The Electric Control Panel Market is projected to expand from US$ 5,507.35 million in 2022 to US$ 9,096.16 million by 2030, reflecting a compound annual growth rate (CAGR) of 6.5% during the period from 2022 to 2030.
In industrial environments, factory automation frequently incorporates pneumatic and hydraulic systems alongside robotic arms, resulting in a more intricate operational framework. The benefits of automation are numerous, including enhanced energy efficiency, adherence to safety standards, and improved designs that lead to remarkable production outputs. Additionally, automation contributes to reduced operational costs and bolsters worker safety in potentially dangerous settings. An electrical control panel consists of various electrical devices that harness electricity to manage the mechanical functions of industrial machinery and equipment. The current renewable energy sources (RES) framework integrates with digital information processing and sophisticated telemetry systems within the smart grid SCADA architecture. The rising integration and automation of electric microgrids and utility grids present new opportunities for advancements in energy management. The escalating demand for factory automation serves as a crucial catalyst for the electric control panel market. Moreover, the surge in investments in new construction and manufacturing facilities drives the expansion of electrical installations in warehouses, factories, distribution centers, and similar establishments. The application of control panels in renewable energy generation and distribution further propels the growth of the electric control panel market for industry stakeholders.
The increasing import and export activities of industrial control panels, especially in Southeast Asian nations, highlight the robust demand for this equipment. To maintain competitiveness, numerous industrial firms are compelled to modernize their essential equipment, often necessitating the replacement or refurbishment of outdated industrial control panels with contemporary components. Consequently, the rising demand for factory automation is significantly influencing the growth of the electric control panel market in the United States and other Western countries.
Impact of COVID-19 on Electric Control Panel Market Size
The COVID-19 pandemic and the ensuing government restrictions had a profound effect on the economies of several European nations, including Germany, Italy, the UK, Russia, France, and Spain. In the second quarter of 2020, many sectors in these countries faced a downturn in production volumes due to partial border closures and restrictions on imports and exports. As a result, the demand for electric control panels in Europe saw a decline in 2020. Despite these challenges, companies within the electric control panel sector took proactive measures to enhance their offerings. For example, Siemens AG launched new features for its TIA Selection Tool software in November 2020, enabling control panel manufacturers to optimize their value chains through digitization. As the economy begins to recover and end-user industries invest in boosting efficiency and productivity, the demand for electric control panels is anticipated to rise by the end of 2022, likely benefiting the electric control panel market in the future.
The analysis of the electric control panel market in Europe is segmented by geography, encompassing Germany, France, Italy, the UK, Russia, and the Rest of Europe. The improved living standards in the region have led to a heightened adoption of consumer and commercial electrical components, resulting in increased demand for electric control panels from manufacturers of industrial automation components. Thus, the growth of consumer and commercial electrical components is expected to drive the electric control panel market in the coming years. Numerous companies are striving to enhance their presence in the electric control panel market, with key players focusing on launching innovative solutions and services while upgrading their existing product capabilities.
Stakeholders in the electric control panel market include raw material suppliers, manufacturers, and industries utilizing these panels in sectors such as manufacturing, chemicals, automotive, food & beverage, power, oil & gas, pharmaceuticals, and textiles. Raw material suppliers provide components such as enclosures, circuit breakers, surge protectors, transformers, terminal blocks, programmable logic controllers, network switches, relays, and human-machine interfaces to electric control panel manufacturers. The market report identifies key manufacturers like ABB Ltd., Bectrol, Cetal, Eaton, Leviton Manufacturing Co., RITTAL GMBH & CO. KG, Rockwell Automation, Schneider Electric SE, Siemens AG, and SIMON PROtec. However, the high costs associated with deployment and replacement pose challenges to the growth of the electric control panel market. Manufacturers must comply with safety standards such as IEC 60204-1, UL 508A, National Fire Protection Agency (NFPA) 70/79A, and BS EN 61439-2. The continuous growth of various industries will further drive the adoption of electric control panels and influence market expansion.
The analysis of the electric control panel market has been conducted using both primary and secondary research methodologies. Secondary research involved collecting qualitative and quantitative data from various internal and external sources to provide an overview and forecast of the electric control panel market size across all segments. Additionally, numerous primary interviews were held with industry participants and experts, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as research analysts, valuation experts, and key opinion leaders specializing in the electric control panel market, to validate the data and gain deeper analytical insights.