Global Electrical Enclosure Market Size, Share & Trends Analysis Report By Material (Metallic and Non-metallic), By End-user, By Type (Wall-Mounted, Free-Standing, and Underground). By Regional Outlook and Forecast, 2024 - 2031

Global Electrical Enclosure Market Size, Share & Trends Analysis Report By Material (Metallic and Non-metallic), By End-user, By Type (Wall-Mounted, Free-Standing, and Underground). By Regional Outlook and Forecast, 2024 - 2031

The Global Electrical Enclosure Market size is expected to reach $13.3 billion by 2031, rising at a market growth of 7.3% CAGR during the forecast period. In the year 2023, the market attained a volume of 16043.9 thousand units, experiencing a growth of 14.6% (2020-2023).

Oil and gas facilities, including drilling rigs, refineries, pipelines, and offshore platforms, operate in harsh and challenging environments characterized by extreme temperatures, high humidity, corrosive chemicals, and explosive atmospheres. Consequently, the oil & gas segment would generate 16.9% revenue share of the market by 2031. Also, UK would utilize 792.62 thousand units of wall-mounted electrical enclosure by 2030. Electrical enclosures protect sensitive equipment, such as control panels, instrumentation, and communication systems, from these environmental hazards.

The major strategies followed by the market participants are Mergers & Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In July 2023, nVent Electric plc completed the acquisition of Texa Industries S.r.l., a manufacturer of air conditioning and industrial refrigeration solutions. Under this acquisition, Texa will operate within the enclosures business segment of nVent Eelectric Plc. In January 2022, Eaton Corporation PLC took over Royal Power Solutions, a manufacturer of high-precision electrical connectivity components. Under this acquisition, Royal Power Solutions will improve the ability of Eaton Corporation in the eMobility, aerospace, and electrical businesses.

Based on the Analysis presented in the KBV Cardinal matrix; Siemens AG is the forerunner in the Market. In March 2021, Siemens AG acquired C&S Electric Limited, an electrical equipment manufacturer. Through this acquisition, Siemens gains part of C&S Electric's business in India that deals with making low-voltage switchgear components and panels, low- and medium-voltage power busbars, as well as protection and metering devices. And Companies such as Schneider Electric SE, Hubbell Incorporated, and Eaton Corporation PLC are some of the key innovators in Market.

Market Growth Factors

Smart manufacturing facilities incorporate IoT devices and sensors to collect real-time data on equipment performance, production metrics, and environmental conditions. These devices require protective enclosures to house sensitive electronic components and wiring, ensuring their reliability and functionality in industrial environments. In conclusion, the expansion of global smart manufacturing is driving the market's growth.

As renewable energy sources such as solar, wind, and hydroelectric power continue to gain prominence, there’s a corresponding expansion in power generation facilities. These facilities require electrical enclosures to protect sensitive equipment such as inverters, converters, and control systems. Thus, growing renewable energy infrastructure is propelling the growth of the market.

Market Restraining Factors

Raw materials such as steel, aluminium, and plastics are the primary components manufacturing electrical enclosures. When the prices of these raw materials rise, the production costs for enclosure manufacturers directly increase. Higher production costs may lead to reduced profit margins or force manufacturers to pass the cost increases onto customers through higher product prices. Therefore, escalating raw material costs are hampering the growth of the market.

By Material Analysis

On the basis of material type, the market is segmented into metallic and non-metallic. The metallic segment recorded 64.8% revenue share in the market in 2023. Metal enclosures, particularly those made from steel, stainless steel, or aluminum, offer high durability and strength. They can withstand harsh environmental conditions, including extreme temperatures, moisture, corrosion, and physical impact, making them suitable for indoor and outdoor applications.

By End User Analysis

By end-user, the market is divided into industrial, energy & power, telecommunications, oil & gas, and others. The industrial segment procured a 28.27% revenue share in the market in 2023. In terms of volume, telecommunications segment utilized 2,060 thousand units of electrical enclosure in 2023. Industrial control systems often incorporate sensitive electronic components that require protection from environmental factors such as dust, moisture, temperature fluctuations, and electromagnetic interference (EMI). Electrical enclosures provide a secure and controlled environment for housing these components, safeguarding them against damage and ensuring reliable operation in industrial environments.

