Electrical Equipment and Services Market Overview
As per MRFR analysis, the Electrical Equipment and Services Market Size was estimated at 1,651.45 (USD Billion) in 2022.
The Electrical Equipment and Services Market Industry is expected to grow from 1,715.03(USD Billion) in 2023 to 2,408.7 (USD Billion) by 2032. The Electrical Equipment and Services Market CAGR (growth rate) is expected to be around 3.85% during the forecast period (2024-2032).
Key Electrical Equipment and Services Market Trends Highlighted
The Electrical Equipment and Services market is experiencing advancements in automation and digitalization, leading to increased efficiency and productivity in electrical systems. The growing adoption of smart grids and renewable energy sources is driving the demand for advanced electrical equipment and services. Additionally, the increasing focus on energy efficiency and sustainability is creating opportunities for innovative solutions. Emerging trends include the integration of artificial intelligence and machine learning in electrical equipment, the rise of modular electrical systems, and the growing importance of predictive maintenance. The market is also witnessing a shift towards customized and tailored electrical solutions to meet specific industry requirements.
Figure1: Electrical Equipment and Services Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electrical Equipment And Services Market Drivers
Growing Demand for Energy-Efficient Solutions
A significant driver of the Electrical Equipment And Services Market Industry is the growing demand for energy-efficient solutions. As more governments and businesses focus on reducing their carbon footprint and cutting their operating costs, there is a rapidly increasing need for electrical equipment and services that can help meet these demands. In the years to come, demand in this area is expected to continue growing as more and more organizations decide to go green’.The industry is well-placed to provide for these demands as it offers a broad spectrum of energy-efficient products and services which can be used to maximize the efficiency of individual companies or organizations.
Increasing Investment in Renewable Energy
Another major driver of the Electrical Equipment And Services Market Industry is the increasing investment in renewable energy. As the world shifts to a low-carbon economy, the demand for Electrical Equipment and Services capable of supporting the development and implementation of renewable energy technologies continues to grow. These are in the form of solar panels, wind turbines, energy storage systems as well as grid integration and maintenance services.The Electrical Equipment And Services Market Industry is set to benefit from these developments from the industry’s diverse products categories that support the development and deployment of these renewable energy technologies on a commercial scale.
Rapid Urbanization and Infrastructure Development
The Electrical Equipment And Services Market Industry is expected to benefit in emerging economies from rapid urbanization and infrastructure development. Given the development of larger cities and new infrastructure, there is a sustained demand for electrical equipment and services for their provision. Electrical equipment and services, therefore, include transformers, cables, switchgear, and related installation repair, maintenance needs.The Electrical Equipment And Services Market Industry should benefit from increased demand as many of the products and services are essential for emerging markets.
Electrical Equipment And Services Market Segment Insights
Electrical Equipment And Services Market Equipment Type Insights
An important domain in the Electrical Equipment And Services Market is the Equipment Type segment. This segment includes transformers, switchgears and circuit breakers, cables and wires, motors and generators, power electronics, lighting equipment, industrial automation systems, and renewable energy equipment. Each type of equipment is designed to meet certain purposes in generation, transmission, distribution, and utilization of electricity. For example, transformers are important for regulating the voltage level and ensuring efficient power transfer between different parts of an electrical system.Switchgears and circuit breakers, in their turn, protect the system against overloads, short circuits, and other types of faults. Cables and wires are designed for transmitting electricity from the points of generation source to the different loads. Motors and generators transform electrical energy into mechanical energy and vice versa, hence enabling the operation of machining and equipment. Power electronics make use of semiconductor devices and are beneficial for increasing power delivery performance and controlling the system. Lighting equipment is commonly used for lighting purposes in residences, commercial enterprises, and industries.Industrial automation systems are composed of programmable controllers, sensors, and actuators, among other components to enhance the efficacy of industrial processes. Finally, renewable energy equipment includes solar panels and wind generators among others to generate electricity by using forces of nature. The Electrical Equipment And Services Market revenues indicate that the Equipment Type market will increase to USD 1,255.6 billion by 2024. The main growth driving force is identified to be the ever-increasing need for electricity. Moreover, the market is stimulated by the rising demand for renewable sources of energy and smart grid technologies.Another factor contributing to the growth of the market is the development of infrastructure and expansion of industry in emerging economies, such as China and India, Brazil and Russia. In addition, technology is another factor that is expected to influence the market, as the technological advancements are creating new opportunities for the development of more efficient, reliable, and intelligent equipment.
