Umair Gaines
The electrical industry is a broad term that covers the manufacturing, production, and distribution of electrical power and appliances. Electrical equipment is essential for the operation of electrical systems and is used across various sectors, including automotive, aerospace, telecommunications, and energy. The electrical equipment market is highly competitive, with numerous manufacturers offering a range of products and services. This includes electrical lighting, signalling equipment, household appliances, electric motors, generators, and transformers. The market is influenced by various factors, such as technological advancements, sustainability trends, and geopolitical uncertainties. The electrical industry also encompasses electrical contractors, who design and implement energy-efficient systems for various industries. With the growing demand for electrification, urbanization, and industrialization, the electrical equipment market is projected to expand significantly in the coming years.
| Characteristics | Values |
|---|---|
| Definition | Electrical and electronics industry denotes an industrial setting that involves manufacturing, production, and distribution of electrical and electronic appliances. |
| Interrelation with electronic devices | Electrical devices can convert electrical energy into other forms of energy, whereas electronic devices cannot. |
| Examples of electrical devices | Fan, light |
| Examples of electronic devices | Transistor |
| Waste | Electrical and electronics industries generate a lot of e-waste during manufacturing. |
| Market size | Valued at USD 1.54 trillion in 2023 and projected to reach USD 3,326.86 billion by 2032. |
| Market growth | Expected to grow at a CAGR of 10.4% from 2025 to 2032. |
| Market growth factors | Increased population in urban areas, expansion of industries such as manufacturing, IT, healthcare, and telecommunications, increased trade and globalization, and infrastructure projects. |
| Market competition | High, with companies such as ABB, Siemens, Schneider Electric, Eaton, and Rockwell Automation offering a wide range of products and services. |
| Market challenges | Geopolitical uncertainty, supply chain disruptions, changing consumer preferences, and increasing regulatory scrutiny. |
| Market opportunities | Rising global demand, technological advancements, and increasing investment in automation and digitalization. |
| Role in other industries | Electrical equipment is essential for the operation of electrical systems in various industries, including automotive, aerospace, telecommunications, and energy. |
| Labour market | The electrical industry faces a labour shortage due to the retirement of experienced electricians and a lack of new entrants. |
| Technological advancements | Advanced technology, such as artificial intelligence, robotics, and the Internet of Things (IoT), can improve efficiency and productivity. |
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What You'll Learn
Electrical equipment manufacturing
Electric lighting equipment manufacturing, household appliance manufacturing, and electrical equipment manufacturing are the three main groups of this subsector. Electric lamp bulbs, lighting fixtures, and parts are created by electric lighting equipment manufacturing businesses. Household appliance manufacturing establishments produce both small and large electrical appliances and parts. Electric motors, generators, transformers, and switchgear are all examples of products made by electrical equipment manufacturing companies.
Other electrical equipment and component manufacturing companies make devices for storing electrical power, such as batteries, as well as for transmitting electricity, such as insulated wire, and wiring devices like electrical outlets, fuse boxes, and light switches. The electrical equipment manufacturing industry is constantly evolving to meet industrial, governmental, and public demands. For example, the growing demand for smaller, more efficient transformers and the need to make motors more efficient and effective.
The electrical equipment market worldwide is projected to grow. The market value of the US electrical equipment and supplies industry, for example, is roughly $164 billion, with 480 manufacturers employing 34,771 people. The industry is slowly recovering from the effects of the COVID-19 pandemic, which caused some suppliers to close and others to struggle with meeting demand. The electrical equipment market is also influenced by factors such as sustainability and environmental awareness, with investors and consumers increasingly preferring companies that prioritize eco-friendly products.
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Electric lighting equipment manufacturing
Electrical and electronic industries are industrial settings that involve the manufacturing, production, and distribution of electrical appliances. Electrical devices can convert electrical energy into other forms of energy, such as heat, sound, and light.
The Electric Lighting Equipment Manufacturing Industry Group on BizVibe contains 6,000+ company profiles from over 75 countries. BizVibe categorizes electric lighting equipment manufacturing into 60+ product and service categories. Some of the companies in this industry include Shenzhen SOF Lighting Technology Co., Ltd, Philips Holding U.S.A., Inc., STANLEY ELECTRIC CO., LTD., and Acuity Brands, Inc.
The Electrical Equipment market worldwide is projected to grow by 1.53% from 2025 to 2029, resulting in a market volume of $0.7 trillion in 2029. The market was valued at $1.54 trillion in 2023 and is projected to reach $2.17 trillion by 2030, growing at a 4.3% CAGR. The manufacturing market has faced challenges due to geopolitical uncertainty, supply chain disruptions, changing consumer preferences, and increasing regulatory scrutiny. However, rising global demand, technological advancements, and increasing investment in automation and digitalization are positive factors influencing the market.
