Industrial Electrification Moves Beyond Hardware
The global market for automation systems supporting industrial electrification is gaining momentum as manufacturers invest in decarbonization, energy efficiency, and more resilient power architectures. ARC Advisory Group’s latest research shows that electrification is evolving from equipment replacement into a broader transformation of industrial energy systems, combining electrical infrastructure, automation, software, and lifecycle services.
Growth is driven by rising energy costs, emissions-reduction pressure, on-site renewable generation, and the modernization of aging power systems. Suppliers that integrate hardware, software, engineering, and long-term support will be best positioned to capture this opportunity.
"Industrial electrification is no longer just a decarbonization initiative; it is becoming a strategic lever for energy resilience, operational efficiency, and long-term competitiveness. The most successful projects will be those that combine electrified assets with advanced automation, software, and lifecycle services to deliver measurable business value," according to Luciano Narcisi, Research Director and key author of ARC's Automation Systems for Electrification Market Research.
Automation Systems for Electrification Market Trends
In addition to providing detailed competitive market share data, the research also addresses key market trends as follows:
High-temperature Electrification Is Emerging but Service-heavy
Heavy industries such as metals, chemicals, and minerals offer large electrification potential, but the projects are more complex. Suppliers will need to provide not only equipment, but also engineering, system integration, power-system design, and long-term service support.
Motors, Drives, and Optimization Remain the Fastest ROI Path
Motor-driven systems remain one of the most practical ways to cut energy use quickly. Variable-speed drives, metering, condition monitoring, and optimization software can deliver strong savings in pumps, fans, compressors, and other variable-load equipment.
Grid-interactive Industrial Sites
As factories use more electricity, they also need better control over their power supply. This is driving demand for microgrids, batteries, inverters, switchgear, UPS systems, transformer monitoring, and software that helps balance on-site generation, storage, and grid power.
Low- and Medium-temperature Heat as the Near-term Volume Market
The strongest near-term opportunity is in electrifying low- and medium-temperature process heat, especially in food & beverage, pulp & paper, and parts of chemicals. Heat pumps, electric boilers, metering, controls, and integration services can deliver scalable retrofit opportunities with clearer payback than many high-temperature applications.
Electrification Is Becoming Software-led
Industrial electrification is no longer just about installing new electrical equipment. The real value increasingly comes from software that helps companies monitor energy use, optimize processes, shift loads, and run electrified assets more efficiently.
Leading Suppliers to the Automation Systems for Electrification Market Identified
In addition to providing specific market data and industry trends, this ARC market research also identifies and positions the leading suppliers to this market and provides and summarizes their relevant offerings. An alphabetical list of key suppliers covered in this analysis includes: ABB, Emerson Automation Solutions, GE Vernova, Schneider Electric, Siemens.
News release from ARC Advisory Group, 05/08/2026