Components for Electrical Automation: Indian players gaining traction!

Industrial Update – Newsletter – January 2026

IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India

Electrical automation is the use of sensors, control systems and actuators to monitor and regulate process machinery and electrical processes without human intervention. The components used for such automation includes ones for:

–Data Inputs to collect the process data – Sensors (for temp., pressure, proximity, etc.), Transducers (strain gauges, load cells), Cameras and other Analog/Digital input modules

–Processing for analyzing input data and making decisions – Programmable Logical Controllers (PLCs), Microcontrollers, Data Acquisition System (DAS)

–Operation/ Actuation to take the processed data and execute control actions in the field Actuators (solenoids, motors, valves), Output modules, relays and contactors

While the global automation components is valued at $150 bn – $175 bn growing at 7%-8%, the Indian market is estimated to be valued at $8 bn – $9 bn growing at 10%-12%. The Indian market for industrial panel devices and electrical automation includes end users from established sectors like auto,food and beverage, and process industries such as oil, gas, and steel. As Indian industry integrates automation to achieve global quality standards, the IoT has gained traction, with many recognizing the benefits of digitization, further fueling growth in the Indian electrical automation market.

An electrical automation solution involves the integration of various input signals to build an intelligent system and to automate the overall operation. Companies such as Siemens, ABB, Emerson, Schneider, Yokogawa, Rockwell among others provide the overall solution. While some of these companies also provide the components, there are companies that focus on components manufacturing alone – Delta, Omron, Rishab, Selec, GIC among others.

The Indian market is led by international companies, with the top five holding around 50% market share due to their extensive product ranges and strong brand recognition. Meanwhile, Indian firms are gaining ground by competing on quality, pricing, and customer service. They are experiencing significant growth domestically, particularly in the SME sector, while also expanding their export capabilities and engaging in white labeling for larger brands.

Some recent transactions

Recent News

• India and the EU concluded a Free Trade Agreement which eliminates or significantly reduces tariffs on most goods, with India removing duties on ~93% of EU imports by value and the EU eliminating duties on ~99% of Indian exports
• India Manufacturing PMI rose to 56.8 in January 2026 from 55.0 in December 2025, signaling a three-month high
• The rupee declined to an all time low of ~₹92 per dollar driven by  capital outflows by foreign investors, a widening trade deficit, and high demand for dollars for imports
• Dell Technologies and NxtGen AI have partnered to build India’s largest dedicated AI factory to mass produce AI models and agents for Indian companies
• India’s Budget 2026-27 brings increased focus on seven manufacturing areas – Bio-pharma (a budgetary outlay of US$1.1 billion to create a global pharma hub), Semiconductor and Electronics manufacturing  (increase ECMS budget to US$ 4.4 billion and launch of India Semicon Mission 2.0), Rare Earth Magnets (promoting states to establish dedicated Rare Earth Corridors), Chemicals (establishing of chemical parks), Capital Goods and Textile

IMAP Industrials Index & Valuation of sub-segments

Commodity Prices Index