Electrical Control Panel Market

Global Electrical Control Panel Market Forecast

• Global market for electrical control panels worth US$ 5.6 Bn in 2022 to reach around US$9 Bn by 2030
• Market valuation likely to expand at a CAGR of 7% during 2023 - 2030

Quick Report Digest

1. The key trend anticipated to drive the electrical control panel market growth is an increasing demand for energy efficiency and sustainability. Furthermore, energy-efficient control panels, which help reduce power usage and environmental effects, are becoming more and more important. End users are searching for sustainable solutions to meet regulatory requirements and cut operational costs, while manufacturers are creating energy-efficient components.
2. Another major market trend expected to drive the electrical control panel market growth is the rapidly expanding customisation and modular designs. Manufacturers are providing customers with modular designs that can be quickly customised for various purposes, increasing flexibility and cutting down on lead times.
3. Customised control panels made to meet the requirements of a particular business are becoming more and more in demand. Manufacturers now have an opportunity to focus on offering services for specialised industries like healthcare, aircraft, or energy.
4. In 2022, the open type electric control panel dominated the industry. Open control panels are frequently used for applications that do not require considerable environmental protection because they are more affordable to build than fully enclosed panels.
5. In 2022, the medium and high tension form led the industry. Medium tension control panels are designed to handle voltages between 1,001 to 33,000 volts AC, which is the typical operating range of medium-voltage electrical systems. Utility companies, businesses, and construction crews all often utilise these panels.
6. During the forecast period, significant growth in the power sector is anticipated. Control panels are crucial parts of wind, solar, and other renewable energy farm installations. They control grid connections, inverters, and energy storage systems to boost grid stability and energy output.
7. Asia Pacific region is expected to dominate the electrical control panel market during the forecast period. Asia Pacific nations are investing heavily in renewable energy sources, such as solar and wind power. Control panels are used to oversee the integration of various renewable energy installations into the electrical grid.
8. North America predicted to be amongst the the fastest-growing regions for electrical control panel market. The development and operation of smart grid technologies including demand response, grid monitoring, and distribution automation depend on control panels.

A Look Back and a Look Forward - Comparative Analysis

The construction of data centers is rising dramatically as a result of the quick development of cloud computing, data storage, and digital services. The need for electrical control panels to oversee their intricate electrical systems grows along with the expansion and number of data centers.

Distribution of electrical power to servers, networking hardware, and cooling systems must be precisely controlled in data centers. Control panels are essential for providing effective power management and distribution to fulfill the demands of the data center.

The market witnessed staggered growth during the historical period 2018 – 2022. This is due to the choice of control panels was influenced significantly by compliance with quality and safety regulations. Manufacturers who followed these guidelines had the upper hand in the market because consumers saw their products as more dependable and less prone to breakdowns or safety hazards.

However, businesses made investments in control panels that complied with safety and compliance regulations in an effort to reduce risks and liability. Non-compliance could result in legal repercussions and reputational harm to a business.

Increased demand for charging stations is directly related to the spike in EV sales. When consumers have easy access to charging infrastructure, the market for electric vehicles is more likely to grow in the coming years.

Additionally, the Increasing need for local charging solutions results from growing urbanisation and metropolitan populations. Furthermore, The growth of EV charging infrastructure boosts local and regional economies by producing jobs and business possibilities in installation, maintenance, and related services during the next five years.

Key Growth Determinants

• Increasing Demand for Industrial Automation

Electrical control panels are frequently used in industrial automation to monitor and control equipment and procedures. These panels make precise and effective control possible, increasing production and lowering operating costs for various sectors. Production and manufacturing processes can be optimised with the use of automation systems connected with control panels.

Businesses find this appealing because it leads to greater quality, less waste, and better resource utilisation. Control panel-based automated systems greatly limit the possibility of human error, improving the dependability and consistency of processes. This is particularly significant in industries where precision is crucial.

