Industrial energy efficiency: from ambition to scalable execution

Why does energy efficiency matter? In the electrification of industrial solutions energy efficiency enables higher productivity with lower energy use, reducing operating costs while significantly reducing carbon emissions.

Web Story

6min

2026-05-31

01

<p>Energy demand is accelerating faster than supply can adapt.&nbsp;Global primary energy use grew 145 percent in the 50 years to 2024, electricity demand is projected to grow by 1.1 petawatt-hours a year through to 2030.</p>

02

<p>Energy efficiency is a competitive and strategic imperative, not just a climate metric.</p>

03

<p>ABB combines diagnostics, high-efficiency systems, digital optimisation, and lifecycle services to turn efficiency ambition into measurable execution.</p>

Global primary energy use grew 145 percent in the 50 years to 20241 and electricity demand could grow by 1.1 petawatt-hours a year through to 2030.2 Yet three quarters of the energy we use now comes from fossil fuels3 that experts estimate will last around 50 years at the current consumption rates.4

Global energy demand grew by more than 2 percent in 2024 - well above the long-term average of 1.4 percent- according to the International Energy Agency’s World Energy Outlook 2025.5 As electrification accelerates and new industrial loads emerge, the defining question for industry leaders has shifted. It is no longer why energy efficiency matters. It is how to execute it consistently, systematically, and at scale.

Efficiency is now an economic imperative

Industry leaders are increasingly recognizing this. In an Energy Efficiency Movement survey of 2,000 senior decision-makers across energy-intensive industries, Energy costs pressure was cited  as one of the main reasons why companies, regardless of their revenue, are placing greater emphasis on improving energy efficiency. By reducing energy consumption and improving operational performance, organizations can mitigate exposure to energy price volatility while strengthening long-term resilience.6

Digitalization: the efficiency multiplier

<p>Hardware efficiency is only half the picture, as it must go hand in hand with efficiency from smarter control.</p> <p>The IEA estimates that AI and digital optimization can further boost efficiency by 3 to 10 percent across transport and industry<sup>13</sup>&nbsp; -&nbsp;equivalent to savings larger than the full energy demand of Indonesia today. For motor-driven systems, digitalization means using connected drives, sensors, and analytics to:</p>

Size equipment correctly and avoid costly overspecification

<p>&nbsp;&nbsp;</p>

Match motor speed to actual process needs in real time

<p>&nbsp;&nbsp;</p>

Predict and prevent failures before they cause inefficient operation or unplanned downtime

<p>&nbsp; &nbsp;</p>

From intent to execution

Energy efficiency is the fastest way to reduce energy costs, strengthen energy security and reduce 

emissions. The scale of opportunity is clear:

  • Five examples of avoidable industrial energy demand by 2035.14
  • Savings equivalent to the electricity output of the entire Middle East.15
  • A global motor base of 300 million units, the majority of which are still operating below optimal efficiency.16

The challenge is no longer making the case for energy efficiency. The case is made. The challenge now is execution - systematically, at scale, and starting with the motors that are already running.

 

Key case studies from around the world

Estonia

<p>Enefit, Estonia's state-owned energy group, worked with ABB to conduct a comprehensive energy analyzer assessment across its industrial operations. ABB's diagnostic tools identified where energy was being wasted, enabling targeted improvements that significantly boosted plant efficiency and reduced unnecessary consumption.</p>

<p>At Cemex's Rudniki cement plant in Poland, ABB delivered a bespoke electrical retrofit - modernising circuit breakers and power systems without shutting down the critical 36-hour-startup furnace. Improved thermal energy efficiency reduced clinker use and cut CO₂ emissions, while digital-ready breakers opened the door to cloud-based energy management.</p>

German heat pump manufacturer Skadec integrated ABB variable speed drives into its high-temperature R600a heat pump systems. ABB's drives precisely control compressor speed to match demand in real time. 

Europe's leading copper producer Aurubis replaced 460 ageing motors at its Pirdop plant in Bulgaria with ABB IE4 and IE5 high-efficiency motors, many paired with ABB drives. The upgrade delivers 25 GWh in annual electricity savings -equivalent to ~6,250 households- and cuts 12,000 tonnes of CO₂ per year. The project pays for itself in just 3.5 years.

