Australia and New Zealand Enclosures Market
The Australia and New Zealand (ANZ) market for enclosures is directly dependent on the development of downstream sectors—utility, commercial, industrial, oil and gas, rail, telecommunications, and data centers.
These end-user sectors have been growing at different rates, with mining and manufacturing sectors continuing to slow down, while infrastructure and construction investment growing. It is estimated that the direct investment in the manufacturing sector in Australia has been declining at a rate of % between FY 2008 and FY 2013. The shift in focus for the power utility sector from capital-expenditure driven projects to efficiency-and reliability-driven initiatives is also expected to reduce the demand for enclosures.
However, with growing government spending in hospitals (e.g., the $ billion Royal Adelaide Hospital currently under construction) and the rail sector, in addition to the growing investment in the national broadband network, data centers, and residential and commercial buildings, the enclosures market is expected to show signs of recovery with positive growth in 2015.
Australian-owned firm B&R Enclosures and German-headquartered firm Rittal are the two largest suppliers in the ANZ market. Together with NHP (which markets Eldon’s products), these top three suppliers accounted for about % of total market revenues in 2014.
Price, quality, compliance, and the technological capability of suppliers rank among the top competitive factors in this market.
About this report
Enclosures are used across a range of end-user sectors. The development of end-users directly affects enclosure demand. In Australia and New Zealand, market revenue declined between 2012 and 2014 due to reduced capital expenditure in key end-user sectors such as power, utilities, and mining. Revenue will return to normalized growth in 2015, driven by investments in the national broadband network and in hospital and infrastructure construction sectors. Enclosure products have been largely commoditized and can be purchased off-the-shelf. Growth opportunities exist in the customized-products market where design and technological expertise are highly valued. The market is extremely competitive and 3 leading suppliers control 80% of the market.
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