How Big Is the Electrification Market | Trends & Insights 2031

Q: What is spurring the growth of the electrification market?

The transition to renewable energy, EV adoption, and decarbonization policies are major factors accelerating electrification market growth.

Q: What is the role of digital technology in electrification?

Digital twins, AI, and IoT help optimize electric grids, manage energy loads, and improve system reliability in electrification initiatives.

Q: What is the projected growth rate of the electrification market?

The electrification market is expected to grow exponentially, reaching at a CAGR of 12.8% during the forecast period.

Q: What is the estimated size of the electrification market by 2031?

The electrification market is anticipated to surpass USD 159.3 billion by 2031.

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Code: MTA6192

Publication Date: Jul 2025

How Big Is the Electrification Market?

According to 6Wresearch internal database and industry insights, the electrification market was valued at USD 72.7 billion in 2024 and is expected to reach USD 159.3 billion by 2031, growing at a CAGR of 12.8% during the forecast period.

This growth can be attributed to the global shift toward renewable energy integration, widespread adoption of electric mobility, and electrification of industrial processes aimed at decarbonization.

Growth Drivers of the Electrification Market

Electricity modernization initiatives such as smart grids and distributed energy systems.
Electrification of heating and cooling in residential and non-residential buildings.
Explosive growth in electric vehicles in the public and private transportation sectors.
Government mandates and incentives for clean electrification solutions.
Developments in power electronics, battery storage, and energy management systems.

Electrification Market Trends

The electrification market is on its upward trajectory, with emerging trends like vehicle-to-grid technologies and battery- backed microgrids growing in traction. Countries are increasingly aligning policies related to electrification with their net zero goals and corporations are investing in green electrification as a means of improving operational efficiency and sustainability.

Emerging Developments in the Electrification Market

Emerging developments in the electrification market include rapid expansion of EV infrastructure, integration of smart grids, and advancements in energy storage technologies. Governments and industries are increasingly investing in renewable-powered electrification, while sectors like transportation and manufacturing are transitioning toward electric alternatives to reduce carbon emissions.

Furthermore, the electrification market is witnessing a surge in investments in EV charging networks, renewable integration, and decentralized energy systems. The shift toward low-carbon technologies is driving demand for electrified transport, electric heating, and industrial electrification.