Report

The South Korea electrical equipment market was valued at USD 31.54 Billion in 2025 . The market is expected to grow at a CAGR of 10.90% during the forecast period of 2026-2035 to reach a value of USD 88.75 Billion by 2035 . The market is growing at a tremendous rate due to the localization and scaling of the production of high-voltage transformers, especially in the production of HVDC (High Voltage Direct Current) applications.

Key Market Trends and Insights

- By type, batteries are expected to grow at a CAGR of 11.9% over the forecast period.
- By application, the non-residential category is projected to witness a CAGR of 11.6% over the forecast period.

Market Size & Forecast

- Market Size in 2025: USD 31.54 Billion
- Projected Market Size in 2035: USD 88.75 Billion
- CAGR from 2026 to 2035: 10.90%

The need for integrated electrical solutions is growing as utilities and industrial operators place a greater emphasis on energy-efficient systems and sophisticated monitoring to maximize operational performance. As stakeholders look for more dependability, real-time data visibility, and improved energy management capabilities, this trend is fueling the adoption of smart grid infrastructure throughout the South Korea electrical equipment market. The market also presents new opportunities for high-capacity, digitally controlled electrical systems as a result of the growing popularity of electrifying industry and the conversion of heavy industry machinery and transportation equipment to electric power.

With the development of grids for the integration of renewable energy and long-distance power transfer, advanced transformers that are efficient, reliable, and scalable, are witnessing a high demand. Local producers are reacting by refurbishing their manufacturing facilities, expanding research and development, and coming up with larger HVDC exportable units. Such programs enhance the country's self-sufficiency in critical power infrastructure components while also making it more competitive with global leaders. Superior insulation, digital monitoring systems, and high-capacity designs that can handle the increasing grid loads are examples of how product innovation is prioritized. Such a proactive strategy enables Korean companies to achieve domestic modernization projects and overseas contracts in new markets of renewable and grid expansion, further boosting the South Korea electrical equipment market development. For instance, in July of 2025, Hyosung Heavy Industry announced its plans to start the construction of the largest HVDC transformer factory in Korea at its Changwon plant with an investment of KRW 330 billion.

South Korea Electrical Equipment Market Report Summary

Description

Value

Base Year

USD Billion

2025

Historical Period

USD Billion

2019-2025

Forecast Period

USD Billion

2026-2035

Market Size 2025

USD Billion

31.54

Market Size 2035

USD Billion

88.75

CAGR 2019-2025

Percentage

%

CAGR 2026-2035

Percentage

10.90%

CAGR 2026-2035 - Market by Type

Batteries

11.9%

CAGR 2026-2035 - Market by Application

Non Residential

11.6%

Key Trends and Recent Developments

February 2026 - Marubeni, Hyosung, and Skeleton Collaborated on Next-Gen Grid Stabilization

To develop an E-STATCOM power grid stabilization system together, Marubeni Corporation signed an MOU with Hyosung Heavy Industries and Skeleton Technologies. Reactive power regulation and supercapacitor-based storage are combined in this technology, which will be commercialized in 2027, to increase grid resilience. This technology will enable a high degree of infrastructure to support AI-based data centers and renewable energy, which will assist the growth of the South Korea electrical equipment market.

November 2025 - Amprius Launched Korea Battery Alliance

Amprius Technologies created the Amprius Korea Battery Alliance to partner with local manufacturers and suppliers and commercialize next-generation silicon-anode batteries faster. The program enhances the supply chain of South Korea in batteries, aids the electrification of industries, and boosts the development of high-performance energy storage, leading to the expansion of electrical equipment and clean energy sectors.

September 2025 - Mehru Electrical Signed Co-Development Agreement with Hyosung

Mehru Electrical entered into a co-development deal with Hyosung Group to co-develop GIS instrument transformers. The joint venture brought together Hyosung's knowledge on eco-friendly gas technologies and the high-voltage transformer capabilities of Mehru. The cooperation helped the South Korea electrical equipment market by improving its high-voltage systems and transferring technology in the global market.

May 2024 - Centiel Showcased StratusPower UPS at Electric Power Tech Korea 2024

Centiel attended Electric Power Tech Korea 2024, where it presented its StratusPower three-phase modular UPS via partner WONLEE Solutions. The solution provided 97.6% VF efficiency and an average product life cycle of 30 years, boosting the electricity equipment market in South Korea by enhancing high-energy-efficient power protection of vital applications.

Ultra-Large Specialty Transformer Product Development

By developing ultra-large special transformers that can support grid stability and renewable energy integration, the South Korean industry is developing into high-value niche items. To create high-capacity units that can handle larger loads and respond to demanding transmission requirements, manufacturers are stepping up their research and development. In addition to meeting domestic infrastructure needs, these specialty items establish Korean businesses as trustworthy providers for global utility and renewable projects. They also boost sales channels and export rates in the premium category of the South Korea electrical equipment market. For instance, in April 2025, HD Hyundai Electric tested the largest phase-shifting transformer (PST), a 230 653 MVA, which is destined to be delivered to a wind project in New York.

