures Market Opportunities:

The global adoption of renewable energy is on the rise, presenting numerous growth opportunities in the global energy enclosure market throughout the forecast period. The increasing embrace of renewable energy is coupled with ongoing technological advancements, rendering existing infrastructures obsolete. This creates a demand for modernization, subsequently boosting the need for electrical enclosures. Consequently, these factors open up multiple avenues for growth for market participants.

Furthermore, the growing demand for IoT and the significance of customer services are poised to generate lucrative opportunities in the global electrical enclosure market in the forecast period. The rapid adoption of IoT in electrical enclosures is accompanied by an increasing emphasis on customer services in the industry, promoting enhanced services. These factors collectively contribute to creating diverse opportunities for market players in the global electrical enclosure market.

ELECTRICAL ENCLOSURES MARKET REPORT COVERAGE:

Global Electrical Enclosures Market Segmentation: By Material

• Metallic

• Non-metallic

The metallic segment is anticipated to dominate the market throughout the forecast period. Metal electric enclosures, engineered for specific applications, are solid metal cases or covers designed to accommodate multiple switches and control assemblies. Aluminum electrical enclosures, known for their lightweight, strength, and corrosive resistance, are particularly popular. Outdoor industrial enclosures are typically constructed from steel, stainless steel, or aluminum, considering factors like weight, heat dissipation, ruggedness, exposure to corrosive elements, and more. Metallic electrical enclosures are tailored to withstand hazardous, non-hazardous, and harsh environmental conditions.

Conversely, the non-metallic segment is expected to witness substantial growth. Non-metallic enclosures, made from materials such as fiberglass, polycarbonate, ABS, and polyester, offer ease of modification, high durability, corrosion resistance, cost-effectiveness, and resilience to extreme weather conditions. These enclosures play a crucial role in safeguarding electronic components from environmental interventions, with ongoing advancements in plastics technology.

Global Electrical Enclosures Market Segmentation:  By Mounting Type

• Wall-Mounted Enclosure 

• Free-Standing Enclosure 

• Underground Electric Enclosure 

The wall-mounted enclosure segment is poised to maintain dominance, characterized by easy installation, space efficiency, and direct mounting onto walls or equipment. Wall-mounted enclosures find applications in various sectors, including telecommunications, IT, and industries, offering protection to electronics in both residential and industrial settings.

On the other hand, the free-standing enclosure segment is expected to exhibit steady growth. These enclosures, designed to stand independently with mobility features such as casters, wheels, or leveling feet, allow for relocation, especially in industrial applications.

Global Electrical Enclosures Market Segmentation:  By End-user

• Energy and Power

• Industrial (Automotive and Manufacturing)

• Metals & Mining

• Process Industries

• Others

The energy and power segment emerges as the primary sector in the market, driven by the escalating global demand for electricity. The surge in demand is attributed to environmental concerns associated with fossil fuels, leading to the adoption of renewable energy sources like wind and solar energy. Wind and solar energy systems offer pollution-free, secure, sustainable, and cost-effective energy solutions. Nations worldwide are rapidly embracing these technologies, particularly in regions where energy production from wind and solar sources proves effective.

Electrical enclosures play a pivotal role in safeguarding the electrical and electronic components, as well as systems, in solar and wind power plants. The rapid expansion of renewable energy significantly contributes to the reduction of CO2 emissions, aligning with the Net Zero Emissions (NZE) goals by 2030.

Global Electrical Enclosures Market Segmentation: By Region

• North America 

• Asia-Pacific 

• Europe 

• South America 

• Middle East and Africa

North America dominated the electrical enclosure market in 2022, and the region is poised for continued growth in the forecast period. The expansion of the North American electrical enclosure market is attributed to the increasing trends in industrial automation and the integration of smart home technologies. The rising adoption of smart homes in North America is driven by growing concerns about security and a heightened awareness of energy conservation. In 2022, utility-scale electricity generation facilities in the United States generated approximately 4.24 trillion kWh of electricity. Notably, 18 percent of this came from nuclear energy, and 22 percent was derived from renewable energy sources, according to the US Energy Information Agency.

Furthermore, substantial government support serves as a driving force in the region. For example, in 2022, the federal government of the United States introduced the Inflation Reduction Act, aimed at promoting the utilization of renewable energy sources over the next decade.

On the other hand, Asia Pacific emerges as the fastest-growing region in the electrical enclosure market due to the escalating demand for electricity and the rapid advancements in industrialization. As reported by the International Energy Agency (IEA) in 2022, India experienced an 8.4 percent increase in electricity demand, driven by a combination of high summer temperatures and a robust post-pandemic economic recovery.

COVID-19 Impact on the Global Electrical Enclosures Market:

The COVID-19 pandemic has significantly impacted crucial sectors such as energy and power, medical, and industrial processes worldwide. The rapid spread of the virus has led governments globally to impose stringent restrictions on the movement of people and vehicles.

Additionally, the electrical enclosures market has felt the repercussions of the downturn in the power generating and distribution industry, primarily driven by reduced demand, financial strain, and disruptions in the power supply chain. Due to restricted production activities and diminished demand from end-use industries, the overall revenue of the electric enclosure market is constrained, leading to a slowdown in market growth over the coming years.

Recent Trends and Innovations in the Global Electrical Enclosures Market:

In 2023, Custom Stainless Enclosures, Inc. unveiled its 4Xxtreme electrical enclosures, a market introduction anticipated to lower overall equipment ownership costs when deployed in harsh washdown conditions. These enclosures boast resilience in challenging environments, demonstrating their capacity to withstand adverse weather conditions.

Schneider Electric made a significant announcement in July 2022, introducing the PrismaSet S series of enclosures. This innovative series is designed to align commercial and industrial power distribution installations with residential setups while enhancing their resistance to demanding applications. Notably, PrismaSet S reflects Schneider Electric's commitment to sustainability by incorporating recycled plastic materials in its manufacturing processes.

In March 2022, Magna International disclosed plans to expand its battery case operations in Canada in support of Ford Motor's new business venture. The forthcoming 170,000-square-foot facility is anticipated to generate up to 150 new job opportunities and will be dedicated to producing battery cases for the Ford F-150 Lightning.

Key Players:

1. Schneider Electric SE

2. Legrand SA

3. Hubbell Inc.

4. Emerson Electric Co.

5. ABB Ltd

6. Eaton Corporation

7. Eldon Holding AB

8. AZZ Inc.

9. Austin Electrical Enclosures

10. Siemens AG

11. Pentair PLC

12. Rittal GmbH & Co. Kg.

13. Adalet (Scott Fetzer Company)