Electrical equipment

Stratum 1 · First transformations

Electrical equipment

Makes the motors, generators, transformers, switchgear, cables, meters, inverters and batteries that produce, move and use electricity. McKinsey estimates the industry at about US$ 1.4 trillion a year and projects about US$ 2.5 trillion by 2035. Global trade in the main categories was about US$ 500 billion in 2024, of which China supplied nearly 30% (McKinsey).¹

India. India used about US$ 59 billion of electrical equipment in 2025 and exported about US$ 12 billion in FY24, under 2% of world trade in the main categories, while import dependence rose from 22% to 33% between 2020 and 2025 (McKinsey). IEEMA's growth index for the industry rose 14% in FY25 on grid and renewables spending (IEEMA).

Where ₹100 of electrical equipment output goes

Where ₹100 of electrical equipment output goes Every rupee of sales is paid out to someone along the chain. This splits ₹100 of output by who finally receives it, so you can see how exposed the industry is to commodity, chemical and energy prices. Commodities ₹16.9 Chemicals ₹1.4 Energy ₹11.4…

Price links with supplier industries

Price links with supplier industries How the industries this one buys from shape its prices: the share of its costs they make up, and how their prices have moved together. Tap a row for the charts. Hover or tap ? for what each measure means. Supplier industry Cost share Raw-material mix…

Follow one offering through the chain

Follow one offering through the chain 1 Example story · 6 steps · India A 765 kV transformer for India's grid Follow a giant power transformer from copper and steel to a substation carrying solar and wind power. 1 / 6 · Materials Copper drawn into winding conductor 750,000 t India's copper use a…

Buys directly from

Buys directly from Metal products Plastic and rubber products Sells directly into Machinery and equipment Vehicles, ships, rail, aircraft Data centres and cloud Telecommunications

Value chain, from upstream to the customer

Value chain, from upstream to the customer Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Materials Copper and aluminium rod, conductor and winding-wire makers 3 · Important Cast and draw copper and aluminium into rod, overhead…

What the whole chain draws on

What the whole chain draws on Every commodity, chemical and energy tile named by the enterprises above; ×n shows how many of them depend on it. Open any tile for its full detail. Commodities (13) Cu Copper ×6 St Steel ×5 Al Aluminium ×4 Si Silicon ×2 Pb Lead ×2 Mg Magnesium Kao Kaolin & clays Ag…

Chokepoints and risks

Chokepoints and risks Large transformers can take up to four years and HVDC cables over five, after prices rose 75% and nearly 100% since 2019 2 . India has one CRGO plant of about 50,000 tonnes a year against electrical steel imports above 771,000 tonnes in 2023 4 . India is over 90%…

Sources

Sources Wired for growth: India's electrical-equipment opportunity McKinsey and Company, 2026 Building the Future Transmission Grid: executive summary IEA, 2025 Indian Electrical Equipment Industry Overview, April-March 2025 IEEMA, 2025 Geo-economic tensions fuel electrical steel race between…