By Type Analysis

Based on type, the market is divided into wall-mounted, free-standing, and underground. In 2023, the wall-mounted segment garnered 50.5% revenue share in the market. Wall-mounted enclosures are space-efficient, making them ideal for installations where floor space is limited, or equipment needs to be located close to the point of use. In many industrial and commercial settings, floor space is at a premium, and wall-mounted enclosures allow for efficient utilization of available space.

By Regional Analysis

Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the North America region generated a 29.7% revenue share in the market. The adoption of renewable energy sources such as solar, wind, and hydroelectric power is rising in North America, driven by environmental concerns and government incentives. Electrical enclosures are essential for renewable energy infrastructure, housing inverters, converters, and monitoring systems.

Market Competition and Attributes

The market is characterized by intense competition among various players like Siemens AG, Schneider Electric SE, and Eaton Corporation PLC which offer a wide range of enclosure solutions. Companies differentiate themselves through product innovation, customization options, and added features like durability and weather resistance. Price competition is significant, especially in standard enclosure segments, leading to price wars and discounts. Efficient distribution networks and partnerships with distributors are crucial for reaching customers effectively. Overall, companies must focus on research and development, pricing strategies, distribution channels, and regulatory compliance to thrive in this competitive market.

Recent Strategies Deployed in the Market

• Mar-2024: Rittal North America LLC, a subsidiary of Rittal GmbH & Co. KG, launched the Wall Mount Vented (WMV) outdoor UL 3R Type Rated enclosure. The product offers simple maintenance that can be done on-site, along with some key benefits such as a strong design, built-in cooling, easy access for regular upkeep, and excellent protection against corrosion.
• Jan-2024: Hammond Manufacturing Company Limited came into partnership with Next Sales and Marketing Inc., Atlantic Canada's electrical manufacturer. Under this partnership, Next Sales and Marketing will offer its customers electrical enclosures for the commercial and industrial markets in Atlantic Canada.
• Jul-2023: nVent Electric plc completed the acquisition of Texa Industries S.r.l., a manufacturer of air conditioning and industrial refrigeration solutions. Under this acquisition, Texa will operate within the enclosures business segment of nVent Eelectric Plc. Additionally, with this acquisition, nVent gains a highly complementary portfolio, strengthening its position as a global systems provider.
• May-2023: Schneider Electric SE launched a low-voltage switchboard, FlexSeT. The product features a simplified, modular service model for switchboard design, sourcing, installation, and maintenance. Additionally, FlexSet will help electrical professionals reduce project risk and improve construction efficiencies.
• Apr-2023: nVent Electric plc inked a definitive agreement to acquire ECM Industries, LLC, a manufacturer and supplier of electrical products. Through this acquisition, nVent Electric gains a complementary suite of electrical power connection and grounding solutions, including its ILSCO brand. Additionally, the companies will provide an extensive offering to customers, including electrical contractors, and to distribution partners.

List of Key Companies Profiled

• Schneider Electric SE
• Hubbell Incorporated
• Siemens AG
• Eaton Corporation PLC
• Rittal GmbH & Co. KG (Friedhelm Loh Stiftung & Co. KG)
• nVent Electric plc
• Hammond Manufacturing Company Limited
• Saipwell Electric Co., Ltd. (Saip Electric Group)
• Fibox Oy Ab
• Equipto Electronics Corporation

Global Electrical Enclosure Market Report Segmentation

By Material (Volume, Thousand Units, USD Billion, 2020-2031)

• Metallic
• Non-metallic

By End User (Volume, Thousand Units, USD Billion, 2020-2031)

• Energy & Power
• Industrial
• Oil & Gas
• Telecommunications
• Others

By Type (Volume, Thousand Units, USD Billion, 2020-2031)

• Wall-Mounted
• Free-Standing
• Underground

By Geography (Volume, Thousand Units, USD Billion, 2020-2031)

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA