Industrial Electrical Component Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 57.20 Billion |
| Market Size (2029) | USD 90.48 Billion |
| CAGR (2024 - 2029) | > 4.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Industrial Electrical Component Market Analysis
The Industrial Electrical Component Market size is estimated at USD 55 billion in 2023, and is expected to reach USD 87 billion by 2028, growing at a CAGR of greater than 4% during the forecast period (2023-2028).
The Industrial Electrical Components market is expected to mark a CAGR of 4% during the forecast period.
- Over the long term, high electricity demand from industries, private investments to set up extensive production facilities, and enhancement in economic activities are expected to drive the industrial electrical component market.
- On the other hand, the complex maintenance process of components, the emergence of toxic wastes that affect the environment, and the high replacement costs of industrial electrical components will likely obstruct the market's growth.
- Nevertheless, continuous research and development to enhance specifications, industry automation, and optimum safety would likely create growth opportunities for the Industrial Electrical Component market. The Asia-Pacific region is anticipated to dominate the market due to the increasing demand from the industrial sector across the countries.
Industrial Electrical Component Market Trends
High Energy Demand from Industries is Expected to Drive the Market
- As per IEA, there was a 35% share of the industrial sector in total global final energy usage in 2022, a five percent increase in energy consumption from the previous decade is mainly propelled by ramping of production in energy-intensive industry sub-sectors such as iron & steel, refining, aluminum, basic chemicals, cement, paper & pulp, food & beverage, etc.
- China, one of the largest manufacturing hubs worldwide, witnessed an increase in manufacturing production of 6.50% in April 2023 compared to the previous year. About 40.66% of the total electricity consumption in the country came from industrial activities like high technology and equipment manufacturing, etc. As per IEA, China's share in global electricity consumption is touted to reach one-third by 2025, owing to a rise in industrialization. This indicates a growth in the industrial electrical component market in the next few years.
- Further, as per the Energy Information Administration (EIA), the retail sale of electricity to the industrial sector in the United States in 2022 was 1.01 trillion kWh or 25.8%. Also, per the Manufacturing Energy Consumption Survey (MECS), the total electricity purchases in the United States was 78% more in the manufacturing sector than in the construction and mining sectors. This represents the widespread utilization of electrical components in the United States' industrial sector, which might propel further market growth.
- Similarly, the final energy consumption in the European Union's industrial sector in 2021 was 25.6%. The process and non-process purposes such as space heating, cooling, and lighting draw higher energy in the region. Electricity, natural gas, and renewables accounted for 33.2%, 32.7%, and 9.7% of the share of energy products used by the European Union in 2021, which is expected to rise as the industrial output progresses. Hence, it highlights a robust market for the electrical components market in the future.
- Therefore, based on the abovementioned factors, the industrial electrical component market is expected to grow due to the rise in high energy consumption by energy-intensive countries during the forecast period.
Asia-Pacific to Dominate the Market
- India is a significant steel producer and exporter in the world. The crude steel production during the first ten months of the financial year 2022 was 103.2 million tonnes, a 4.2% increase from the previous year for the same period. Steel exports were 5.33 million tonnes in the same duration but were deemed lower than the previous year.
- An increase in industrial investments is expected to construct more industrial working stations, which, in turn, is expected to create demand for electrical components. For instance, in 2023, Arcelor Mittal declared that it would expand its steel production capacities in India with Nippon Steel with an investment of USD 5 billion, which would likely propel the requirement of electrical components by the novel steel industry in the upcoming years.
- The rise in electricity generation to fulfill electricity demand arriving majorly from industrial consumers is likely to drive the industrial electrical component market in the Asia-Pacific region. As per the Statistical Review of World Energy Data, in 2022, the electricity generation in the region was 14546.4 TWh, an increase of 4% from the previous year. The generation is expected to grow more, increasing the sale of electrical components.
- Further, many industries have accelerated utility-scale electricity generation and rooftop solar projects by adopting renewable energy technologies. Due to government policies and clean energy generation, many enterprises prefer installing large-scale solar energy generation systems to meet daily energy requirements. This has created a conducive environment for the growth of the industrial electrical component market in the Asia-Pacific region, which is expected to grow more with the rise in renewable energy generation.
- Hence, the increase in production & export of commodities such as steel, the rise of renewable energy generation, new equipment manufacturing units, and the increase in electricity generation would significantly help in the growth of the Industrial Electrical Component Market in the region.
