Industrial Electrical Component Market Size, Share & Industry Analysis By Type (Cables, Wires, Power Distribution Units, Switchgear, Transformers, Switchboards, and Others), By End-User Industry (Manufacturing, Construction, Oil & Gas, Mining, Chemical & Petrochemical, and Others), and Regional Forecast 2025-2032

The global industrial electrical component market is expanding with an increasing demand for renewable sources of energy. Automated systems require high-precision electrical components for sensors, actuators, and controllers, which are essential for accurate operations. As companies scale up production, they invest in advanced machinery and robotics, leading to greater demand for the electrical components that power and control these systems.

Automation can significantly lower operational costs by reducing labor expenses and minimizing errors, prompting more industries to invest in electrical components to upgrade their systems. Many automated systems are becoming interconnected through IoT, necessitating components that enable communication and data exchange. Robotics can improve workplace safety by taking over hazardous tasks, leading to increased demand for electrical components that ensure safe operation.

In April 2025, electronics manufacturing services firm Dixon Technologies announced plans to enter the electronics component manufacturing sector and utilize them for internal needs before considering exports, a high-ranking company official stated. Tata Electronics is expected to invest USD 23.47 in electronics components manufacturing as part of the USD 269.85 million incentive scheme introduced by the government.

Industrial Electrical Component Market Driver

Shift Toward Renewable Energy Sources to Propel Market Growth

As more companies invest in solar, wind, and other renewable energy sources, there is a growing need for electrical components such as inverters, transformers, and switchgear that are essential for energy conversion and distribution. The rise of renewable energy often requires effective energy storage systems to manage supply and demand. This drives the demand for batteries and associated electrical components such as battery management systems.

Integrating renewable energy into existing grids requires upgrades and new installations of electrical components to handle distributed energy resources, including smart meters and advanced control systems. Many governments are promoting renewable energy through incentives and policies, which encourage industries to adopt cleaner technologies and invest in the necessary electrical components.

Industrial Electrical Component Market Restraint

Supply Chain Disruptions to Restrain the Market

Availability of essential raw materials, such as semiconductors, copper, and rare earth metals, can be affected by geopolitical tensions, trade restrictions, or natural disasters, leading to delays in production. Disruptions often lead to rising costs for transportation and logistics. Manufacturers may face higher prices for components, which can reduce profit margins and deter investment in new technologies. Longer lead times for sourcing and delivering components hinder production schedules, affecting the ability of companies to meet demand and fulfill orders on time. Rushed production or sourcing from alternative suppliers during disruptions can lead to compromised quality, resulting in higher return rates and increased warranty claims.

Industrial Electrical Component Market Opportunity

Increased Government and Private Sector Investment in Infrastructure Projects to Create Opportunities for the Market

Many existing infrastructures, such as power grids, transportation systems, and water treatment facilities, require modernization. This opens up the demand for electrical components that enhance efficiency, reliability, and sustainability. Investments in smart grids involve deploying advanced electrical components such as smart meters, sensors, and automated control systems, facilitating better energy management and integration of renewable sources. Large-scale infrastructure projects, including transportation hubs, manufacturing plants, and industrial complexes, need a variety of electrical components for lighting, power distribution, and automation systems. Government initiatives aimed at promoting sustainable infrastructure, such as energy-efficient buildings or renewable energy installations, drive the demand for components that support these goals.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in Industrial Electrical Component
• Key Industry Trends
• Regulatory Landscape for Industrial Electrical Component
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

Analysis By Type

Based on type, the market is divided into cables, wires, power distribution units, switchgear, transformers, switchboards, and others.

Switchgear is the largest segment in the industrial electrical component market. Switchgear is essential for controlling, protecting, and isolating electrical equipment in power systems. Its role in ensuring reliable power distribution makes it a fundamental component in various industrial applications. The move toward smart grids and automation in industrial settings drives the need for intelligent switchgear that can communicate and integrate with other systems for enhanced control and monitoring.

The transfomers segment is the second largest segment in the industrial electrical component. The segment's importance is driven by growing investments in energy infrastructure, grid modernization efforts, and the rising demand for electricity in developing regions.

Analysis By End-User Industry

Based on end-user industry, the market is divided into manufacturing, construction, oil & gas, mining, chemical & petrochemical, and others.

The manufacturing segment dominates the market due to the demand for automation and efficiency improvements and diversifying manufacturing applications. The rising industrialization in developing economies and growth in industry 4.0 initatives are other factors driving segmental growth.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

To gain extensive insights into the market, Download for Customization

North America has a significant share of the industrial electrical component market. This can be attributed to several factors. The region has a well-developed industrial base, high investments in infrastructure projects, and a strong focus on technological advancements, such as smart grids and renewable energy integration. The presence of major manufacturers and a supportive regulatory environment further contribute to the market growth.

Moreover, industries such as automotive, energy, and manufacturing are driving the demand for reliable and efficient electrical components, while ongoing modernization efforts in power distribution networks also play a key role.

Asia Pacific is the second-dominant segment of industrial electrical component countries. Countries such as China, India, and Southeast Asia are experiencing significant growth in infrastructure development and urban expansion, fueling the demand for electrical components in construction, transportation, and manufacturing.

Key Players Covered

The global industrial electrical component market is fragmented in terms of the number of providers. Various market initiatives, R&D activities, and others, are anticipated to drive market growth. In February 2024, Hitachi Energy announced that they had invested more than 30 million euros (approx.). The company is investing USD 32 million in the expansion and modernization of its power transformer manufacturing facility in Bad Honnef, Germany. Expected to be completed in 2026, the project will create around 100 new jobs in the region. It aims to meet the increasing need for transformers to bolster Europe's shift toward clean energy.

The report includes the profiles of the following key players:

• ABB (Switzerland)
• Siemens AG (Germany)
• Toshiba Corportaion (Japan)
• General Electric (U.S.)
• Schneider Electric (France)
• Hitachi Energy (Switzerland)
• Eaton Corporation (Ireland)
• Mitsubishi Electric Corporation (Japan)
• Panasonic Corporation (Japan)
• TE Connectivity (Switzerland)

Key Industry Developments

• In October 2024, TE Connectivity (TE), a global pioneer in connectors and sensors, finalized the purchase of Sense Eletrônica Ltda (Sense), a prominent creator of factory and process automation sensors in Brazil. The acquisition brings TE a wide range of inductive and capacitive position sensors, photoelectric sensors, valve automation products, and connectivity solutions for the factory and process automation markets.
• In September 2024, the Industrial Devices Division (INDD) of Panasonic Life Solutions India (PLSIND), a prominent and diverse technology company, unveiled a cutting-edge range of new products and solutions. It comprises the Cooling Fan Motor for motorcycles and scooters, a 6-in-1 Sensor for vehicle stability and control, a Cooling Fan for heat dissipation, an Ultrasonic Gas-Flow Measurement Unit, and MEGTRON-8, a Multi-Layer Circuit Board Material.