Relationship cards

• Metal products: Transformers, switchgear and motors are largely shaped metal: tanks, cores, enclosures, frames and windings. Metal inputs are the biggest part of their cost, so electrical equipment prices follow metal product prices closely over a year, and India's near-total reliance on imported transformer steel is a constraint on its grid build-out. (researched)
• Semiconductors: Modern electrical equipment is controlled by chips: power semiconductors switch the current in inverters, drives and chargers, and microcontrollers run meters, breakers and protection relays. The 2021 chip shortage showed that a missing chip worth a few dollars can hold up delivery of switchgear and drives, while chip fabs in turn depend on precise power and control equipment. (researched)
• Copper: Copper is the main conductor in cables, motor and transformer windings and switchgear busbars, and it carries the largest weight in India's power transformer price formula; contract price variation clauses pass copper price moves through to buyers. (researched)
• Distribution grids, mini-grids and interconnectors: Distribution grids are among the largest buyers of transformers, switchgear, cables and meters, so grid spending programmes such as India's RDSS translate directly into order books for electrical equipment makers, while those makers in turn run on grid power. (researched)
• Steel: Electrical equipment needs ordinary steel for tanks, frames and transmission towers, but its critical link is grain-oriented electrical steel (CRGO) for transformer cores, which India makes in tiny volumes and imports for about 90% of its needs. (researched)
• Epoxy resins: Epoxy is the solid insulation of the grid: transformer windings, switchgear parts and insulators are cast in it, so a build-out of transmission and distribution pulls on resin supply, and trade duties on resin feed straight into equipment makers' costs. (researched)
• PVC: PVC is the standard insulation and sheath for low-voltage wire and cable because it is cheap, tough and flame-retardant, so cable makers are a steady PVC buyer; at higher temperatures and voltages and in low-smoke uses, polyethylene and XLPE take over, and in India cable makers buy into a resin market historically up to half supplied by imports. (researched)
• Construction and infrastructure: Electrical equipment buys from Construction and infrastructure; construction and infrastructure buys from Electrical equipment; electrical equipment depends on construction and infrastructure; construction and infrastructure depends on electrical equipment.
• Plastic and rubber products: Electrical equipment buys from Plastic and rubber products; plastic and rubber products buys from Electrical equipment; plastic and rubber products depends on electrical equipment; electrical equipment depends on plastic and rubber products.
• AI and digital platforms: AI and digital platforms buys from Electrical equipment; AI and digital platforms depends on electrical equipment.
• Building materials: Building materials buys from Electrical equipment; building materials depends on electrical equipment.
• Computers and electronics: Computers and electronics buys from Electrical equipment; computers and electronics depends on electrical equipment.
• Data centres and cloud: Data centres and cloud buys from Electrical equipment; data centres and cloud depends on electrical equipment.
• Finance: banking, insurance, markets: Electrical equipment buys from Finance: banking, insurance, markets; electrical equipment depends on finance: banking, insurance, markets.
• Food and beverage processing: Food and beverage processing buys from Electrical equipment; food and beverage processing depends on electrical equipment.
• Furniture: Furniture buys from Electrical equipment; furniture depends on electrical equipment.
• Machinery and equipment: Machinery and equipment buys from Electrical equipment; machinery and equipment depends on electrical equipment.
• Real estate: Real estate buys from Electrical equipment; real estate depends on electrical equipment.
• Telecommunications: Telecommunications buys from Electrical equipment; telecommunications depends on electrical equipment.
• Transport and logistics: Electrical equipment buys from Transport and logistics; electrical equipment depends on transport and logistics.
• Vehicles, ships, rail, aircraft: Vehicles, ships, rail, aircraft buys from Electrical equipment; vehicles, ships, rail, aircraft depends on electrical equipment.
• Waste and recycling: Waste and recycling buys from Electrical equipment; waste and recycling depends on electrical equipment.
• Water and sanitation: Water and sanitation buys from Electrical equipment; water and sanitation depends on electrical equipment.
• Wholesale and retail trade: Electrical equipment buys from Wholesale and retail trade; electrical equipment depends on wholesale and retail trade.
• Wood products: Wood products buys from Electrical equipment; wood products depends on electrical equipment.
• AC transmission: Electrical equipment depends on AC transmission.
• Aluminium: Electrical equipment depends on aluminium.
• Battery cathode materials: Electrical equipment depends on battery cathode materials.
• Battery electrolytes: Electrical equipment depends on battery electrolytes.
• Cement: Electrical equipment depends on cement.
• Combustion road vehicles: Electrical equipment depends on combustion road vehicles.
• Crude oil: Electrical equipment depends on crude oil.
• Electric motors and drives: Electrical equipment depends on electric motors and drives.
• Electronic specialty gases: Electrical equipment depends on electronic specialty gases.
• Flame retardants: Electrical equipment depends on flame retardants.
• Fluorochemicals and refrigerants: Electrical equipment depends on fluorochemicals and refrigerants.
• Generators and alternators: Electrical equipment depends on generators and alternators.
• HVDC links: Electrical equipment depends on HVDC links.
• Kaolin & clays: Electrical equipment depends on kaolin & clays.
• Lead: Electrical equipment depends on lead.
• Lead-acid batteries: Electrical equipment depends on lead-acid batteries.
• Lithium: Electrical equipment depends on lithium.
• Lithium iron phosphate batteries: Electrical equipment depends on lithium iron phosphate batteries.
• Magnesium: Electrical equipment depends on magnesium.
• Natural gas: Electrical equipment depends on natural gas.
• Plasticisers: Electrical equipment depends on plasticisers.
• Polycarbonate: Electrical equipment depends on polycarbonate.
• Polyethylene (LDPE, LLDPE): Electrical equipment depends on polyethylene (LDPE, LLDPE).
• Rare earths: Electrical equipment depends on rare earths.
• Silicon: Electrical equipment depends on silicon.
• Silicones: Electrical equipment depends on silicones.
• Silver: Electrical equipment depends on silver.
• Solar photovoltaics: Electrical equipment depends on solar photovoltaics.
• Transformers and power electronics: Electrical equipment depends on transformers and power electronics.
• Tungsten: Electrical equipment depends on tungsten.
• Zinc: Electrical equipment depends on zinc.