Electric control panel market projected to grow
The electric control panel (ECP) market is expected to rise to more than $9 billion due to increased automation and high demand.
Electric Control Panel Insights
- The electric control panel (ECP) market is expected to grow at a CAGR of 6.5% from 2022 to 2030 to more than $9 billion.
- The rise in automation and Industry 4.0 have increased the need for ECPs in manufacturing facilities.
- The global market, particularly in Asia-Pacific, took a hit due to COVID-19, but has recovered as demand remained steady for ECPs.
The global electric control panel (ECP) market size is expected to grow from $5.5 billion in 2022 to more than $9 billion by 2030 at a compound annual growth rate (CAGR) of 6.5% during that span according to a research study by The Insight Partners.
The increased use of ECPs in mobile machinery such as cranes, hoisting machines, and elevator controls benefits the market for industrial control panels. Remote input/output (I/O) panels placed near the applications are designed to terminate terminate all cabling from the field devices and equipment. As remote I/O panels can be moved with the movable gear in the operating field, they can save significant amounts required for wiring. The growing use of electric panels in mobile machinery boosts the electric panel market.
The implementation of Industry 4.0 results in full automation of manufacturing processes, requiring little to negligible human interference. Industry 4.0 combines the Industrial Internet of Things (IIoT), cyber-physical systems, cloud robotics, cloud computing and Big Data. Increased automation has changed production practices and reduced manufacturing time and production costs. Manufacturers rely on Big Data and data analytics to improve the efficiency, productivity, security, and cost-effectiveness of their operations due to the rising popularity and adoption of the IoT and Industry 4.0.
Electric control panel benefits for manufacturers
As many operations are being automated in the manufacturing sector, secure wireless networking has the potential to enable factory automation on a larger scale. Further, the industrial transformation toward digitalization is converting manual processes into digital processes in the manufacturing sector, which is expected to support the ECP market growth in the coming years.
In the US, Canada and the European Union, ECPs must meet several regulatory requirements, including compliance with specified standards and listings. For example, ECPs in the US must adhere to NEC Article 409, section 110.3(B), and ANSI/NFPA 70. A manufacturer can incur overhead costs if the local authorities having jurisdiction (AHJ) identify unapproved panels in the market. In addition to improvements in components that are added to control panels, the manufacturing process of ECPs has also improved.
Previously, a manufacturer would use a tape measure, straight edge, and marker to manually prepare the layout of each panel, followed by drilling and tapping the panel’s holes. This inefficient, time-consuming, and dirty process has now been replaced with AutoCAD, wherein automated drilling systems are deployed to carry out drilling. Furthermore, cordless screwdrivers are used to put self-tapping screws, making panel manufacturing operations easier and faster. The AutoCAD process is not only more efficient and cleaner, but it also leads to the creation of a higher-quality product. Therefore, the need for higher quality control and panel fabrication creates an opportunity for the ECP market growth.
Impact of COVID-19 pandemic on electric control panel market
Various Asian-Pacific economies witnessed a sharp decline in their gross domestic product (GDP) in 2020 due to the sudden pause in several economic activities. This region has prominent oil & gas, maritime, and telecommunications industries. According to the Organization for Economic Co-operation and Development (OECD), the COVID-19 pandemic severely affected countries such as India, Australia, China and Japan. India was the worst-hit country by the pandemic in this region. Limitations imposed by governments to control the spread of COVID-19 during the initial stages of the crisis affected the production process in these countries due to the limited workforce availability, which hampered the ECP market share in 2020. However, the pandemic had a low impact on the power sector, which contributed to the continued demand for ECPs.
As economies reopened and industries began their operations in 2021, the need for ECPs from various end users increased gradually. Further, with large-scale vaccination efforts and ease in social restrictions, companies began to work with high workforce capacities, making the workforce work without fear of getting infected this factor gradually started positively impacting ECP market size.
– Edited from an Insight Partners press release by CFE Media.
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