Industrial Electrification Market Research Report By Component (Electrical Transformers, Variable Speed Drives, Motor Control Centers, Industrial Automation and Control Systems, Electrical Distribution and Protection Equipment), By End-Use Industry (Manufacturing, Mining, Oil and Gas, Transportation, Utilities), By Application (Energy Efficiency and Optimization, Process Automation and Control, Electrification of Industrial Processes, Renewable Energy Integration, Electric Vehicle Charging Infrastructure), By Power Conversion Technology (AC

Global Industrial Electrification Market Overview

As per MRFR analysis, the Industrial Electrification Market Size was estimated at 311.83 (USD Billion) in 2022. The Industrial Electrification Market Industry is expected to grow from 328.39(USD Billion) in 2023 to 523.0 (USD Billion) by 2032. The Industrial Electrification Market CAGR (growth rate) is expected to be around 5.31% during the forecast period (2024 - 2032).

Key Industrial Electrification Market Trends Highlighted

The Industrial Electrification Market is witnessing a surge in demand driven by the increasing adoption of automation, digitalization, and Industry 4.0 solutions. The drive towards energy efficiency, sustainability, and decarbonization is further fueling the market growth. Key market drivers include the rising demand for electric motors, drives, and power distribution equipment in industries such as manufacturing, mining, and transportation. Opportunities for growth lie in the adoption of advanced technologies like IoT, cloud computing, and smart sensors to optimize energy usage and improve operational efficiency. The market is also witnessing a trend towards customized solutions to meet the specific needs of various industries. Companies are focusing on developing solutions that can seamlessly integrate with existing infrastructure and provide real-time monitoring and control capabilities.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Industrial Electrification Market Drivers

Rising Demand for Energy Efficiency

Improving energy efficiency is a crucial driver of the industrial electrification market and accounts for a substantial portion of global energy consumption. Electrification can make it possible to replace inefficient fossil fuel-based processes with more efficient electric technologies, thereby reducing energy waste and enhancing productivity. For instance, internal combustion engines are less efficient than electric motors; also, gas-fired heating systems are less efficient than electric heating systems.

The growing demand for energy efficiency is expected to continue driving the adoption of industrial electrification technologies in the years ahead. This is besides supporting the reduction of greenhouse gases. The contribution rate of the industrial sector to greenhouse gas emissions is very high, such that replacing fossil fuel-based processes with cleaner electric technologies will help in cutting down these emissions.

For instance, electric vehicles are known to be zero-emission producers, while electric heating systems emit significantly lower levels of greenhouse gases than gas-fired heating systems. This means that there will likely be even more progress made concerning industrial electrification over the years due to increasing interest in clean energy. The need for increased clean energy and power was therefore identified as one of the factors that would drive further adoption of these technologies within the industry during the coming years. As businesses and governments strive towards reducing their costs related to energy and minimizing environmental impact, they have always found solace in turning to electricity as a solution.

This trend is expected to continue in the coming years as the global economy becomes increasingly electrified.

Government Incentives and Regulations

Government incentives and regulations are another key driver of the industrial electrification market. Many governments are offering financial incentives to businesses that adopt electric technologies, and some are even implementing regulations that require businesses to reduce their energy consumption or greenhouse gas emissions. For example, the US government offers tax credits for businesses that purchase electric vehicles and install solar panels.The Chinese government has implemented a number of policies to promote the adoption of electric vehicles, including subsidies and preferential access to license plates. Government incentives and regulations are expected to continue to drive the adoption of industrial electrification technologies in the coming years. As governments become increasingly focused on addressing climate change and reducing energy consumption, they are likely to implement more policies that support the electrification of the industrial sector.This trend is expected to continue in the coming years as the global economy becomes increasingly electrified.

Technological Advancements

Technological advancements are also driving the growth of the industrial electrification market. The development of new electric technologies, such as more efficient electric motors and batteries, is making it more cost-effective for businesses to adopt electric technologies. In addition, the development of new grid technologies, such as smart grids and microgrids, is making it easier for businesses to integrate electric technologies into their operations. Technological advancements are expected to continue to drive the growth of the industrial electrification market in the coming years.As electric technologies become more efficient and cost-effective, businesses are likely to increasingly adopt these technologies. This trend is expected to continue in the coming years as the global economy becomes increasingly electrified.

