US Electrical Enclosures Market Size

US Electrical Enclosures Market Analysis

The US Electrical Enclosures Market size is estimated at USD 1.95 billion in 2024, and is expected to reach USD 2.86 billion by 2029, growing at a CAGR of 7.91% during the forecast period (2024-2029).

• The increasing power and industrial infrastructure, combined with the need for a safe workforce, has led to various safety standards for the equipment in the industries. This has made electrical enclosures a crucial element in industrial and residential applications. The country has increased demand, owing to the growing electric consumption from various end-user segments, especially from the oil and gas, automotive, and power generation segments.
• The National Electrical Manufacturers Association (NEMA), based out of Virginia, United States, established the standards, such as cover, corrosion resistance, ability to protect from rain and submersion, etc. It also classified electrical enclosures based on their performance. The enclosure industry has to follow the regulations as per a specific end-user industry. For instance, the oil and gas industry uses intrinsically safe, fire and explosion-proof enclosures. Over the forecast period, the increasing offshore and onshore oil and gas projects in the country, owing to the National OCS leasing program, are expected to increase the demand for electrical enclosures to avoid or control any incidents from further taking place in the country.
• Oil production in the United States continues to expand rapidly. For instance, ExxonMobil, one of the prominent oil producers in the country, announced its plans to increase the production activity in the Permian Basin of West Texas by producing more than 1 million barrels per day (BPD) oil-equivalent by as early as the year 2024. Similarly, Chevron plans to increase its net oil-equivalent production to reach 900,000 BPD by 2023.
• As the COVID-19 pandemic kept Americans at home, a change in demand for commodities from services stressed supply chains. The virus also affects labor at factories and various stakeholders such as raw material suppliers and manufacturers, resulting in raw material shortages across the electrical enclosure industry. According to the ISM, manufacturing's growth potential has been hampered by worker absenteeism and short-term shutdowns due to component and labor shortages.