The Electric Control Panel Market size is expected to grow from US$ 5,507.35 million in 2022 to US$ 9,096.16 million by 2030; it is expected to grow at a CAGR of 6.5% from 2022 to 2030.
In manufacturing settings, factory automation commonly employs pneumatic and hydraulic systems as well as robotic arms to create a more complex system. Automation has many advantages, including superior energy efficiency, compliance with safety regulations, and improved design that results in exceptional production levels. Automation can also help lower process costs and ensure worker safety in hazardous environments. An electrical control panel is a group of electrical devices that utilize electricity to regulate the mechanical operations of industrial machinery and equipment. The current renewable energy sources (RES) system integrates with digital information processing and advanced telemetry systems in the smart grid SCADA system. The increasing integration and automation of electric microgrids and utility grids offer new prospects for energy management development. The growth in demand for factory automation is a significant driving force for the electric control panel market. Furthermore, the increase in investments in new construction and production facilities prompts the expansion of electrical installations in warehouses, factories, distribution centers, etc. The utilization of control panels in renewable energy production and distribution applications is another factor driving the growth of the electric control panel market for market players.
The growing import and export of industrial control panels, particularly in Southeast Asian countries, reflect the high demand for this equipment. To remain competitive in their markets, many industrial companies need to upgrade their essential equipment, which often involves replacing or rebuilding outdated industrial control panels with modern components. As a result, demand for factory automation is increasing, and this is driving the growth of the electric control panel market in the US and other Western nations.
COVID-19 Impact on Electric Control Panel Market Size
In Europe, the COVID-19 pandemic and subsequent government restrictions had a severe impact on the economies of Germany, Italy, the UK, Russia, France, and Spain. In Q2 of 2020, many industries in these countries experienced a decline in production volume due to the partial closure of borders and import/export restrictions. Consequently, the demand for electric control panels in Europe decreased in 2020. Despite the challenges posed by the pandemic, players in the electric control panel market took initiatives to improve their products. For instance, Siemens AG introduced new features to its TIA Selection Tool software in November 2020, making it more efficient for control panel manufacturers to optimize their value chain through digitization. However, as the economy recovers and end-user industries continue to invest in increasing efficiency and productivity, the demand for electric control panels is expected to increase by the end of 2022. This is likely to boost the electric control panel market in the future.
The electric control panel market analysis in Europe is categorized by geography, including Germany, France, Italy, the UK, Russia, and the Rest of Europe. The improved standard of living in the region has resulted in increased adoption of consumer and commercial electrical components, leading to a surge in demand for electric control panels from industrial automation components manufacturers. Therefore, the growth of consumer and commercial electrical components is anticipated to propel the electric control panel market in the forthcoming years. Numerous companies strive to strengthen their position in the electric control panel market, with key vendors focusing on introducing new advanced solutions and services while upgrading the capabilities of their existing offerings.
Electric control panel market stakeholders include raw material providers, manufacturers, and industries that use these panels in manufacturing, chemical, automotive, food & beverage, power, oil & gas, pharmaceutical, and textile industries. Raw material providers supply components like enclosures, circuit breakers, surge arresters, transformers, terminal blocks, programmable logic controllers, network switches, relays, and human-machine interfaces to electric control panel manufacturers. The market report highlights key manufacturers such as ABB Ltd., Bectrol, Cetal, Eaton, Leviton Manufacturing Co., RITTAL GMBH & CO. KG, Rockwell Automation, Schneider Electric SE, Siemens AG, and SIMON PROtec. However, high deployment and replacement costs hinder the growth of the electric control panel market. Safety standards such as IEC 60204-1, UL 508A, National Fire Protection Agency (NFPA) 70/79A, and BS EN 61439-2 must be met by manufacturers. The steady growth of industries, such as Industry, will continue to drive the adoption of electric control panels and influence market growth.
The electric control panel market analysis has been carried out using both primary and secondary research methods. The secondary research involved gathering qualitative and quantitative information from internal and external sources to obtain an overview and forecast of the electric control panel market size across all market segments. Additionally, several primary interviews were conducted with industry participants and commentators, 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 obtain more analytical insights.