Global demand for electrical testing services is estimated to be USD 8,905.4 million in 2025 and projected to reach a valuation of USD 18,234.2 million by 2035. The market is projected to expand at a growth rate of 7.4% over the forecast period between 2025 and 2035. The revenue generated by electrical testing services in 2024 was USD 8,317.4 million. The industry is predicted to exhibit a Y-o-Y growth of 6.9% in 2025.
Electrical testing services are critical in determining the integrity of electrical systems in various aspects such as power generation, data centers, and even manufacturing. Electrical Testing Services (ETS) in the industrial set-up are gaining popularity as they reduce down time, increases the longevity of equipment, and ensure compliances with safety regulations.
Testing services such as transformer and circuit breaker testing are crucial in identifying potential faults that could lead to catastrophic failures, making them indispensable in critical infrastructure applications.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2025 | USD 8,905.4 million |
| Projected Size, 2035 | USD 18,234.2 million |
| Value-based CAGR (2025 to 2035) | 7.4% |
Electrical testing services are increasingly vital in commercial establishments and healthcare sectors, where consistent power supply is essential. The integration of automatic control and IoT technologies into electrical systems has further highlighted the need for advanced testing services.
As societies move toward greener industries and more efficient energy use, power testing services, along with green technologies, will play a crucial role in facilitating the global adoption of these innovations. With an increasing focus on safety, compliance, and operational efficiency, the demand for electrical testing services is poised for substantial growth across diverse applications.
The electrical testing services market is booming in emerging economies, especially in the Asia-Pacific region as so many new industries and cities are developing and there are major infrastructure projects underway. The growing demand for efficiency, safety, and compliance with key regulations is driving market growth. Additionally, the adoption of new technologies, such as predictive analytics and IoT-based monitoring, is further accelerating this trend.
Schneider Electric and Siemens AG, two of the prominent service providers, are also targeting high growth segments, such as renewable energy systems and smart grids, by investing in new electrical testing methodologies and other services.
Companies of this kind concentrate on environmentally friendly testing techniques in order to support international efforts for green shift. At the same time, such strategic moves are anticipated to enable market growth in the long run as well as continue the historical growth in the global electrical testing services market.
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The table below presents the annual growth rates of the global Electrical Testing Services industry from 2025 to 2035. With a base year of 2024 extending to the current year 2025, the report examines how the sector's growth trajectory evolves from the first half of the year (January to June, H1) to the second half (July to December, H2). This analysis offers stakeholders insights into the industry's performance over time, highlighting potential developments that may emerge.
These figures indicate the growth of the sector in each half year, between the years 2024 and 2025. The industry is expected to grow at a CAGR of 4.5% in H1-2024. In H2, the growth rate increases.
| Particular | Value CAGR |
|---|---|
| H1 2024 | 6.8% (2024 to 2034) |
| H2 2024 | 7.1% (2024 to 2034) |
| H1 2025 | 6.9% (2025 to 2035) |
| H2 2025 | 7.2% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2025, the CAGR is projected to slightly decrease to 6.9% in the first half and relatively increase to 7.2% in the second half. In the first half (H1), the sector saw an increase of 10 BPS while in the second half (H2), there was a slight increase of 10 BPS.
Aging Electrical Infrastructure Creating Demand for Maintenance, Upgrades, and Safety Evaluations
In matured regions such as North America and Europe, longstanding age of electricity infrastructure is emerging as a big concern. Much of the electrical grid and equipment in these regions was installed decades ago, and they are now facing challenges such as wear and tear, technological obsolescence, and increased upgradation pressures. Accelerating infrastructural obsolescence leads to more frequent malfunctioning issues, power outages, and security concerns, which in turn in creates a greater need for the electrical testing services.
Some of these electrical systems have been in operation for more than fifty years. According to the USA Department of Energy, approximately 70% of the country's electric grid is over 25 years old, highlighting the need for modernization and upgrades.
Enough several power plants, substations, and transmission lines are installed being used even when their period of design or lifespan is not over, and that increases the chances of an equipment failure. All testing services specialize in electrical located insulations which if not analyzed and monitored would lead to larger blackouts or disastrous events.
