Top 47 Profitable Electrical Business Ideas in 2023

The electrical industry plays a vital role in modern society. It helps in powering homes, businesses, and industries. If you are passionate about electricity and looking for entrepreneurial opportunities, the electrical sector offers a range of business opportunities. In this article, we will explore some of the best electrical business ideas along with frequently asked questions (FAQs).

The worldwide electrical industry is one of the most flourishing and extremely diversified sectors. Furthermore, it consists of manufacturers, suppliers, dealers, retailers, electrical engineers, electricians, electrical equipment manufacturers, and trade unions.

Related: Top Small-Scale Manufacturing Business Ideas

The United States, Japan, and Korea are the top three electrical and electronic goods manufacturing countries in the world.

The United States of America is the largest producer of electronic products in the world, contributing a total share of around 21%. Furthermore, it also occupies the largest market share with about 29% of the global market.

List of 47 Electrical Business Ideas

1. Electrical Contracting Business

Start an electrical contracting firm that offers electrical installation, repair, and maintenance services to residential, commercial, and industrial clients. Provide services such as wiring, lighting installation, circuit repair, and electrical panel upgrades.

2. Solar Panel Installation

There is a rising demand for renewable energy worldwide. Hence, it is worth considering starting a solar panel installation business. You can offer services to install solar panels on rooftops or open spaces to help customers harness solar energy.

3. Battery Production

If you want to start a small-scale manufacturing business, then you can consider battery production. With a small space of operation, you can start this business. Though you can open a localized battery company with a small investment, expansion demands substantial investment.

4. Battery Store

If you are looking for a retail opportunity in the electrical and electronics field, then you can consider this business. Additionally, you can start the business in two ways. Either as an initiative of your own or as a franchise partner of a reputed brand. However, if you start your own, you can sell multiple brands for a single store.

5. Battery Reconditioning

Battery Reconditioning is a very lucrative business. In addition, you can start at home too. And it demands a very small startup capital investment. However, you must have proper knowledge and skills in conditioning old batteries.

6. Capacitor Production

A capacitor can store electric energy when disconnected from its charging circuit, so it can be used like a temporary battery. The product has a huge demand in both the electrical and electronics industry. With moderate capital investment, you can start the capacitor production business.

7. Computer Accessories Retailing

Broadly, you can start a computer accessories retailing business in two ways. One is from a brick-and-mortar store and another is online. The demand for different computer accessories is increasing very fast.

8. Computer Assembling

The United States computer and office equipment industry constitutes more than 10,000 companies with collective annual revenue of US $180 billion. So undoubtedly, it is a very lucrative sector for entrepreneurs. However, starting a computer assembling business demands substantial capital investment.

9. CCTV Camera

CCTV stands for closed-circuit television. CCTVs are frequently utilized for surveillance in locations that may require regular monitoring such as casinos, banks, military installations, airports, shopping malls, convenience stores, etc. Apart from this, CCTV cameras have wide applications across the globe by government institutions to reduce and avoid domestic and international security threats.

The problem of security is growing day by day. And it creates an immense opportunity for entrepreneurs. However, you must have skills and knowledge about the product.

10. DJ & VJ Equipment Retailing

DJ stands for disc jockey while VJ stands for video jockey. And they huge a lot of instruments for making the function highly rocking. Some of the most popular items are channel mixers, USB grid controllers, LED lights, personal monitor stations, etc. You can start retailing both offline and online.

11. Electrical Control Panel

Electrical control panels help to control mechanical equipment. Additionally, they are used to control every piece of equipment in every industry. However, the product has a high demand in the industrial sectors. the business is perfect for electrical engineers.

12. Electrical Switches, Socket, and Plugs

These are very common items in the electrical and electronics industry. Additionally, the manufacturing process is not complex. If you want to start a manufacturing business in the industry, you can consider making switches, sockets, and plugs production business.

13. Electrical Wire Manufacturing

Electrical wires are highly consumable items. PVC-coated electrical wires are used in both the domestic and industrial segments. You can start the business small and after getting the confidence you can scale up.

14. Electronic Fan Regulator Production

A ceiling fan is one of the most common electrical appliances. And there always is a fan regulator with every ceiling fan to control its speed. So, the market opportunity is huge in the fan regulator production business. Additionally, with moderate capital investment, you can start this business.

15. Electronic Toy Production

Electronic toys are the most popular items among kids. Therefore, the demand for different types of modern toys is also increasing. You can start an electronic toy production business with moderate startup capital investment.

16. Ewaste Recycling

E-waste recycling is a global environmental issue in recent phenomena. The Environmental Protection Agency estimates that only 15-20% of e-waste is recycled, the rest of the items go directly into landfills and incinerators. However, to be successful, you must have sufficient space and a proven business model.

