Digital Transformation in the Electrical Manufacturing Industry: A Literature Review of Key Considerations and Strategic Priorities

Abstract

This paper reviews the digital transformation landscape confronting the electrical manufacturing industry, examining the technological, operational, and strategic considerations that determine successful adoption. Drawing on industry reports, case studies, and recent literature, the study synthesizes emerging technology trends, including advanced connectivity, the Internet of Things, artificial intelligence, and big-data analytics, and their implications for electrical businesses transitioning toward Industry 4.0 practices. A risk framework is developed to categorize the principal threats and opportunities facing the sector, addressing challenges such as legacy-system interoperability, networking infrastructure gaps, high capital requirements, supply chain disruptions, and evolving data-governance regulations. Successful transformation practices from established organizations, including P&G, GE Digital, Schneider Electric, and Enel X, are examined to extract lessons applicable to the electrical manufacturing context. The findings indicate that a resilient technology foundation, anchored in enterprise resource planning and a coherent digital ecosystem, underpins sustained transformation, while regulatory, workforce, and infrastructure constraints remain significant barriers. The paper concludes by outlining the digital ambitions and priorities electrical businesses should pursue, including investment in data analytics capabilities, cybersecurity, and low-code/no-code enterprise tools, to remain competitive amid accelerating global sustainability and digitalization targets.