In the UK, the proposed National Grid has been developed to meet the increasing electricity demand, driven largely by the growing use of alternative energy sources. Regular testing and inspection of the grid and its components such as transformers, circuit breaker and protective relays are necessary to ensure that they are functioning properly. Electrical testing services play a vital role in monitoring the health of these systems and conducting preventive maintenance.
Increasing Industrialization and Urbanization Accelerating the Need for Electrical Testing Services
Electrical testing of structures and systems is being paid increased attention in rapidly growing economies. There is high pressure to expand infrastructure such as airports, sky scrapers and smart cities, which all require advanced electrical equipment that can be relied on for functionality and operational safety.
With more developed cities around the globe, electrical systems become more challenging and smart city developments around the Asia Pacific region are fueling growth due to better electrical systems infrastructure such as electric vehicle charging stations, automated management systems and smart grids. Heavy loads and varying power requirements make these systems more complex and challenging to manage.
This trend has been further accelerated in recent years by the construction boom in emerging markets like India and Brazil. In India, massive construction of infrastructures such as airports, metro systems, and residential buildings has increased the reliance on electrical systems ensuring other dependencies translate into a positive dependency.
The installation and the whole life cycle of such systems requires careful supervision and compliance with safety standards and efficiency, aided by electrical testing services. A larger number of global power plants, substations, and distribution networks being put in place, warrants quite extensive electrical testing. Routine tests are aimed at detecting new and developing problems such as faults, overloading, and potential risks before the damage or any accident is caused.
Growing Demand for Enhanced Safety Standards and Compliance Regulations in Electrical Systems
The increasing demand for electrical testing services can be attributed to several reasons, with the most prominent one being the enhanced enforcement of electrical safety standards by governments across the globe.
The construction of many assets both in the private and public domain requires adherence to safety measures in relation to the law that is applicable in the country as well as laws which are applicable internationally. If these complying measures are overlooked, it may lead to high expenditures in fines, unsafe conditions or catastrophic events.
For the USA, the National Electrical Code (NEC) is in place which stipulates the safety measures in regard to electrical wiring and the equipment attached to such wiring. In order for such standards to be met and for electrical systems to be deployed without causing any harm to people or the equipment, testing has to be done. Countries in Europe are serviced by International Electrotechnical Commission (IEC), which has set standards of safety risks and hazards that needs to be observed and they form the basis of electrical testing services.
There are agencies in charge which regulate that electrical systems, especially in transportation or healthcare sectors, are functioning and workers and common citizens are not exposed to any risk. In hospitals power is a very essential resource that has to be dependable at all times for everything, even life sustaining apparatus. The same case applies to the industrial sector, routine maintenance would be to check that power is constant at all times to avoid anything critical.
Expansion of Smart Grid Infrastructure Driving Demand for Advanced Electrical Testing Services
The shift towards smart grid architectures worldwide is resulting in a sharp increase in the demand for advanced electrical testing. Physical electric networks are integrated with advanced communication technologies that are enhanced by smart grid infrastructures which allows for better management, distribution and supervision of electricity. With the deployment of these systems so many utilities and regions, testing the systems for effectiveness and reliability becomes an important factor.
It is critically important that smart grids are carefully implemented into existing electrical grids. New devices including sensors, smart meters, and automated control systems need to be implemented in a manner that ensures their functionality and security.
Electrical testing services guarantee these technologies function in a manner that promotes their effective communication to one another and to a control center. This ensures the prevention of data theft, blackouts, and other system breakdowns that are likely to happen.
The smart grid has been rapidly adopted in several countries including the USA, European Union and some parts of Asia. The American Department of Energy has been very active in modernizing the grid, and this requires extensive testing in order to support the grid and reduce the risks of operation. Similarly, the European Union has committed to creating more interconnected, smart grids to improve energy efficiency and reduce carbon emissions, further increasing the need for electrical testing services.
