Electrical Equipment Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global electrical equipment market was valued at USD 1.36 trillion in 2024. The market is expected to grow at a CAGR of 6.80% during the forecast period of 2025-2034 to attain a value of USD 2.64 trillion by 2034. The market growth is mainly attributed to the rising demand for reliable electrical systems and power backup solutions from the healthcare sector.

Key Market Trends and Insights:

• The Asia Pacific electrical equipment market secured the dominant position in the global industry in 2024 and is expected to grow at a CAGR of 7.6% over the forecast period.
• The Indian market is projected to grow at a CAGR of 7.5% over the forecast period.
• By type, batteries are projected to witness a CAGR of 14.6% over the forecast period.
• Residential applications are expected to grow at a CAGR of 8.1% over the forecast period.

Market Size & Forecast:

• Market Size in 2024: USD 1.36 trillion
• Projected Market Size in 2034: USD 2.64 trillion
• CAGR from 2025 to 2034: 6.80%
• Dominant Regional Market: Asia Pacific

Electricity is important for basic services in health-care facilities to power medical equipment necessary to safely manage childbirth or to ensure immunization as well as for undertaking the routine and emergency procedures. However, as per statistics published by WHO in August 2023, nearly 1 billion people in low- and lower-middle-income countries were treated at health-care facilities without reliable electricity or with no electricity access at all.

To resolve this, governments are supporting and investing actively to scale up health-care facility electrification, resulting in global electrical equipment market growth. This, in turn, has also surged in the adoption of clean and cost-effective energy solutions, such as those based on solar photovoltaic systems, to electrify health-care facilities sustainably and resiliently.

Moreover, the manufacturing ecosystem is focused on developing specialized and reliable power solutions for the healthcare sector. Market players are making continuous efforts to provide advanced backup batteries that are portable, durable, and compatible with various medical devices ensuring uninterrupted operations during power outages, which is further propelling the global electrical equipment industry growth. To cite a recent instance, in January 2025, US Med-Equip partnered with Zopec Medical to deliver high-quality batteries supporting life-saving equipment.

Key Trends and Recent Developments

February 2025

Siemens Southern Africa introduced SINOVA, a range of reliable and affordable low-voltage electrical products, in efforts to make electricity access more widely available across the region. This launch expanded the company’s presence across Africa and major emerging markets.

April 2025

Daikin extended its data center product portfolio with the launch of its new Pro-C computer room air handler (CRAH), designed to meet any data center configurations cooling needs. This product launch reflected the company’s commitment to adapt to evolving trends and industry advancements.

June 2024

ABB invested over USD 35 million to build an innovative greenfield facility in Nottingham, U.K., to meet increased demand for Furse® earthing and lightning protection solutions. The investments were made to integrate advanced technology, flexible automation, R&D testing, and digital processes in the facility to boost production capacity, efficiently and sustainably.

July 2024

Bosch acquired Johnson Controls’ global HVAC business and full ownership of the JCH joint venture to expand its Energy and Building Technology segment. This strategic move strengthened Bosch’s market presence in the U.S. and Asia, enhancing its global HVAC footprint.

Rising trend of smart home solutions

The global electrical equipment market is witnessing significant growth driven by the rising demand for intelligent, secure, and energy-efficient homes. Market players are creating smart home appliances and automated electrical appliances catering to the market demand. For instance, in June 2025, Lauritz Knudsen Electrical and Automation introduced its smart home platform, enConnect, designed to transform homes into intelligent, seamlessly connected living spaces. Additionally, key economies including Australia, the EU, the UK, and the US have begun introducing policies promoting the demand-side flexibility, both for energy-using appliances and equipment, further contribute to the growing demand for sustainable electrical solutions.

Increasing investments in renewable energy expansion projects

The rapid deployment of solar, wind, and other renewable energy sources has raised an urgent need for integrated electrical infrastructure and advanced equipment solutions. As per the International Energy Agency, in 2024, around USD 2 trillion of global energy investment was expected to be allocated to clean energy technologies and infrastructure. This growth is attributed to rising clean energy spending through decarbonization targets, energy security priorities, especially in the EU, along with widespread implementation of clean energy industrial strategies. These efforts, in turn, are expected to fuel global electrical equipment industry revenue.

