Global Electrical Enclosures Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Electrical Enclosures Market Overview

The installation of electrical enclosures in the commercial and industrial sectors allows electronic components to be safely contained and thus, is necessary to enable smooth operations across various levels in the modern world. These enclosures are widely used to safely house and cool electrical controls, instruments, terminals, and surveillance devices, among others, to ensure secure functioning.

Solar application is an attractive domain which is supporting the growth of the electrical enclosures market. The solar power sector is generating a significant demand for durable enclosure solutions for protecting vital controls, distribution equipment, and instruments from environmental conditions, as they are often located in open spaces. Moreover, the increasing investment in solar power projects to meet rising renewable energy demands and achieve carbon emission targets is expected to enhance the demand for enclosures that assist with solar thermal and tracking systems.

Electrical Enclosures Market Trends

Growth in Renewable Energy and Energy Storage

The increasing integration of renewable energy sources, like solar and wind, requires robust electrical enclosures to protect sensitive components in harsh environments. Additionally, the rise of energy storage systems, such as lithium-ion batteries, creates demand for specialised enclosures to ensure safety and reliability. This trend of electrical enclosures market is especially prominent in regions adopting renewable energy heavily.

For instance, Hornsdale Power Reserve, South Australia is a large-scale battery storage project, also known as the Tesla Big Battery, which uses lithium-ion batteries to store excess energy generated from wind power. Electrical enclosures are essential to house and protect battery systems and other sensitive electrical components from environmental conditions like dust and moisture. Barra dos Coqueiros Wind Complex, Brazil. The wind power complex in Brazil is a big part of the country’s renewable energy expansion. The project requires specialised enclosures to protect electrical equipment from corrosive salt-laden air and the harsh conditions of coastal areas where wind farms are often located.

Electric Vehicles (EV) and Infrastructure Expansion

The surge in electric vehicle (EV) adoption is boosting demand for EV charging stations, which require electrical enclosures for safety and operational efficiency. As governments worldwide push for EV infrastructure expansion, particularly in North America and Europe, the need for enclosures is set to grow significantly and boost electrical enclosures market value.

The Biden-Harris Administration has committed substantial resources to build a national network of 500,000 EV chargers by 2030. As of 2024, the U.S. has already more than doubled its publicly accessible EV charging stations to over 61,000 compared to 2020. The government recently announced USD 521 million in grants for expanding this network, focusing on rural, suburban, and urban areas. This funding includes the installation of over 9,200 new charging ports, with an emphasis on making EV chargers as common as gas stations, boosting the growth of EVs and consequently electrical enclosures.

Industry News

August 2024

Thesis Capital announced the recapitalisation of NEMA Enclosures in partnership with Farragut Capital Partners, a manager of SBA-licensed SBIC funds for increased industrial automation purposes.

July 2024

Siemens partnered with Stadtwerke Stuttgart to support the city’s energy transition efforts, deploying sustainable infrastructure powered by electrical enclosures designed to facilitate the transition to renewable energy.

Opportunities in Electrical Enclosures Market

Industry 4.0 and smart technologies are driving demand for enclosures capable of housing automated and IoT-connected systems. As smart buildings and smart grids gain momentum, electrical enclosures must support complex, interconnected networks. For instance, by 2025, it is expected that over 75 billion IoT devices will be connected worldwide, with manufacturing being one of the largest sectors leveraging IoT for real-time monitoring, predictive maintenance, and automation, which can enhance electrical enclosures market revenue. Automation is also increasingly crucial in sectors like manufacturing and construction, where efficient control systems rely on protective enclosures.

New regulations focusing on safety and energy efficiency are also promoting the adoption of advanced electrical enclosures. For example, arc fault detection devices (AFDDs) are becoming a standard in many markets, ensuring the prevention of electrical fires. Additionally, the growing concern around cybersecurity in interconnected systems requires enclosures that safeguard not only physical components but also digital infrastructure.

Electrical Enclosures Market Restraints

The rapid evolution of electrical systems, such as smart grids and renewable energy installations, has introduced greater complexities in enclosure design. Modern electrical enclosures must accommodate advanced technologies like IoT sensors and energy storage solutions, often requiring specialised materials and innovative designs. Additionally, the increasing complexity of these systems demands more frequent maintenance and updates, creating further challenges that can affect electrical enclosures demand growth.

A significant concern in the electrical sector is the shortage of skilled labour. As experienced professionals retire and fewer newcomers enter the field, the gap in qualified technicians, engineers, and maintenance personnel continues to grow. This lack of trained workers can impede the production and installation of complex electrical systems, including the enclosures that protect them. The industry is struggling to attract and retain a workforce capable of meeting the demands of contemporary, sophisticated electrical infrastructure.