Principal Consultant
Between 2020 and 2024, the global electrical testing services market grew steadily at an annual rate of about 7.1%, reaching a value of USD 8,317.4 million in 2024, up from USD 6,340.3 million in 2020. During this period, the market grew at a steady rate of approximately 6.7% CAGR, supported by maintenance activities in aging power grids and rising energy consumption. However, growth remained limited due to supply chain interruptions, reduced industrial activity, and delayed infrastructure projects.
From 2025 to 2035, the global electrical testing services market is projected to witness an accelerated growth trajectory with an estimated CAGR of 7.4%. This surge is driven by several key factors, beginning with the expansion of smart grid infrastructure. Governments worldwide are making significant investments in smart grid technologies, necessitating advanced testing services to ensure seamless integration, operational efficiency, and resilience.
For instance, the USA Department of Energy's grid modernization initiatives are expected to significantly boost demand. Additionally, the global shift toward renewable energy sources like solar and wind requires rigorous testing of power systems for compatibility and reliability. Leading countries in renewable adoption, such as Germany and China, further amplify this demand.
Another major driver is the aging electrical infrastructure in developed economies, where grids installed over four decades ago need frequent maintenance and testing to prevent failures. Europe, in particular, faces this challenge on a large scale. Complementing these drivers are advancements in testing technologies, including AI-based predictive maintenance and IoT-enabled diagnostics, which enhance service efficiency and appeal.
Lastly, rapid industrialization and infrastructure development in emerging economies across Asia-Pacific and Africa are propelling the demand for electrical testing services, ensuring safe and efficient operations in these regions. These factors collectively promise robust market growth in the forecast period.
Tier 1 companies include industry leaders with annual revenues exceeding USD 300 million. These companies are currently capturing a significant share of 30-35% globally. These frontrunners are characterized by high production capacity and a wide product portfolio. These companies stand out due to their extensive expertise in manufacturing and broad geographical reach, supported by a robust consumer base.
They offer a wide range of products and leverage the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Schneider Electric, Siemens AG, Eaton Corporation plc., General Electric Company, ABB Inc and others.
Tier 2 and Others encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 300 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 2 and others segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 3 includes Power Products & Solutions, American Electrical Testing, Haugland Group LLC, Dekra, TCS Electrical Co. and others.
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The section below highlights assessments of Electrical Testing Services sale across key countries. USA, China, Germany region, and Turkey are expected to showcase promising double-digit growth, with each exhibiting a strong CAGR through the forecast period.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| India | 8.1% |
| China | 7.7% |
| UK | 7.1% |
| Germany | 6.7% |
| USA | 6.4% |
The USA market for electrical testing services is projected to remain highly lucrative during the forecast period, driven by the expansion of various end-use industries and a substantial presence of electrical and electronics companies. The country’s industrial landscape is marked by a robust network of manufacturers that necessitate advanced testing services to ensure safety, compliance, and performance optimization.
In addition to a strong industrial base, the USA government is heavily investing in modernizing its aging power infrastructure, further fueling the demand for electrical testing services. Grid modernization initiatives and renewable energy projects also contribute to this demand, reinforcing the country’s position as a leading market in North America.
With a focus on efficiency and safety, the USA electrical testing services sector is expected to attract significant investments in the coming years, creating a dynamic environment for market players.
India’s electrical testing services market is set to grow rapidly, supported by a burgeoning electrical and electronics sector. Regulations mandating product safety compliance for manufactured and imported electrical equipment are key drivers. This regulatory framework ensures that all products meet stringent safety standards, thereby creating consistent demand for electrical testing services.
Moreover, India’s industrial growth and increasing adoption of electrical devices across various sectors provide a robust foundation for market expansion. Industries such as manufacturing, energy, and consumer electronics heavily rely on electrical testing to ensure device safety and efficiency. These factors are expected to propel the market at a CAGR of 7.7% through 2031, making India a promising market for players in the electrical testing services industry.
The UK is poised for steady growth in the electrical testing services market, supported by the presence of key industry players and stringent safety regulations across various sectors. Safety compliance remains a top priority for industries, fostering a consistent need for testing services. The UK government’s focus on safety and reliability in industrial operations further reinforces the market’s growth trajectory
Additionally, the UK electrical testing services market is expected to create an incremental opportunity worth USD 223.2 Million by the end of the forecast period. The market’s steady expansion is underpinned by a well-established industrial base, robust infrastructure, and advancements in testing technologies, ensuring a promising future for electrical testing services in the UK.
