ELECTRIC CONTROL PANEL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)
The global electric control panel market is estimated to be valued at USD 6.34 Billion in 2024 and is expected to reach USD 9.82 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.
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Factors such as increasing investments in infrastructural development projects and rapid industrialization across developing regions are driving the demand for efficient electric control panels. Additionally, rising focus on the deployment of smart grid technologies and automation in industries to enhance productivity is further augmenting the market growth. Various government initiatives which includes incentives for the manufacturing of components like electric control panels for air conditioners and LED lights, promoting domestic production and reducing imports. to expand power distribution networks and upgrade ageing infrastructure are also boosting the electric control panel market. However, high initial costs associated may hinder the market expansion to some extent over the forecast period.
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Insights by Type: Increased Process Automation Drives Automation and Instrumentation
In terms of type, the automation and instrumentation segment is estimated to hold the highest share of the market with 38.3% in 2024 owing to the rise in automation across various industries such as chemicals, oil & gas, pharmaceuticals, utilities & energy, and others. Automation and instrumentation panels are designed to control and monitor industrial processes and machinery through sensors, controls and programmable logic controllers. With growing needs for streamlining operations and improving productivity, companies are increasingly automating their manufacturing processes and deploying automated systems.
Insights by Voltage: Medium Voltage Panels Dominate due to Wide Industrial Applications
In terms of voltage, the medium voltage segment is estimated to hold the highest share of the market of 43.4% in 2024. Medium voltage in the range of 1-35kV is ideal for operating heavy industrial equipment and machinery. Most industrial control applications involve distribution of power at medium voltage levels within plants and facilities. As a result, medium voltage panels configured for 3.3kV, 6.6kV and 11 kV are highly sought after. Their rugged and modular construction makes them suitable for withstanding the heat and vibrations encountered in industrial environs.
Insights by End User: High Demand for Process Automation
In the terms of end user, the chemicals segment is estimated to hold the highest share of the market of 49.5% in 2024 owing to the extensive usage of electric control panels across chemical plants, petrochemical facilities and refineries. The chemical sector relies heavily on automated systems for regulating critical processes involving mixing, heating, cooling, separation, and synthesis. Electric control panels integrated with sensors, programmable logic controller (PLC) and distributed control systems form the backbone of process automation in this industry.
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Regional Analysis: Global Electric Control Panel Market
Dominating Region: Asia Pacific
Asia Pacific is expected to account for the greatest revenue share, with 42.3% in 2024., driven by the rapidly developing industrial landscape and supportive government policies to boost manufacturing. Countries like China, India, and Japan are witnessing increased investments toward modernization and upgradation of existing infrastructure. Local panel builders have also strengthened their presence, offering cost-effective solutions. Leading global companies are shifting their production bases to the region to capitalize on the opportunities.
Fastest Growing Region: North America
Stringent regulatory policies pertaining to workplace safety have boosted adoption of technologically advanced control panels across various end-use industries. Major players like Schneider Electric, Rockwell Automation, and Eaton have expanded their footprint in the region through strategic partnerships, catering to demand from industries such as oil & gas, pharmaceutical, and automotive.
Electric Control Panel Market Outlook for Key Regions
U.S.: The electric control panel market in the U.S. is dominated by automation solution providers focusing on development of customized panels integrated with IoT and cloud-based technologies.
Asia Pacific: The electric control panel market in China continues to lead via government-driven smart manufacturing initiatives. Growing investments in renewable energy sector are bolstering demand in India.
Europe: Germany panel makers continue expanding in neighboring markets alongside Italian firms known for aesthetically designed panels.
Latin America: Brazil panel builders cater to diverse end-users while Mexican companies gain traction.
Middle East & Africa: Partnerships with international brands are helping Egyptian companies address the region's requirements.