Market Dynamics

The growing research and development activities aimed towards designing electrical enclosure solutions with innovative materials that can enhance the performance and longevity of precarious electrical equipment and boost energy-efficient operations are providing lucrative electrical enclosures market opportunities. For instance, the US Department of Energy (DOE) Funding announced USD 33 million in funding to advance smart manufacturing technologies. This funding includes research on innovative materials and manufacturing processes that improve energy efficiency, which directly supports the development of advanced electrical enclosures.

The DOE’s BTO has further provided over USD 38.8 million for high-impact building technologies aimed at decarbonising, enhancing resilience, and reducing energy costs. Part of this funding focuses on developing energy-efficient materials for electrical systems, including enclosures used in modern buildings.

Electrical Enclosures Industry Segmentation

Global Electrical Enclosures Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

An electrical enclosure refers to a cabinet/housing for electronic components/equipment to offer a degree of protection against electrical shocks. It is an integral system of power distribution and control and is essential for protecting users from incidental contact, keeping them safe from electric shocks. These enclosures provide a weather resistant and safe space for electrical components and also provide protection against unauthorised access.

Based on material type, the market is segmented into:

• Metallic
• Non-metallic

On the basis of mounting type, the market is classified into:

• Wall-mounted enclosure
• Floor-mounted/free-standing enclosure
• Underground electric enclosure

By form factor, the market is segregated into:

• Small Enclosures
• Compact Electric Enclosures
• Full-Size Electric Enclosures

By product type, the market is categorised into:

• Drip-tight
• Hazardous environment
• Flame/explosion proof
• Dust-tight
• Others

On the basis of industry vertical, the market segmentation includes:

• Power Generation and Distribution
• Oil and Gas
• Metal and Mining
• Transportation
• Others

The major regional markets for electrical enclosures include:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Electrical Enclosures Market Share

By Material Type Insights

The metallic material currently holds the highest electrical enclosures market share. This is primarily due to its widespread use in industrial applications, where durability, strength, and fire resistance are critical. Metallic enclosures, particularly those made of steel and aluminium, are favoured for their ability to protect electrical components from harsh environmental conditions such as extreme temperatures, corrosive substances, and physical impacts.

By Mounting Type Insights

Wall-mounted enclosures are ideal for environments with limited floor space, making them the go-to choice for residential, commercial, and small industrial applications. They are easy to install and maintain, reducing operational complexity and costs, which contributes to their popularity. These enclosures are mainly used for housing smaller electrical and electronic components, particularly in automation, energy management, and telecommunications.

By Form Factor Insights

The compact electric enclosures segment currently holds the highest share as compact enclosures are ideal for applications where space is limited but still require the protection of electrical and electronic components. The increasing demand for automation systems in manufacturing and industrial environments has boosted the demand for compact enclosures, eventually increasing electrical enclosures demand. Compact enclosures offer protection without the high costs associated with full-size enclosures, making them appealing for smaller setups.

By Product Type Insights

The hazardous environment segment holds the highest share as these enclosures are designed to protect electrical components in extreme and dangerous environments, where exposure to chemicals, explosions, or other hazards is common. End-use sectors that operate in hazardous environments must comply with stringent safety standards, driving the demand for enclosures that meet certifications like ATEX or IECEx. They are also essential in industrial sectors that deal with volatile substances or extreme conditions, making them more prominent than other segments.

By Industry Vertical Insights

The power generation and distribution sector fuels the growth of the electrical enclosures market industry as these enclosures are necessary to enable safe operation; offer protection to personnel against incidental contact; and protect electrical systems from harsh environmental conditions. Grid modernisation projects and the development of ageing energy infrastructure have been significantly contributing to the product demand. Several guidelines have been established to help industries carefully choose electrical enclosures based on performance criteria and test methods.

Additionally, the growing global demand for power due to increasing population and industrialisation is further prompting public and private organisations to improve their power generation and distribution capabilities, leading to heightened use of electrical enclosures.

Electrical Enclosures Market Regional Analysis

North America Electrical Enclosures Market Drivers

North America holds a significant share of the market, driven by the growing demand for durable electrical solutions and equipment to streamline power distribution operations in power centres. As per the electrical enclosures industry analysis, there has been a surge in investment towards the development of distribution centres, especially in the Northeast area of the United States.

Over the forecast period, the anticipated increase in solar installations across several parts of the region is anticipated to further boost the market demand. Moreover, with EV adoption surging, the U.S. government has committed to building a national network of 500,000 EV charging stations by 2030, which directly boosts the need for enclosures to protect this infrastructure.

Asia Pacific Electrical Enclosures Market Outlook

Countries like China, India, and Japan are experiencing rapid industrial growth and urbanisation. China leads in public EV charging infrastructure, accounting for 70% of global public charging points. As per the electrical enclosures market dynamics and trends, this massive infrastructure demands durable and efficient electrical enclosures.

