The industrial electrification market was valued at $83.5 billion in 2022 and is estimated to reach $182.5 billion by 2032, exhibiting a CAGR of 8.1% from 2023 to 2032.
Industrial electrification refers to the process of replacing or augmenting traditional mechanical, pneumatic, or hydraulic systems with electrical and electronic systems in various industrial applications. It involves the use of electricity as the primary source of power for machines, equipment, and processes in manufacturing, production, and other industrial sectors. Industrial electrification offers several advantages, including improved energy efficiency, greater precision, reduced maintenance requirements, enhanced automation, and the potential for integrating data and analytics into industrial processes.
Industrial electrification is often chosen as it significantly improves energy efficiency. Electric motors and equipment are more efficient than their mechanical counterparts, leading to reduced energy consumption and lower operating costs. This factor may surge the utilization of industrial electrification process among several end use sectors: thus, fueling the market growth.
However, retrofitting existing industrial processes with electrification solutions be complex and require extensive modifications to existing systems. Integration challenges lead to downtime and additional costs during the transition. This factor restrains the growth of the industrial electrification market.
On the contrary, The trend toward automation and Industry 4.0 concepts in manufacturing and industrial processes relies heavily on electrification. Electric systems are easier to automate and integrate with digital technologies for improved productivity and efficiency. This factor boosts the utilization of industrial electrification process across several types of industries: thus, creating remunerative opportunities for the market.
The industrial electrification market is segmented on the basis of product, application, and region. On the basis of product, it is fragmented into starter motor & alternator, electric pumps, electric power steering (EPS), integrated starter generator (ISG), and others. By application, it is classified into automation & control, energy efficiency, data & analytics, and others. By region, it is classified into North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include BorgWarner Inc., DENSO CORPORATION, Johnson Electric Holdings Limited, AISIN CORPORATION, Bharat Bijlee Limited, Bonfiglioli Transmissions Private Limited, General Electric, Kirloskar Electric Company, and ABB, Continental AG.
Industrial electrification refers to the process of replacing or augmenting traditional mechanical, pneumatic, or hydraulic systems with electrical and electronic systems in various industrial applications. It involves the use of electricity as the primary source of power for machines, equipment, and processes in manufacturing, production, and other industrial sectors. Industrial electrification offers several advantages, including improved energy efficiency, greater precision, reduced maintenance requirements, enhanced automation, and the potential for integrating data and analytics into industrial processes.
Industrial electrification is often chosen as it significantly improves energy efficiency. Electric motors and equipment are more efficient than their mechanical counterparts, leading to reduced energy consumption and lower operating costs. This factor may surge the utilization of industrial electrification process among several end use sectors: thus, fueling the market growth.
However, retrofitting existing industrial processes with electrification solutions be complex and require extensive modifications to existing systems. Integration challenges lead to downtime and additional costs during the transition. This factor restrains the growth of the industrial electrification market.
On the contrary, The trend toward automation and Industry 4.0 concepts in manufacturing and industrial processes relies heavily on electrification. Electric systems are easier to automate and integrate with digital technologies for improved productivity and efficiency. This factor boosts the utilization of industrial electrification process across several types of industries: thus, creating remunerative opportunities for the market.
The industrial electrification market is segmented on the basis of product, application, and region. On the basis of product, it is fragmented into starter motor & alternator, electric pumps, electric power steering (EPS), integrated starter generator (ISG), and others. By application, it is classified into automation & control, energy efficiency, data & analytics, and others. By region, it is classified into North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include BorgWarner Inc., DENSO CORPORATION, Johnson Electric Holdings Limited, AISIN CORPORATION, Bharat Bijlee Limited, Bonfiglioli Transmissions Private Limited, General Electric, Kirloskar Electric Company, and ABB, Continental AG.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the industrial electrification market analysis from 2022 to 2032 to identify the prevailing industrial electrification market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the industrial electrification market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global industrial electrification market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Product
- Starter motor and alternator
- Electric pumps
- Electric power steering (EPS)
- Integrated starter generator (ISG)
- Others
By Application
- Automation and Control
- Energy Efficiency
- Data and Analytics
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
- Key Market Players
- BorgWarner Inc.
- DENSO CORPORATION
- Johnson Electric Holdings Limited
- AISIN CORPORATION
- Bharat Bijlee Limited
- Bonfiglioli Transmissions Private Limited
- General Electric
- Kirloskar Electric Company
- ABB
- Continental AG
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: INDUSTRIAL ELECTRIFICATION MARKET, BY PRODUCT
CHAPTER 5: INDUSTRIAL ELECTRIFICATION MARKET, BY APPLICATION
CHAPTER 6: INDUSTRIAL ELECTRIFICATION MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the industrial electrification market was valued at $83.5 billion in 2022, and is estimated to reach $182.5 billion by 2032, growing at a CAGR of 8.1% from 2023 to 2032.Industrial electrification refers to the process of replacing or augmenting traditional mechanical, pneumatic, or hydraulic systems with electrical and electronic systems in various industrial applications. It involves the use of electricity as the primary source of power for machines, equipment, and processes in manufacturing, production, and other industrial sectors. Industrial electrification offers several advantages, including improved energy efficiency, greater precision, reduced maintenance requirements, enhanced automation, and the potential for integrating data and analytics into industrial processes.
