Electrical Equipment Manufacturing Market - Global Industry Research Analysis

According to Market Research Store, the global electrical equipment manufacturing market size was valued at around USD 210.15 billion in 2023 and is estimated to reach USD 320.46 billion by 2032, to register a CAGR of approximately 4.8% in terms of revenue during the forecast period 2024-2032.

The electrical equipment manufacturing report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

Global Electrical Equipment Manufacturing Market: Overview

The Electrical Equipment Manufacturing Market involves the production of a wide range of electrical equipment used in various industries, including energy generation, transmission, and distribution, as well as consumer electronics, industrial machinery, and automotive sectors. This market includes the manufacturing of power transformers, circuit breakers, switchgear, electric motors, cables, and wiring, as well as other electrical components essential for building infrastructure and providing reliable power.

The market growth is driven by the increasing demand for electrical equipment due to ongoing urbanization, industrialization, and the global transition towards renewable energy. The need for modernized and efficient power grids, as well as the growing adoption of electric vehicles (EVs), which require specialized electrical components, are significant drivers.

Key Highlights

• The electrical equipment manufacturing market is anticipated to grow at a CAGR of 4.8% during the forecast period.
• The global electrical equipment manufacturing market was estimated to be worth approximately USD 210.15 billion in 2023 and is projected to reach a value of USD 320.46 billion by 2032.
• The growth of the electrical equipment manufacturing market is being driven by the increasing demand for energy-efficient and sustainable solutions, rapid urbanization, and the growing adoption of automation and digital technologies across various industries.
• Based on the product, the power generation segment is growing at a high rate and is projected to dominate the market.
• On the basis of application, the household segment is projected to swipe the largest market share.
• By region, North America is expected to dominate the global market during the forecast period.

Electrical Equipment Manufacturing Market: Dynamics

Key Growth Drivers

• Infrastructure Development: The global surge in infrastructure projects, including power grids, transportation systems, and buildings, is driving the demand for electrical equipment.
• Renewable Energy Adoption: The increasing adoption of renewable energy sources, such as solar and wind power, requires advanced electrical equipment for efficient energy generation, transmission, and distribution.
• Industrial Automation: The automation of industrial processes, including robotics and automation, is driving the demand for specialized electrical equipment.
• Smart Grid Technologies: The development of smart grid technologies, which enable efficient energy management and distribution, is creating new opportunities for electrical equipment manufacturers.

Restraints

• Supply Chain Disruptions: Disruptions in the global supply chain, including shortages of critical raw materials and components, can impact production and delivery.
• Economic Fluctuations: Economic downturns can reduce demand for capital-intensive projects, affecting the demand for electrical equipment.
• Stringent Regulatory Compliance: Adherence to strict environmental and safety regulations can increase production costs and complexity.
• Intense Competition: The market is highly competitive, with numerous players offering similar products and services, leading to price pressure.

Opportunities

• Product Innovation: Developing innovative and energy-efficient electrical equipment can differentiate products and attract customers.
• Emerging Markets: Expanding into emerging markets with growing infrastructure needs can provide significant growth opportunities.
• Digitalization and IoT: Integrating digital technologies and IoT solutions can improve efficiency, reduce costs, and enhance customer service.
• Customized Solutions: Offering customized solutions to meet specific customer requirements can create niche market opportunities.

Challenges

• Technological Advancements: Keeping up with rapid technological advancements in the electrical equipment industry can be challenging.
• Skilled Labor Shortage: A shortage of skilled workers can impact production and quality.
• Environmental Impact: Reducing the environmental impact of manufacturing and operating electrical equipment is becoming increasingly important.
• Intellectual Property Rights: Protecting intellectual property rights for innovative products and technologies is crucial.

Electrical Equipment Manufacturing Market: Segmentation Insights

The global electrical equipment manufacturing market is divided by product, application, and region.

Segmentation Insights by Product

Based on Product, the global electrical equipment manufacturing market is divided into power generation, transmission and control manufacturing, household appliances manufacturing, communication and energy wire and cable, electric lighting equipment manufacturing, and others.

The Power Generation segment is currently the dominant product category in the electrical equipment manufacturing market. As global energy demand rises and countries shift toward renewable energy sources, the need for efficient power generation equipment remains high. The Power Generation segment holds a substantial share of the market due to the ongoing global need for electricity generation from diverse sources.

Transmission and Control Manufacturing commands a significant portion of the market, as these products are essential for maintaining the integrity of electrical grids and facilitating the distribution of electricity over long distances. This segment involves the production of equipment used for the transmission, distribution, and control of electricity.

Household Appliances Manufacturing is one of the largest segments in the electrical equipment market, driven by continuous consumer demand for home electronics and appliances, especially in emerging markets. This segment covers the manufacturing of electrical equipment used in household appliances such as refrigerators, washing machines, air conditioners, microwaves, and other consumer electrical goods.

Communication and Energy Wire and Cable holds a significant share in the market due to the expansion of both energy infrastructure and telecommunication networks worldwide. This segment involves the manufacturing of wires and cables used in the transmission of energy and communication signals.

The Electric Lighting Equipment Manufacturing segment is growing rapidly, particularly due to the increasing demand for energy-efficient and sustainable lighting solutions. This segment includes the manufacturing of lighting equipment, such as bulbs, lamps, fixtures, and LED lights. The global transition to energy-efficient lighting technologies, like LED lighting, has significantly driven the growth of this market.            

Segmentation Insights by Application

On the basis of Application, the global electrical equipment manufacturing market is bifurcated into household, commercial, and others.

