Industrial Electrification Market Research, 2032
The global industrial electrification market was valued at $83.5 billion in 2022, and is projected to reach $182.5 billion by 2032, growing at a CAGR of 8.1% from 2023 to 2032.
Report Key Highlighters
- The report provides competitive dynamics by evaluating business segments, product portfolios, target market revenue, geographical presence and key strategic developments by prominent manufacturers.
- The industrial electrification industry is fragmented in nature among prominent companies such as BorgWarner Inc., DENSO CORPORATION, Johnson Electric Holdings Limited, AISIN CORPORATION, Bharat Bijlee Limited, Bonfiglioli Transmissions Private Limited, General Electric, Kirloskar Electric Company, ABB, and Continental AG.
- The study contains qualitative information such as the market dynamics (drivers, restraints, challenges, and opportunities), key regulation analysis, pricing analysis, and Porter’s Five Force Analysis across North America, Europe, Asia-Pacific, LAMEA regions.
- Latest trends in global industrial electrification market such as undergoing R&D activities, regulatory guidelines, and government initiatives are analyzed across 16 countries in 4 different regions.
- More than 2,200 industrial electrification-related product literatures, industry releases, annual reports, and other such documents of key industry participants along with authentic industry journals and government websites have been reviewed for generating high-value industry insights for global industrial electrification market.
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 the industrial electrification process among several end-use sectors: thus, fueling the industrial electrification market growth.
Furthermore, stringent environmental regulations and emissions standards are encouraging industries to transition to cleaner energy sources and technologies. Electrification helps 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. The industrial electrification market forecast has been analyzed based on different factors such as industrial growth across countries, gross domestic production, and rising adoption of newer technologies in the industrial sector.
However, 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 may hamper 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.
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 starter motor and alternator industrial electrification market size is projected to grow at the highest CAGR of 8.7% during the forecast period and accounted for 34.3% of industrial electrification market share in 2022. As the global population increases, so does the demand for automobiles. Emerging markets, particularly in Asia and Africa, are experiencing rapid urbanization and economic growth, which drives the demand for vehicles. More vehicles on the road mean a higher demand for starter motors.
Furthermore, 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 automation and control segment was the largest revenue generator and is anticipated to grow at a CAGR of 8.3% during the forecast period. 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.
By region, the Asia-Pacific was the largest revenue generator, and is anticipated to grow at a CAGR of 8.7% during the forecast period. 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.
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.
Industrial Electrification Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 182.5 billion |
 Growth Rate | CAGR of 8.1% |
 Forecast period | 2022 - 2032 |
 Report Pages | 399 |
 By Product |
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 By Application |
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 By Region |
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 Key Market Players | BorgWarner Inc., DENSO CORPORATION, Bharat Bijlee Limited, Continental AG, ABB, AISIN CORPORATION, Bonfiglioli Transmissions Private Limited, Kirloskar Electric Company, General Electric, Johnson Electric Holdings Limited |
Analyst Review
Industrial electrification aligns with global sustainability goals and the need for companies to reduce their carbon footprint. CXOs view electrification as an opportunity to demonstrate environmental responsibility and meet sustainability targets. By adopting energy-efficient and electrified technologies, companies enhance their reputation and appeal to environmentally conscious customers and investors.
Furthermore, electrification leads to substantial cost savings in energy consumption and maintenance. CXOs are expected to consider electrification as a strategic move to reduce operational costs and enhance profitability. Investments in energy-efficient technologies, such as LED lighting or electric motors, require an upfront cost but offer long-term financial benefits.
Moreover, CXOs are aware of the ongoing innovations in the field of industrial electrification. New technologies and systems are continually emerging, offering improved efficiency, performance, and data analytics capabilities. Keeping up with these advancements helps companies remain at the forefront of their industries.
Surge in demand for energy efficiency and cost savings, rise in environmental Regulations, and increase in sustainability goals are the upcoming trends of industrial electrification market in the world.
Automation and control is the leading application of industrial electrification market.
Asia-Pacific the largest regional market for industrial electrification
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
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 are the top companies to hold the market share in industrial electrification
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