Industrial electrification is often chosen as it significantly improves energy efficiency. Electric motors and equipment are more efficient than their mechanical counterparts, leading to reduced energy consumption and lower operating costs. This factor may surge the utilization of industrial electrification process among several end use sectors: thus, fueling the market growth.
Furthermore, stringent environmental regulations and emissions standards are encouraging industries to transition to cleaner energy sources and technologies. Electrification help reduce greenhouse gas emissions and air pollution, aligning with environmental targets. This acts as one of the key drivers responsible for the growth of the industrial electrification market during the forecast period.
Additionally, many industries are setting sustainability goals and striving to reduce their carbon footprint. Industrial electrification, especially when powered by renewable energy sources, contributes to these sustainability objectives.
One of the most significant contributions of industrial electrification is the reduction in greenhouse gas emissions. Electrifying industrial processes that were previously powered by fossil fuels significantly lower carbon dioxide and other harmful emissions. This shift helps combat climate change and aligns with global efforts to reduce emissions. This factor further aids the growth of the industrial electrification market.
However, retrofitting existing industrial processes with electrification solutions be complex and require extensive modifications to existing systems. Integration challenges lead to downtime and additional costs during the transition. This factor restrains the growth of the industrial electrification market.
Also, transitioning to industrial electrification often requires a significant upfront investment in new electrical infrastructure, equipment, and technology. This is a barrier for some businesses, particularly smaller companies with limited capital. This factor hampers the growth of the industrial electrification market during the forecast period.
On the contrary, ongoing advancements in electric motor and control technology, as well as the development of smart grid infrastructure, make industrial electrification more attractive and feasible for various applications. This is anticipated to create lucrative opportunities for the industrial electrification market during the forecast period.
In addition to this, the trend toward automation and Industry 4.0 concepts in manufacturing and industrial processes relies heavily on electrification. Electric systems are easier to automate and integrate with digital technologies for improved productivity and efficiency. This factor boosts the utilization of industrial electrification process across several types of industries: thus, creating remunerative opportunities for the market.
The industrial electrification market is segmented on the basis of product, application, and region. On the basis of product, it is fragmented into starter motor & alternator, electric pumps, electric power steering (EPS), integrated starter generator (ISG), and others. By application, it is classified into automation & control, energy efficiency, data & analytics, and others. By region, it is classified into North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include BorgWarner Inc., DENSO CORPORATION, Johnson Electric Holdings Limited, AISIN CORPORATION, Bharat Bijlee Limited, Bonfiglioli Transmissions Private Limited, General Electric, Kirloskar Electric Company, and ABB, Continental AG.
The motor and alternator segment dominated the global market, in terms of revenue in 2022. Modern vehicles are equipped with advanced electrical systems, including sophisticated infotainment systems, safety features, and telematics. These systems require a stable and reliable source of electrical power, which is provided by alternators. These factors altogether may surge the demand for starter motors and alternators; thus, fueling the growth of the industrial electrification market.
By application, the market is divided into automation & control, energy efficiency, data & analytics, and others. The automation and control application segment dominated the global market, in terms of revenue in 2022 with 37.6% share in the global market. Industrial electrification offers high energy efficiency. Electric motors, devices, and control systems can be designed to operate with precision, reducing energy consumption. This aligns with global efforts to minimize energy use and reduce operational costs. Furthermore, the demand for greener and more sustainable industrial practices has grown. Electrification allows for the integration of renewable energy sources, like solar and wind, into industrial processes. This supports environmental objectives by reducing greenhouse gas emissions and decreasing the reliance on fossil fuels. These factors altogether may augment the growth of the industrial electrification market for automation and control applications.
Region wise, the industrial electrification market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific industrial electrification market size is projected to grow at the highest CAGR during the forecast period and accounted for a major market share in 2022. Asia-Pacific has experienced rapid economic growth and urbanization. This growth is driving increased industrialization and energy demand, which, in turn, is boosting the market for industrial electrification.
Moreover, many countries in Asia-Pacific are investing in modernizing their manufacturing sectors by adopting electric machinery and automation technologies. This is aimed at improving productivity and energy efficiency. In addition, the region is increasingly investing in renewable energy sources such as solar, wind, and hydropower. This is driven by a combination of environmental concerns and a desire to reduce reliance on fossil fuels. Furthermore, electric vehicles (EVs) and charging infrastructure have become more prevalent in Asia-Pacific. Industrial logistics and transportation companies are transitioning to electric and hybrid vehicles to reduce emissions. Altogether these factors may augment the growth of the industrial electrification market in Asia-Pacific.
Key Market Insights
By product, the starter motor and alternator segment is the fastest growing segment, registering a CAGR of 8.7% from 2023 to 2032.By application, energy efficiency is the fastest growing segment, registering a CAGR of 8.6% from 2023 to 2032.
By region, Asia-Pacific registered the highest share of more than 35% in 2022, in terms of revenue, growing at a CAGR of 8.7% during the forecast period.
Companies Mentioned
- BorgWarner Inc.
- DENSO CORPORATION
- Johnson Electric Holdings Limited
- AISIN CORPORATION
- Bharat Bijlee Limited
- Bonfiglioli Transmissions Private Limited
- General Electric
- Kirloskar Electric Company
- ABB
- Continental AG
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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