Modernize to compete

Why is proactive modernization essential for industrial resilience and competitiveness? What are the real business and environmental gains—and what’s holding companies back? To answer these questions and more, our global research explores how industries can outrun downtime, cut waste, and lead in a leaner, cleaner future through smarter life-cycle strategies. Have a look at what we found.

Key takeaways

Surveyed 3600

senior decision-makers

Mapped 14

industries across 18 countries

Disruptions cost up to $500,000

per hour for 76% of respondents

In the last two years 33%

have not undertaken any motor or drive modernization projects

Among those facing weekly interruptions 20%

report having a proactive modernization strategy in place

For 35%

communicating the ROI of modernization projects to senior leaders is a challenge

Understanding life-cycle management practices

While 95 percent of industry leaders are familiar with equipment life-cycle stages, just over half have a proactive modernization strategy in place. Many rely on case-by-case or reactive methods, leaving themselves exposed to unnecessary downtime and inefficiencies. Retrofitting and upgrading are common, but wider adoption of cohesive plans could drive greater operational resilience.

Overcoming barriers to proactive modernization

Budget constraints (37%), uncertainty around ROI (26%), and internal skills gaps (28%) are the top obstacles to modernization. While 82 percent of decision-makers factor downtime into investment decisions, 16 percent rarely do—leaving themselves exposed to costly disruptions. Communicating ROI remains a challenge for 12 percent of respondents, underscoring the need for clearer narratives and stronger business cases.

The business case for modernization

Unplanned downtime remains a costly threat, with average losses approaching $170,000 per hour. Nearly half of respondents report monthly disruptions, and 7 percent face costs exceeding $500,000 per hour. While 91 percent agree that modernization helps reduce downtime, only 45 percent strongly affirm it—highlighting a perception gap. Our report shows that success depends not just on having a strategy, but on executing it with precision, cross-functional alignment, and the right partner.

Environmental gains through life-cycle optimization

Modernization is also a powerful lever for cutting carbon emissions and transforming circularity into a competitive advantage. The majority of respondents see retrofitting as a way to lower energy consumption and climate impact, with 70% estimating at least a 10-30% reduction in CO₂. ABB’s circular approach keeps value in use: products that last longer, systems built to outperform, and materials reborn through refurbishment, retrofitting, and recycling.

Modernization isn’t optional - it’s a strategic imperative

ABB’s approach combines digital intelligence, modular retrofits, and circular thinking to turn yesterday’s equipment into tomorrow’s high performers. This is how we enable clients to trade last-minute fixes for long-term foresight. Because today uptime is a mandate for a more competitive future.

Oswald Deuchar, Global Head of Modernization Program, ABB Motion Services

How we can help you

This research highlights that proactive lifecycle management and modernization are key to industrial resilience and competitiveness. ABB supports customers by crafting tailored modernization strategies that optimize cost, reliability, and long-term performance across every asset and lifetime stage.

Retrofits

Retrofits deliver cost-effective interventions that extend equipment life, improve efficiency, and prepare assets for digital integration - without the disruption of full replacement.

Upgrades

Upgrades introduce the latest ABB technologies to maximize reliability, safety, and energy performance, ensuring that legacy systems meet today’s operational standards.

Replacements

Replacements, when necessary, renew end-of-life equipment with future-ready solutions that align with sustainability targets and evolving compliance frameworks.