Increasing Residential and Commercial Power Consumption

Rising electricity consumption across residential and commercial sectors is driving the demand for advanced electrical equipment, including efficient distribution systems and reliable energy backup solutions. As per the Net Zero Emissions by 2050 Scenario, nearly all appliances and equipment sold by 2035 must meet best-in-class efficiency standards. While current regulations like Minimum Energy Performance Standards (MEPS) have improved efficiency, further progress is essential. Governments are urged to intensify policy efforts and encourage energy-conscious consumer behavior. This combination of rising energy needs and sustainability goals is prompting widespread upgrades in electrical infrastructure, further influencing global electrical equipment market growth.

Massive investments in energy infrastructure transformation

Another factor influencing global electrical equipment market growth is rising large-scale investments in energy infrastructure transformation. As major regions are aiming to meet decarbonization and energy security goals, utilities and governments are prioritizing the modernization of transmission and distribution networks and expansion of renewable power capacity. These initiatives necessitate the usage of advanced electrical components and smart grid technologies, which is boosting market growth. A notable example is the EnBW's announcement to invest up to EUR 50 billion by 2030 to transform energy system in Germany, targeting renewables, hydrogen infrastructure, and smart grids.

Emergence of 5G and Telecom Infrastructure

Worldwide efforts for the deployment of 5G technology have surged demand for robust electrical infrastructure which can provide reliable power for uninterrupted operation of transmission units and telecom towers. In addition, ongoing smart city development projects have further fueled the adoption of connected devices requiring seamless network services, thereby contributing to global electrical equipment market growth. For instance, in July 2025, T-Mobile announced the completion of its USD 2 billion expansion project in Florida which involved the extension of 5G coverage to almost 100% of the state, to enhance connectivity and digital infrastructure.

Global Electrical Equipment Industry Segmentation

The report titled “Global Electrical Equipment Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Household Appliances
• Electric Lighting Equipment
• Batteries
• Power Generation
• Wires and Cables
• Transmission and Control Equipment
• Others

Key Insight: The batteries segment represents the largest share of the global electrical equipment market due to increasing demand from the electric vehicles market and renewable energy storage solutions. The household appliances segment is witnessing robust growth driven by rising adoption of energy-efficient and smart appliances fueled by urbanization and digital lifestyles. In the electric lighting equipment category, the shift toward LED and smart lighting solutions, accelerated by energy-saving regulations and smart city initiatives, is a major growth catalyst. In power generation, the transition to decentralized and low-carbon energy sources is spurring the need for advanced generation systems. Meanwhile, wires and cables are benefiting from large-scale infrastructure projects and renewable energy grid integration. Lastly, transmission and control equipment segment is growing due to global efforts in grid modernization, automation, and the integration of AI and IoT for improved energy management and resilience.

Market Breakup by Application

• Residential
• Commercial

Key Insight: The residential segment is experiencing strong growth due to rising urbanization, increasing disposable incomes, and growing consumer awareness around smart home technologies and energy efficiency. Demand for connected appliances, smart meters, and solar-integrated power systems is transforming modern homes into energy-responsive units. On the other hand, the commercial segment in the global electrical equipment market is due to the rapid expansion of smart buildings, commercial infrastructure upgrades, and green certification requirements. Businesses are highly investing in advanced HVAC systems, automated lighting, and energy management tools to meet sustainability goals, enhance operational efficiency, and reduce long-term energy costs.

Market Breakup by Distribution Channel

• Online
• Offline

Key Insight: The offline segment is leading the global electrical equipment market growth as it continues to thrive owing to the trust in physical verification, after-sales support, and strong dealer-distributor networks, particularly in developing regions where in-store consultation and immediate product availability remain critical decision-making factors. In contrast, the online distribution channel is witnessing accelerated growth due to the widespread adoption of e-commerce platforms, digital payment infrastructure, and the increasing preference for convenience and wider product availability. Customers, especially in urban and semi-urban regions, are leveraging online portals for comparing product specifications, prices, and accessing doorstep delivery of electrical equipment.

