Electrical House (E-house) Market Outlook - 2030
The global electrical house market forecast was valued at $1.24 billion in 2020, and is projected to reach $2.3 billion by 2030, growing at a CAGR of 6.4% from 2021 to 2030. Electrical house (e-house) is a prefabricated movable enclosure that houses different electrical and electronic components such as medium- & low-voltage switchgears, transmission devices, digital electronic systems, and other auxiliary equipment. It is used for power supply and transmission purposes in different end-use sectors such as oil & gas, chemicals, aerospace, railways, and metal fabrication. It is often connected to main loads for significantly reducing the energy costs and required cable size in both small- and large-scale projects.
Increase in global electricity consumption has surged the need for installation of new power grids, wherein e-house is widely employed for power supply and transmission applications. This may act as one of the key drivers of the global electrical house market. In addition, factors such as rapid development of automotive sector, large & small appliance manufacturing units, and expanding industrial output is propelling the installation of power grids, where e-house is widely used for integrated power supply applications, which is anticipated to foster the growth of the electrical house market during the forecast period. Furthermore, rapid urbanization and development of the transportation & logistics sector have surged the consumption of crude oil in recent years. For instance, according to a report published by the Organization of the Petroleum Exporting Countries (OPEC) World Oil Outlook 2021, India’s oil demand may rise from 51% to 58% by 2045 attributed to exponential increase in population, surge in affluent populace, and rapid urbanization. E-house is highly preferred in the oil & gas sector for power distribution & control purposes, owing to their reduced construction lead times and easy installation & transportation. This is anticipated to propel the electrical house (e-house) market growth.
However, e-house is highly advanced equipment that requires experienced professionals to rectify and mitigate the system errors, if any. Thus, lack of technical expertise restrains the growth of the electrical house market. In addition, electrical house comprises one or more switchgears, automated sensors, control power distribution board, and other components that require high maintenance costs, which limits the use of e-house among industries having less investment potential, thus hampering the growth of the global market.
On the contrary, increase in trend of using non-renewable energy sources for electricity production has made a rapid transition toward adopting renewable energy sources such as hydropower, wind, geothermal, and solar for power generation. For instance, the U.S. Environmental Protection Agency (U.S.EPA) has laid the Clean Air Act for the use of no-renewable sources such as coal and gas for power generation purposes. This is projected to offer e-house market growth opportunities.
The global electrical house (e-house) market analysis is done on the basis of type, application, voltage type and region. Depending on type, the market is divided fixed e-house and mobile substation. The applications covered in the study include utilities and industrial. On the basis of voltage type, the market is divided into medium and low. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include ABB, Axis Solutions Pvt Ltd, BMarko Structures Inc., Eaton, General Electric, Kasa Analgen, Panel Built Incorporated, Schneider Electric, Siemens AG, and TECO Corporation.
Electrical house market, by region
The global electrical house industry report provides in-depth competitive analysis as well as profiles of these major players. The Asia-Pacific electrical house (e-house) market size is projected to grow at the highest CAGR of 7.1% during the forecast period and accounted for 35.5% of electrical house (e-house) market share in 2020. This is attributed to rapid surge in establishment of manufacturing units where e-house is employed for power supply purposes.
Asia-Pacific would exhibit highest CAGR of 7.1% during 2021-2030.
Electrical house market, by type
By type, the mobile substation segment dominated the global market in 2020, and is anticipated to grow at a CAGR of 6.5% during forecast period. This is attributed to increase in transportation and logistics, which, in turn, surged the demand for oil & gas sector. This has increased the drilling & exploration activities of oil and natural gas where e-house is widely used for power supply purposes.
Mobile Substation type is the most lucrative segment
Electrical house market, by application
On the basis of application, the industrial segment dominated the global market in 2020, and is anticipated to grow at a CAGR of 6.5% during the forecast period. E-house is used as a mobile substation, compact power house, and modular substation for power supply, transmission, and voltage control applications in a wide range of industries such as oil & gas, mining & metals, chemicals, and railways. In addition, owing to its portability, easy installation, reduced risk, and high efficiency, e-house has gain popularity in industrial applications.
Industrial application is projected as the fastest growing segment
Electrical house market, by voltage type
By voltage type, the medium segment was the largest revenue generator, and is anticipated to grow at a CAGR of 6.5% during the forecast period. Growing global energy needs has surged the refining & exploration activities where medium voltage e-house is used for power supply applications in both onshore and offshore projects. This factor is escalating the growth of this segment in the global market.
By Voltage Type
Medium type is projected as the fastest growing segment
Key benefits for stakeholders
- The report outlines the current electrical house (e-house) market trends and future estimations from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
- The Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
- The profiles of key players and their key strategic developments are enlisted in the report.
Impact Of Covid-19 On The Global Electrical House Market
- The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe.
- The electrical house market has been negatively impacted due to the wake of the COVID-19 pandemic, owing to its dependence on electric utility, oil & gas, steel & metal, mining, heavy industrial, and other sectors. According to a report published by the National Bureau of Statistics of China, the large-scale manufacturing industry witnessed a 20% decline in production in March 2020 as compared to March 2019, while profits declined by 66%.
- In addition, several companies have either shut down or shrank their operations due to the risk of infections among the workforce where e-house is used for power supply purposes. This has temporarily hampered the growth of electrical house market amid the COVID-19 period.
- Furthermore, the falling income of customers and travel restrictions imposed by both local and government bodies have halted the growth of the transportation sector, which, in turn, has negatively impacted the oil & gas sector, wherein e-house is widely used for power distribution purposes. For instance, according to a report published by the Energy and Economic Growth Survey, the oil & gas sector is among the hardest hit sectors with an average contraction of −2.8% in 2020. This has shrunk the demand for electrical house for power supply applications in the oil and gas sector.
- Moreover, around 180 countries have temporarily stopped the trade of unnecessary products, which, in turn, has hampered the demand–supply chain of electrical house market amid the COVID-19 situation.
Electrical House (E-house) Market Report Highlights
By Voltage Type
According to the insights of the CXOs of leading companies, the global e-house market is expected to exhibit high growth potential. Use of e-house for power supply and transmission applications has eliminated the conventional concrete block and brick construction in various end-use sectors such as oil & gas, metal fabrication, chemical manufacturing, and railways. Projects that require risk reduced alternative for power transmission purposes can be accomplished with the use of e-house.
In addition, e-house involves controlling, distribution, automation, supervision, transformation, and instrumentation systems, thus offering cost-benefits to projects where both medium and low-voltage power supply is required. Thus, e-house is capable of offering portable power supply solution at both medium and low voltages.
The CXOs further added that sustained economic growth and rise in global electricity need have surged the popularity of e-house in the utilities sector.