Electrical enclosures, which shield electrical equipment (such as transmitters, power distribution systems, power generators, switches, displays and knobs etc.) from corrosion, electrical hazards, dust, fire, chemicals, water and other environmental pollutants, have emerged as a high growth segment in the last few years, thanks to a steady increase in consumer awareness and an unprecedented uptake in the demand for energy at a global scale. This has led to a rise in the generation of power, which is then required to be transmitted to end users by cables & conductors, ultimately resulting in the growth of the electrical enclosure market.
As per World Energy Outlook (WEO), the world’s total demand for primary energy has grown by 26% from 1990 to 2011, and the growth of electricity has been almost double this figure. WEO predicts the electricity demand to grow at about 81% from 2011 to 2035 (from 19,004 TWh to 34,454 TWh) which is currently is about 69% (19,004 TWh to 32,150 TWh). This increase in energy power has, in turn, resulted in renewal and new installation of the Transmission and Distribution network, which has ultimately produced a surge in the electrical enclosure market. The increase in demand is highest in Asia, projected to average about 4.0% per year till 2035. A high priority is placed to address the current need of the two billion people in this region who, till now, have no access to electricity.
The energy power system is in the midst of a transformation, as technology & innovations are disrupting traditional models. This is due to the convergence of 3 trends which are responsible for producing game-changing disruptions: Digitalization, Electrification and Decentralization. As the generation is shifting to more renewable sources, electrification creates further environmental benefits by shifting the end uses of electricity to the fields of transportation, commercial/industrial applications, and residential heating. Adding to it, the growing need for electrical vehicle charging infrastructure is also escalating the necessity of improving the existing infrastructure and addition of smart grids. All of these have acted as positive drivers in surging the growth of the closely connected electrical enclosure market.
The North American region, for example, has witnessed an increased demand for new electrical enclosures, replacing the existing old mild steel & wooden enclosures. Europe has experienced a remarkable growth in the demand for electrical vehicles for reducing the tailpipe emissions due to incentives provided by different countries. This had resulted in charging stations being widely installed across the continent, and Europe has now become the hub for western and eastern markets to outsource the manufacture of their electrical enclosures. In the Asia Pacific region, the rapidly emerging economies (mainly China and India) have invested significantly in energy power generation, both in terms of economy and infrastructure, leading to an increase in the demand for electrical enclosures over the past five years. The size and infrastructural requirements throughout Africa, as well as the integration of renewable energy (such as geothermal energy) has increased the attractiveness to develop off-grid/isolated mini-grid systems for reaching and supplying to remote villages and rural areas.
The growing number of applications of energy power has resulted in the surge of the electrical enclosure market. Riding on this high are major global manufacturers of electrical enclosures like Adalet, Eaton, ABB, AZZ, Eldon, Pentair, Rittal, Schneider, Siemens, and Thomas & Betts. The growth in the segment is forecasted to be high, making it lucrative for the sectoral firms to develop competency in.
Author: Jay Karia
Digital Marketing Executive at Inkwood Research.