This is another great business that has a bright future. It is obvious that people will use more electrical and electronic items and will produce more e-waste globally.

17. Electrical & Electronic Store

Despite growing online marketplaces, still, there is a very potential market for offline electrical and electronics stores. However, you must start the business by focusing on a niche. And as your business grows, expand.

18. Electronic Appliances Service Repair

This is a profitable business. You can offer the service on a mobile basis or from your home. In addition, you can start this business as a franchise also. After the warranty period, servicing and repairing become very costly if you want company service. So people generally look for local services.

19. Electronic Toys Selling – Excellent Electrical Shop Business Idea

Revenue-wise this is a lucrative business. You can sell the toys from the retail store or your online store. In addition, you can go for distribution also. However, toy distribution demands higher startup investment. You can source the toys from local manufacturers or you can import them.

20. Electric Vehicle Charging Station

With the growing popularity of electric vehicles, consider setting up electric vehicle charging stations to cater to the increasing demand.

21. Gaming PC Assembling

Gaming PCs have high demand. And in most cases, people prefer to buy customized gaming PC according to their specific requirements. Therefore, if you have specific skills and knowledge, you can start a gaming PC assembling business even from home also.

22. Generator Assembling

The generator is an industrial product. Additionally, it has other commercial applications in retail stores, and commercial offices including shopping malls, etc. Generator assembling is a perfect business opportunity for electrical engineers. However, you must have prior experience in this industry.

23. Home Appliances Store

If you want to start a retail business that has the substantial potential of generating a net profit, then you can consider this business. The business demands moderate startup capital investment. However, it depends on the size of your store and inventory.

24. House Electrification Service

For electrical engineers, starting a home electrification service business is highly lucrative. Not only the new electrification, you can address the consumers who need an expert for repair or alteration also. In most states, the business demands a specific license from the Govt. authority. So, check it first.

25. LED Light Assembling

LED lights are getting huge popularity these days. The manufacturing process is simple. And there is already a market for this product. If you have specific knowledge, you can start an LED light production business with moderate capital investment.

You can initiate your brand in the industry. In addition, assembling businesses demand less capital investment compared to full-scale manufacturing. Furthermore, this is a very profitable business. Source the required materials from the local market or import them.

26. Energy Auditing

Provide energy auditing services to homes and businesses to assess energy consumption patterns and suggest energy-saving solutions.

27. Air Compressor Production

The air compressor has big demand in the automobile service industry. The air compressor production process is not complex, especially for electrical engineers.

28. Inverter Production

The demand for inverters exists in both the domestic and industrial sectors. Simply put, it is a device that uses electromechanical techniques to convert direct electricity to alternating current. If you are an electrical engineer and have the required funding backup, consider starting an inverter manufacturing business.

29. Optical Fibre Production

The optical fiber is transparent and flexible. It transmits light between the two ends of the fiber and finds wide usage in fiber-optic communications. There are several fields including telecommunication where the product has huge demand.

30. Pneumatic Tools Production

Pneumatic tools are air-powered tools. Compared to their electric power tool equivalents, they are safer to run and maintain, without risk of sparks, short-circuiting, or electrocution, and have a higher weight-to-power ratio, allowing a smaller, lighter tool to accomplish the same task. So, they are getting huge popularity day by day.

31. Printed Circuit Board Making

Designing and making printed circuit boards are great business opportunities for electrical engineers. The product has a high demand and tough market competition too. If you have prior experience and sound knowledge you can consider starting this business with moderate investment.

32. Robot Vacuum Cleaner Production

Robot vacuum cleaners are the new product. However, these items are getting huge popularity for both household and commercial use. The assembling process is not very complex. However, the business demands substantial capital investment and strategic planning.

33. Smartphone Repair

This is a lucrative business for an individual who knows how to repair a smartphone. Smartphone consumption is growing rapidly globally. So it creates an enormous opportunity for smartphone repair service providers. However, you must have the knowledge and skill in smartphone repair.

34. Smartphone Production

According to market statistics, worldwide smartphone shipments are growing at 3.4%. Apple, Samsung, Huawei, OPPO, Vivo, Xiaomi, Lenovo, LG Electronics, Sony, and ZTE as the key vendors in the global smartphone market. And most of today’s popular brands started operations with a very small investment. So, if you have that confidence in yourself, you can consider starting a smartphone production company.

35. Smartwatch Production

Manufacturing smartwatches is another great electrical business-related business idea in the coming days. If you know technology, you can start a smartwatch production business. However, the business demands moderate capital investment and proper marketing planning.

