The Market at a Glance: Hot Trends
and Verticals in 2024
Leviton offers insights on the market segments expected to see growth in the new year and the subsequent products that will be in demand through distribution
Though an ongoing shortage of skilled labor, lingering supply chain issues, and economic factors including rising interest rates, increasingly restrictive lending by banks, and an uncertain political climate may impact construction activity in 2024, experts believe that a number of vertical markets will still be strong in the new year.
Here are some of the segments expected to make headlines in 2024:
- Sustainable and Green Construction: Based on a growing societal emphasis on sustainability, green construction practices incorporating eco-friendly materials, energy-efficient designs, and renewable energy sources will likely see a surge.
- Residential Construction: Due to growing demand for certain housing and lifestyles spurred on by the pandemic, residential construction of single-family homes, apartments, and mixed-use developments, particularly in urban and suburban areas, are forecast to grow. “We’re seeing particular strength in the construction of townhomes, high-rises, and other multi-dwelling units,” confirmed Greg Rhoades, Leviton’s Director of Marketing for Smart and New Technology Products. “These lifestyle settings have become popular for both younger and older demographics, reflecting an across-the-board desire for simplicity.”
- Infrastructure Development: As investment by public-private partnerships and the $65 billion in funds earmarked by The Infrastructure Investment and Jobs Act of November 2021 continue to trickle down to their intended applications, the upgrade of roads, bridges, public transit, water management systems, and the electric grid will increasingly unfold nationwide, creating jobs and driving demand for a broad array of electrical and other products.
- Healthcare Facilities: The nation’s aging population and continued focus on healthcare infrastructure -- including hospitals, clinics, and specialized care centers -- is expected to drive construction growth in the healthcare sector in 2024.
- Educational Facilities: After the pandemic revealed deficiencies in the nation’s school buildings, upgrade projects have been on the rise in K-12 and higher education institutions alike and are expected to continue into 2024 and beyond.
The Impact on Electrical Distributors
Industry experts believe that the aforementioned trends could drive growing demand for specific electrical products through distribution, as follows:
- Renewable energy technologies such as solar panels, wind turbines, and battery energy storage systems will be in high demand as the shift towards renewable energy continues.
- With the modernization of the nation’s electric grid, there will be growing demand for high-capacity cabling, intelligent meters, and other smart grid technologies that improve efficiency and reliability. Additionally, and though many of these products are currently caught in the crosshairs of the nation’s supply chain challenge, demand for high-efficiency transformers, switchgear, and other electrical distribution equipment is expected to rise as a function of upgrades being made to America’s century-old electric grid.
- LEDs for indoor and outdoor applications and other energy-efficient lighting systems are likely to see continued demand in both residential and commercial construction.
- As the adoption of electric vehicles increases – more than a million were sold in America in 2023, an over 25% increase over 2022 levels -- the demand for EV charging infrastructure, including charging stations and related electrical components, will grow.
- Automated and smart control systems for buildings, including HVAC, lighting, and security systems, will see increased demand, and this will extend to the residential segment too. “While the ‘smart home’ used to be confusing and expensive to create, components are more compatible than ever today and it’s never been easier for an electrician to get into this space and for distributors to be seen as experts in these product lines,” Leviton’s Greg Rhoades said.
Don’t wait to tap into your share of these hot markets and products! For more on Leviton’s industry-leading products for the commercial, industrial, and residential market’s broad range of applications, visit Leviton.com. |
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