Electricity and grid investment pressures are rising fast, and the latest signal is hard to miss. In 2023, 3.3% of global value added came from the electricity, gas, steam, and air conditioning supply industry, yet that share underpins demand across switchgear, transformers, protection systems, automation, and secure control. Meanwhile, cybersecurity spend jumped for 36% of industrial enterprises and grid congestion remained a cited barrier for 22.4% of respondents, even as IEA expects electricity demand to grow 4% per year to 2030.
Key Takeaways
- 3.3% of global value added was produced by the electricity, gas, steam, and air conditioning supply industry in 2023, indicating large downstream demand for electrical equipment and infrastructure
- The global switchgear market was valued at about $36.9 billion in 2022 and is forecast to reach about $55.4 billion by 2032, indicating continued growth in grid protection equipment
- The global transformers market size was about $123.8 billion in 2023 and is expected to reach about $167.0 billion by 2030, supporting transformer demand for grid and electrification
- 22.4% of respondents in a 2023 survey cited grid congestion as a major barrier to increasing renewable energy integration, increasing demand for transmission and distribution equipment
- 36% of enterprises reported increased spending on cybersecurity in industrial environments in 2023, driving investment in secure industrial electrical control systems
- The International Energy Agency projects global electricity demand to increase by 4% per year through 2030 under current policies, implying expanding electrical infrastructure needs
- In 2023, copper prices averaged about $8,479 per metric ton, impacting the input cost base for many electrical components and wiring
- In 2022, a typical transformer core steel material price increase of about 30% over 2021 contributed to higher transformer costs during the supply shock period
- The World Bank reports that energy-efficiency upgrades can reduce energy consumption by 10% to 30% in buildings, improving the economics of efficient electrical equipment retrofits
- In 2023, the IEEE reported that partial discharge detection can extend asset life by identifying insulation degradation earlier than routine inspections, improving lifecycle cost economics
- IEEE 1584 methodology estimates arcing fault incident energy using bolted fault calculations and allows energy exposure estimation, measured in joules (J) per incident
- IEC 61439-1 defines performance requirements including temperature rise limits, measured in degrees Celsius (°C), for low-voltage switchgear assemblies
Rapid grid expansion, cybersecurity spending, and renewables growth are driving strong demand for key electrical equipment.
Related reading
01 · Category
Market Size10 stats
01
3.3% of global value added was produced by the electricity, gas, steam, and air conditioning supply industry in 2023, indicating large downstream demand for electrical equipment and infrastructure
02
The global switchgear market was valued at about $36.9 billion in 2022 and is forecast to reach about $55.4 billion by 2032, indicating continued growth in grid protection equipment
03
The global transformers market size was about $123.8 billion in 2023 and is expected to reach about $167.0 billion by 2030, supporting transformer demand for grid and electrification
04
The global circuit breakers market was valued at $21.3 billion in 2023 and is projected to grow to $33.5 billion by 2030
05
The global industrial automation market is projected to grow from $192.7 billion in 2023 to $343.5 billion by 2030, driving demand for electrical control hardware
06
The global smart grid market is expected to reach $110.0 billion by 2028, supporting demand for advanced metering and grid communication equipment
07
Europe accounted for 36% of the global electrical insulation materials market in 2023, reflecting a large regional consumption base
08
The global uninterruptible power supply (UPS) market was estimated at $15.4 billion in 2023 and forecast to reach $28.2 billion by 2030, indicating growth in critical power protection
09
In 2023, the U.S. Bureau of Economic Analysis reported that electrical equipment contributed to manufacturing value added in the tens of billions of dollars (Industry classification BEA), supporting downstream equipment demand
10
In 2022, the global market for industrial automation captured $176.6 billion in revenue, supporting larger capital deployment for control and drive electrical systems
Interpretation
Market Size Interpretation
For the Market Size angle, the electrical equipment industry shows strong, expanding demand with key segments like transformers rising from $123.8 billion in 2023 to $167.0 billion by 2030 and switchgear growing from about $36.9 billion in 2022 to $55.4 billion by 2032, all backed by the electricity, gas, steam, and air conditioning supply industry producing 3.3% of global value added in 2023.
02 · Category
Industry Trends8 stats
01
22.4% of respondents in a 2023 survey cited grid congestion as a major barrier to increasing renewable energy integration, increasing demand for transmission and distribution equipment
02
36% of enterprises reported increased spending on cybersecurity in industrial environments in 2023, driving investment in secure industrial electrical control systems
03
The International Energy Agency projects global electricity demand to increase by 4% per year through 2030 under current policies, implying expanding electrical infrastructure needs
04
In 2023, the U.S. had 1,219,000 MW of total electric capacity in service, which depends on a broad installed base of electrical equipment
05
10,600 GW of global renewable power capacity is forecast to be in service by 2030, raising the need for grid connection equipment and protection systems
06
2.1 million new jobs are projected to be created globally by clean energy investments in 2030, increasing demand for electrical equipment and installation capacity
07
In 2023, global data center electricity demand was about 1,000 TWh, increasing demand for UPS, switchgear, and power distribution equipment
08
In 2023, U.S. rail electrification included 35 states with active electrified lines and associated power infrastructure, supporting continued electrical equipment demand
Interpretation
Industry Trends Interpretation
With global electricity demand projected to grow about 4% per year through 2030 and 10,600 GW of renewable capacity forecast to be online by then, industry trends show rapidly expanding needs for transmission, distribution, and grid connection equipment even as 22.4% of respondents cite grid congestion as a major barrier to integrating more renewables.
