Distribution Boards Market

Growing demand for safeguarding electrical components and networks is driving market growth.

Market CAGR for distribution boards is being driven by the rising growing demand for safeguarding electrical components and networks. The huge demand for protecting the electrical parts and networks and scarce power supply is being considered by the companies and government. There is an increase in the allocation of investments to renewable energy-production units and penetration in the construction of distribution boards, and also, the growth in infrastructural activities will boost the market growth.

The producers are emphasizing on increasing their production capacities and manufacturing customized distribution boards. The rising demand for electricity in the emerging economies will fuel the growth of the distribution board market. The surging requirement for electrical equipment protection and the safeguarding of network components will offer a boost to the distribution board's demand.

The rising construction activities and the continuous requirement for energy from a slew of industries, and the rapid development of strong energy infrastructure will eventually fuel the distribution boards' market growth globally. The increasing deployment of solar panels and wind power turbines and the requirement for distribution boards in the energy utilities section will spread the scope of the market demand globally. The large-scale adoption of smart grid systems and the development of old power infrastructure will provide new growth avenues for market growth.

The replacement of mechanical breakers with new digital circuit breakers in different electricity management applications is driving the market growth as they help in simplified and rapid power management than the mechanical breakers. The inclusion of IT and OT (Operational Technology) in different sections to enhance the distribution system performance is providing a change in the distribution board market. The manufacturers, by providing imroved customer satisfaction, are trying to improve the organizational performance and are also trying to improve the system reliability and efficiency. The operational assets in the electric network in real-time are boosting the market.

Therefore, electric distribution systems are increasingly becoming mainstream in OT intelligence for voltage regulators. Thus, driving the Distribution Board market revenue.

However, the rising product recalls due to product failure and also the latency in the execution of power distribution projects, creating panic among the vendors involved in the market projects, is a hindrance to the market growth globally. This further affects the financial status of the vendors due to the differing payment from the utilities. The easy availability of alternative products at a subsidized rate is also a restraint to the growth of the market. 

The Global Distribution Boards Market Industry experiences a notable surge in demand due to the increasing adoption of renewable energy solutions. As countries strive to meet their sustainability goals, the integration of solar and wind energy systems necessitates advanced distribution boards. These boards play a crucial role in managing the distribution of electricity generated from renewable sources. For instance, the global shift towards cleaner energy is projected to contribute to the market's growth, with the industry expected to reach 5.09 USD Billion in 2024. This trend indicates a growing reliance on efficient energy management systems.

By region, the study offers market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Distribution Boards market area dominates the market due to the increase in renewable energy projects in the countries of this region. The launch of smart electric grids and smart electric meters and also the rising demand for electric vehicles will fuel the market in the North American region.

Further, the primary countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil.

Figure 2: Distribution Boards Market Share By Region 2022 (USD Billion)

Source: The Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

The Asia-Pacific Distribution Boards Market accounts for the second-largest market share due to the growing urbanization, increasing rate of electrification, and industrialization. Fast upgradation of power grid infrastructure in the countries of this region. Moreover, China’s Distribution Boards market held the largest market share, and the Indian Distribution Boards market was the rapid-growing market in the Asia-Pacific region.

The Europe Distribution Boards market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the rising demand for electric vehicles and increasing renewable energy projects in the region. Further, the German Distribution Boards market held the largest market share, and the UK Distribution Boards market was the rapid-growing market in the European region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Distribution Boards market grow even more. Market players are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Distribution Boards industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Distribution Boards industry to benefit clients and increase the market sector. In recent years, the Distribution Boards industry has offered some of the most significant advantages to the cable transmission industry. Major players in the Distribution Boards market, including General Electric Inc., Havells India Limited, Lewden Palazzoli, Sterlite Power Transmission Ltd., Siemens AG, Larsen & Toubro Limited, Blakley Electrics, Legrand, ESL Power Station, and others, are attempting to increase market demand by investing in research and development operations.

Siemens is a German multinational conglomerate corporation and a leading industrial manufacturing company in Europe, headquartered in Munich. The primary divisions of the company are digital industries, mobility, smart infrastructure, healthcare, and finance. In March 2021, the company acquired C&S Electric for 2840.3 million dollars. C&S Electric is an Indian-based manufacturer of electronic equipment and electrical including power protection, switchgear, and distribution boards. This acquisition will help the company to get the access to Indian market and establish an export hub for providing low-voltage goods to the market.

The company also aims to establish a design and manufacturing center in India through this acquisition, thus allowing the expansion of business to export electrification solutions to the markets that are emerging throughout the world.

Sterlite Power Transmission Limited operates as an electricity transmission company offering power transmission and distribution services, and also the manufacturers power the cables and conductors. In 2019, Sterlite Power which is a main Indian player in the private power transmission section got a letter of award for two projects of more than INR 3000 crore for a Udupi-Kasaragod project inclusive of gas-insulated substations and electric lines. The project is expected to make use of a distribution board for efficiently handling electric instruments & network transmission.

This will fuel the expansion of the distribution board industries in India and throughout the zone of Asia-Pacific.