The Household application segment is expected to dominate the electrical equipment manufacturing market, largely due to the growing consumer demand for home appliances, lighting solutions, and smart home devices. As more people around the world transition to urban living, the demand for household electrical equipment continues to increase. The Household segment holds a significant share of the electrical equipment manufacturing market, as home appliances are essential for modern living.

The Commercial segment also commands a significant portion of the market, driven by the increasing demand for efficient, scalable, and sustainable electrical solutions in commercial settings. This includes the use of energy-efficient lighting, advanced HVAC systems, and automation solutions that help businesses reduce operating costs while improving performance. The Commercial application segment refers to the use of electrical equipment in non-residential settings such as offices, retail stores, warehouses, hospitality (hotels, restaurants), hospitals, schools, and other.

Electrical Equipment Manufacturing Market: Report Scope

Electrical Equipment Manufacturing Market: Regional Insights

• North America currently leads the global electrical equipment manufacturing market

North America is a significant player in the global electrical equipment manufacturing market, with the United States being one of the largest producers and consumers. The demand in this region is driven by the growth in renewable energy projects (such as solar and wind power), the modernization of electrical grids, and the rising need for energy-efficient electrical equipment.

The U.S. government’s push toward infrastructure development, particularly in smart grids, electric vehicle (EV) charging stations, and energy storage solutions, is driving the growth of electrical equipment manufacturing. The region also benefits from a mature manufacturing sector and significant investments in industrial automation and electric mobility.

Europe is another key region for electrical equipment manufacturing, with countries such as Germany, the UK, France, and Italy leading the market. The European Union's ambitious green energy targets, such as becoming carbon-neutral by 2050, are promoting the adoption of energy-efficient electrical equipment, including smart grids, power electronics, and renewable energy solutions.

The shift towards clean energy sources, such as solar and wind, and the transition to electric vehicles are also driving the demand for electrical components. Furthermore, Europe’s focus on industrial automation and the digitalization of manufacturing processes is stimulating growth in the sector.

The Asia Pacific region is the largest and fastest-growing market for electrical equipment manufacturing, driven by rapid industrialization, urbanization, and infrastructure development. China, India, Japan, and South Korea are key players in this market, with China being the dominant force in both production and consumption.

China’s massive infrastructure projects, such as the development of smart cities and high-speed rail networks, along with its push for renewable energy and electric vehicles, are major factors driving the demand for electrical equipment. India’s growing demand for electricity, coupled with its expanding industrial base, is also contributing to the market’s growth.

Additionally, the increasing adoption of industrial automation and electrification of transportation in Asia Pacific is further boosting the sector.

In Latin America, countries like Brazil, Mexico, and Argentina are experiencing increased demand for electrical equipment due to rising infrastructure development, urbanization, and industrial expansion. Brazil, in particular, is seeing a growing need for electrical equipment in its energy sector, as the country continues to invest in both traditional and renewable energy sources.

The automotive industry in Mexico is also a significant contributor to the demand for electrical components, particularly in the manufacturing of electric vehicles. However, the market in Latin America faces challenges such as economic instability and limited access to advanced manufacturing technologies, which may hinder growth in certain areas.

The Middle East and Africa (MEA) region is witnessing steady growth in electrical equipment manufacturing, especially in the Gulf Cooperation Council (GCC) countries like Saudi Arabia, the UAE, and Qatar, which are investing heavily in infrastructure development, smart cities, and renewable energy projects.

The region’s oil and gas industry also requires advanced electrical equipment for operations, contributing to the demand. In Africa, the market is growing more slowly, but countries like South Africa and Egypt are investing in electrical infrastructure and renewable energy, which is spurring demand for electrical components. Challenges in Africa include political instability and limited access to capital for large-scale infrastructure projects.

Electrical Equipment Manufacturing Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the electrical equipment manufacturing market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global electrical equipment manufacturing market include:

• ABB
• Panasonic
• Samsung Electronics
• Sumitomo Electric Industries
• Toshiba

The global electrical equipment manufacturing market is segmented as follows:

By Product

• Power Generation
• Transmission And Control Manufacturing
• Household Appliances Manufacturing
• Communication And Energy Wire And Cable
• Electric Lighting Equipment Manufacturing

By Application

• Household
• Commercial

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

Frequently Asked Questions:

What will be the value of the electrical equipment manufacturing market during 2024- 2032?

Based on statistics from the Market Research Store, the global electrical equipment manufacturing market size was projected at approximately US$ 210.15 billion in 2023. Projections indicate that the market is expected to reach around US$ 320.46 billion in revenue by 2032.

What will be the CAGR of the global electrical equipment manufacturing market?

The global electrical equipment manufacturing market is expected to grow at a Compound Annual Growth Rate (CAGR) of around 4.8% during the forecast period from 2024 to 2032.

Which region will drive the global electrical equipment manufacturing market?

North America is expected to dominate the global electrical equipment manufacturing market.

What are the significant factors driving the global electrical equipment manufacturing market?

The global electrical equipment manufacturing market is primarily driven by factors such as increasing urbanization, industrialization, and infrastructure development.

Who are the leading players functioning in the global electrical equipment manufacturing market growth?

Some of the prominent players operating in the global electrical equipment manufacturing market are; ABB, Panasonic, Samsung Electronics, Sumitomo Electric Industries, Toshiba, and others.

What can be expected from the global electrical equipment manufacturing market report?

The global electrical equipment manufacturing market report provides a comprehensive analysis of market definitions, growth factors, opportunities, challenges, geographic trends, and competitive dynamics.

Frequently Asked Questions