<p>GlaxoSmithKline Biologicals (GSK), one of the world’s largest healthcare companies, has taken a bold step toward its net-zero goals by partnering with ABB to upgrade legacy motors at its vaccine manufacturing facility in Tuas South, Singapore. Through this strategic move, GSK is projected to save up to 615 MWh of electricity annually, reduce CO₂ emissions by 246 tons, and lower energy costs by up to USD 130,000, exceeding the factory’s decarbonization target by 25 percent.&nbsp;</p>

<p>Cooling accounts for up to 40 percent of a data center's electricity use - and with global data center capacity growing 19-22 percent annually, the energy footprint is unsustainable without innovation. ABB invested in UK-based OctaiPipe through ABB Motion Ventures, partnering to bring an on-premise AI platform to data center operators worldwide.</p>

References:

  1. IEA World Energy Outlook 2025. Stronger action on efficient motors, drives and other efficiency policies could avoid about 5 EJ of industrial energy demand by 2035 [Section 4.3.3]. iea.org/reports/world-energy-outlook-2025
  2. IEA World Energy Outlook 2025. Five exajoules is comparable to the electricity generated by the entire Middle East in 2024: 1,461 TWh, or 5.26 EJ [Table A.16]. iea.org/reports/world-energy-outlook-2025
  3. International Energy Agency (IEA) (2025). World Energy Outlook 2025. IEA. Available at: https://www.iea.org/reports/world-energy-outlook-2025
  4. Our World in Data (2025). Years of Fossil Fuel Reserves Left. Our World in Data. Available at: https://ourworldindata.org/grapher/years-of-fossil-fuel-reserves-left
  5. IEA World Energy Outlook 2025. Global energy demand grew by more than 2% in 2024 to over 650 exajoules (EJ), vs. a long-term average of 1.4% [Section 2.2.1]. iea.org/reports/world-energy-outlook-2025
  6. Energy Efficiency Movement Energy, Efficiency Investment Report 2026
  7. International Energy Agency (IEA) (2024). Energy Efficiency 2024. IEA. Available at: https://www.iea.org/reports/energy-efficiency-2024
  8. IEA World Energy Outlook 2025. Only three-fifths of industrial electric motors globally are covered by minimum energy performance standards (MEPS) [Section 1.10.1]. iea.org/reports/world-energy-outlook-2025
  9. ABB internal estimate. The global installed motor base is estimated at approximately 300 million units.
  10. ABB, The Industrial Efficiency Gap
  11. ABB customer case study. A U.S.-based customer upgrading to a high-efficiency motor paired with a variable speed drive is projected to save $1.3 million in electricity costs over 25 years, with a payback period of 9 months.
  12. ABB. In many cases, the 10% energy savings that high-efficiency motors deliver can help companies recoup the investment within one year.
  13. IEA World Energy Outlook 2025. AI and digital optimization can boost efficiency by 3–10% across transport and industry, equivalent to total energy savings slightly larger than the full demand of Indonesia today (around 13.5 EJ) [Section 1.5.3]. iea.org/reports/world-energy-outlook-2025
  14. IEA World Energy Outlook 2025. Stronger action on efficient motors, drives and other efficiency policies could avoid about 5 EJ of industrial energy demand by 2035 [Section 4.3.3]. iea.org/reports/world-energy-outlook-2025
  15. IEA World Energy Outlook 2025. Five exajoules is comparable to the electricity generated by the entire Middle East in 2024: 1,461 TWh, or 5.26 EJ [Table A.16]. iea.org/reports/world-energy-outlook-2025
  16. International Energy Agency (IEA) (2025). World Energy Outlook 2025. IEA. Available at: https://www.iea.org/reports/world-energy-outlook-2025

learn more

Reshaping our energy future: energy expansion and the electrification of everything

Explore how electrification, automation and AI are driving energy expansion and enabling resilient, scalable energy systems across industries.

Energy resilience: the foundation of a reliable energy system

From blackouts to grid collapse — discover how energy resilience protects operations, cuts costs, and drives decarbonization in today's volatile energy landscape.

The role of AI in energy optimization

Can artificial intelligence (AI) optimize energy usage to maximize benefits for people as well as the environment? ABB’s industrial AI solutions, including analytical AI and generative AI, (GenAI) are powerful tools to deliver AI energy optimization across industry, buildings, grids, and digital infrastructure.

ABB Stories Hub

From electrification breakthroughs to automation marvels, explore how ABB is shaping a more sustainable and resource-efficient future.