Electrical Enclosures Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

The global electrical enclosures market was valued at USD 7.97 Billion in 2024. The industry is expected to grow at a CAGR of 5.60% during the forecast period of 2025-2034. The market is driven by the global concern for the safety of equipment and the reliability of operation. Manufacturing, oil and gas, and utilities have their systems housed in enclosures to safeguard the critical systems from the harmful effects of hazards such as dust, moisture, and extreme temperatures produced by operating conditions. Enclosures reduce both failures of components and downtime by doing so and enhance productivity while also resulting in lower maintenance costs. In turn, all these factors have resulted in the market attaining a valuation of USD 13.74 Billion by 2034.

Electrical Enclosures Market Overview

The global electrical enclosures market growth is supported by the wide installation in the commercial and industrial sectors that 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 vital for housing and cooling electrical controls, instruments, terminals, and surveillance devices, ensuring safety and functionality across several applications.

Solar application is an attractive domain which is supporting the growth of the electrical enclosures market. Solar applications are quickly emerging as an important segment for the electrical enclosures market. The deployment of solar energy increasingly relies upon such "rugged" enclosures, which would safely house the critical controls, distribution equipment, and instruments under severe environmental conditions. They are subjected to open sites, often under very severe conditions. Furthermore, the global trend toward increased investments in solar initiatives, harnessed significantly by renewable energy and carbon emission targets, offers further momentum to the introduction of specialized advanced enclosures for solar thermal and tracking schemes, thus improving their reliability and system efficiency.

Electrical Enclosures Market Growth

Rapid growth in data centers and IT infrastructures is a potential niche propelling the electrical enclosures market growth. In recent years, the usage of cloud computing, edge computing, and big data has increased, increasing the application of these devices in terms of secure and efficient enclosures for servers, switches, and equipment used in communication. Identification of requirements such as thermal management, cable organization, and electromagnetic interference (EMI) shielding are some of the requirements of an enclosure designed for data centers. With the increasing need for modular and scalable data centers, it also requires innovative solutions in underfloor space enclosures. These solutions ensure modular flexibility, maintenance-free performance, and improved performance along with meeting stringent standards for safety and energy efficiency.

Medical technology has proliferated throughout the world. Several components under the health sector are also major contributing to the ever-expanding electrical enclosure market dynamics. These components have raised the demand for enclosures for medical appliances, diagnostic devices, and monitoring systems. It is vital to have enclosures for these elements since they will keep them operational under conditions that are hygiene and safety standards. Hospitals, laboratories, and clinics may have enclosures that are resistant to cleaning agents, moisture, and contaminants for continued running, alongside the developing telemedicine and remote monitoring solutions that need such enclosures to form small, portable, and IoT-enabled medical devices.

Key Trends and Developments

Key trends in the electrical enclosures market are industrial automation and intelligent manufacturing, growth in renewable energy and energy storage, electric vehicles and infrastructure expansion, and rising demand for sustainable materials.

August 2024

Thesis Capital announced the recapitalization 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.

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.

Industrial Automation and Intelligent Manufacturing

The impact of industrial automation and smart manufacturing is positively influencing the electrical enclosures market. Industries adopting automated systems and Internet of Things (IoT)-enabled devices lead to an increasing demand for enclosures that provide protection for sensitive electronic constituents from hazards such as dust, moisture, and temperature fluctuations. Smart factory enclosure designs ensure that operations of sensors, controllers, and communication systems are not disrupted when the enclosures are installed. Moreover, the demand for custom-made enclosures is owing to the need for modular designs and seamless integration that would be supported by the advances in Industry 4.0 technologies.

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 specialized 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.

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 United States has already more than doubled its publicly accessible EV charging stations to over 61,000 compared to 2020.

Rising Demand for Sustainable Materials

Sustainable materials are one of the conspicuous trends driving electrical enclosures market. Since sustainability has become paramount across most industries, manufacturers are opting for electrical enclosures from recyclable, non-toxic raw materials such as aluminum, stainless steel, and green plastics. On the other hand, stricter environmental norms and growing consumer preference for green products fuel this change. Apart from minimizing environmental footprints, eco-friendly enclosures prove cost-effective in diverse applications through their long life and effective protection for electrical components.

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. 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.

Electrical Enclosure Market Trends

The electrical enclosures market is driven by smart grid technology developments. Smart grid techniques require state-of-the-art enclosures for control panels, transformers, and communication systems against extreme environmental conditions. The enclosures are also designed to facilitate more complex configurations with devices enabled with IoTs mainly for reliable analytics and intelligent power distribution. However, considering the huge government investment being made all over the world toward creating modern energy infrastructure in response to the increasingly growing demand for renewable energy, the appeal for more of these robust yet customizable enclosures exclusively designed for applications set in smart grids will continue to rise substantially.