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Top Strategies Followed by Global Electric Control Panel Market Players
Established Players: R&D Investment
Leading electric control panel manufacturers focus extensively on research and development to deliver high-performance, innovative products. Companies like Schneider Electric, Eaton, and Siemens invest over 5% of their annual revenues into R&D. Their state-of-the-art labs develop advanced control technologies to enhance reliability, safety, and efficiency. For instance, Schneider Electric invests over US$ 1 Bn annually into R&D. This has enabled innovations like EcoStruxure architecture platform integrating IoT, analytics, edge computing, and sustainability.
Mid-Level Players: Cost-Effective Solutions
Mid-size companies strategize on delivering competitively priced solutions targeting price-sensitive customers. They leverage economies of scale by improving production efficiency and optimize the bill of materials. Some reduce manufacturing costs through contract manufacturing at low-cost regions. Companies like Nexans and Rockwell Automation customize basic but functional panels specific to client needs at competitive rates. This has helped them gain market shares in emerging low-cost automation markets.
Small-Scale Players: Niche Specialization
Small players focus on specialized niche markets with unique applications. For example, companies like Gems offers explosion proof panels for mining, oil & gas industries. Their customized intrinsically safe designs meet safety certifications for hazardous areas. Similarly, companies like EMC LEGATO specialize in RuggedTouch HMI panels robust for harsh outdoor environments. Their expertise in specialized fields helps gain loyal customers and competitive advantage over bigger players.
Emerging Startups in the Global Electric Control Panel Market
Innovative Technologies
Advanced startups are leveraging technologies like AI, IoT and edge computing to disrupt the market. Companies like General Electric's Current leverage IIoT and predictive analytics to provide remote monitoring of electrical assets. Their Sensor-to-Cloud platform collects real-time equipment data enabling preventive maintenance. Other startups like ThoughtWire focus on developing smart electrical sensor modules and AI optimizers. Their technology analyzes power quality data to improve reliability and reduce energy costs. Such innovations are expected to transform industries by enabling condition-based maintenance and smart automation.
Sustainable Solutions
Startups are increasingly addressing sustainability with eco-friendly products. Companies like Urban Volt design modular micro-grids powered by renewable energy sources. Their plug-and-play systems improve energy access worldwide in a clean manner. Verdigris Sustainable Energies has developed bio-based resins using agricultural waste for wiring insulation. Their sustainable materials lower manufacturers’ carbon footprint. Many partners with research institutions to accelerate sustainable innovations. For example, Thought Wire’s research with Binghamton University aims to develop graphene-based ultracapacitors for clean energy storage.
In April 2024, Schneider Electrica global leader in energy management and automation solutions, focusing on efficiency and sustainability. introduced Resi9, an advanced energy center that enhances electrical connections with new energy loads and inputs. An intelligent electrical panel, Resi9 protects home electrical fittings with the addition of new energy renewables and landscape devices.
In March 2024 Schneider Electric said it will invest another US$ 140 million in expanding its U.S. manufacturing base. The added investment will be channeled toward strengthening support for critical infrastructure sectors and data centers. Its medium-voltage power distribution solutions and custom-built electrical switchgear will focus on strengthening the support for vulnerable infrastructures and other industries targeted at nationwide growth demand for data center solutions.
In March 2024, Rockwell Automation launched its CUBIC portfolio across the Asia Pacific region. CUBIC specializes in integrated enclosure systems in compliance with the IEC-61439 standard for building electrical and power panels. The portfolio serves different industries, which are mining, renewable energy, chemicals, data centers, infrastructure, and food and beverage.
In November 2023, ABB launched Protecta Power panel board product, which offers flexible power distribution in various applications. Commercial, industrial, and institutional buildings will be targeted with this new generation of panel board. Protecta Power panel board utilizes the latest digital monitoring and control technologies integrated into it.
In July 2023, Schneider Electric upgraded its production with enhanced functionality, app-based control, and energy monitoring, providing a cost-effective way to manage home energy and reduce utility costs.
