By 2025, the electrical equipment market is expected to reach $72 billion, growing at 12% annually: IEEMA

The domestic electrical equipment market is currently valued at 48-50 billion dollars and is expected to grow by 11-12% over the next couple of years.

As per the latest estimate of Indian Electrical & Electronics Manufacturers’ Association (IEEMA), the Indian electrical equipment market is expected to grow at a rate of 12 per cent per year by 2025.

With more than 800 members, IEEMA is the first ISO-certified industry association that covers the entire value chain for power generation, transmission, distribution, and electronic goods.

Anil Saboo, president of the IEEMA stated that the domestic electrical equipment market is worth about USD 48-50 billion currently and is likely to grow at a CAGR of 11 to 12 per cent. This means around USD 72 billion by 2025. 

India’s exports of electrical equipment are also expected to grow from USD 8.62 billion at present to USD 13 billion in the next three years, as the world is now looking towards India as an alternative to China, he added.

Indian electrical equipment manufacturers will play an important role in meeting India’s renewable energy goals of 175 GW of renewable energy (RE) capacity by 2022 and 450 GW by 2030.

It will take new equipment to increase RE capacity, so local players will look towards fulfilling the requirement locally, he pointed out.

As equipment manufacturing increases, our industry can be a key contributor to meeting these targets, he further added. Additionally, he believes that the industry can attract USD 18 billion in investment annually to reach the target of 450 GW of RE by 2030.

IEEMA President stated that the government should provide incentives for exports and fund research and development in the sector to help electrical equipment manufacturers meet energy efficiency and climate change targets.

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