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Key Insight: The Asia Pacific region is witnessing robust growth from rapid industrialization, urban expansion, and rising residential electricity consumption in countries like India and China. The North American market is driven by rapid smart home adoption and strong investments in grid modernization projects. Europe is leading due to stringent energy efficiency regulations, decarbonization targets, and the push for electric mobility. Latin America's market is propelled by infrastructure development and rural electrification initiatives. Meanwhile, the Middle East and Africa region is expanding due to increasing investments in power generation and renewable energy integration projects.

Global Electrical Equipment Market Share

By type, batteries amassed the highest revenue in global electrical equipment market share

In terms of type, the batteries segment represents the largest market share and is expected to record robust growth at 14.6% CAGR through -2034. The surge in adoption of sustainable mobility has contributed to the rising demand for EVs, in turn, boosting the demand for high-performance batteries.

Furthermore, as the government push for clean mobility intensifies, manufacturers are making major R&D investments focused on enhancing energy density, reducing costs, and improving sustainability. For example, in May 2025, General Motors revealed its upcoming lithium manganese-rich (LMR) battery cells, featuring premium range and performance at a lower cost. Such developments significantly contribute to segment growth.

Meanwhile, the household appliance segment is witnessing the fastest growth rate of 7.4% from 2025-2034 attributed to the steady growth of household appliances ownership across the urban and suburban regions worldwide. The Untied Nation estimated that around 68% of the world population is expected to live in urban areas by 2050. This number indicates that with the increasing number of households and rising incomes and gradually declining cost of energy-consuming devices, the demand for household appliances is currently reporting substantial demand and is set to skyrocket in the coming years.

By application, residential segment witnessed significantly higher growth

The residential application segment accounts for the largest revenue share in the global electrical equipment market. The segment growth is set to expand at 8.1% CAGR from 2025-2034 attributed to the rising adoption of smart home systems, energy-efficient appliances, and home automation solutions.

Additionally, manufacturers are creating tailor-made solutions to suit diverse residential needs worldwide, while minimizing energy wastage. For instance, in May 2025, Schneider Electric upgraded its Wiser 2.0 smart home automation range featuring easy and scalable automation with advanced energy management capabilities. Widespread availability of such sustainable electronic products to homebuilders and end users further contributes to the increasing usage of electrical equipment for residential purposes.

On the other hand, the commercial segment is demonstrating steady growth, primarily attributed to the ongoing transition towards smart and sustainable manufacturing. As the manufacturing sector undergoes profound transformation with digital technologies and automation, the demand for advanced commercial electrical equipment is rising.

Businesses are focused on implementing energy-efficient lighting, HVAC controls, and smart building systems that transform commercial environments, providing growth opportunities to market players. Citing an instance, in February 2025, AE Industrial Partners partnered with United Building Solutions, a leading HVAC services provider in the U.S., to create a comprehensive platform specifically to complex HVAC services for commercial buildings.

By distribution, the offline segment accounts for the largest revenue share

The offline distribution segment of the global electrical equipment market continues to dominate market growth due to the importance of brick-and-mortar retail methods for high-value, inspect-and-purchase products. Additionally, offline stores remain the major go-to option in rural and semi-urban areas with limited digital access. Moreover, market players are leveraging offline stores to market their products by combining convenience and engaging product experience, thereby boosting segment growth. For instance, in June 2024, as an expansion strategy, Legrand, established 25 new Zip stores designed to provide a comprehensive shopping experience to customers across India.

The online distribution segment is witnessing rapid growth, displaying the fastest growth rate due to growing penetration of e-commerce platforms and digital marketplaces. Manufacturers and retailers are aggressively investing in digital marketing and D2C models to expand their reach. Furthermore, as environmental consciousness grows, more consumers are turning to recommerce platforms to access refurbished and certified electrical equipment, thereby impacting the segment's growth. For instance, the strategic partnership between Recommerce Group and Euronics, announced in June 2025, enabled seamless online trade-in, resale, and delivery models across Europe, supporting a circular economy.

