U.S. Electrical Equipment Market Size & Opportunities Analysis - Growth Strategies, Competitiveness, and Forecasts (2025 - 2032)

U.S. Electrical Equipment Market Growth Factors

Rapid Integration of Smart and Energy-Efficient Technologies

• Being mostly built in the 50s and 60s, the electrical grid of the U.S. is highly inefficient, with average efficiency being calculated at a mere 40%.
• The aging national infrastructure has forced the government to modernize it with sophisticated transmission and distribution gear, to increase reliability and resilience.
• The Infrastructure Investment and Jobs Act and other federal policies fund major improvements to the power infrastructure, including smart grid and energy-efficient technology deployment.
• The deployment of electric vehicles and expanding EV charging infrastructure also impels grid modernization.
• According to the International Energy Agency, the sale of EVs in the U.S. grew from 1.4 million units in 2023 to 1.7 million in 2024.
• Manufacturers of electrical equipment are integrating IoT, AI, and ML to increase equipment capability, create predictive models for maintenance needs, and optimize energy consumption.
• The high investments in smart grid systems and renewable power infrastructure create a high demand for intelligent switchgear, smart meters, and advanced power distribution systems.
• According to the International Energy Agency, the U.S. established the Grid Resilience Innovative Partnership (GRIP) Program in 2022 to provide USD 10.5 billion for strengthening its electric grid.
• For the first and second rounds of this initiative, the Grid Deployment Office has already sanctioned USD 7.6 billion to 105 projects in all 50 states.
• The rising focus on energy conservation, implementation of emission regulations, and increasing power expenses drive the development of high-efficiency, automated electrical equipment.
• Connected systems that enable data analysis, fault identification, and system optimization enable customers to lower operational expenses, enhance equipment longevity, and fulfill sustainability targets.

Expansion of Renewable Energy Capacity Drives Growth

• The increase in the focus of the government on renewable energy increases the demand for electric equipment to support solar and wind power infrastructure.
• According to the EIA, the country aims to have 45% more solar energy capacity in 2026 than in 2024.
• The country emitted 6,343 million tCO2e in 2022, which is why it wants to have a zero-emission grid by 2030.
• Since 2021, the government has invested over USD 10 billion to construct offshore wind farms.
• As per reports, the LCoE of onshore wind energy in the U.S. dropped by around 70% from 2010 to 2023.
• The Department of Energy expects clean hydrogen to decrease emissions in the country by 10% every year by 2050.
• The Hydrogen Shot initiative has been implemented by the DoE to lower the per kg green hydrogen price to USD 1 by 2031.
• As per the DoE, nuclear power plants can operate at full power for over 92% of the time they are operational for.

U.S. Electrical Equipment Market Segmentation and Category Analysis

Product Type Insights

Electric motor is the largest category with 70% share in 2024 due to their wide range of applications, such as manufacturing, automobiles, HVAC, and industrial automation. IE3 and IE4 energy-efficient products receive additional support from U.S. energy regulations. The rise of automation in production and the demand for advanced motors also drive the market in this category.

Product types studied in the report:

• Switchgear
• Transformers
• Cables & Wiring
• Circuit Breakers
• Electric Motors (Largest Category)
• Power Generation Equipment
• Battery & Energy Storage Systems (Fastest-Growing Category)
• Relays & Contactors
• Electric Meters
• Industrial Automation Equipment

Voltage Type Analysis

Medium voltage (1–69 kV) is the fastest-growing category, at a CAGR of 6.5%, during the forecast period. The rise in the number of wind and solar power generation, industrial automation, and grid expansion projects drives this growth. The need to connect solar farms, wind power plants, and energy storage systems to the national grid drives the demand for medium-voltage equipment. The growing need for industrial and commercial power distribution, expanding microgrids, and rising distributed energy resource capacity also propel market expansion in this sector.

Voltage types analyzed:

• Low Voltage (Largest Category)
• Medium Voltage (Fastest-Growing Category)
• High Voltage

Application Insights

Utilities are the largest category with 60% revenue share in 2024. This is because the U.S. utilizes one of the largest and oldest power grid networks worldwide. Its regular upgrade, maintenance, and modernization require immediate attention. Transmission & distribution systems are important because of the continuously growing energy requirements across residential, commercial, and industrial applications. As per the Energy Information Administration (EIA), over 99% of the country’s electricity was produced by publicly owned utilities. Moreover, their power production increased from 4,028.541 billion kWh in 2023 to 4,150.907 billion kWh.

Moreover, the grid expansion projects, system upgrades to high-voltage transmission networks, substations, and transformers, which require substantial financial investment, increase the demand for this.

End users studied:

• Residential
• Commercial (Fastest-Growing Category)
• Industrial
• Utilities (Largest Category)

U.S. Electrical Equipment Market Regional Growth Dynamics

South is the dominant region with 40% share in 2024 due to its rising industrial operations, huge population, and urban development. Texas, Florida, and Georgia operate large conventional and renewable energy plants, which need substantial electrical equipment. The expanding construction industry drives the demand for electrical systems in residential and commercial facilities as well. The presence of a large number of data centers further propels the market in the region.

Regions covered:

• Northeast
• Midwest
• West (Fastest-Growing Category)
• South (Largest Category)

U.S. Electrical Equipment Market Share

The market is fragmented because multiple regional and global companies operate throughout various sub-segments. The market includes several large companies, such as GE Vernova, Siemens, Mitsubishi Electric, Mitsubishi Heavy Industries, Eaton Corporation, Toshiba, ABB, and Schneider Electric, but smaller and mid-tier companies offer specific products to specific customers and in different regions. Moreover, the residential, commercial, industrial, and utility sectors have varied needs. Additionally, while some companies cater to large-scale projects with high-voltage equipment, other companies specifically focus on mid- and low-voltage variants for smaller, individual projects.

U.S. Electrical Equipment Market News & Updates

• In March 2025, Siemens AG made a USD 285 million investment to set up new factories in California and Texas, to boost Siemens' U.S. production capabilities and to assist multiple industries, including AI data centers.
• In February 2025, TE Connectivity plc revealed that it had acquired Richards Manufacturing for about USD 2.3 billion.