More related reading
03 · Category
Cost Analysis7 stats
01
In 2023, copper prices averaged about $8,479per metric ton, impacting the input cost base for many electrical components and wiring
02
In 2022, a typical transformer core steel material price increase of about 30% over 2021 contributed to higher transformer costs during the supply shock period
03
The World Bank reports that energy-efficiency upgrades can reduce energy consumption by 10% to 30% in buildings, improving the economics of efficient electrical equipment retrofits
04
In 2024, the U.S. average hourly earnings for electricians was $34.67, influencing installation labor cost baselines for electrical equipment and wiring
05
In 2023, the U.S. Producer Price Index (PPI) for transformers (industry code) increased by 2.8% year-over-year, indicating price pressure for electrical transformers
06
The U.S. Department of Energy estimates that motor-driven systems can account for about 50% of U.S. electricity consumption, making efficient motor drives and controls economically valuable
07
A 2020 meta-analysis in Energy Policy found that heat-pump adoption can reduce direct heating energy use by about 30% to 70% depending on efficiency and electricity carbon intensity
Interpretation
Cost Analysis Interpretation
Cost pressures in the electrical equipment industry are staying elevated as raw material and labor inputs rise, with copper averaging $8,479 per metric ton in 2023 and transformer-related steel and transformer prices climbing by 30% and 2.8% respectively, making efficiency upgrades that cut energy use by 10% to 30% a more attractive retrofit pathway.
04 · Category
Performance Metrics12 stats
01
In 2023, the IEEE reported that partial discharge detection can extend asset life by identifying insulation degradation earlier than routine inspections, improving lifecycle cost economics
02
IEEE 1584 methodology estimates arcing fault incident energy using bolted fault calculations and allows energy exposure estimation, measured in joules (J) per incident
03
IEC 61439-1 defines performance requirements including temperature rise limits, measured in degrees Celsius (°C), for low-voltage switchgear assemblies
04
IEEE 519 provides limits for voltage fluctuation and harmonic distortion measured as percent THD at the point of common coupling to improve power quality
05
IEC 60034-30-1 specifies efficiency classes for motors measured by IE code and efficiency (%), used for specifying high-efficiency electrical machines
06
IEEE C57.12.00 specifies transformer test methods and performance measured through loss values in watts (W) and impedance percent (%), enabling comparability
07
IEC 60076-1 measures transformer no-load losses in watts (W) and load losses in watts (W) during routine tests
08
U.S. EIA data show that the average net generation heat rate for electricity generation was 10,411 Btu per kWh in 2023, motivating more efficient electrical conversion systems
09
The North American Electric Reliability Corporation (NERC) defines reliability performance monitoring using metrics measured in percent availability for key system components, such as generation and transmission
10
The IEC 61850 model-based substation communication standard enables measurable reduced engineering time measured by migration success and commissioning timelines in substations implementing the standard
11
A 2021 peer-reviewed review in Renewable and Sustainable Energy Reviews reported that battery energy storage can improve power reliability with typical round-trip efficiencies measured around 80% to 90% for lithium-ion systems
12
A 2022 study in the journal IEEE Access reported that condition monitoring using dissolved gas analysis can identify transformer insulation faults with detection accuracy commonly above 90% in controlled datasets
Interpretation
Performance Metrics Interpretation
Across Electrical Equipment Industry performance metrics, the trend is toward quantifying reliability and efficiency with specific, decision-ready targets such as 90% plus detection accuracy for dissolved gas analysis, 80% to 90% round trip efficiency for lithium ion storage, and efficiency and loss benchmarks expressed in measurable units like percentage THD, percent impedance, and watt losses.
Reference
Cite This Report
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APA
Helena Kowalczyk. (2026, February 13). Electrical Equipment Industry Statistics. Gitnux. https://gitnux.org/electrical-equipment-industry-statistics
MLA
Helena Kowalczyk. "Electrical Equipment Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/electrical-equipment-industry-statistics.
Chicago
Helena Kowalczyk. 2026. "Electrical Equipment Industry Statistics." Gitnux. https://gitnux.org/electrical-equipment-industry-statistics.
Sources & references
37 datasets cited across this report · attribution is report-level
+15 additional datasets cited (not shown individually)