Global Electrification Market was Valued at USD 73.64 Bn in 2022, with an Estimated CAGR of 8.91% from 2023- 2031. 

Electrification is the procedure of replacing technology that use fossil fuels such as coal, oil, and natural gas with technologies that create clean energy using electricity generated from renewable sources. This technique can employ clean energy from renewable sources such as wind or solar electricity.

This ‘green’ power trend has the potential to drastically cut carbon dioxide emissions and lessen the severe effects of climate change, while simultaneously decreasing energy use with items like a heat pump — which may also help homes save money on running and maintenance costs.

Global Electrification Market Revenue & Forecast, (US$ Million), 2015 – 2031

Global Electrification Market Future

Energy-saving solutions are in high demand, and sustainable electrification will grow in importance in the future.  Electricity use is increasing at double the pace of any other kind of energy. This is facilitated through more efficient usage, integration of distributed generation, and energy storage, as well as new consumption modes such as electric cars and advanced data centres.  According to the International Energy Agency, the amount of electricity in the energy mix will climb to more than 30% in 2040, up from 23% over the projected period. These megatrends are fueling the rise of high-growing segments of the global electrification market, including as data centres, electric transportation, and commercial buildings.

There has been a movement in recent years towards electrifying key areas of industrial processes. At the same time, several businesses have released sustainability reports outlining their plans for enhancing energy efficiency, minimising landfill trash, and cutting greenhouse gas (GHG) emissions.

Industrial firms surveyed across sectors expect to achieve 45% total electrification by 2035, up from 35%. Moreover 64% of manufacturing leaders said they planned to use partnerships and joint ventures to transition to a more sustainable future, while 61% will rely on vendor and supplier outsourcing tactics. While the push towards electrification is motivated in part by a greater emphasis on sustainability, industrial production is also driven by an underlying desire to boost efficiency, minimise operating expenses and support growth of the global electrification market.

Report Coverage and Deliverables: 

Electrification of the transport infrastructure is a critical step towards decreasing global carbon emissions and mitigating climate change. There are several advantages to electrifying transport infrastructure, including reduced carbon impact. As electric vehicles (EVs) become more common, electrification may contribute to job creation and economic growth in sectors such as battery technology and manufacture, charging infrastructure, and renewable energy development.

Many authorities throughout the world have announced plans to transition to an all-electric transportation future. They are offering financial and investment incentives to encourage enterprises and the general public to speed their transition to EVs, which will result in increased demand for charging-station infrastructure.  Thus with the rise in investments with expanding charging infrastructure for EVs will upsurge the global electrification market during the forecast period.

North America held the highest share in the electrification market in 2022. The American government has set targets of reducing greenhouse gas (GHG) emissions by 50-52% by 2030, achieving a carbon-free electrical system by 2035, and reaching net-zero GHG emissions through electrification in various sectors. The industrial sector accounts for around one-quarter of total energy consumption and GHG emissions in the United States. The industrial sector has a considerable chance to decarbonize by transitioning away from carbon-intensive fossil fuels and towards clean sources such as electrification, which uses low- or zero-carbon power.

Competitive Landscape

The report also offers extensive research on the key players in the global electrification market and details on the competitiveness of these players. The competitive landscape is characterized by partnerships, joint ventures, mergers and acquisitions, and collaborations aimed at accelerating the development and deployment of electrification technologies. As the world focuses more on decarbonization and the transition to sustainable energy systems, the competitive landscape for electrification technologies is likely to evolve with new entrants, technological advancements, and increasing market demand.

Key players operating in the global electrification market are listed below:

• ABB
• Altair Engineering Inc.
• CONTINENTAL ENGINEERING SERVICES
• Duke Energy Corporation
• Eaton
• Enel X S.r.l.
• General Electric
• ICF International Inc.
• Jakson Group
• Pandrol
• Powersys Solutions
• Schneider Electric
• Siemens
• Stellantis NV
• STMicroelectronics
• ZAPI GROUP
• Other Industry Participants

Global Electrification Market Report Coverage

Global Electrification Market

By Source

• Renewable Energy
• Nuclear Power
• Fossil Fuel-based

By Offerings

• Hardware
• Solutions
• Services

By End Use

• Buildings
• Transportation
• Industrial

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

Table of Contents

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Key Findings

Note: This ToC is tentative and can be changed according to the research study conducted during the course of report completion.

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**Exclusive for Multi-User and Enterprise User.

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Global Electrification Market Segmentation

Global Electrification Market – Source Outlook

**Note: The report covers cross-segmentation analysis by region further into countries

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The Niche Research approach encompasses both primary and secondary research methods to provide comprehensive insights. While primary research is the cornerstone of our studies, we also incorporate secondary research sources such as company annual reports, premium industry databases, press releases, industry journals, and white papers.

Within our primary research, we actively engage with various industry stakeholders, conducting paid interviews and surveys. Our meticulous analysis extends to every market participant in major countries, allowing us to thoroughly examine their portfolios, calculate market shares, and segment revenues.

Our data collection primarily focuses on individual countries within our research scope, enabling us to estimate regional market sizes. Typically, we employ a bottom-up approach, meticulously tracking trends in different countries. We analyze growth drivers, constraints, technological innovations, and opportunities for each country, ultimately arriving at regional figures.Our process begins by examining the growth prospects of each country. Building upon these insights, we project growth and trends for the entire region. Finally, we utilize our proprietary model to refine estimations and forecasts.

Our data validation standards are integral to ensuring the reliability and accuracy of our research findings. Here’s a breakdown of our data validation processes and the stakeholders we engage with during our primary research:

• Supply Side Analysis: We initiate a supply side analysis by directly contacting market participants, through telephonic interviews and questionnaires containing both open-ended and close-ended questions. We gather information on their portfolios, segment revenues, developments, and growth strategies.
• Demand Side Analysis: To gain insights into adoption trends and consumer preferences, we reach out to target customers and users (non-vendors). This information forms a vital part of the qualitative analysis section of our reports, covering market dynamics, adoption trends, consumer behavior, spending patterns, and other related aspects.
• Consultant Insights: We tap into the expertise of our partner consultants from around the world to obtain their unique viewpoints and perspectives. Their insights contribute to a well-rounded understanding of the markets under investigation.
• In-House Validation: To ensure data accuracy and reliability, we conduct cross-validation of data points and information through our in-house team of consultants and utilize advanced data modeling tools for thorough verification.

The forecasts we provide are based on a comprehensive assessment of various factors, including:

• Market Trends and Past Performance (Last Five Years): We accurately analyze market trends and performance data from preceding five years to identify historical patterns and understand the market’s evolution.
• Historical Performance and Growth of Market Participants: We assess the historical performance and growth trajectories of key market participants. This analysis provides insights into the competitive landscape and individual company strategies.
• Market Determinants Impact Analysis (Next Eight Years): We conduct a rigorous analysis of the factors that are projected to influence the market over the next eight years. This includes assessing both internal and external determinants that can shape market dynamics.
• Drivers and Challenges for the Forecast Period:Identify the factors expected to drive market growth during the forecast period, as well as the challenges that the industry may face. This analysis aids in deriving an accurate growth rate projection.
• New Acquisitions, Collaborations, or Partnerships: We keep a close watch on any new acquisitions, collaborations, or partnerships within the industry. These developments can have a significant impact on market dynamics and competitiveness.
• Macro and Micro Factors Analysis:A thorough examination of both macro-level factors (e.g., economic trends, regulatory changes) and micro-level factors (e.g., technological advancements, consumer preferences) that may influence the market during the forecast period.
• End-User Sentiment Analysis: To understand the market from the end-user perspective, we conduct sentiment analysis. This involves assessing the sentiment, preferences, and feedback of the end-users, which can provide valuable insights into market trends.
• Perspective of Primary Participants: Insights gathered directly from primary research participants play a crucial role in shaping our forecasts. Their perspectives and experiences provide valuable qualitative data.
• Year-on-Year Growth Trend: We utilize a year-on-year growth trend based on historical market growth and expected future trends. This helps in formulating our growth projections, aligning them with the market’s historical performance.

Research process adopted by TNR involves multiple stages, including data collection, validation, quality checks, and presentation. It’s crucial that the data and information we provide add value to your existing market understanding and expertise. We have also established partnerships with business consulting, research, and survey organizations across regions and globally to collaborate on regional analysis and data validation, ensuring the highest level of accuracy and reliability in our reports.