Certification-Driven Product Market Expansion

Securing globally recognized safety certifications has emerged as a strategic factor strengthening South Korea's electrical product exports, particularly in the distribution of hardware. Additionally, the certifications increase competition with international items and open new opportunities in the South Korea electrical equipment market, particularly in areas with strict entry rules. Companies are actively pursuing certifications for a wider portfolio of equipment, allowing them to access new markets and strengthen revenue streams with products compliant with international regulations. For instance, in October 2025, HD Hyundai Electric was certified with UL and cUL on four low- and medium-voltage circuit breakers as the pathway to entry into North American markets.

Integration of Digital and Smart Product Features

The necessity to digitalize the grid and monitor it with smart technologies has piqued the attention of electrical equipment makers in adding more complex control capabilities to basic items such as protection devices and distribution equipment. This is catalyzed by a larger industry change of IoT-enabled and software-assisted electrical products that increase reliability, performance analytics, and operational effectiveness. In response to changing utility and industrial demands, manufacturers are updating classic product portfolios with digital interfaces, predictive diagnostics, and tight connectivity with grid management systems. For instance, at ELECS KOREA 2026 in January 2026, Hitachi Energy Korea presented next-generation grid protection products, which included advanced transformer protection solutions, including "Bushing Tap Protector." Such developments signal the rise of digitally enhanced equipment offerings, further boosting demand in the South Korea electrical equipment market.

Electrification of Maritime Transport

The South Korea electrical equipment market is also benefitting from the advantage of electrifying the marine vessels, beyond the usual industrial and utility sphere. State-of-the-art power and propulsion systems, high-capacity battery packs, and integrated energy management solutions are facilitating the vessels to be efficient with zero emissions, which helps in achieving sustainability goals and regulatory requirements. Such innovations also show the use of digital monitoring, fault detection, and remote management on marine products, making domestic manufacturers prioritize the use of environmentally friendly technology in the sea. As an example, Busan Port Authority introduced the first state-owned all-electric ferry in South Korea in December 2025, using ABB Onboard DC Grid and PEMSTM systems, and equipped with twin 1,068.5 kWh batteries to operate without any emissions.

Electrification of Mid- to Large-Size Industrial Vehicles

The electrification of large industrial vehicles, which were previously powered by diesel engines, is an emerging growth trend in the South Korea electrical equipment market, where the machine industry was dominated by diesel machines. The improvements in battery technology, permanent magnet motors, and thermal management systems are allowing domestic manufacturers to create mid- to large-size electric forklifts that could operate in a high load and operate outdoors. Such products make them efficient, emit less, and extend electrification outside of the indoor environment, establishing new industrial users and increasing domestic manufacturing competitiveness. As an example, HD Hyundai XiteSolution was released in June 2025 as eight mid- to large-size electric forklifts with a 4�9-ton environmental range, high-performance LFP batteries, waterproof and dustproof protection, and accurate low-speed manoeuvring.

South Korea Electrical Equipment Industry Segmentation

The EMR's report titled "South Korea Electrical Equipment Market Report and Forecast 2026-2035� offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

- Electrical Lighting Equipment
- Household Appliances
- Power Generation
- Transmission and Control Equipment
- Batteries
- Wires and Cables

Key Insight: The South Korea electrical equipment market scope comprises electrical lighting equipment, household appliances, power generation, transmission, and control equipment, batteries, wires, and cables. The products observe strong demand influenced by urbanization, smart infrastructure, and the adoption of renewable energy. Energy-efficient lighting is also being developed by companies like Signatory N.V. and Samsung Electronics. In February 2026, Cuckoo launched its Gourmet Collection of gas and single-burner electric products, strengthening the gourmet appliance industry. Innovations in batteries by Amprius and transmission by LS Cable and System also contribute to the increase in these product categories.

Market Breakup by Application

- Residential
- Non-Residential

Key Insight: In terms of applications, the South Korea electrical equipment market serves the residential and non-residential markets. Convenience and energy efficiency are also driving the trend toward smart lighting, home appliances, and energy storage devices in residential spaces, and Legrand S.A. and other companies are widening their range of smart home products. The non-residential market, such as commercial, industrial, and infrastructure projects, is moving to high-voltage transformers, modular UPS systems such as StratusPower by Centiel, and advanced transmission equipment, to support the high-volume electrification and sustainability requirements.

South Korea Electrical Equipment Market Share

By type, home appliances are witnessing high demand driven by AI integration, energy efficiency, and smart connectivity

Rapid developments of AI and smart technologies are driving the home appliances segment growth in the South Korea electrical equipment market. Businesses are prioritizing energy efficiency, automation, and connected home experiences, whereas consumers are now demanding time-saving, high-performance appliances. Manufacturers are attempting to adapt to shifting lifestyles through research and development, predictive maintenance capabilities, and innovative designs. For instance, in December 2025, Samsung presented its Bespoke AI lineup, which involved smart fridges, ovens, and laundry combos, emphasizing the most advanced use of AI and user-friendly functionality.

