Electrical contractors play a significant role in the construction industry and the broader economy in the United States, employing thousands of people and generating billions of dollars each year. They provide critical services that allow modern society to function, such as designing, installing, and maintaining electrical systems that power homes, businesses, and communities.
The electrical contractors market in the U.S. is expected to reach nearly $284 billion by 2028 from $225 billion in 2022, according to IBISWorld.
Market Trends
Lighting in Homes: People want their lights to reflect their personal, expressive, domestic experience and be energy-efficient, with manufacturers meeting their needs. According to Universal Electrical Services, Inc. (UES), LED lighting in residential settings will continue to gain popularity due to its numerous benefits, including using up to 75% less energy while lasting 25 times longer than incandescent lights. This means more work for electricians in upgrading home lighting.
Electrical Industrial Maintenance: Most buildings are not wired for 21st-century lighting systems; therefore, electrical industrial maintenance, according to UES, will be a major trend in the coming years. The electrical wiring industry will be retrofitting older wiring systems and installing more efficient ones in new construction.
Smart Homes: The smart home and IoT (internet of things) continue. As technology becomes more appealing, less expensive, and more accessible to more people, there will be an increase in demand for electrical businesses to perform ‘smart’ installations in both the residential and commercial sectors. This includes, for example, installing smart appliances – from CCTV to smart doorbells and alarm systems – and voice recognition integrations, such as touch-reactive countertops and lighting, which will require rewiring in most cases.
Expansion of 5G Networks: According to a report by Aritzon Advisory & Intelligence, as leading telecom companies deploy or expand their 5G services across the country, electrical contractors are needed to build out a faster network, including adding underground fiber optics, antennae, and transmission nodes.
Energy Storage: Renewable energy sources are ideal for sustainable energy, but they are not always available. Energy must be captured (via solar, wind, biomass, and other sources) and then stored. To address this, the electricity industry is developing improved battery and energy storage systems for a cleaner and more dynamic grid.