Figure2: Electrical Equipment and Services Market, By Equipment Type, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electrical Equipment And Services Market Voltage Level Insights
The Electrical Equipment And Services Market report segments the market based on voltage level into Low Voltage (Up to 1 kV), Medium Voltage (1 kV - 33 kV), High Voltage (33 kV - 230 kV), and Extra High Voltage (230 kV and above). Among these segments, Low Voltage holds the largest market share and is expected to continue its dominance throughout the forecast period. The widespread adoption of low voltage electrical equipment in residential, commercial, and industrial sectors contributes to its significant market revenue. Medium Voltage segment is projected to exhibit a steady growth rate over the coming years due to increasing demand from infrastructure development and power distribution networks.High Voltage and Extra High Voltage segments are anticipated to witness a surge in demand, driven by the growing need for efficient power transmission and distribution systems over long distances.
Electrical Equipment And Services Market Application Insights
The Application segment of the Electrical Equipment And Services Market holds immense potential for growth. In 2023, the Power Generation segment accounted for a significant share of the market, valued at approximately USD 520 billion. The increasing demand for reliable and sustainable power sources, coupled with growing investments in renewable energy projects, is driving market growth in this segment. The Power Transmission and Distribution segment is also expected to witness substantial growth, with a projected market size of USD 380 billion by 2032.This growth is attributed to the need for efficient and reliable transmission and distribution networks to meet rising electricity demand. The Industrial segment, valued at USD 340 billion in 2023, is anticipated to grow steadily due to increasing automation and electrification in manufacturing industries. The Commercial segment, catering to the electrical needs of various businesses, is projected to reach a market size of USD 270 billion by 2032. The Residential segment, which encompasses electrical equipment and services for homes, is expected to grow at a moderate pace, driven by rising disposable income and urbanization.The Renewable Energy segment, focusing on electrical equipment and services for clean energy generation, is projected to witness significant growth, reaching an estimated market size of USD 250 billion by 2032. The Oil and Gas, and Mining segments are also expected to contribute to market growth, driven by the need for efficient and reliable electrical equipment in these industries.
Electrical Equipment And Services Market Service Type Insights
The Electrical Equipment And Services Market revenue is segmented into various service types, including installation and commissioning, maintenance and repair, testing and inspection, energy efficiency audits, engineering and design, and project management. The installation and commissioning segment is expected to hold the largest market share in 2023 due to the growing demand for new electrical equipment installations and upgrades. The maintenance and repair segment is also expected to witness significant growth due to the increasing focus on preventive maintenance and the need to extend the lifespan of existing electrical equipment.The testing and inspection segment is expected to gain traction due to the growing awareness of electrical safety and the need to comply with regulatory standards. The energy efficiency audits segment is expected to grow due to the increasing adoption of energy efficiency measures and the need to reduce operational costs. The engineering and design segment is expected to witness growth due to the increasing demand for customized electrical solutions and the need to optimize electrical systems. The project management segment is expected to grow due to the increasing complexity of electrical projects and the need for efficient project execution.
Electrical Equipment And Services Market End-User Industry Insights
The End-User Industry segment of the Electrical Equipment And Services Market is expected to grow significantly in the coming years. The growth of this segment is attributed to the increasing demand for electricity from various industries and sectors. The major end-user industries of electrical equipment and services include utilities, industrial, commercial, residential, transportation, healthcare, and government. Utilities is the largest end-user industry, accounting for over 40% of the Electrical Equipment And Services Market revenue.The industrial sector is expected to witness significant growth in the coming years, due to the increasing adoption of automation and digitalization in manufacturing processes. The commercial sector is also expected to grow steadily, driven by the increasing construction of new commercial buildings and the renovation of existing ones. The residential sector is expected to remain a key end-user industry, as new homes are built and existing homes are upgraded with new electrical equipment and services. The transportation sector is expected to grow due to the increasing demand for electric vehicles and the development of smart transportation systems.The healthcare sector is also expected to witness growth, as hospitals and other healthcare facilities upgrade their electrical systems to meet the increasing demand for medical equipment. The government sector is expected to remain a key end-user industry, as governments invest in infrastructure projects and upgrade their electrical systems to improve efficiency and reliability.
Electrical Equipment And Services Market Regional Insights
The Electrical Equipment And Services Market is expected to grow to a valuation of 2408.7 Billion USD by the year 2032. Regionally, the market can be divided into North America, Europe, APAC, South America and MEA. North America is the largest region in terms of revenue, accounting for 30% of the market in 2023. Europe is the second-largest region, with a 25% share of the market. APAC is the third-largest region, with a 22% share of the market. South America and MEA account for the remaining 13% and 10% of the market, respectively.The market in APAC is expected to grow at the highest CAGR during the forecast period, driven by increasing urbanization and industrialization in the region.