The section explains the growth trajectories of the leading segments in the industry. In terms of product form, the Motors/Generator Testing category will likely dominate and generate a share of around 18.2% in 2024.
| Segment | Motors/Generator Testing (Service Type) |
|---|---|
| Value Share (2024) | 18.2% |
Motors and generators are indispensable for energy conversion across industries, transforming electrical power into usable forms such as alternating or direct current, and adjusting frequency, voltage, or phase. This functionality underpins critical applications in sectors like power supply, energy distribution, manufacturing, and transportation.
The motors/generator testing segment is poised to account for 18% of the market in 2024 due to rising adoption in power-intensive industries. Routine testing is essential to ensure equipment efficiency, detect faults, and enhance lifespan, mitigating risks of downtime in operations. For instance, power generation plants rely heavily on periodic generator testing to maintain grid stability and meet energy demands.
Similarly, manufacturing units need motor testing to prevent production halts caused by unexpected machinery failure. The integration of advanced testing technologies, such as real-time diagnostics and predictive maintenance tools, is further boosting this segment. Industries are increasingly leveraging such technologies to optimize performance, improve safety standards, and comply with stringent regulatory frameworks.
| Segment | Data Centers (End Use) |
|---|---|
| Value Share (2024) | 22.2% |
Data centers serve as critical infrastructure for telecommunication, cloud storage, and digital computing, driving significant demand for electrical testing services. With continuous operations and high power requirements, they are susceptible to system failures, necessitating periodic maintenance to ensure uninterrupted performance.
By 2024, data centers are projected to hold 22% of the market share, reflecting their growing role in digital transformation. Electrical testing in these facilities includes ensuring the reliability of backup systems, monitoring voltage stability, and improving energy efficiency. Hyperscale data centers, particularly in regions like North America and Europe, are at the forefront of this demand.
Global leaders in cloud computing, such as Amazon Web Services (AWS) and Microsoft Azure, are investing heavily in data center expansions, significantly boosting the need for advanced testing services. Testing ensures these massive operations remain resilient against power disruptions and meet sustainability goals by reducing energy wastage.
The key players involved in the production of Electrical Testing Services are enhancing their capacity and resources to meet the increasing demand across applications. It includes investments in modern technologies, expansion of services, and optimizing operational efficiencies. With an increase in the resource base, the companies can offer quality and reliable services that respond to the changing needs of the clients and stay ahead in the market competition.
Most leading companies forge strategic partnerships and joint ventures to co-develop innovative new products and solutions. This can lead to significant sector and technological innovation through the leveraging of their expertise and resources. It enables companies to diversify their product portfolios, enter new industries, and address the specific requirements presented by various end-use industries in different fields.
Major players have been seeking geographic expansion as a means for capturing new growth opportunities. Examples include entering into new customer bases and increasing its footprint in existing ones. Upon spreading footprints across geographical regions, companies are able to reach new customer bases, diversify revenue streams, and avoid market risk saturation.
Industry Updates
In terms of Service Type, the industry is divided into Transformer Testing, Circuit Breaker Testing, Protection Testing, Battery Testing, Rotating Equipment Vibration Testing, Motors/Generator Testing, and Thermographic Testing.
In terms of End Use, the industry is divided into Power Generation Stations, Transmission and Distribution Stations, Steel Plants, Major Refineries, Railways, Data Centers, Healthcare and Hospitality, Commercial Establishments and Others.
The report covers key regions, including North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa (MEA).
The global market was valued at USD 8,317.4 million in 2024.
The global market is set to reach USD 8,905.4 million in 2025.
Global demand is anticipated to rise at 7.4% CAGR.
The industry is projected to reach USD 18,234.2 million by 2035.
Schneider Electric, Siemens AG, Inc., Eaton Corporation plc. General Electric Company and ABB Inc. are prominent companies.
Industrial Automation
June 2023
REP-GB-14222
167 pages
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Electrical Testing Services Market
