Market Trends of Electrical Enclosures Industry
This section covers the major market trends shaping the Electrical Enclosures Market according to our research experts:
Energy and Power End-User Industry to Hold a Significant Share
- Environmental issues related to fossil fuels and nuclear energy are prompting a rise in alternative energy sources, such as solar and wind energy. Solar and wind energy are considered safe, pollution-free renewable energy. Countries around the world are embracing this technology.
- Power generated from solar and wind sources uses sensitive electrical components and batteries that, if exposed to the elements, cause a system failure. Therefore, the energy generation sector uses electrical enclosures significantly for safety purposes.
- Wind and solar energy equipment require seismic protection, EMC shielding, electronics cooling, security, resistance to corrosion, and integration of power conversion and multi-component systems, which are achieved using electrical enclosures.
- As electrical enclosures are deployed to protect the electrical and electronic components and systems of solar, wind, and electrical power plants, government regulations also support the adoption of renewable energy sources, thereby boosting the demand for electrical enclosures.
- Regions are coming up with various initiatives to produce renewable energy sources, further fueling the demand for electrical enclosures. For instance, in August 2021, the Indian Government proposed a set of rules, "Draft Electricity Rules, 2021," for promoting renewable energy through green energy open access. The proposed rules aim to push for faster adoption of renewable power by addressing various concerns related to the green energy sector.
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North America Is Expected To Witness Significant Growth Rate
- The growing industrial automation and smart home integration are expected to drive the electrical enclosures market significantly in this region, mainly due to the United States being an early adopter of industrial automation.
- About 61% of electricity generation was from fossil fuels in 2021. About 19% of the energy from fossil fuels was from nuclear energy, and about 20% was from renewable energy sources. The U.S. Energy Information Administration estimates an additional 49 billion kWh of electricity generation from small-scale solar photovoltaic systems in 2021. The regulating bodies in the region have been the prime players in stimulating the demand for electrical enclosures.
- There is a significant penetration of smart homes in North America owing to growing security concerns and awareness of energy conservation. The technological advancements in smart devices and the adoption of those devices into many households are expected to act as opportunities for the electrical enclosures market, owing to the consumer behavior of having a clean environment.
- The increasing establishment of such plants and the stringent rules associated with them are expected to drive the electronic enclosures market exponentially in the North American region. The U.S. Department of Energy (DOE) recently announced USD 61 million for ten pilot projects to deploy new technology for transforming thousands of homes and workplaces into energy-efficient buildings.
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