Industrial Electrification Market Segment Insights

Industrial Electrification Market Component Insights

The Industrial Electrification Market is segmented into components, including electrical transformers, variable speed drives, motor control centers, industrial automation and control systems, and electrical distribution and protection equipment. The electrical transformers segment is expected to hold the largest market share in 2023, owing to the increasing demand for energy efficiency and the need to reduce energy consumption in industrial applications. The variable speed drives segment is also expected to witness significant growth during the forecast period, driven by the rising adoption of industrial automation and the need to improve process efficiency.The motor control centers segment is expected to grow steadily over the forecast period, supported by the increasing demand for industrial automation and the need to improve motor control and protection. The industrial automation and control systems segment is expected to witness moderate growth during the forecast period, driven by the rising adoption of industrial automation and the need to improve process efficiency and productivity. The electrical distribution and protection equipment segment is expected to grow steadily over the forecast period, supported by the increasing demand for reliable and efficient power distribution and protection solutions in industrial applications.Overall, the Industrial Electrification Market is expected to witness significant growth during the forecast period, driven by the rising demand for energy efficiency, industrial automation, and process optimization in industrial applications.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Industrial Electrification Market End-Use Industry Insights

The Industrial Electrification Market is segmented by end-use industry into manufacturing, mining, oil and gas, transportation, and utilities. The manufacturing segment is expected to hold the largest market share in 2023, accounting for around 35% of the global market. This is due to the increasing adoption of electric motors, drives, and other electrification technologies in manufacturing processes. The transportation segment is also expected to see significant growth in the coming years, driven by the increasing adoption of electric vehicles and the development of smart transportation systems.The utilities segment is expected to grow at a moderate pace, driven by the increasing demand for electricity from the industrial and commercial sectors.

Industrial Electrification Market Application Insights

The increasing demand for energy efficiency and optimization in industrial processes, the growing adoption of automation and control systems, and the need for renewable energy integration are key factors driving the growth of the market. The Energy Efficiency and Optimization segment accounted for the largest share of the Industrial Electrification Market in 2023, and is expected to maintain its dominance throughout the forecast period.This growth is attributed to the increasing focus on reducing energy consumption and carbon emissions in industrial facilities. The Process Automation and Control segment is expected to witness significant growth in the coming years. The adoption of automation and control systems in industrial processes improves efficiency, reduces costs, and enhances safety. The Electrification of Industrial Processes segment is gaining traction as industries are increasingly adopting electric technologies to replace traditional fossil fuel-based processes. This shift is driven by the need to reduce carbon emissions and improve energy efficiency.The Renewable Energy Integration segment is expected to grow rapidly in the coming years. The increasing adoption of renewable energy sources, such as solar and wind power, is driving the demand for electrification solutions to integrate these sources into industrial processes. The Electric Vehicle Charging Infrastructure segment is expected to witness significant growth in the coming years. The increasing adoption of electric vehicles is driving the need for charging infrastructure in industrial facilities.

Industrial Electrification Market Power Conversion Technology Insights

The Power Conversion Technology segment holds a significant share in the Industrial Electrification Market revenue, owing to the rising demand for efficient power management solutions across various industries. The primary function of power conversion technology is to transform electrical energy from one form to another, such as AC-DC, DC-DC, AC-AC, power factor correction, and uninterruptible power supply (UPS). The AC-DC Conversion segment accounts for a major portion of the market growth, driven by the increasing adoption of variable-speed drives, renewable energy systems, and electric vehicle charging applications.DC-DC Conversion technology also holds a considerable market share, owing to its wide usage in portable electronic devices, data centers, and telecom networks. The AC-AC Conversion segment is expected to witness steady growth due to its application in industrial machinery, power systems, and traction applications. Power Factor Correction technology plays a crucial role in improving energy efficiency and reducing electricity costs by optimizing power factor. The Uninterruptible Power Supply (UPS) segment is anticipated to experience significant growth, attributed to its critical role in providing backup power to ensure uninterrupted operations in industries, data centers, and healthcare facilities.

