Industrial electrification market grows as industries shift to cleaner power, automation, and energy-efficient technologies to cut emissions and operating costs

WILMINGTON, DE, UNITED STATES, November 21, 2025 /EINPresswire.com/ -- According to a new report published by Allied Market Industrial Electrification Market Size, Share, Competitive Landscape and Trend Analysis Report, 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): Global Opportunity Analysis and Industry Forecast, 2022 - 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.

The industrial electrification market is gaining strong momentum as global industries transition from fossil-fuel-based operations to electricity-driven processes. Increasing pressure to reduce carbon emissions, improve energy efficiency, and modernize aging industrial infrastructure is accelerating the adoption of electric machinery, power distribution systems, and smart energy management solutions.

In addition, government policies supporting decarbonization and renewable energy integration are reshaping manufacturing, mining, oil & gas, and heavy industrial operations. With industries experiencing rapid digitalization and electrified equipment becoming more cost-effective, electrification is emerging as a central pillar of sustainable industrial transformation.

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One of the strongest drivers of the industrial electrification market is the global push toward net-zero emissions. Industries are increasingly adopting electrified heating, mobility, and machinery to reduce reliance on fossil fuels. This shift is further encouraged by stricter environmental regulations and clean energy mandates.

Rapid advancements in renewable energy integration are also fueling market expansion. As on-site solar, wind, and energy storage become more accessible, industries can power operations with cleaner and more stable electricity, enabling wider adoption of electric equipment.

Cost efficiency is another critical factor. Electrified industrial systems often provide lower operational costs, reduced maintenance, and enhanced process efficiency compared to traditional diesel or combustion-based equipment. This cost advantage is attracting both large enterprises and emerging industrial players.

Technological advancements—including automation, smart grids, and IoT-enabled power management—are boosting market growth. Connected electrification solutions allow industries to monitor energy usage, optimize loads, and improve operational reliability in real time.

However, the market faces challenges such as high upfront investment costs and the need for robust grid infrastructure. Industrial facilities in developing regions may experience delayed adoption due to grid capacity limitations, although government support and declining technology costs are expected to ease this barrier.

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The industrial electrification market is segmented into equipment, solutions, and services encompassing electric machinery, motors, drives, power distribution systems, electrified heating technologies, and energy management platforms. Demand is rising across manufacturing, mining, oil & gas, chemicals, transportation, and heavy industries, with electrified mobility and process automation emerging as major growth segments.

By application, the industrial electrification market is segmented into automation & control, energy efficiency, data & analytics, and others. In 2022, the automation & control segment held the largest share of the market, driven by the rising adoption of electric motors, smart devices, and precision control systems. These technologies significantly enhance operational accuracy and reduce energy consumption, supporting global initiatives aimed at lowering energy use and operational costs.

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Regionally, the market is assessed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific dominated the market in 2022 and is expected to record the fastest CAGR during the forecast period. The region’s accelerated economic development and rapid urbanization are expanding industrial activities and energy requirements, thereby creating strong demand for industrial electrification solutions.

Additionally, many Asia-Pacific nations are actively upgrading their manufacturing sectors with advanced electric machinery and automation technologies to improve efficiency and productivity. The region is also witnessing substantial investment in renewable power sources—including solar, wind, and hydropower—driven by environmental priorities and the goal of reducing dependence on fossil fuels.

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Key players operating in the global industrial electrification industry include 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.

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• By product, the starter and motor segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 8.7% from 2023 to 2032.
• By application, the automation and control segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 8.3% from 2023 to 2032.
• Asia-Pacific garnered the highest share of morethan 35% in 2022, in terms of revenue, growing at a CAGR of 8.7%.

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Aluminum Bare Wire Conductor Market
https://www.alliedmarketresearch.com/aluminum-bare-wire-conductor-market-A325757

David Correa
Allied Market Research
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