Figure3: Electrical Equipment and Services Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electrical Equipment And Services Market Key Players And Competitive Insights
All leading players in the Electrical Equipment And Services Market industry invest immense capital in research and development activities in order to introduce technological advancements. Leading Electrical Equipment And Services Market players are also focusing on the acquisition of smaller companies to expand their presence in the worldwide market. Electrical Equipment And Services Market industry is highly competitive, due to the presence of several leading players. Some key players in the Electrical Equipment And Services Market industry include Schneider Electric, Siemens, ABB, Eaton, and General Electric among others. These companies provide a broad range of electrical equipment and services. Schneider Electric CURRENTYEARS, Schneider Electric is a premier provider of a wide array of electrical equipment and services. The product offerings of the company include power generation, transmission, and distribution equipment, as well as automation and control systems. The company has a strong presence across the globe with more than 100 countries involved.. The company is highly focused on innovation and is a leader in medium voltage equipment, where the company has significantly invested in research and development. Similarly, Siemens CURRENTYEARS is a major player in the manufacturing and services of electrical equipment. The company provides a wide range of products including power generation, transmission and distribution equipment as well as automation and control systems. The company has a strong presence ly with over 190 countries involved. The company highly invests in research and development and is dedicated to innovation and sustainability.
Key Companies in the Electrical Equipment And Services Market Include
Electrical Equipment And Services Market Industry Developments
The Electrical Equipment and Services market is projected to reach USD 2408.7 billion by 2032, exhibiting a CAGR of 3.85% during the forecast period 2024-2032. Market growth is attributed to increasing demand for energy-efficient electrical equipment, rising infrastructure development, and growing industrial automation. Government initiatives toward smart city development and renewable energy adoption are further driving market expansion. Key industry participants are focusing on product innovation, strategic partnerships, and geographical expansion to gain competitive advantage. The market is expected to witness significant growth in emerging economies, driven by rapid urbanization and industrialization. Recent developments include the launch of advanced switchgear and control systems, as well as the integration of IoT and AI technologies into electrical equipment.
Electrical Equipment And Services Market Segmentation Insights
Electrical Equipment And Services Market Equipment Type Outlook
- Transformers
- Switchgears and Circuit Breakers
- Cables and Wires
- Motors and Generators
- Power Electronics
- Lighting Equipment
- Industrial Automation Systems
- Renewable Energy Equipment
Electrical Equipment And Services Market Voltage Level Outlook
- Low Voltage (Up to 1 kV)
- Medium Voltage (1 kV - 33 kV)
- High Voltage (33 kV - 230 kV)
- Extra High Voltage (230 kV and above)
Electrical Equipment And Services Market Application Outlook
- Power Generation
- Power Transmission and Distribution
- Industrial
- Commercial
- Residential
- Renewable Energy
- Oil and Gas
- Mining
Electrical Equipment And Services Market Service Type Outlook
- Installation and Commissioning
- Maintenance and Repair
- Testing and Inspection
- Energy Efficiency Audits
- Engineering and Design
- Project Management
Electrical Equipment And Services Market End-User Industry Outlook
- Utilities
- Industrial
- Commercial
- Residential
- Transportation
- Healthcare
- Government
Electrical Equipment And Services Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1651.45(USD Billion) |
| Market Size 2023 |
1715.03(USD Billion) |
| Market Size 2032 |
2408.7(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.85% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Siemens, Emerson Electric, EATON CrouseHinds Division, Siemens Mobility, Schneider Electric Solar, Mitsubishi Electric, Yaskawa Electric, ABB Power Grids, General Electric, Eaton, Honeywell International, Danfoss, Rockwell Automation, Schneider Electric, ABB |
| Segments Covered |
Equipment Type, Voltage Level, Application, Service Type, End-User Industry, Regional |
| Key Market Opportunities |
Renewable energy integration Smart grid technologies Energy storage systems Industrial automation Electric vehicle infrastructure |
| Key Market Dynamics |
Increased demand for reliable power digitalization and IoT adoption rising infrastructure investments growing urbanization and focus on energy efficiency |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Electrical Equipment And Services Market is expected to reach 1715.03 Billion USD in 2023.
The Electrical Equipment And Services Market is expected to grow at a CAGR of 3.85% from 2023 to 2032.
North America is expected to hold the largest market share in the Electrical Equipment And Services Market in 2023.
The Industrial segment is expected to hold the largest market share in the Electrical Equipment And Services Market in 2023.
Some of the key competitors in the Electrical Equipment And Services Market include Schneider Electric, Siemens, General Electric, ABB, and Eaton.
Some of the key trends driving the growth of the Electrical Equipment And Services Market include the increasing demand for electricity, the growing adoption of renewable energy sources, and the increasing urbanization.
Some of the challenges facing the growth of the Electrical Equipment And Services Market include the rising cost of raw materials, the increasing competition from low-cost manufacturers, and the stringent environmental regulations.
Some of the opportunities for growth in the Electrical Equipment And Services Market include the development of new technologies, the expansion into new markets, and the increasing adoption of energy-efficient products.
The Electrical Equipment And Services Market is expected to have a positive impact on the economy by creating jobs, stimulating innovation, and contributing to economic growth.
Some of the key factors that will influence the growth of the Electrical Equipment And Services Market in the future include the increasing demand for electricity, the growing adoption of renewable energy sources, the increasing urbanization, and the rising cost of raw materials.