Industrial Electrical Component Industry Overview
The Industrial Electrical Component Market is fragmented. Some of the key players in this market include (in no particular order) Siemens AG, ABB Ltd., Toshiba, General Electric, and Schneider Electric.
Industrial Electrical Component Market Leaders
ABB Ltd.
Siemens AG
Toshiba Corporation
General Electric Company
Schneider Electric SE
*Disclaimer: Major Players sorted in no particular order
Industrial Electrical Component Market News
- 2023: Foxconn Technology Co. Ltd inked an agreement with the Indian government to set up a semiconductor fabrication manufacturing unit worth USD 500 million in Hyderabad. Semiconductors, a crucial part of manufacturing industrial electrical components, would help develop its market.
- 2022: ABB India announced that it would expand and upgrade its small power manufacturing unit in Bengaluru, India. The manufacturing facility would help cater to the growing demand for low-voltage power equipment and components from the industries.
- 2022: Hitachi Energy invested USD 37 million to expand its transformer manufacturing unit in Virginia. This development would likely cater to the increase in requirements for transformers from industrial facilities, data centers, and renewable energy generators.
Industrial Electrical Component Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition and Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 High Electricity Demand from Industries
4.5.1.2 Enhancement in Economic Activities
4.5.2 Restraints
4.5.2.1 The Complex Maintenance Process of Components And the Emergence of Toxic Wastes that Affect the Environment
4.6 Supply Chain Analysis
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Consumers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitute Products/Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Cables
5.1.2 Wires
5.1.3 Power Distribution units
5.1.4 Transformers
5.1.5 Switchgears
5.2 Sales Channels
5.2.1 OEM
5.2.2 Aftermarket
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Spain
5.3.2.6 Rest of Europe
5.3.3 Asia Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Japan
5.3.3.4 Rest of Asia Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East & Africa
5.3.5.1 United Arab Emirates
5.3.5.2 Saudi Arabia
5.3.5.3 South Africa
5.3.5.4 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Siemens AG
6.3.2 Toshiba Corporation
6.3.3 General Electric Company
6.3.4 Schneider Electric SE
6.3.5 Eaton Corporation plc
6.3.6 Mitsubishi Electric Corporation
6.3.7 OMRON Automotive Electronics Co. Ltd.
6.3.8 Emerson Electric Co.
6.3.9 ABB Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Research and Development to Enhance Specifications, Industry Automation, and Optimum Safety
Industrial Electrical Component Industry Segmentation
Industrial Electrical Components refer to cables, wires, switchgear, light bulbs, circuit breakers, enclosures, panels, power distribution units, remote power panels, switchboards, and medium & low-voltage transformers, among others, which altogether play a crucial part in facilitating and controlling of power flow to various industrial units.
The Industrial Electrical Component Market is segmented by types, by sales channels, and geography. By types, the market is segmented into cables, wires, power distribution units, switchgears, transformers, switchboards, etc. By sales channels, the market is segmented into OEM and aftermarket. The report offers the market size and forecasts in revenue (USD billion) for all the above segments. For each segment, the market sizing and forecasts have been done based on revenue (USD).
| Type | |
| Cables | |
| Wires | |
| Power Distribution units | |
| Transformers | |
| Switchgears |
| Sales Channels | |
| OEM | |
| Aftermarket |
| Geography | ||||||||
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Industrial Electrical Component Market Research Faqs
How big is the Industrial Electrical Component Market?
The Industrial Electrical Component Market size is expected to reach USD 57.20 billion in 2024 and grow at a CAGR of greater than 4% to reach USD 90.48 billion by 2029.
What is the current Industrial Electrical Component Market size?
In 2024, the Industrial Electrical Component Market size is expected to reach USD 57.20 billion.
Who are the key players in Industrial Electrical Component Market?
ABB Ltd., Siemens AG, Toshiba Corporation, General Electric Company and Schneider Electric SE are the major companies operating in the Industrial Electrical Component Market.
Which is the fastest growing region in Industrial Electrical Component Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Industrial Electrical Component Market?
In 2024, the North America accounts for the largest market share in Industrial Electrical Component Market.
What years does this Industrial Electrical Component Market cover, and what was the market size in 2023?
In 2023, the Industrial Electrical Component Market size was estimated at USD 54.91 billion. The report covers the Industrial Electrical Component Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Industrial Electrical Component Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Industrial Electrical Component Industry Report
Statistics for the 2024 Industrial Electrical Component market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Industrial Electrical Component analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