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$75.18 $89.6
Household appliance manufacturing
The electrical equipment market includes the manufacturing of products that generate, distribute, and use electrical power, as well as electrical lighting, signalling equipment, and electric household appliances. The electrical and electronics industries involve the manufacturing, production, and distribution of electrical and electronic appliances. Electrical devices can convert electrical energy into other forms of energy such as heat, sound, and light, while electronic devices regulate the flow of electrons to perform device-related functions.
The top appliance manufacturers in the U.S. include Whirlpool, with a workforce of 3,500 in Clyde, Ohio, producing washers and dryers under various brands, and Electrolux, known for its vacuum cleaners and expansion into other appliances, including highly-reviewed washers and dryers. The world's largest clothes dryer manufacturing plant is the Whirlpool facility in Marion, Ohio, employing 2,500 workers. Haier, formerly known as G.E. Appliances, is another prominent player, embracing the Internet of Things (IoT) to develop intelligent appliances and drive industry growth.
The electrical equipment market is projected to grow, with an estimated increase of 1.53% from 2025 to 2029, resulting in a market volume of $0.7 trillion in 2029. By 2030, the market is expected to reach a value of $2.17 trillion, growing at a 4.3% CAGR. This growth is influenced by factors such as rising global demand, technological advancements, and increasing investment in automation and digitalization. The adoption of advanced technologies, including artificial intelligence, robotics, and the Internet of Things, has the potential to enhance efficiency and productivity, while sustainability and environmental awareness are also becoming important considerations for investors and consumers.
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Electronic devices
The electrical and electronics industries are often considered interchangeable, but there are differences between the two. Electrical devices convert electrical energy into other forms of energy, such as heat, sound, and light. On the other hand, electronic devices do not convert energy but regulate the flow of electrons to perform device mechanisms.
The electronics sector is driven by innovation, with companies investing heavily in research and development to improve their products and manufacturing processes. The semiconductor industry, a sub-sector of the electronics industry, is the most profitable, valued at over $555.9 billion globally in 2021. Asia is expected to represent approximately half of the global market share for electronics within the next few decades.
The electronics industry is facing challenges due to the increasing environmental awareness of consumers and the need to reduce the use of toxic materials and energy consumption. The industry is also a major contributor to electronic waste, with the United States and China being the top two producers of e-waste.
The global industrial electronics market is experiencing growth, driven by the rising demand for automation and smart technologies across various industries. Industrial electronics, such as sensors, controllers, and programmable logic controllers (PLCs), play a crucial role in automating manufacturing processes and increasing efficiency. The integration of the Industrial Internet of Things (IIoT) and 5G technology is transforming the sector, enabling seamless connectivity and data exchange.
The electrical equipment market, which includes the manufacture of electrical devices, is projected to grow as well. Valued at USD 1.54 Trillion in 2023, it is expected to reach USD 2.17 Trillion by 2030, with a 4.3% compound annual growth rate.
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Electric vehicles
The transition to electric vehicles poses both challenges and opportunities for auto companies and suppliers. While some traditional auto suppliers may struggle with the disruption to their business models, others will benefit from the shift towards electrification and advancements in technology. The powertrain and electronics are expected to account for a larger share of a car's value by 2025, while the importance of chassis, body, and interior components will decrease. This shift in value distribution within the automotive supply chain will create new competition among suppliers.
To meet the rising demand for EVs, auto companies are investing heavily in research and development, with a focus on improving battery technology. Innovations such as solid-state batteries and enhanced lithium-ion designs promise greater efficiency and lower costs, addressing the range and charging time concerns associated with electric vehicles. The development of smart charging infrastructure, such as cloud-connected charging devices and vehicle-to-grid (V2G) technology, further enhances the convenience and control over electricity consumption for EV users.
The Indian EV market is also experiencing significant growth, with the battery market projected to surge from US$ 16.77 billion in 2023 to US$ 27.70 billion by 2028. India is on track to become the largest EV market by 2030, driven by cost-effective manufacturing, government incentives, and a skilled workforce. Tata Motors, VinFast, Royal Enfield, and Stellantis are among the companies making notable investment commitments in the Indian EV sector.
Overall, the electric vehicle market is undergoing dynamic growth, driven by technological advancements, favourable policies, and increasing consumer demand for sustainable mobility options. With governments around the world adopting stricter emission regulations, the transition to electric vehicles is expected to accelerate, contributing to the decarbonisation of the road transport sector.
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Frequently asked questions
The electrical industry involves the manufacturing, production, and distribution of electrical appliances. Electrical devices convert electrical energy into other forms of energy, such as heat, sound, or light.
Electrical devices convert electrical energy into other forms of energy, whereas electronic devices regulate the flow of electrons to perform device mechanisms.
The electrical equipment market includes the manufacture of products that generate, distribute, and use electrical power, as well as electrical lighting, signalling equipment, and electric household appliances.
Some companies in the electrical equipment market include ABB, Siemens, Schneider Electric, Eaton, and Rockwell Automation.
