Market Trends of India Electrical Enclosures Industry
Power Generation and Distribution Hold Significant Market Share
- The construction of solar panels and windmills is significantly increasing the demand for electrical security solutions such as electrical enclosures to prevent electricity theft and safeguard electrical circuits from external factors such as dust, rain, and others. Hence, a slew of such developments worldwide is anticipated to meet lucrative growth opportunities in the market.
- For instance, in October 2022, the Indian government planned to launch the 800-MW third unit of AP-Genco's supercritical thermal power plant at Krishnapatnam at the end of 2022. After the launch, the power generation capacity was expected to go up to 2,400 MW, according to the Agriculture Minister of India.
- The Government of India aims to adopt various initiatives to strengthen the power distribution infrastructure and increase the rate of electrification to address the growing power demand across urban and rural areas. For instance, the Ministry of Power in India has announced the launch of the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) scheme to increase the electrification rate and improve the quality and reliability of power supply in rural areas. Such initiatives are projected to create sales opportunities for electrical cabinets in the Indian market.
- According to CEA (India), installed thermal energy capacity in India reached 235.93k megawatts in 2022, following RES at 106.37k megawatts and hydro at 46.52k megawatts.
- Moreover, according to IBEF, India was the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 404.13 GW as of July 31, 2022. As of July 31, 2022, India's installed renewable energy capacity (including hydro) stood at 161.29 GW, representing 39.91% of the overall installed power capacity. In addition, NTPC announced that it would invest INR 2-2.5 crore (USD 0.27-0.34 million) over the next ten years to expand renewable capacity.
- Furthermore, in May 2022, AHEJOL, an Adani Green Energy Limited subsidiary, authorized a 390 MW wind-solar hybrid power plant in Rajasthan. This plant in Jaisalmer is India's first-ever wind and solar hybrid energy generation plant. The hybrid power plant, integrated through solar and wind power generation, harnesses the full potential of renewable energy by resolving the era's intermittency and delivering a more reliable resolution to meet the rising power demand. Such investments in power plants may further drive the studied market's growth.
Understand The Key Trends Shaping This Market
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Growing Urbanisation and the Stringent Government Regulations to Expand the Market Growth
- The rapid urbanization and increasing government investments to upgrade the power infrastructure across the country further augment the growth of the steel electrical enclosure industry in India. In addition, the rising demand for electricity, the increasing population, and the growing preference for compact enclosures are supporting market growth. According to MoHFW, 100 percent of India's NCT, including Delhi, Chandigarh, and Lakshadweep, are anticipated to live in urban areas by 2035.
- Furthermore, according to IBEF, under the Union Budget 2022-23, INR 19,500 crore (USD 2.57 billion) was allocated for a PLI scheme to expand the manufacturing of high-efficiency solar modules. Such investment may further drive market growth.
- The Indian government recently proposed the latest rules for purchasing and consuming green energy. The latest rules are part of government measures to encourage large-scale energy consumers, including industries, to leverage renewable energy sources for regular operations. In addition, the Ministry of New and Renewable Energy planned to undertake Rooftop Solar Programme Phase II, which aimed to install an RTS capability of 4,000 MW in the residential area by 2022 with a subsidy provision.
- The rising population in the country creates significant growth in industrial production and mining, further increasing electricity demand and thereby boosting market growth. In addition, according to IBEF, the Indian government plans to monetize assets worth INR 28,727 crore (USD 3.68 billion) in the mining sector over the financial year 2022-2025. Further, the Odisha government recently approved five key industrial projects worth INR 1.46 lakh crore (USD 19.60 billion) that are anticipated to boost the capacity of steel production by 27.5 million metric tons.
- Additionally, in June 2022, the combined index of the eight core industries was 143.4, with coal, cement, electricity, refinery products, fertilizers, steel, and natural gas production as its main drivers.
- The growing trend of automation in industries and product integration in smart homes also creates a positive growth outlook for the market. In various developing nations, there is an urgent need to upgrade the existing power infrastructure to meet the energy demand of the rapidly increasing population. Such factors have a positive impact on market growth.
