Distribution Boards Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The distribution boards market is slated to reach $ 5.09 billion by 2024, and to reach $ 7.86 billion by 2032. This growth will be achieved by a CAGR of 5.6% over the forecast period. The increasing demand for power distribution systems due to urbanization and industrialization is the main driver for this market. The increasing emphasis on smart grid and renewable energy is a further stimulus for the use of smart distribution boards. The development of IoT and automation in the electrical distribution systems is also expected to contribute to the market's growth. Schneider Electric, Siemens and ABB are the leading companies in the development of smart distribution systems and have established strategic cooperation with other companies to enhance their product portfolio. Schneider Electric's recent development of eco-friendly distribution boards is in line with the growing trend of energy conservation in the energy sector. These developments will continue to shape the market and drive innovation.

Regional Market Size

Regional Deep Dive

The market for distribution boards is experiencing significant growth in several regions, driven by increasing urbanization, industrialization, and the need for efficient power distribution systems. In North America, the market is characterized by an advanced distribution grid and a strong focus on the integration of renewable energy sources. In Europe, the trend is toward smart grids and energy efficiency. In Asia-Pacific, the market is growing rapidly, mainly due to increasing energy consumption and increasing investments in the electricity grid. In the Middle East and Africa, the market is growing mainly due to government initiatives to improve the electricity grid, while in Latin America the focus is on modernization and sustainability.

Europe

• The European Union's Green Deal is pushing for a significant reduction in carbon emissions, leading to increased investments in energy-efficient distribution boards that support renewable energy sources and smart grid applications.
• It is at this point that the role of the distributors, who are now being largely dominated by Siemens and ABB, is coming to the fore. They are now developing advanced control panels that include the Internet of Things and that enable real-time monitoring and management of energy consumption, which is becoming increasingly important in the region.

Asia Pacific

• Rapid urbanization in countries like India and China is driving the demand for distribution boards, with significant investments in infrastructure projects such as smart cities and industrial parks, which are expected to boost market growth.
• Government initiatives, such as Japan's 'Smart Community' project, are promoting the use of advanced distribution boards that facilitate energy efficiency and renewable energy integration, influencing market trends in the region.

Latin America

• Brazil's government is implementing policies to modernize its electrical grid, which includes the adoption of more efficient distribution boards to improve energy distribution and reduce losses.
• The rise of renewable energy projects in countries like Chile is creating a demand for distribution boards that can handle variable energy sources, pushing manufacturers to innovate and adapt their products.

North America

• In North America, the distribution board market is being transformed by the smart grid, with Schneider Electric and Eaton at the forefront of innovation, introducing new solutions to improve energy management and efficiency.
• The changes in the regulations, such as the Department of Energy’s policy to encourage the development of energy-efficient appliances, are forcing manufacturers to change and meet stricter standards, thereby influencing product development and market dynamics.

Middle East And Africa

• The UAE's Vision 2021 aims to enhance the country's infrastructure, leading to increased demand for modern distribution boards that can support the growing energy needs of urban areas.
• Saudi Arabia's National Industrial Development and Logistics Program is fostering investments in electrical infrastructure, which is expected to drive the adoption of advanced distribution boards in the region.

Did You Know?

“Approximately 30% of energy losses in electrical systems can be attributed to outdated distribution boards, highlighting the importance of modernization in improving energy efficiency.” — International Energy Agency (IEA)

Segmental Market Size

The market for distribution boards is a key segment of the electrical distribution industry, currently experiencing steady growth on account of the rising demand for energy-efficient power management solutions. In particular, the growing need for reliable electrical distribution in urban areas and the increasing emphasis on energy-efficiency, which is being driven by regulatory initiatives aimed at reducing carbon emissions, are expected to underpin demand for distribution boards. In addition, developments in smart grid technology are increasing the functionality of distribution boards, making them indispensable components of modern power distribution systems. The market for distribution boards is currently at a mature stage of development, with notable players such as Schneider Electric and Siemens offering a range of innovative solutions. Distribution boards are used in the residential, commercial and industrial sectors to ensure the safe and efficient distribution of electricity. This market is being driven by several factors, including the global shift towards renewable energy sources and the implementation of government policies aimed at improving energy-efficiency. Moreover, the development of smart grid technology and the introduction of new circuit protection systems are enabling distribution boards to meet the changing demands of the energy industry.

Future Outlook

Distribution Boards Market is expected to reach a soaring height from 2024 to 2032 with a CAGR (Compound Annual Growth Rate) of 5.59%. This growth is due to the rising demand for efficient power distribution systems in various sectors, including residential, commercial, and industrial. As the pace of urbanization picks up and smart city initiatives gain momentum, the need for more advanced distribution boards with better energy management and reliability will only increase. Smart distribution boards will form nearly one-third of the market by 2032. This growth will be largely influenced by technological developments and the integration of IoT into power management systems. The increasing focus on energy conservation and the growing importance of green energy will also boost the market for distribution boards. The governments of all the countries are introducing policies to encourage the use of energy-efficient and environment-friendly systems, which will also push the demand for modern distribution boards. Also, the digitalization of the power grid will lead to the development of more sophisticated distribution boards with real-time monitoring and control features. The companies operating in the distribution boards market will have to keep up with these trends and the changing regulatory and customer preferences to capitalize on the opportunities that will arise.