The Chinese government's "Made in China 2025" initiative is pushing for technological innovation, including the adoption of smart manufacturing and automation technologies, which heavily rely on advanced electrical enclosures.

Europe Electrical Enclosures Market Trends

Europe has been a leader in renewable energy adoption, with ambitious goals to reduce carbon emissions and increase the share of wind and solar power in its energy mix. The European Union’s Alternative Fuels Infrastructure Regulation (AFIR) mandates the installation of high-capacity, fast-charging stations for EVs, further increasing the electrical enclosures demand forecast. Europe also has stringent safety and regulatory standards, including regulations around energy efficiency and equipment protection, which are pushing manufacturers to produce more compliant enclosures.

Middle East and Africa Electrical Enclosures Market Growth

The Middle East, particularly countries like Saudi Arabia and the UAE, is investing in industrial automation and energy infrastructure, including efforts to modernise oil and gas facilities. These facilities require advanced electrical enclosures to house critical systems that are exposed to extreme temperatures and harsh environments, boosting the demand of electrical enclosures market. Africa is seeing growing investments in renewable energy projects, such as the expansion of solar energy in countries like South Africa. These projects create significant demand for electrical enclosures that can withstand harsh environmental conditions.

Latin America Electrical Enclosures Market Dynamics

As Latin American countries improve their power grids and renewable energy infrastructure, the demand for electrical enclosures is expected to rise significantly. Countries like Brazil and Mexico are ramping up their renewable energy initiatives which can boost electrical enclosures industry revenue. Brazil, for instance, has large wind and solar farms that require enclosures for inverters and energy storage systems. These enclosures must protect electrical components in harsh conditions such as high humidity and corrosive coastal air.

Innovative Startups in Electrical Enclosures Market

Emerging companies like Enclosure Hub and Packaged Energy are building IoT-enabled enclosures, helping businesses manage electrical systems more efficiently by providing cloud-connected monitoring solutions. Newer companies are also looking at enclosures designed for sustainable energy solutions, including those used in solar panel setups and wind farms, helping facilitate clean energy distribution while maintaining durability in outdoor environments. Some startups are researching new materials that can withstand extreme weather, temperature fluctuations, and chemical exposures. For instance, fiberglass enclosures are being used in end-use sectors where metal enclosures would corrode.

Ensto

Ensto is a Finnish startup in the electrical enclosures market that specialises in providing electrical enclosures and smart solutions for harsh environments. The company focuses on creating modular and customisable enclosures that cater to end-use sectors such as marine, energy, and telecommunications, among others. Their enclosures are designed to withstand challenging conditions such as extreme temperatures and corrosive environments.

Packaged Energy

This startup is based in the USA and is developing smart electrical enclosures specifically designed for energy distribution and storage applications. Packaged Energy focuses on integrating IoT technology into their enclosures, allowing for remote monitoring and control of power systems. Packaged Energy’s enclosures are equipped with sensors and IoT connectivity, enabling energy companies to monitor real-time performance, prevent failures, and optimise energy distribution remotely.

Competitive Landscape

Established market players are integrating smart monitoring and control systems into their enclosures, allowing for remote monitoring of power distribution and circuit status. These smart enclosures can also provide real-time data to reduce downtime and improve energy efficiency in industrial setups. Traditional manufacturers are increasingly offering customisable enclosures for different sectors like oil and gas, telecommunications, and renewable energy, among others.

Key Industry Players

ABB Ltd.

It is a leading company which offers electrification and automation services. The product portfolio of the company includes energy distribution components such as electrical enclosures. The key business areas of the company are electrification, process automation, and robotics, among others. The company was founded in 1988 and is headquartered in Zurich, Switzerland.

Schneider Electric SE

It is a multinational organisation which provides expertise related to energy management and automation. The core services provided by Schneider Electric SE include building access control, building management, electric enclosure, and sensor, among others. The company was founded in 1836 and is headquartered in Rueil-Malmaison, France.

Eaton Corporation Plc

It is a firm which offers high-end power management services and solutions. Established in the year 1911, the company is committed towards facilitating energy efficient environment across industries. Eaton Corporation is headquartered in Dublin, Ireland.

Other electrical enclosures market players include Emerson Electric Co., RITTAL GmbH & Co. KG, Hubbell Incorporated, Scott Fetzer Company (Adalet), nVent Electric Plc, Hammond Manufacturing Company Limited, and SOCOMEC, Inc., among others.

Recent Developments

June 2024

Polymer Resources Ltd., a compounder based in Connecticut, the United States, introduced a new grade of unfilled, impact-modified polybutylene terephthalate designed for electrical applications at NPE2024.

May 2024

ABB has announced the opening of a €20 million injection moulding manufacturing facility in Evergem, Belgium. This project is designed to meet the growing demand for safe, intelligent, and sustainable electrification solutions throughout Europe.