Electric Control Panel Market Expected to Reach $10.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Electric Control Panel Market," The electric control panel market was valued at $6.0 billion in 2022, and is estimated to reach $10.3 billion by 2032, growing at a CAGR of 5.8% from 2023 to 2032. Asia-Pacific is projected as the fastest-growing region with a CAGR of 6.1%.

Introduction

An electric control panel is an assembly that houses electrical components to manage and control electrical systems in various applications. It contains devices such as circuit breakers, relays, switches, and fuses, organized within an enclosure. These components regulate power distribution, monitor electrical parameters, and ensure safe operation of machinery or equipment. Control panels are integral in industrial automation, building management, and energy distribution, providing centralized control and protection for electrical systems to enhance efficiency and safety.

Market Dynamics

The increasing demand for energy efficiency is set to drive the growth of the electric control panel market significantly. Electric control panels are crucial in optimizing electrical distribution and enhancing the efficiency of energy use in various industrial, commercial, and residential applications. As industries and businesses strive to reduce energy consumption and operational costs, the adoption of advanced control panels is becoming imperative. These panels offer precise monitoring, control, and automation of electrical systems, leading to improved energy management and reduced wastage. In addition, government regulations and policies promoting energy conservation are further propelling the market. The integration of smart technologies, such as IoT and AI, into electric control panels enhances their functionality, providing real-time data and analytics for better decision-making. This trend towards smart and energy-efficient solutions is expected to sustain the robust growth of the electric control panel market in the coming years.

Environmental concerns are anticipated to hamper the growth of the electric control panel market. The production of electric control panels involves the use of materials like plastics, metals, and hazardous chemicals, which pose significant environmental risks. The manufacturing process can lead to high carbon emissions and contribute to pollution. Moreover, the disposal of outdated or damaged control panels adds to electronic waste, further impacting the environment negatively. Governments globally are tightening regulations on manufacturing practices and waste disposal, enforcing stricter environmental standards. Companies are being pushed to adopt eco-friendly practices, which often entail higher costs and can slow down production. In addition, the increasing demand for sustainable and energy-efficient alternatives is diverting attention from traditional electric control panels. These factors collectively create significant challenges for the market, potentially hindering its growth trajectory in the coming years.

The electric control panel market is poised for significant growth driven by the advancement of smart grids and smart cities. As cities transition towards smarter infrastructure, the demand for sophisticated control panels that manage and optimize energy distribution, automation, and data collection is increasing. Smart grids leverage electric control panels to enhance energy efficiency, integrate renewable sources, and ensure reliable power supply through advanced monitoring and control systems. Similarly, smart cities require control panels for managing everything from traffic lights and street lighting to building automation and public safety systems. This growing integration of technology in urban planning creates a substantial market opportunity for manufacturers specializing in electric control panels, as their products become integral to the functioning of modern, interconnected urban environments. The trend towards digitization and sustainability further fuels the need for innovative control solutions, positioning the electric control panel market for robust growth.

Segments Overview

The electric control panel market is segmented based on type, voltage, application, and region. By type, the market is divided into power and distribution, automation and instrumentation, power and control, and DG control. Based on the voltage, it is categorized into medium, high, and low. By application, the market is categorized as manufacturing and industrial automation, commercial, power generation, residential, agriculture, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Based on the type, the electric control panel market is classified into power and distribution, automation and instrumentation, power and control, and DG control. Automation and instrumentation is projected to be the fastest-growing segment and power and distribution has garnered the highest share in the electric control panel market.

Based on the voltage, the electric control panel market is classified into medium, high, and low. Medium is projected to be the fastest-growing segment and has garnered the highest share in the electric control panel market.

Based on the application, the electric control panel market is classified into manufacturing and industrial automation, commercial, power generation, residential, agriculture, and others. Manufacturing and industrial automation is projected to be the fastest-growing segment and has garnered the highest share in the electric control panel market.

The major players operating in the global electric control panel market are Rockwell Automation Inc., keltour Control Inc., WEG, Electra-Tech, Power Industrial Controls, Eaton, Schneider Electric, INDUSTLABS, Paneltronics, ABB Ltd.

Regional Analysis

Asia-Pacific is projected to register robust growth during the forecast period. The demand for electric control panels in the Asia-Pacific region is rising due to several key factors. Rapid industrialization and urbanization are driving the need for efficient and reliable power distribution and control systems, essential for the functioning of modern infrastructures. The growth of manufacturing sectors, particularly in countries like China and India, is fueling the demand for advanced control panels to ensure operational efficiency and safety in industrial processes. In addition, the increasing adoption of automation and smart technologies across various industries is propelling the market, as electric control panels are integral to managing automated systems.

In China, advancements in automation and control technologies are driving the adoption of more electric control panels in the Asia-Pacific region. The integration of programmable logic controllers (PLCs) and advanced monitoring systems is contributing to increase in demand for electric control panels in the near future. As a global manufacturing hub, China relies heavily on automation to enhance productivity and precision in manufacturing processes. Electric control panels play a crucial role in controlling machinery, managing production lines, and ensuring seamless automation.

For instance, China is actively promoting smart manufacturing initiatives, including the implementation of Industry 4.0 principles. Electric control panels are essential components for realizing smart manufacturing goals, integrating data-driven automation and connectivity.

In India, the demand for electric control panels is witnessing growth, particularly in green energy initiatives and infrastructure development. India is actively promoting the adoption of renewable energy sources, including solar and wind power. Electric control panels are crucial for the integration and management of power generated from renewable sources into the electrical grid.

For instance, the Indian government's focus on solar power projects and initiatives such as the International Solar Alliance has led to surge in solar installations. Electric control panels play a vital role in managing and controlling the electrical systems of solar power plants.

Key Findings Of The Study:

• On the basis of type, the power and distribution segment is expected to be the fastest growing segment in terms of revenue, during the forecast period.
• On the basis of voltage, the medium voltage segment accounted for the largest share in terms of revenue, during the forecast period.
• On the basis of application, the manufacturing and industrial automation segment is expected to be the leading segment in terms of revenue, during the forecast period.
• On the basis of region, the Asia-Pacific region is expected to grow at a high CAGR, in terms of revenue, during the forecast period.