The E-house industry is projected to expand from US$ 1,614.70 million in 2022 to US$ 2,253.46 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.7% during this period.
The E-house sector is anticipated to witness significant growth throughout the forecast period, driven by the rapid development of the mining and oil & gas industries in the Middle East, alongside an increasing demand for E-houses within the African utility sector. Moreover, nations in the Middle East and Africa, particularly Iraq, which is in the process of recovery from civil unrest, are expected to present promising opportunities for the E-house market. In 2017, the Iraqi government ordered 12 mobile substations to enhance the utility sector, aiming to restore essential services such as power supply to both businesses and residents, thereby addressing the ongoing power shortage. Countries like Mozambique, Angola, and Libya are also contributing to the rising demand for E-houses in the MEA region.
Kontrolmatik stands out as a key player in the E-house market within the MEA region. The company produces comprehensive prefabricated and containerized E-house solutions at its Mobile Energy Solutions Factory located in Ankara, Turkey. Kontrolmatik is engaged in various facets of E-house systems, including equipment provision, system integration, engineering, testing, and commissioning. The ongoing oil and gas projects in the MEA region, such as the Upper Zakum Production Capacity Enhancement, Ruwais Refinery Complex Expansion, Zubair Oil Field Rehabilitation, Ras Laffan Qatargas NFE, Basra Gas Gathering Project, and Al Zour Refinery, present substantial growth prospects for the E-house market.
Effects of the COVID-19 Pandemic on the E-House Sector
The COVID-19 pandemic led to an economic downturn in Europe during 2020 and 2021, primarily due to business closures, travel restrictions, and disruptions in supply chains. Countries like the UK, Spain, and Germany enforced strict measures to curb the virus's spread, resulting in the temporary halting of several sectors, including oil & gas, mining, and infrastructure development. This situation negatively impacted the demand for E-house solutions, causing production delays. However, as restrictions began to lift in mid-2020, many development projects resumed, leading to a resurgence in demand for E-house solutions. Industry leaders in the E-house sector responded to this renewed demand by undertaking new projects and accelerating market growth.
In 2022, the Hungarian government launched development initiatives in areas with significant potential for infrastructure growth. The European Commission approved a Cohesion Fund investment of US$ 90.72 million aimed at improving passenger and freight train connections in Hungary's Northern Great Plain. This project involves constructing facilities in remote areas lacking power, which will require new E-house systems to supply energy to construction equipment and related tools. This scenario offers considerable opportunities for E-house market participants, with an expected increase in the deployment of E-houses in such initiatives.
The analysis of the E-house market is categorized by type, component, and application. The market is divided into fixed (skid-mounted) and mobile substations based on type. In terms of components, the E-house market includes transformers, bus bars, power management systems, variable frequency drives, switchgear, HVAC systems, and others. Additionally, the market is segmented by application into industrial and utility sectors. Geographically, the market is divided into North America, Europe, Asia Pacific, the Middle East & Africa, and South and Central America.
Key players in the E-house market include ABB Ltd., Eaton, Becker Mining System AG, Schneider Electric SE, Siemens AG, WEG, StarFlite Systems, Scheron, Powergear Limited, and Powell Industries, Inc. These companies are employing both organic and inorganic growth strategies to maintain their competitive advantage. For instance, in January 2022, ABB collaborated with UK Power Networks to create a sustainable future by implementing the world?s first 36 kV double bus bar AirPlus switchgear. ABB was tasked by UK Power Networks, which serves 8.3 million households and businesses, to deliver this innovative medium-voltage double busbar AirPlus Gas Insulated Switchgear (GIS), which utilizes AirPlus gas as an insulator, resulting in minimal global warming impact. UK Power Networks, the largest electricity distributor in the UK, has committed to using AirPlus as part of its Environmental Action Plan to ensure sustainability for future generations.
In February 2019, ThyssenKrupp Industrial Solutions awarded Siemens one of its largest contracts for E-houses, which included seven modular power distribution substations intended to support a new chemical complex for MOL Group, a leading international oil and gas company based in Hungary.
The size of the E-house market has been determined through a combination of primary and secondary research methodologies. The initial phase involved extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data regarding the E-house market. This process also included obtaining an overview and forecast of the market size across all segments. Following this, primary research was conducted, involving interviews with industry participants and experts to validate the data and gain further analytical insights. Interviewees included VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders in the E-house market.
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