Electrical Equipment Manufacturing in European Union: Market Size, Businesses & Forecast 2026

The electrical equipment manufacturing industry in the European Union encompasses the production of goods that generate, distribute, and utilize electrical power, ranging from industrial electric motors and grid infrastructure to domestic appliances. The sector serves as a backbone for the EU's green transition, underpinning the electrification of transport and expansion of renewable energy networks. However, broader macroeconomic challenges and high energy costs have pressured industrial output across the region. This is reflected in an official production volume contraction of 8.9% in 2024 compared with 2023, as reported by Eurostat.

Industry snapshot

Key public data points

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What does the Electrical Equipment Manufacturing in European Union industry cover?

This industry consists of the manufacturing of products that generate, distribute, and utilize electric power. It spans heavy industrial machinery like electric motors, generators, transformers, and switchgear, as well as fiber optic cables, batteries, lighting, and domestic household appliances. The scope excludes highly advanced electronic components, computers, and optical communication devices, focusing instead on power-carrying and electrical power infrastructure.

• •Covers heavy power-generation equipment including industrial transformers and grid switchgear.
• •Includes the expanding manufacturing of batteries, accumulators, and electrical wiring components.
• •Encompasses both consumer-facing domestic appliances and industrial electricity distribution infrastructure.

Who operates in the industry and how is it structured?

The European electrical equipment manufacturing sector is highly developed but geographically concentrated, with Germany, Italy, and France acting as the dominant production hubs. Germany alone historically accounts for the largest singular share of manufacturing value-added in these engineering disciplines across the EU. The market structure consists of a few massive multinational conglomerates alongside thousands of small and medium-sized enterprises (SMEs) operating as specialized component suppliers.

• •Germany constitutes the largest single national contributor to sector value-added and production within the EU.
• •SMEs and micro-enterprises make up the vast majority of individual business entities by count.
• •The sector employs millions of skilled engineering, technical, and assembly personnel across the 27 EU member states.

What drives demand in the industry?

Demand for EU electrical equipment is fundamentally linked to the overarching European Green Deal and regional decarbonization mandates. Major investments in expanding and modernization of electrical grids to integrate renewable energy sources drive heavy equipment deployment. Furthermore, the massive commercial transition toward electric vehicles (EVs) accelerates localized demand for industrial battery packs and charging infrastructure.

• •Grid modernization initiatives to accommodate decentralized wind and solar power assets.
• •The rapid expansion of electric vehicle infrastructure requiring advanced charging systems and battery packs.
• •Industrial automation and energy-efficiency retrofits in European factories aiming to minimize power costs.

Who are the notable companies in the industry?

The competitive landscape in the EU features premier domestic industrial giants facing intense price competition from overseas manufacturers, particularly in APAC countries. European operators focus heavily on high-end engineering, reliability, and technological integration. Key companies maintain robust localized manufacturing, research, and development footprints across multiple member states to satisfy strict internal specifications.

• •Siemens AG (Germany) stands as a prominent supplier of grid automation, electrification, and industrial drive systems.
• •Schneider Electric SE (France) is a major producer of medium-and-low-voltage electrical distribution equipment and energy management systems.
• •Legrand SA (France) specializes in electrical and digital building infrastructures, including cable management and power distribution.
• •Prysmian S.p.A. (Italy) serves as a worldwide leader in the manufacturing of high-voltage underground and submarine cables.

What are the recent trends and outlook?

The industry has recently experienced cyclical stress alongside broader European manufacturing headwinds, marked by fluctuating demand and elevated input material costs. Following a post-pandemic recovery period through 2022, industrial output faced a contraction. According to Eurostat, the EU's industrial production volume for electrical equipment specifically accelerated its downward trend, falling by 8.9% in 2024 compared to 2023.

• •Eurostat recorded an 8.9% contraction in production volume for the electrical equipment sector in 2024.
• •Persistent high energy costs across the EU have negatively impacted the operating margins of heavy equipment factories.
• •Long-term outlook remains underpinned by mandatory European decarbonization deadlines and localized supply chain mandates.

How is the industry regulated?

Operators within the EU must comply with strict environmental and product design standard frameworks designed to eliminate hazardous materials and improve life-cycle sustainability. Chief among these are the ecodesign requirements, which enforce energy-efficiency minimums for transformers, electric motors, and appliances. Companies are also subject to rules governing hazardous substances and mandatory corporate sustainability reporting.

• •Compliance with Directive 2011/65/EU (RoHS) restricts hazardous substances in electrical components.
• •The EU Ecodesign Directive mandates specific energy-efficiency performance levels for electric motors and transformers.
• •Directive 2012/19/EU (WEEE) regulates the end-of-life disposal, collection, and recycling of electrical machinery.

Government, statistical and trade sources used for this Claight analysis.

• Eurostat Industrial production (volume) index overview 2026 ·
• Eurostat Industrial production statistics 2025 ·
• European Commission Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs