Electrical Enclosures Markets: Non-Metallic Market Soaring as Metallic Market Drops

November 07, 2016

Wellesley, Mass., Nov 7, 2016 – The global market for electrical enclosures has been growing at a significant rate, on pace with the electricity transmission and distribution industry. BCC Research reveals in its new report that the market for metallic enclosures should express a negative growth rate while the market for non-metallic enclosures should achieve a growth rate exceeding 20%.

Electrical enclosures protect electrical apparatus from corrosion, electrical hazards, dust, fire, chemicals, water and other environmental pollutants. Two material types compose the market categories: metallic electrical enclosures and non-metallic electrical enclosures. Metallic enclosures usually are made from metals, particularly stainless steel, mild-steel and aluminum, whereas non-metallic enclosures are mostly composed of fiberglass, acrylonitrile butadiene styrene (ABS), and polycarbonate.

The global electrical enclosures market should reach $5.0 billion and $7.3 billion in 2016 and 2021, respectively, demonstrating a five-year compound annual growth rate (CAGR) of 7.9%.

The non-metallic market should reach $3.9 billion by 2021, up from $1.5 billion in 2016, corresponding to a five-year CAGR of 21.1%. Non-metallic enclosures are durable, corrosive-resistant, lightweight, and have longer operational lives compared to metallic enclosures. Used in both indoor and outdoor applications, they protect sensitive components against extreme environments and hazards such as water, chemicals, extreme temperatures, dirt and dust. These features should drive growth in this market.

The metallic market should total $3.3 billion by 2021, down from $3.5 billion in 2016, reflecting a five-year CAGR of -0.6%. Metallic enclosures are mainly used in explosion-proof environments. Because metallic electrical enclosures are made from electrically conductive materials, they tend to fail in high humidity and rainy environments. These enclosures also have a tendency to get electrified, with power often getting disputed. These factors will lead a market decline during the forecast period.

Rapidly growing emerging economies, mainly in China and India in terms of both economy and infrastructure, have significantly boosted demand in the past five years. Europe has become the hub for western and eastern markets to outsource the manufacture of their electrical enclosures. With the global economic recovery, global electrical enclosure installations have increased. The North American region has seen increased, pent-up demand for new electrical enclosures, replacing the existing old mild steel or wooden electrical enclosures. In turn, this has produced greater demand for electrical enclosures.

"Increasing raw material prices and stricter environmental regulations on electrical enclosures used in hazardous locations have forced companies to focus on developing enclosures with advanced technologies," says BCC Research analyst Aneesh Kumar. "The pressure to develop environmentally friendly recyclable electrical enclosures continues to grow, even in the Asia-Pacific region and other developing regions. In emerging markets, this development poses a sturdy challenge to small domestic players."

Global Markets for Electrical Enclosures (IAS097B) analyzes the drivers, current trends, key industry challenges, and the regional dynamics of the market. The report also examines the various rules and regulations used globally in the manufacture and installation of different types of enclosures. Data from 2015, estimates for 2016, and projections of CAGRs through 2021 also are provided.

Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming@bccresearch.com.

Global Markets for Electrical Enclosures( IAS097B )
Publish Date: Oct 2016    

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