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The industrial enclosures market is estimated to grow at a CAGR of 5.16% between 2022 and 2027 and the size of the market is forecast to increase by USD 2,237.84 million. The growth of the market depends on several factors, such as the increasing use of electrical and electronic equipment in manufacturing processes, the stringent standards for enclosure design, and the increased adoption of automation and communication technologies.
This report extensively covers market segmentation by end-user (process and discrete), type (metallic and non-metallic), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing use of electrical and electronic equipment in manufacturing processes is the key factor driving the growth of the global industrial enclosures market. The importance of energy-efficient appliances has been recognized over the past decade. Severe power shortages have made power a key issue for various industries, especially in developing countries. Therefore, end-users choose different types of safety devices to protect their industrial equipment such as motors, compressors, pumps, and fans. Safety devices such as variable frequency drives (VFDs), vacuum contactors, motor control centers (MCCs), and motor controllers can reduce power consumption and lower the total cost of ownership. Industrial electrical enclosures are used to house electronic components and instruments such as VFDs, low harmonic drives, vacuum contactors, and motor control centers.
These electrical enclosures protect these electronic devices from dust, moisture, contaminants, and particulate matter in indoor and outdoor environments. Additionally, they also provide the systematic organization of components such as harmonic filters, insulated-gate bipolar transistors (IGBTs), circuit breakers, PLCs, AC reactors, safety relays, and regenerative converters, and wiring by integrating all of these into one chamber. The increasing demand for safety devices is expected to drive the demand for industrial enclosures globally during the forecast period.
Growth in the smart cities market is the primary trend in the global industrial enclosures market growth. Smart city infrastructure requires a variety of electrical and electronic devices such as sensors, wireless networks, and intelligent lighting systems, which must be protected from environmental influences such as dust, water, and temperature extremes. Industrial enclosures provide a solution to protect these critical components and systems, as they can be designed to provide a safe and controlled environment for sensitive equipment.
Enclosures can be used to house sensors and other electronic devices used in traffic management systems to collect data and communicate with each other in real-time. The development of new kinds of enclosures that can support the unique requirements of smart city infrastructure is also being fueled by the trend toward smart cities. These enclosures may be built to withstand extreme weather, offer simple access to equipment for upkeep and repairs, or provide integrated power and cooling solutions to guarantee peak performance. This trend is expected to drive the growth of the market focus during the forecast period.
Technological advancement is a major challenge to the growth of the global industrial enclosures market. As Industry 4.0 technologies such as the Internet of Things (IoT) and cloud computing become more prevalent, industrial enclosure manufacturers must keep up with these technological advances to remain competitive. The integration of IoT and cloud computing into industrial processes, resulting in greater connectivity between devices, will drive demand for more sophisticated and secure enclosures.
Manufacturers must develop and create enclosures that can accommodate these new specifications, which include intricate wiring, greater heat dissipation, and advanced cybersecurity features. This poses a challenge for manufacturers because it necessitates significant spending on R and D as well as ongoing adaptation to the rapidly changing technological environment. This challenge can hamper the growth of the market in focus during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BCH Electric Ltd.: The company offers industrial enclosures such as RuggedSpec II. The company is a switchgear and low-voltage panel manufacturer.
Chatsworth Products Inc.: The company offers industrial enclosures such as increased safety, explosion-proof Instrument and meter housings, and explosion-proof fittings. The company offers server cabinets, network cabinets, aisle containments, wall-mount cabinets, telecommunication enclosures, consolidation print enclosures, wireless enclosures, wire cage enclosures, accessories, and repair parts.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The process segment will account for a major share of the market's growth during the forecast period. Process industries will dominate the global industrial housing market in 2022. The majority of the Industrial segment's sales come from process industries such as power generation, oil and gas, chemical and petrochemicals, food and beverages, and pharmaceuticals.
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The process segment was valued at USD 4,458.01 million in 2017 and continued to grow until 2021. In the industrial sector, most processes require machineries such as heating, ventilation, air conditioning (HVAC), compressors, motors, conveyors, pumps, and other process equipment to operate 24 hours a day. In such cases, damage to motor controls and control panels from dust and moisture can paralyze entire production and operational processes. This not only impacts performance but also increases the overall cost of ownership. With industrial enclosures, you can ensure that your processes are uninterrupted due to the superior strength and protection of your electrical equipment in these enclosures. Such factors will increase segment growth during the forecast period.
Type Segment Analysis:
Based on type, the construction market in South America has been segmented into metallic and non-metallic. The metallic segment was the largest revenue-contributing segment in 2022, and it is expected to retain its position during the forecast period. Metallic industrial enclosures are used extensively in the power, dairy plants, food processing plants, breweries, and wastewater treatment sectors, where the equipment is highly vulnerable to wet elements. The adoption rate of metallic industrial enclosures will be high in these sectors during the forecast period due to a large expansion of food and beverages as well as wastewater treatment sectors worldwide.
APAC is estimated to contribute 34% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Investments in oil and gas target downstream activities as the Asia-Pacific region requires vast amounts of energy resources to drive industrial growth and support a growing population. Increased oil consumption and rising crude oil import prices have spawned initiatives to support investment in the domestic oil and gas sector. APAC countries are increasing investment in the oil and gas exploration sector to boost domestic production of natural gas and oil. Rising investment is likely to boost the demand for industrial housing during the forecast period.
In 2020, the industrial enclosures market in APAC faced certain challenges owing to the outbreak of COVID-19. However, the region was able to control the spread of the pandemic with the help of a large-scale vaccination drive conducted in 2021. This helped in the reopening of the related end-user industries, which augmented the demand for industrial enclosures in 2021. Further, the market in focus experienced recovery and growth in 2022, which is expected to continue during 2023 and 2027 hence, driving the growth of the market in focus during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Industrial Enclosures Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.16% |
Market growth 2023-2027 |
USD 2,237.84 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.75 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 34% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AZZ Inc., BCH Electric Ltd., Berkshire Hathaway Inc., Chatsworth Products Inc., Eaton Corp. Plc, Emerson Electric Co., Friedhelm Loh Stiftung and Co. KG, HTE Technologies, Hubbell Inc., IMS Companies LLC, Industrial Enclosure Corp., KDM Steel, Legrand SA, nVent Electric Plc, Phoenix Contact GmbH and Co. KG, ROLEC Gehause Systeme GmbH, Rose Systemtechnik GmbH, Schneider Electric SE, TAKACHI ELECTRONICS ENCLOSURE Co. Ltd., ABB Ltd., and Sanmina Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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