ABB's business environment

<p>ABB is well positioned to capitalize on key global megatrends that support our long-term growth ambitions. The expansion of the energy system due to the growing demand for electricity and the energy transition, is driving substantial investment in power generation, including the integration of renewables, grid modernization, energy efficiency, and industrial decarbonization. 
At the same time, rapid advances in digitalization and AI and evolving supply chains are increasing demand for ABB’s electrification and automation solutions. These trends are directly aligned with our purpose: to enable sustainability and resource efficiency through our customer offerings.</p>

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The demand for electricity is expected to more than double by 2050[1], driven by the electrification of transport, industry, and buildings, whilethe rapid expansion of data centers and AI issignificantly increasing electricity use. Customers are increasingly investing in electrification as it often reduces both operating costs and capital expenditures. In addition, electrification will be essential for achieving net-zero emissions and is expected to contribute over 50 percent of required emissions reductions to reach net zero by enabling a shift from fossil fuels to renewable energy sources. Our technologies play a key role in both supporting the energy transition and meeting rising energy demand, helping us contribute to progress and innovation in these essential sectors.


ENERGY EXPANSION AND INVESTMENTS IN ELECTRICAL INFRASTRUCTURE

Demand for power is rising steeply. In 2024, global energy demand grew by 2.2 percent, while electricity consumption increased by 4.3 percent, adding 1,080 TWh2, driven by the electrification of transport, expansion of data centers and AI infrastructure, as well as increased cooling needs in buildings.

Today’s electricity grid faces challenges, both in reliability meeting growing energy demand as well as enabling a transition to cleaner sources.

As renewables become a core part of the energy mix, substantial investment in grid infrastructure will be essential to ensure reliability, flexibility, and long-term sustainability.

Footnotes:


1. McKinsey & Company report: Global Energy Perspective 2024.
2. International Energy Agency

Bangkok’s Unicorn Phayathai building optimizes energy efficiency with ABB Ability™ Energy Manager

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OUR BUSINESS ENVIRONMENT

ABB is well positioned to capitalize on key global megatrends that support our long-term growth ambitions. The expansion of the energy system due to the growing demand for electricity and the energy transition, is driving substantial investment in power generation, including the integration of renewables, grid modernization, energy efficiency, and industrial decarbonization. 
At the same time, rapid advances in digitalization and AI and evolving supply chains are increasing demand for ABB’s electrification and automation solutions. These trends are directly aligned with our purpose: to enable sustainability and resource efficiency through our customer offerings.

The demand for electricity is expected to more than double by 20501, driven by the electrification of transport, industry, and buildings, while the rapid expansion of data centers and AI is significantly increasing electricity use. Customers are increasingly investing in electrification as it often reduces both operating costs and capital expenditures. In addition, electrification will be essential for achieving net-zero emissions and is expected to contribute over 50 percent of required emissions reductions to reach net zero by enabling a shift from fossil fuels to renewable energy sources. Our technologies play a key role in both supporting the energy transition and meeting rising energy demand, helping us contribute to progress and innovation in these essential sectors.

The demand for electricity is expected to more than double by 20501, driven by the electrification of transport, industry, and buildings, while the rapid expansion of data centers and AI is significantly increasing electricity use. Customers are increasingly investing in electrification as it often reduces both operating costs and capital expenditures. In addition, electrification will be essential for achieving net-zero emissions and is expected to contribute over 50 percent of required emissions reductions to reach net zero by enabling a shift from fossil fuels to renewable energy sources. Our technologies play a key role in both supporting the energy transition and meeting rising energy demand, helping us contribute to progress and innovation in these essential sectors.