DIN(Deutsche Industry Norm) rail is a standard metal rail used for mounting electrical and industrial components, such as terminal blocks, sockets outlets, switches, timers, relays, distributors, and circuit breakers, inside equipment racks. DIN is a German Industrial Standard, which specifies the tolerance and dimension for the manufacturers to design electrical components suited for mounting on the rail.
We have provided a detailed analysis of the DIN rail mounted accessories market and have carefully segmented the market based on type, application, and distribution channel. By type, the market is segmented into terminal block, socket outlet, switches, timer, and relays. Based on application, the DIN rail mounted accessories market is divided into industrial, commercial, and residential. On the basis of distribution channels, the market is segmented into direct sales and indirect sales.
Din rail accessories such as terminal blocks, timers, and socket-outlets facilitate secure and simple installation of terminal wires, sensors, and circuit breakers in building envelop. These accessories have also become material of choice for electricians in terms of installing devices like power supplies, conditioners, or breakers. An increasing number of megaprojects in the emerging economies and rising complexity in the infrastructure sector are driving the market.
Stringent labor protection laws in countries across the globe are expected to drive the demand for these accessories to reduce labor-related accidents. The International Labor Organization (ILO) has estimated that around 2.3 million labors succumb to work-related accidents and diseases every year. The considerable growth in construction activities is further expected to propel the market growth. For instance, the construction sector is expected to grow by USD 8 trillion by 2030.
Rising global temperature, declining air quality, and extreme weather conditions have coerced the customers to employ efficient heating, ventilation, and air conditioning (HVAC) systems. This has compelled the governments to impose stringent regulations on the manufacturing of HVAC systems. For the record, HVAC system installed with proper insulation and safety can improve its efficiency by 30%. This has further dragooned the manufacturers to develop sophisticated HVAC technology to meet the demand for energy-efficient heating and cooling systems.
Rapid industrialization and urbanization have surged the building and construction activities globally. This has also given impetus to the installation of HVAC K UNITS. Thyristor controllers—din rail-mounted accessories—are designed to control the temperature of electric heating batteries in ventilation systems, electric radiators, and electric under-floor heating systems.
Green buildings are equipped with sustainable, automated, and decentralized electrical systems to minimize energy consumption. The concept of green building came into existence in response to the rising environmental pollution, climatic change, and global warming. Din rail aids in installing flexible systems that can be easily changed anytime during the course of the building. Accessories such as terminal blocks, timers, and relays are extensively used to reduce wiring expenses, minimize copper demand, and ensure structured cabling with utmost safety.
Steel is the key material used in the manufacturing of DIN rail accessories for its long-term rigidity, resistance towards corrosion, and high strength. However, changing trade policies and agreements among countries has increased import tariffs and the final prices of steel. In March 2018, the U.S. increased tariff on Chinese steel imports by 25%, which has adversely affected trade betweencountries, and the prices of steel have been fluctuating ever since. As per the Organization for Economic Co-operation and Development (OCED), the growth in trade and export prices nearly came to a halt in November 2018. Similarly, the annual growth in export volumes fell from 10% in 2017 to 1.7% in 2018.
Fig: Steel Exports in 2017-18
*Note: Steel export across major steel-producing economies from Jan-Oct
Source: Organization for Economic Co-operation and Development
DIN rail mounted accessories market is backed by the presence of leading players heavily investing in R&D activities for the production of advanced technologies adhering to the stringent regulations. For instance, Hager Electro Pvt Ltd invests about 6% of its total sales revenue in R&D activities. Also, the company has around 3,000 patents; of which, in Germany alone, it has about 1,600 patents. The company has established around 22 robust manufacturing facilities in over ten countries across the globe. Hageralso participates in various trade shows and exhibitions to showcase its latest product offerings and increase brand awareness. For instance, in 2019, the company participated in Indonesia Lighting Technology Expo.
Similarly, in 2018, ABB invested about USD 1.4 billion in R&D activities (4% of annual revenue). The company has also invested about USD 2,638 million, USD 1,992 million, and USD 13 million in 2018, 2017, and 2016, respectively, to expand its product portfolio. Schneider Electric invested about USD 1.46 billion (5% of total revenue) in R&D activities in 2018. The company is backed with around 11,000 research engineers and 10,000 applications and software engineers, and about 20,000active patents. Schneider is also heavily investing in the latest technologies for designing futuristic products and services. In 2018, Eaton invested about USD 584 million in R&D activities.
North America has been a pioneer in the field of technological development. Today, the region is one of the key manufacturers and consumers of DIN rail accessories. North America’s DIN rail mounted accessories market was valued at USD 587.4 million in 2017 and is expected to reach USD 1,052.4 million by 2025 at a CAGR of 7.78%.
As per the International Monetary Funds and World Economic Outlook, North America dominated the global GDP and was second in terms of purchasing power in 2018. Its nominal GDP accounted for USD 19.39 trillion in 2017 and is expected to touch USD 24.53 trillion by 2023. The construction sector in the U.S. has been witnessing significant growth in the last few years. In addition, mergers, acquisitions, and new large-scale projects are likely to position the sector on a high growth trajectory in the coming years.
As per data by The Associated General Contractors of America (AGC), the U.S. construction industry employs around 7 million people and creates nearly USD 1.35 trillion worth of projects every year. For instance, the LaGuardia airport, an ongoing project in Queens, New York, is estimated to cost USD 8 billion and is projected to be completed by 2022. Such developments in the region are offering lucrative opportunities for the players in DIN rail accessories market as it is widely used in the building and construction sector for lighting, electrical outputs, connections for refrigeration, air conditioning, and heating units.
As per the Chemistry Industry Association of Canada (CIAC), as of 2019, Canada’s chemical industry was valued at USD 52 billion and employs around 90,000 people. The industry demands efficient refrigerators to store chemical formulation and HVAC systems to maintain a constant temperature and avoid contamination. Also, different chemical processing systems require timers to perform time-bound chemical processing, circuit breakers to protect the industrial equipment, and terminal blocks to connect more than one wire to an incoming wire. Thus, growth in the chemical industry is expected to drive the demand for DIN rail mounted accessories.
Majority of the players operating in the DIN rail mounted accessories market are from Europe due to high demand for DIN rail mounted accessories in the regional industrial sector. The players are following different strategies, such as attaining patents and propriety rights to sustain in the raging competition. For instance, TE Connectivity Ltd is emphasizing on attaining patents and propriety rights to gain a competitive edge. Currently, the company has around 15,000 patents. It is also heavily investing in R&D activities for developing innovative products to cater to changing consumer demand. In the last few years, the company has invested about USD 572 million, USD 606 million, and USD 584 million in 2019, 2018, and 2017, respectively.