• Increasing Demand for IoT and Smart Technology

IoT enables the connection of various devices and systems within industries and buildings. Electrical control panels serve as central hubs for managing and controlling these connected devices, making them essential components of IoT ecosystems. Control panels with IoT capabilities enable remote monitoring and management of systems and equipment.

Building management systems and companies with distributed operations, where real-time monitoring and prompt problem-solving are critical, can benefit most from this capacity.

Smart control panels can collect information from linked devices and sensors, giving them important insights into how well equipment performs, how much energy it uses, and other crucial parameters. Data analytics provide predictive maintenance, decreasing downtime and expenses, and help to increase productivity.

• Increasing Demand for Renewable Energy Integration

Renewable energy sources like hydropower, solar, and wind are clean and sustainable when compared to traditional fossil fuels. Electrical control panels are essential for the creation, distribution, and integration of these new energy sources into the existing grids and systems.

Electrical control panels are necessary for the efficient integration of renewable energy into the electrical system. By controlling the flow of power produced by renewable sources, they help the grid remain stable and reliable.

Renewable energy systems usually need the use of batteries and other energy storage technologies. Control panels are essential in order to monitor and control the charging and discharging of energy storage systems and to maximise their performance.

Major Growth Barriers

• High Initial Investments

Allocating a substantial portion of their budgets for electrical control panels can be challenging for small and medium-sized businesses (SMEs), and start-ups. The market growth within this niche may be constrained by the high upfront expenses that may dissuade them from implementing advanced control technologies.

Many sectors may be reluctant to invest in pricey control panels, particularly those with tight budgets or those that compete in crowded markets. This may result in postponed upgrades or less-than-ideal control strategies, which would reduce operational effectiveness.

• Cybersecurity Concerns

Control panels are susceptible to cyberattacks, especially those connected to the internet or other networks. Malicious actors may take advantage of flaws in control panel hardware and software to obtain access without authorisation, interfere with operations, or steal confidential information.

Critical data pertaining to industrial processes, energy management, and infrastructure control are frequently handled through control panels. Data breaches caused by cybersecurity vulnerabilities can cost businesses a lot of money and harm their reputations.

Key Trends and Opportunities to Look at

1. Rising Integration with IoT and Industry 4.0

Smart control panels that can seamlessly interact with IoT devices and Industry 4.0 technologies are becoming more and more in demand as industries strive to become more connected and data-driven. These control panels make automation, data analytics, and real-time monitoring possible.

IoT-connected control panels enable automated and more productive operations. They may keep an eye on the performance of the machinery, track its status, and make in-the-moment adjustments to streamline processes and boost output while lowering operating expenses.

2. Increasing Advanced Human-Machine Interfaces (HMIs)

Modern HMIs have interfaces that are simple and easy to use. They make it simpler for operators to interface with control panels by streamlining the operation and monitoring of electrical systems.

Customer happiness and adoption both rise as a result of improved user experiences. High-resolution touchscreens and graphical displays are frequently found in modern HMIs. Operators are better able to visualise data, processes, and equipment status because of this, which enhances decision-making and operational effectiveness.

3. Growing Remote Monitoring and Maintenance Services

The continuous real-time monitoring of electrical control panels and linked devices is made possible via remote monitoring. This proactive approach to maintenance aids in the early detection of potential problems and abnormalities, lowering the likelihood of unanticipated downtime and expensive equipment failures. Because of this, companies are more likely to spend money on control panels with remote monitoring features.

Making decisions based on data is possible for end users and control panel makers due to remote monitoring's insightful data insights. These revelations inspire initiatives to enhance energy efficiency, streamline processes, and cut costs.

How Does the Regulatory Scenario Shape this Industry?

Over the last three years, various regulatory frameworks and standards that guarantee safety, dependability, and compliance with industry-specific requirements have been applied to the electrical control panel market.  International Standards for Electrical and Electronic Products, Systems, and Services are created and published by the International Electrotechnical Commission (IEC), a global organisation. Electrical control panel design, functionality, and safety are frequently influenced by International Electrotechnical Commission (IEC) standards, ensuring their high quality and interoperability on a global scale.