Global Electrical Equipment Market Regional Analysis

By region, Asia Pacific dominates the market growth

Asia Pacific holds the largest share in the global electrical equipment market and is set to expand at a 7.6% CAGR through 2034, driven by the strong policy support for domestic production of electronics, especially in China and India. In recent years, India has appeared as an ideal electronics manufacturing hub under its ‘Make in India’ initiative. As per the Ministry of Electronic & IT, the electronics' production in India will reach USD 300 billion by 2026, backed by substantial investments and government incentives. Meanwhile, China’s ‘Made in China 2025’ plan aims to increase the use of domestic content in high-tech products like semiconductors and other critical electronics components, further contributing to the regional market expansion.

Europe is experiencing the fastest growth at 6.2% CAGR between 2025-2034 in the global electrical equipment industry as the European Union is prioritizing digital transformation through major investments in emerging innovations. To strengthen its position as a tech leader, the EU allocated €180 million under the Horizon Europe Program to fund innovations in AI, robotics, and advanced materials.

Complementing this investment, the European Chips Act, launched in September 2023, aims to reinforce the region’s semiconductor ecosystem by reducing reliance on external suppliers, and doubling European global chip market share by 2030. Such initiatives are enhancing the digital resilience and strategic autonomy of the region, in turn, propelling industry growth forward.

Competitive Landscape

Key players in the global electrical equipment market include ABB Ltd., Sumitomo Electric Industries Ltd., Eaton Corporation PLC, Nexans SA, Grand Tech Group Ltd, Haier Group, AB Electrolux, Hi-Mix Electronics Inc, Robert Bosch GmbH, YAGEO Group, and others. These companies are significantly influencing market growth through innovation and strategic investments. Their focus on developing advanced technologies, expanding product portfolios, and enhancing energy efficiency has had a profound impact on market dynamics.

These efforts are not only meeting evolving consumer and industrial needs but also setting new standards in sustainability, automation, and smart infrastructure development across the sector. Recent developments in the market include the introduction of smart switchgear systems that enhance grid responsiveness and reduce operational downtime. On the industrial front, the adoption of automation equipment like intelligent sensors and control units is transforming production processes and improving efficiency. These advancements collectively contribute to the market’s robust and sustained growth.

ABB Ltd

ABB Ltd., established in 1988, is a Swiss-based global technology leader specializing in electrification, robotics, and automation solutions. The company is dedicated to drive digital transformation by serving utilities, industries, and transport sectors with innovative products designed to improve efficiency and sustainability.

Eaton Corporation PLC

Founded in 1911, Eaton Corporation PLC is a multinational power management company offering energy-efficient solutions for electrical, hydraulic, and mechanical systems. It serves a wide range of sectors, including industrial, commercial, and residential markets. Eaton focuses on innovation to improve safety, reliability, and sustainability.

Haier Group

Haier Group is a leading global manufacturer of home appliances and consumer electronics. Known for its innovative and smart product lines, Haier emphasizes energy efficiency and user-centric design. The company maintains a strong presence in both emerging and developed markets.

AB Electrolux

AB Electrolux is a Swedish multinational specializing in household and professional appliances. The company prioritizes sustainability, innovative design, and high performance in its diverse product portfolio. Electrolux aims to enhance everyday living through smart and efficient solutions.

Other players in the global electrical equipment market include Sumitomo Electric Industries Ltd., Nexans SA, Grand Tech Group Ltd., Hi-Mix Electronics Inc., Robert Bosch GmbH, and YAGEO Group.

Key Highlights of the Global Electrical Equipment Market Report:

• Comprehensive Historical Analysis and accurate market forecasts up to 2034, capturing trends across sectors.
• Insights into product innovations driving smart electrification, renewable integration, and efficiency improvements.
• In-depth competitive landscape featuring strategic profiling of leading domestic and global electrical equipment manufacturers.
• Granular regional analysis uncovering high-growth geographies and emerging market hotspots.
• Investment-centric outlook with segment-wise data and actionable intelligence to guide strategic expansion and R&D priorities.