Meanwhile, the wires and cables category contributes considerably to the South Korea electrical equipment market revenue, mainly due to the increased demand for high-voltage and extra-high-voltage transmission systems. Some of the new materials that companies are concentrating on include cross-linked polyethylene (XLPE) and Super Extra High Voltage (SEHV) XLPE to enhance efficiency, heat resistance, and longevity. For instance, in March 2025, Hanwha Solutions created its own Wire and Cable Division to enhance product services and to be a key player in the expanding energy infrastructure market.

By application, the non-residential category dominates the product demand, attributed to increasing use in energy, data centers, and commercial projects

The non-residential applications are picking up momentum in the South Korea electrical equipment market due to the increasing investments in commercial, industrial, and institutional infrastructure, for which the efficiency of operations requires reliable electrical solutions. These are offices, factories, hospitals, data centers, and retail complexes, where it is necessary to have uninterrupted power distribution, lighting, HVAC, and safety systems. Firms are moving towards the use of high-user equipment, intelligent monitoring systems, and energy-efficient technology as part of the changing compliance and sustainability requirements. For instance, in September 2025, SK On in South Korea sealed a massive supply contract with Flatiron Energy to provide lithium iron phosphate (LFP) batteries to energy storage systems, which underscores the growing adoption of advanced power solutions in non-residential infrastructure.

Conversely, the residential applications account for a significant share of the South Korea electrical equipment market, due to the increased usage of new home energy technologies, intelligent electric systems, and energy-saving appliances. Homeowners and builders are investing more in technologies that improve the safety, convenience, and sustainability in households. Businesses are reacting by offering new products like modular load centers, smart panels, and connected metering systems that are easy to install and offer smooth energy management. For instance, in October 2024, ABB introduced its ReliaHome Load Centers and smart panels, which further expand its residential energy distribution range and serve the increasing demand for dependable, effective, and intelligent residential electrification.

Competitive Landscape

South Korea electrical equipment market players are taking vigorous action in research and development activities, as well as in advanced manufacturing to come up with high-performance transformers, switchgear, and industrial electrification products. Companies are reducing the reliability and efficiency of their products by installing digital monitoring systems, smart controls, and energy efficiency components. These initiative measures place local companies in a position to serve increasing domestic infrastructure demand and growing international export events to sustain market development.

In addition to strategic partnerships, leading electrical equipment companies in South Korea are also seeking co-development projects and certification programs to help them innovate faster and remain competitive globally. Partnerships with technology providers and electrification agreements across the maritime, industrial, and logistics sectors enable companies to integrate advanced solutions into their product portfolios. These actions, together with investments in high-volume production and modular product lines, contribute significantly to the complete transformation of the South Korea electrical equipment market.

Legrand S.A.

Legrand S.A. is a global specialist in electrical and digital building infrastructures, located in Limoges, France, where it was established in 1865. With an extensive product portfolio, the company offers switches, sockets, cable management systems, and home automation that serve residential, commercial, and industrial markets.

Hafele Group

Haefele Group, based in Germany, was established in 1923 and specializes in the supply of architectural hardware, furniture fittings, and electronic locking systems. The company has emerged as a prominent name in the South Korea electrical equipment market by offering innovative solutions to the global markets, focusing on design, quality, and full installation support.

Signify N.V.

Signify N.V. was established in 2016 as the spin-off of Philips Lighting and is based in Eindhoven, Netherlands, where it focuses on LED lighting, smart lighting systems, and connected solutions. Its products cater to professional, consumer, and horticultural applications, enhancing sustainability and energy efficiency across global lighting markets.

Shenzhen Nova Energy Co., Ltd.

Nova Energy is a company based in Shenzhen, China, which was established in 2007 and specializes in energy storage solutions, photovoltaic modules, and power management systems. The company has also gone global with a supply of clean energy products to serve industrial, commercial, and utility-scale purposes.

Other key players in the market include Samsung Electronics Co. Ltd., LG Corp., LS Cable & System Ltd, Taihan Cable & Solution Co., Ltd., and CHINT Group, among others.

Key Highlights of the South Korea Electrical Equipment Market Report

- Highlights past performance and gives correct forecasts using 2035 past patterns to project growth in the future.
- Provides information on product innovations and technological changes, such as the new smart solutions and energy-efficient equipment that determine the market.
- Incorporates a competitive landscape analysis, a competitive profile of major local and foreign manufacturers, their policies, and their market positioning.
- Conducts regional analysis to define new opportunities, growth hotspots, and market forces that drive demand in South Korea.
- Provides an investment-oriented perspective with evidence-based information about the entry strategy and potential to expand the sector.

Why Choose Expert Market Research?

- Proven knowledge supported by massive primary research.
- Gives practical information in strategic decision-making.
- Region-wise and product-specific analysis that can assist businesses in planning, investing, and effectively innovating.

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