36. Solar System Provider

The solar system is a popular alternative energy solution. Due to the very less recurring cost, the trend of using solar power is growing rapidly. The primary responsibility includes providing design, supplying materials, and installing them within your client’s budget.

37. UPS Assembling

UPS comes in different capacities for different purposes. The product has domestic, official, industrial, and commercial uses. The assembling process is simple. And you can start the business by investing little money.

38. Voltage Stabilizer Production

The Voltage stabilizer provides an output voltage with a specified limit for supplying to load irrespective of wide fluctuation in the input voltage, independent of load power factor, and without introducing harmonic distortion. Additionally, you can start a voltage stabilizer business with moderate capital investment.

#39. Weighing Scale Production

Now a day the demand for digital weighing machines is increasing day by day in most business enterprises. Because measuring the weight with a digital weighing machine is user-friendly with a variety of various applications. It is a perfect manufacturing business opportunity for electrical engineers.

#40. Write Ebooks

Writing ebooks on various subjects of electrical engineering and its applications can be a good earning idea for electrical engineers. There are various online platforms where you can sell those books.

#41. Create Online Courses

Presently, the demand for online courses is on the rise. One can create an online course on any subject related to the electrical industry and make good recurring money.

42. Start a Blog

If you are an engineer in the electrical and electronics field and have a passion for writing, starting an electrical resource blog is a very good option for making an additional income. Starting a blog is extremely easy in the present day. Check how to start a blog and make money to learn more.

The worldwide electrical and electronics industry is experiencing phenomenal and remarkable changes these days. So, this is the right time for starting a business in the industry for electrical engineers. However, this sector demands adequate knowledge and experience.

43. Electrical Consultancy

If you have extensive knowledge in the electrical field, offer consultancy services to clients seeking expert advice on electrical systems and energy efficiency.

44. Cartridge Refilling

You can start the cartridge refilling business in two ways. One is by opening your own company. And another by buying a franchise. The market is very lucrative and it is growing. Furthermore, you can serve domestic and as well as commercial clients.

45. Electrical Training Institute

There is always a demand for skilled electrical engineers and technicians across the world. You can establish an institute that offers electrical training and certification courses for aspiring electricians and technicians.

46. Smart Home Solutions

Offer smart home automation services that allow customers to control and monitor their electrical devices remotely through smartphones and other devices.

47.  Robot Vacuum Cleaner Manufacturing

There has been a huge growth in the sale of robot vacuum cleaners in recent years. You may also assist homeowners with their cleaning efforts by making robot Hoover cleaners. A robot Hoover cleaner is not difficult to build, but it requires a reasonable initial investment and a strategic plan.

Frequently Asked Questions

Is Electrical Business Profitable?

Yes, the electrical business can be highly profitable, but it depends on various factors such as market demand, competition, business model, and efficiency. Here are some reasons why the electrical business can be profitable:

• Growing Demand
• Diverse Product Range
• Renewable Energy Market
• Technological Advancements
• Maintenance and Repairs
• Government Initiatives

As per the latest report, in the United States alone, there are 219,768 Electricians businesses in the US as of 2023. The number has increased by 0.4% from 2022.

What are the recent inventions in the electrical industry?

The electrical industry is constantly evolving. It is driven by technological advancements and the need for more sustainable and efficient solutions. In the last few years, there have been several notable inventions that have transformed the electrical sector. Here are some of the recent inventions in the electrical industry:

• Electric Vehicles (EVs)
• Energy Storage Systems (ESS)
• Solid-State Lighting (SSL)
• Internet of Things (IoT) in Electrical Systems
• Wireless Power Transfer (WPT)
• Power Electronics Innovations
• High-Voltage Direct Current (HVDC) Transmission
• Smart Grid Technology

What are the Biggest companies in the Electricians industry in the US?

Some of the biggest electrical companies in the United States are as follows:

• Quanta Services, Inc.
• Emcor Group, Inc.
• Bergelectric Corporation
• MDU Construction Services Group Inc
• E-J Electric Installation Co.

What qualifications do I need to start an electrical business?

To start an electrical business, you typically need relevant certifications and licenses based on local regulations. Additionally, having experience in the electrical field is beneficial.

How much capital is required to start an electrical contracting business?

The capital required depends on the scale of your business and the services you plan to offer. It may range from moderate to substantial amounts.

Is solar panel installation a profitable business?

Yes, solar panel installation can be profitable due to the increasing demand for renewable energy solutions.

What are the challenges in starting an electrical contracting business?

However, it is important to note that the electrical business can also face challenges. It includes competition, fluctuating market conditions, and regulatory compliance. To ensure profitability, you should focus on providing high-quality products and services, maintaining customer satisfaction, managing costs effectively, and staying updated with industry trends.