Rapid urbanization and modernization of infrastructure in developing regions are currently contributing to the growing demand for electrical enclosures. Urban centers are increasingly demanding strong outdoor enclosures to support the electrical distribution, public utilities, and transportation system. Enclosures house electrical controls and power management systems and hence, these have become critical to smart cities to ensure that services run seamlessly without disruption and safely. Demands for electrical enclosures in all environments will continue to build due to infrastructure upgrades, for instance, new construction projects as well as retrofitting projects.

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 specialized materials and innovative designs, thereby challenging the electrical enclosures market growth.
• 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, hinders the electrical enclosures market growth.

Electrical Enclosures Industry Segmentation

“Electrical Enclosures Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

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

Insights by Material Type

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 aluminum, are favored for their ability to protect electrical components from harsh environmental conditions such as extreme temperatures, corrosive substances, and physical impacts. The rising inclination towards lightweight, corrosion-resistant, cost-effective solutions for harsh and moisture environments have positively influenced non-metallic electrical enclosures market growth globally.

Market Analysis by Mounting Type

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. This segment holds the major share in the electrical enclosure market. These enclosures are mainly used for housing smaller electrical and electronic components, particularly in automation, energy management, and telecommunications. The floor-mounted/free-standing enclosures are increasingly demanded because of the increased installation of large-scale industrial and commercial equipment for secure and spacious housing. These enclosures are versatile and easily accessible for maintenance in diverse applications, such as manufacturing and power distribution, enhancing market growth. The demand for underground electric spaces is driven by the expansion of underground power distribution networks and telecommunication systems. They give solid protection against environmental factors, which allows them to ensure a reliable performance of utilities and critical infrastructure projects.

Insights by Form Factor

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 designs fuel the growth of small housings due to their application in small electronic devices and "internet-enabled" devices used in the home, workplace, and industry. Further, the rising demand for facilities housing full-scale equipment in these industries, such as power generation, oil and gas, and data centers, increases the demand for full-size electric enclosures. They have the capacity to support complex systems while ensuring easy maintenance, thereby enhancing adoption in high-performance applications.

Insights by Product Type

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. One of the major factors contributing towards increasing demand for drip-tight enclosures is the rising need to protect electrical systems from water exposure, such as that encountered in an HVAC system, or during outdoor installations. It further enhances the reliability of critical applications since these enclosures are most effective in protecting internal components from moisture. Demand for rugged dust-tight enclosures is growing because of harsh and dusty conditions in the metal and mining industry. Such enclosures are important in protecting electrical equipment against debris, moisture, and extreme temperatures to enable uninterrupted operations. Further, the threat of hazardous operational environments in the oil and gas industry creates a demand for durable explosion-proof enclosures to cover critical electrical systems, thereby propelling the electrical enclosures market forward.

Market Insights by Industry Vertical Insights

The power generation and distribution sector fuels the growth of the electrical enclosures market as these enclosures are necessary to enable safe operation; offer protection to personnel against incidental contact; and protect electrical systems from harsh environmental conditions. Additionally, the growing global demand for power due to increasing population and industrialization is further prompting public and private organizations to improve their power generation and distribution capabilities, leading to heightened use of electrical enclosures. Construction of transport infrastructure like railways, airports, and smart traffic systems evoke the need for secure enclosures housing control systems and electrical components. Moreover, the stricter safety regulations associated with the oil and gas, chemicals, and mining industries increasingly demand electrical enclosures as these eliminate fire hazards while at the same time ensuring compliance and even safer operations in hazardous industries.

Electrical Enclosures Market Regional Analysis

North America Electrical Enclosures Market Drivers

The North America electrical enclosures market is 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 urbanization. Thereby propelling the Asia Pacific electrical enclosures market. China leads in public EV charging infrastructure, accounting for 70% of global public charging points. 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 Europe 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 modernize 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 in Middle East and Africa. 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 Latin America electrical enclosures market 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.

Competitive Landscape

Electrical enclosures 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. Other electrical enclosures companies are increasingly offering customizable enclosures for different sectors like oil and gas, telecommunications, and renewable energy, among others.

ABB Ltd.

ABB Ltd. 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

Schneider Electric SE is a multinational organization 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

Eaton Corporation Plc 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.

Emerson Electric

Emerson Electric, founded in 1890, offers the most dynamic and powerful solutions for industries including manufacturing, oil and gas, and data facilities. It is a market leader in the electric enclosure industry. The company is very well-known for its innovations. Emerson develops custom and standard enclosures ensuring protection, safety standards, and performance in the harshest environments.

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

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 specializes in providing electrical enclosures and smart solutions for harsh environments. The company focuses on creating modular and customizable 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

Packaged Energy is a startup based in the United States 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 optimize energy distribution remotely.