The National Electrical Code (NEC), which is issued by the National Fire Protection Association (NFPA) in the US, outlines safety requirements for electrical systems, including those that use control panels. Electrical control panel manufacturers must adhere to the National Electrical Code (NEC) in order to provide safe, code-compliant goods.

In Europe, the European Committee for Electrotechnical Standardization (CENELEC) creates and maintains standards for electrical and electronic products. European Committee for Electrotechnical Standardization (CENELEC) standards and guidelines, such as the Low Voltage Directive (LVD), must frequently be followed by control panels destined for the European market. These regulatory bodies set rules, safety criteria, and performance benchmarks that have an impact on the electrical control panel market. To guarantee the security and dependability of their products, control panel manufacturers must abide by these requirements.

Fairfield’s Ranking Board

Top Segments

1. Open Category Continues to Dominate over Enclosed Segments

The open category dominated the market in 2022. Open control panels are frequently used in manufacturing facilities, manufacturing settings, and machinery control applications where environmental conditions are regulated and exposure to external elements is minimised.

Circuit breakers, relays, contactors, and meters can all be accommodated on these panels through customisation. Frequently, they are created to fulfill particular application requirements.

Furthermore, the enclosed category is projected to experience the fastest market growth. Enclosed panels improve safety by decreasing the possibility of electrical dangers and preventing unintentional contact with live electrical components.

To limit access to authorised personnel, they frequently have safety interlocks and locks. These panels are made to handle tough industrial settings, especially ones with a lot of vibration and temperature changes. They are made to be robust.

2. Medium and High Tension to be the Leading Segment

In 2022, the medium and high tension category dominated the industry. The average range of medium-voltage electrical systems is 1,001 volts AC to about 33,000 volts AC, and medium tension control panels are made to manage these voltages. These panels are frequently used by businesses, construction teams, and utilities.

Power distribution networks, industrial facilities, substations, and significant infrastructure projects like airports and railroads all make use of MT control panels.

The low tension category is anticipated to grow substantially throughout the projected period. Low tension control panels are built to withstand voltages of up to 1,000 volts AC, on average. They are utilised in electrical systems that are seen as having low voltage levels in comparison to high-voltage methods. Residential, commercial, and industrial environments all use low-tension control panels for a variety of purposes.

Buildings, factories, electricity distribution networks, and numerous pieces of gear and equipment all contain them.

3. Automotive Industry wil Lead

The automotive segment dominated the market in 2022. Automation production lines in car factories are managed and controlled by control panels. In order to efficiently construct vehicles, these panels contain how the machinery, conveyors, and robots operate.

During production, sensors and vision systems on control panels keep an eye on the quality of the car parts. To preserve product quality, they might set off alarms or automatic modifications.

During the forecast period, the power category is expected to grow significantly. Control panels are essential components of wind and solar farms and other renewable energy sources.

Inverters, energy storage devices, and grid connections are all managed by them to increase energy output and grid stability. Substations within power generation facilities use control panels to transform and transmit electrical power efficiently. These panels regulate voltage levels and protect against overloads and faults.

Regional Frontrunners

Asia Pacific at the Forefront

Asia Pacific is expected to dominate the electrical control panel market during the forecast period. The rise of the food and beverage industry, rising disposable income, and Infrastructure projects for power generation and distribution, transit networks, and smart cities are all being developed extensively in the area.

In these projects, control panels are crucial elements to enable dependable electricity distribution and automation. Asia Pacific countries are making significant investments in renewable energy sources, including solar and wind energy. The management of the integration of these renewable energy systems into the electrical grid depends on control panels.

The need for commercial and residential buildings, where control panels are utilised for power distribution, HVAC systems, lighting management, and other purposes, is rising as a result of the rapid urbanisation of nations like China, and India.

North America Expects the Fastest Growth

North America is expected to be the fastest-growing electrical control panel market region. The deployment of the smart grid has been most pronounced in North America. Control panels are essential to the creation and operation of smart grid technologies like distribution automation, demand response, and grid monitoring.