Key Takeaways from Analyst
The growing industrial automation across major industries such as oil & gas, chemical, food & beverage, pharmaceutical and others will drive the demand for electric control panels. Further, the need for centralized monitoring and controlling of industrial operations is pushing industries to adopt electric control panels. Asia pacific dominates the electric control panel market currently. However, North America is expected to be the fastest growing market due to rapid industrialization and increasing manufacturing activities in countries like China and India. The focus on reducing manufacturing costs through automation solutions offers huge opportunities in Asia Pacific.
Electric Control Panel Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 6.34 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 6.4% | 2031 Value Projection: | US$ 9.82 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Siemens AG, Schneider Electric, ABB Ltd, General Electric (GE), Eaton, Rockwell Automation, Larsen & Toubro, Mitsubishi Electric, and Omron Corporation |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Driver - Increasing automation and digitalization in industries
The past decade has witnessed remarkable growth in industrial automation and digitalization across different sectors of the global economy. Manufacturing plants and facilities are increasingly relying on automated systems and computer-controlled machinery to streamline operations, minimize human errors and improve productivity. According to the United Nations, global rollout of IoT connectivity is estimated to generate US$5.5 trillion to US$12.6 trillion economic benefit per year by 2030. Advanced digital technologies such as IoT, AI, and robotics are enabling the next wave of transformation in how industries function. This has generated substantial demand for robust and reliable electric control panel systems that can support the complex requirements of automated plants.
Market Challenge - High initial investment costs
The high initial investment costs associated with setting up electric control panels poses a significant challenge for widespread adoption globally. Manufacturers need to invest heavily in state-of-the-art manufacturing facilities, advanced process control systems, robust quality assurance infrastructure to produce electric control panels. Further, integration of digital and automated technologies also requires considerable capital which increases the overall project costs.
Market Opportunities -Advancing Technologies like IoT and Cloud Computing
The growing adoption of Internet of Things (IoT) and cloud computing technologies present significant opportunities for the electric control panel market. IoT enables remote monitoring of electric control panels using sensors which helps predict maintenance needs, analyze performance parameters and detect faults in a non-intrusive way. This leads to savings in downtime and improves overall productivity of machines. Further, cloud-connected electric control panels allow collecting operational data on a centralized platform which helps operators gain valuable insights through analytics.
What Growth in Electric Control Panel Industry mean for Different Stakeholders?
The electric control panel industry has multiple players with varied designations and offers multiple opportunities based on their scope of operations.
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Key Control Systems Stakeholder |
Opportunities Due to Control Systems Industry Growth |
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Component Manufacturers |
Increased demand for high-quality, innovative components such as processors, sensors, and connectors, driven by the rapid evolution of consumer electronics, IoT devices, and industrial automation systems. |
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Device Manufacturers |
Growth in the market for new and upgraded electronic devices, including smartphones, wearables, and smart home products, offering opportunities to design and produce devices that meet rising consumer expectations for performance and functionality. |
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End-of-Life Service Providers |
Increased demand for sustainable end-of-life solutions for electronic devices, offering opportunities to provide recycling, refurbishing, and e-waste management services that recover valuable materials and reduce environmental impact. |
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System Integrators |
Growth in the need for integrating complex systems in industries such as telecommunications, healthcare, and industrial automation, offering opportunities to create seamless solutions that enhance performance and interoperability. |
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Testing and Quality Assurance Service Providers |
Rising demand for rigorous testing and quality assurance services as electronic devices and components become more advanced, offering opportunities to ensure compliance with safety standards, reliability, and performance benchmarks. |
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About Author
Ramprasad Bhute
Ramprasad Bhute is a Senior Research Consultant with over 6 years of experience in market research and business consulting. He specializing in Construction Engineering and Industrial Automation and Machinery, this professional has developed a robust skill set tailored to optimizing processes and enhancing operational efficiency. Notable achievements include leading significant projects that resulted in substantial cost reductions and improved productivity. For instance, he played a pivotal role in automating machinery processes for a major construction firm, which led to a 25% increase in operational efficiency. His ability to analyze complex data and provide actionable insights has made him a trusted advisor in the field.
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