The electrical equipment market could grow by 12% per year to reach $72 billion by 2025

The domestic electrical equipment market is expected to grow at an annual rate of 12% to reach $72 billion by 2025, an industry executive has said. At present, the total value of India’s electrical equipment market is between $48 billion and $50 billion, said Anil Saboo, chairman of the Indian Electrical and Electronics Manufacturers Association (IEEMA).

“We’re at $48-50 billion and we’re going to grow at a CAGR of 11-12%. So by 2025 it will be around $72 billion,” he told PTI.

India’s export value will rise to $13 billion from the current $8.62 billion, he said, adding that the world is now looking to India as an alternative to China.

Saboo said the local electrical equipment industry will play a crucial role in meeting India’s renewable energy targets as well as global carbon reduction targets under the Paris agreement.

India has set an ambitious target to have renewable energy (RE) capacity of 175 GW by 2022, 450 GW by 2030.

Increasing RE capacity will require new era equipment and local players will seek to meet the requirement locally, he said.

“With the increase in equipment manufacturing, our industry can play a vital role in achieving these goals.

“We call on the government to encourage the electrical equipment manufacturing sector to meet energy efficiency and climate change goals by providing the necessary export incentives as well as funds for research and development in the sector,” said the IEEMA president.

He added that the industry is optimistic that it will be able to raise $18 billion in investments per year to meet the target of 450 GW of renewable energy by 2030.

IEEMA is the premier ISO-certified industry association with over 800 member organizations covering the entire value chain of power generation, transmission and distribution equipment and electronic products.