ABB Report Highlights India’s Lead in Energy Efficiency, ahead of global peers

Industrial manufacturing, energy-intensive sectors, and infrastructure operations in India are increasingly prioritizing energy efficiency as a strategic lever for cost control and resilience. According to a recent report by ABB, digital readiness for energy management in India has reached 80%, exceeding the global average of 67%, reflecting strong adoption of digital tools for monitoring and optimizing energy use.

Despite this progress, the study highlights a gap between investment intent and measurable outcomes, driven by organizational and operational challenges rather than financial constraints.

Rising energy costs drive strategic focus
Energy accounts for approximately 28% of operating costs for industrial organizations in India, making it a critical factor in profitability. Around 72% of surveyed companies report that rising energy costs continue to impact margins, a higher proportion than the global average of 59%.

This shift has elevated energy efficiency from a cost-reduction initiative to a board-level priority tied to long-term competitiveness and risk management. Companies are increasingly seeking ways to manage price volatility and reduce structural exposure to energy costs.

Strong investment momentum with execution challenges
The report, based on a survey of 2,700 decision-makers across 15 countries and industries, indicates that 64% of Indian organizations have already invested in energy efficiency measures, with an additional 32% planning investments within the next 12 months.

However, only 41% consistently apply total cost of ownership (TCO) in decision-making, despite widespread recognition of its importance. This gap suggests that while awareness and readiness are high, consistent implementation of best practices remains limited.

Responsibility for energy efficiency is also distributed across multiple departments—including operations, sustainability, maintenance, and finance—leading to fragmented decision-making and reduced accountability.

Shift in barriers from cost to capability
The findings show a clear transition in the barriers to energy efficiency. While cost was previously the primary constraint, current challenges are more organizational and technical in nature.

In India, the main barriers include workforce resistance to new technologies (42%), lack of specialist resources (42%), and gaps in digital skills (41%). These factors limit the effective use of digital energy management systems and slow down the transition from pilot initiatives to scalable solutions.

The report emphasizes that access to actionable data and the ability to integrate insights into operational workflows are now critical to achieving sustained efficiency improvements.

Renewable adoption and efficiency gaps
The study also identifies a trend among organizations that have adopted renewable energy sources. While 42% of respondents in India have transitioned to renewables, 36% of these companies report reduced focus on energy efficiency.

This highlights a key limitation: renewable energy reduces carbon intensity but does not lower total energy consumption. Without efficiency improvements, companies may miss opportunities to further reduce costs and improve operational resilience.

Moving toward data-driven energy optimization
The next phase of industrial energy transition in India is expected to focus on execution capabilities—integrating diagnostics, digital tools, and system-level optimization into daily operations. This includes improving motor-driven systems, leveraging software for real-time monitoring, and aligning investment decisions with lifecycle performance metrics.

Compared with earlier approaches focused on isolated upgrades, current strategies emphasize end-to-end energy management supported by digital platforms. This shift aims to transform energy efficiency from a series of individual projects into a continuous, data-driven process embedded within industrial operations.

Edited by Industrial Journalist, Natania Lyngdoh — Adapted by AI.

www.abb.com