Plastic Enclosures Market Outlook
The global plastic enclosures market size was valued at USD 2,003 Million in 2019 and is projected to reach USD 2,714 Million by 2027, expanding at a CAGR of 4.9% during the forecast period. Plastic enclosures are designed to protect sensitive electronic & electrical components, medical components, and other devices or components.
According to the National Electrical Manufacturers Association (NEMA), an enclosure is a cabinet designed for providing personnel with some protection against incidental contact with the enclosed equipment and specified environmental conditions.
The plastic enclosure market is driven by rising investments in the electrical engineering & electronics industry in several countries, increasing demand for industrial Internet of Things (IoT) devices and applications, and growing urbanization in developing countries. However, low recycling capabilities for plastics and increasing carbon footprint globally are anticipated to hamper the market during the forecast period.
Plastic Enclosures Market Dynamics
Drivers
Market dynamics are changing rapidly in the electrical engineering & electronics industry. According to statistics, globally, the industry was valued around USD 5.0 trillion. China generated approximately 40% of the global revenues from the electrical engineering and electronics industry.
This has created a surge in an increase in competitive establishments in the electrical engineering and electronics industry. This rise in the number of industry participants has fueled the demand for electrical plastic enclosures, as these engineered cases play a pivotal role in protecting electronics and electrical components.
Plastic enclosures are used to accommodate sensors used in the networking of IoT devices to make them work effectively. The industrial IoT significantly impacts the companies’ ability to manage the data and functions efficiently.
Several countries are continuously investing in IoT technologies. According to statistics, the US invested around USD 194 billion in 2019, followed by China ranking second with a total investment of USD 182 billion. This high usage of IoT devices among industries is expected to boost the market.
Restraints
Carbon footprint is a major concern globally and is expected to be a major factor hindering the market. Plastics enclosures negatively impact and cause climatic change. The production and disposal of plastic emits significantly high amounts of greenhouse gases (GHG), especially during its incineration.
Plastic is a non-biodegradable material that can harm the environment and cause pollution. Manufacturing of plastics enclosures creates large quantities of GHG. To overcome this issue, several manufacturers and industries are adopting metal- or alloy-based plastic enclosures.
Opportunities
Advancements in the robotics and automation sectors in several developing countries are creating several opportunities in the global market. Increasing automation investments in countries such as China and Singapore, which in turn, has influenced other developing nations to increase their investments. The emergence of several local players in many countries due to favoring government reforms is also expected to create significant growth opportunities in the global market.
Plastic Enclosures Market Segment Insights
Types Segment Analysis
On the basis of types, the global plastic enclosures market is categorized as hand-held enclosures, free standing enclosures, wall-mount enclosures, desk-top enclosures, and others. The wall-mount enclosures segment is expected to hold 26.8% share of the global market. The hand-held enclosures segment is projected to expand at a considerable pace of 5.8% during the forecast period.
The high growth of the hand-held enclosures segment is attributed to its ability to be used for indoor and outdoor applications. These enclosures have higher compatibility and are resistant to most of the environment risks. High durability and lightweight characteristics of hand-held enclosures makes increases its demand in several electronics applications.
Materials Segment Analysis
Based on materials, the market is classified as ABS, acrylic, polystyrene, foamed/expanded PVC, polycarbonate, polyamide, and others. The ABS segment accounts for a major share of the market while the polycarbonate segment is anticipated to expand at a high CAGR of 5.7% during the forecast period.
The growth of the polycarbonate segment is attributed to its ability of being very high impact resistance material offering longevity of protection to the devices and/or equipment enclosed.
Polycarbonate has a minimum life expectance ranging from 20 to 25 years. The use of polycarbonate makes the enclosures lightweight and versatile. Additionally, polycarbonate enclosures are easier to mold than other plastic materials, while its lightweight characteristics reduce the cost of transportation of the product. These factors are boosting the growth of the segment.
Verticals Segment Analysis
On the basis of verticals, the plastic enclosures market is classified into power generation & distribution, oil & gas, metals & mining, medical, food & beverage, transportation, and others. The power generation & distribution segment is estimated to constitute a major share of the global market and is also anticipated to expand at a substantial CAGR during the forecast period.
Rise in the consumption of electricity in the recent few years is propelling investments in the power generation and distribution industry across several regions. According to statistics, the worldwide energy generation grew from 24.8 trillion kilowatt hours (kWh) in 2018 to approximately 44.3 trillion kWh by 2050. Surge in consumption of electricity and distribution of electricity is expected to fuel the demand for plastic enclosures, thus driving the growth of the plastic enclosure market.
Additionally, governments in numerous countries are shifting their focus on generating electricity through renewable sources, which is expected to create several growth opportunities for companies engaged in providing plastic enclosure for devices or components.
Regional Outlook
Based on regions, the plastic enclosures market is segregated into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in Asia Pacific is projected to account for a large share of the global market and is expected to grow at a substantial pace during the forecast period.
The high growth of the plastic enclosure market in Asia Pacific is attributed to rising investments in the power generation & distribution industry by several countries including China, India, and Japan. Presence of several major plastic producers in the region is a key factor propelling the market in the region.
The market North America is expected to hold a significant share of the market due to increasing industrial automation and smart cities integration in the region. Additionally, the growth of the oil & gas sector in the region is increasing demand for plastic enclosures in the region.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Plastic Enclosures Market
- Historical, Current and Projected Market Size in terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Plastic Enclosures Market Performance
Segments
Types
- Hand-held Enclosures
- Free Standing Enclosures
- Wall-mount Enclosures
- Desk-Top Enclosures
Materials
- ABS
- Acrylic
- Polystyrene
- Foamed/Expanded PVC
- Polycarbonate
- Polyamide
- Others
Verticals
- Power Generation & Distribution
- Oil & Gas
- Metals & Mining
- Medical
- Pulp & Paper
- Food & Beverage
- Automotive & Transportation
- Others
Region
- North America
- Europe
- Germany
- France
- Italy
- U.K.
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- South East Asia (SEA)
- Rest of Asia Pacific (APAC)
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa (MEA)
- Saudi Arabia
- South Africa
- UAE
- Rest of Middle East & Africa (MEA)
Key Players
- Bopla Gehause Systeme GmbH
- Envision Plastics & Design
- Fibox Enclosures
- Hammond Manufacturing Ltd.
- Legrand
- nVent
- OKW
- Phoenix Contact
- Plastic Enclosures & Custom Plastic Housings
- Polycase
- Rittal GmbH & Co. KG
- ROLEC Gehause-Systeme GmbH
- SIMCO- Standard Injection Molding Company, Inc
- Takachi Electronics Enclosure Co., Ltd.
- Unibox Enclosures
Competitive Landscape
Key players in the market include nVent, Hammond Manufacturing Ltd., Phoenix Contact, Takachi Electronics Enclosure Co., Ltd., and OKW. These companies are considered manufacturers of plastic enclosures based on their revenue, research development (R&D) activities, regional presence, and supply chain management system.The players are adopting key strategies such as new product launches and developments in the existing product lines.For instance,
- In September 2020, OKW launched a range of fully wearable plastic electronic enclosures. These enclosures are molded ASA plastic with high UV protection. These enclosures are available in three different sizes including L, M, and XL.
- In January 2021, nVent Electric plc launched a portfolio of universal free-stand enclosures. These enclosures are designed to reduce overall installation time and feature six base enclosures with universal type ratings.
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