Industrial Electrification Market Regional Insights

The Industrial Electrification Market segmentation by region reveals several key insights into the geographical distribution of market growth. North America holds a significant market share, driven by the presence of established industrial infrastructure, government initiatives promoting energy efficiency, and a growing focus on sustainable manufacturing practices. The region is projected to maintain its dominance throughout the forecast period. Europe follows closely, with a mature industrial sector and a strong emphasis on environmental regulations.The region is expected to witness steady growth, supported by investments in renewable energy and energy-efficient technologies. APAC presents a promising growth opportunity, with rapidly developing economies and a growing middle class. The region is expected to experience significant demand for industrial electrification solutions due to rising urbanization and industrialization. South America and MEA are expected to contribute to the overall market growth, albeit at a slower pace compared to other regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Industrial Electrification Market Key Players And Competitive Insights

Major players in the Industrial Electrification Market industry are continuously developing and launching new and advanced products to gain a competitive edge in the market. Leading Industrial Electrification Market players are focusing on strategic partnerships, collaborations, and acquisitions to expand their product portfolio and geographical reach. Key players in the Industrial Electrification Market are actively involved in research and development to introduce innovative technologies and solutions to meet the evolving needs of customers. The Industrial Electrification Market Competitive Landscape is expected to remain highly competitive in the coming years due to the presence of established players and the entry of new entrants. To maintain their market position, leading players in the Industrial Electrification Market are investing heavily in marketing and sales activities to increase their brand visibility and market share.A prominent player in the industrial electricity market, Siemens offers a wide range of products and solutions for industrial electricity, including motors, drives, controls, and automation systems. The company's strong global presence and focus on innovation have enabled it to maintain a leading position in the market. Another key player in the Industrial Electrification Market, Schneider Electric, provides a comprehensive portfolio of electrical distribution and automation products, including switchgear, circuit breakers, and energy management systems. The company's commitment to sustainability and energy efficiency has made it a preferred choice for industrial customers.ABB, another major player in the Industrial Electrification Market, offers a broad range of products and services for industrial automation and electrification, including robotics, power electronics, and electrical distribution systems. The company's focus on digitalization and connectivity has allowed it to provide innovative solutions that meet the evolving needs of industrial customers. These companies are continuously investing in research and development, strategic partnerships, and geographical expansion to maintain their competitive advantage in the Industrial Electrification Market.

Key Companies in the Industrial Electrification Market Include

• Legrand


• General Electric


• Mitsubishi Electric


• Yaskawa Electric


• Eaton


• Rockwell Automation


• Siemens


• Emerson Electric


• Honeywell


• Phoenix Contact


• ABB


• Nidec


• Rittal


• WEG


• Schneider Electric

Industrial Electrification Market Industry Developments

The industrial electrification market is projected to reach a value of USD 523.0 billion by 2032, exhibiting a CAGR of 5.31% during the forecast period of 2024-2032. This growth can be attributed to rising demand for energy efficiency, increasing industrial automation, and growing adoption of renewable energy sources. Recent developments include the launch of innovative products such as smart transformers and advanced motor control systems. Key players in the market are focusing on strategic partnerships and acquisitions to expand their product portfolios and gain a competitive edge.

Industrial Electrification Market Segmentation Insights

• Industrial Electrification Market Component Outlook
  
  
  
  • Electrical Transformers
  
  
  • Variable Speed Drives
  
  
  • Motor Control Centers
  
  
  • Industrial Automation and Control Systems
  
  
  • Electrical Distribution and Protection Equipment
  
  
  
  

• Industrial Electrification Market End-Use Industry Outlook
  
  
  
  • Manufacturing
  
  
  • Mining
  
  
  • Oil and Gas
  
  
  • Transportation
  
  
  • Utilities
  
  
  
  

• Industrial Electrification Market Application Outlook
  
  
  
  • Energy Efficiency and Optimization
  
  
  • Process Automation and Control
  
  
  • Electrification of Industrial Processes
  
  
  • Renewable Energy Integration
  
  
  • Electric Vehicle Charging Infrastructure
  
  
  
  

• Industrial Electrification Market Power Conversion Technology Outlook
  
  
  
  • AC-DC Conversion
  
  
  • DC-DC Conversion
  
  
  • AC-AC Conversion
  
  
  • Power Factor Correction
  
  
  • Uninterruptible Power Supply (UPS)
  
  
  
  

• Industrial Electrification Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa