The electrical engineering industry is banking on growth and innovation in 2026
The electrical engineering industry is banking on growth and innovation in 2026
Why 94% of electrical engineering companies expect revenue growth, although capacity utilisation and the length of their order books indicate continued uncertainty
What investments in technology, automation, new products and research Czech electrical engineering companies are planning
What opportunities investment in energy, semiconductors and data centres offers, and what could constrain further growth in the sector
This is according to the updated 2026 study Electrical Engineering Industry in the Czech Republic, which builds on the 2025 sector analysis. The study was initiated by the Electrical Industry Association of the Czech Republic in cooperation with BDO CZ’s analytical team. The sector’s importance is already demonstrated by the original analysis: in 2024, its revenue reached CZK 689 billion, representing 14.4% of revenue in Czech manufacturing.
Improved expectations are accompanied by uncertain demand
Expectations for margins are also improving alongside revenue. Margin growth is anticipated by 65% of the companies surveyed, up from 62% previously. The proportion of companies expecting margins to fall decreased from 24% to 18%. These are, however, respondents’ forecasts, and whether they materialise will also depend on costs and demand.Current production utilisation does not yet bear out this optimism. The proportion of companies using more than 80% of their capacity fell from 74% in 2024 to 47% in 2025. Order book visibility improved slightly at the beginning of 2026: 35% of respondents had orders for more than six months, compared with 28% previously. Nevertheless, 36% of respondents had production secured for no more than three months in January. It therefore remains important for companies to align investment with the actual development of orders.
Investment is intended to strengthen technological capability
Over the next one to two years, 47% of respondents plan to invest primarily in technology and automation, 41% in introducing new products and 35% in research and development. Interest in new products rose significantly compared with the previous survey, from 22% to 41%. The proportion of companies planning to expand production is also increasing, from 8% to 29%.“The sector’s competitiveness increasingly depends on its technological level, innovation and ability to create higher added value. Investment plans suggest that companies are reflecting this direction in their priorities too.”
According to the updated study, investment in energy, semiconductors, artificial intelligence and data centres is creating new order opportunities. Taking advantage of them will also require more resilient supply chains. Geopolitical risks, the availability of critical raw materials and new regulatory requirements may affect costs and delivery times. Further development will therefore depend on how successfully companies can turn growing expectations into longer-term orders and profitable growth.
More data and context: Study by the Electrical Industry Association of the Czech Republic and its 2026 update