Industry 4.0, and Internet of Things (IoT) technologies are being adopted quickly in the area. There is a considerable need for control panels with IoT connectivity, data analytics, and remote monitoring capabilities to enable smart manufacturing. Control panels are crucial for guaranteeing the effectiveness and dependability of production processes, especially in the United States, which is a hub for manufacturing on a global scale.

Fairfield’s Competitive Landscape Analysis

A smaller number of prominent companies are present worldwide in the consolidated global market for electrical control panels. To increase their global footprint, the major firms are launching new items and improving their distribution networks. Moreover, Fairfield Market Research is expecting the market to witness more consolidation over the coming years.

Who are the Leaders in Global Electrical Control Panel Space?

• Leviton Manufacturing Co. Ltd.
• ABB Ltd.
• Bectrol
• Eaton
• RITTAL GMBH & CO. KG
• Schneider Electric SE
• Rockwell Automation Inc.
• Siemens AG
• SIMON PROtec
• Mitsubishi Electric Corporation
• Delta Electronics, Inc
• E+I Engineering
• General Electric Company (GE)
• C&S Electric
• WEG Industries

Significant Company Developments

New Product Launches

• April 2023: Siemens has announced that its joint venture business with Rail Vikas Nigam Limited has secured a bid for electrifying Mumbai Metro Line 2B connecting DN Nagar to Mandale.
• February 2022: The Swiss electrical control panel company ABB Ltd. released smart monitoring solutions for electric power measurement and monitoring meters. For the residential, commercial, and industrial building sectors, these meters are fundamental to in-depth power quality investigation as well as precise energy asset tracking.
• February 20202: ABB India, a manufacturer of engineering and industrial equipment, unveiled a new line of power monitoring and electric measuring meters for electrical and control panels.

Distribution Agreements

• April 2022: ABB and Ramboll have agreed to cooperate in order to explore new offshore substation opportunities in the global offshore wind sector. Businesses will offer their knowledge and skills in the design and delivery of automation, electrical, SCADA (Supervisory Control and Data Acquisition), and telecommunications equipment to this cooperation, including engineering, products, installation, and operational maintenance.
• June 2021: A US-based manufacturer of electrical and electronic components called Systems Control purchased Keystone Electrical Manufacturing Company for an unknown sum. This acquisition enables Systems Control to broaden its geographic reach and quicken the pace of its product development pipeline. An American company called Keystone Electrical Manufacturing Company makes electrical control panels.

An Expert’s Eye

Demand and Future Growth

As per Fairfield’s Analysis, complex control panels are needed to efficiently manage and distribute electricity from the growth of renewable energy sources like wind and solar power.

Furthermore, increased construction and infrastructure development driven by the growth of metropolitan areas increases the need for electrical control panels in structures and infrastructure projects.

However, the electrical control panel market is expected to face considerable challenges because of high initial investment.

Supply Side of the Market

Control panels are primarily produced by electrical component manufacturers. For a variety of uses and industries, they design, engineer, and create control panels. In particular, control panel types, such as low-voltage, medium-voltage, or custom solutions, manufacturers frequently specialise.

Suppliers provide the raw materials, components, and electrical equipment necessary for the production of control panels. This includes items like circuit breakers, contactors, relays, transformers, wiring, and enclosure materials.

Suppliers have a crucial role in the supply chain of control panel manufacturing. Distributors are middlemen who purchase control panels from manufacturers and resell them to contractors, system integrators, end-users, and other customers. They frequently have control panel inventory on hand to accommodate sudden demand and offer logistical support.

Global Electrical Control Panel Market is Segmented as Below:

By Form:

• Open
• Enclosed

By Type:

• Low Tension
• Medium and High Tension

By Industry:

• Manufacturing
• Food & Beverages
• Chemical
• Automotive
• Power
• Pharmaceutical
• Oil & Gas
• Aerospace & Defense
• Miscellaneous

By Geographic Coverage:

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Rest of Middle East & Africa