Industrial Efficiency – ABB Report Highlights Major Energy Savings Opportunity Worldwide
Industrial Efficiency – Industrial companies around the world could significantly lower electricity expenses and reduce carbon emissions by adopting more energy-efficient motors and generators, according to a newly released report from ABB. The study, titled The Industrial Efficiency Gap, identifies a largely overlooked opportunity within industrial infrastructure that could deliver substantial financial and environmental benefits over the lifespan of critical equipment.
Study Reveals Long-Term Cost Impact
The report is based on an analysis of more than 1,000 large synchronous motors and generators manufactured at ABB’s facility in Västerås, Sweden, and supplied globally between 2015 and 2025. Researchers found a measurable difference between the efficiency levels typically requested by customers and the highest levels currently achievable using commercially available technology.
According to ABB, this efficiency gap averages around 0.2 percentage points. While the difference appears small, its cumulative impact over decades of operation is considerable. The company estimates that industrial operators worldwide may be spending between $9.5 billion and $12 billion more on electricity than necessary during the 25-year operating life of such equipment.
Growing Electricity Demand Raises Efficiency Concerns
Large industrial motors with power ratings exceeding 375 kilowatts currently account for roughly 10.4 percent of global electricity consumption. Industry forecasts suggest this figure could double by 2040 as demand for electricity continues to rise, fueled in part by expanding digital infrastructure, artificial intelligence applications, and data center operations.
As energy systems face increasing pressure, improving the efficiency of industrial equipment is becoming an important strategy for reducing consumption while maintaining productivity and supporting energy security goals.
Focus Shifts from Purchase Price to Lifetime Value
David Bjerhag, Global Business Line Manager for High Speed Synchronous Motors at ABB, stated that many organizations have traditionally focused on improving processes within industrial facilities while paying less attention to the long-term performance of motors and generators.
He noted that the difference between standard equipment and higher-efficiency alternatives is not due to technological limitations. Instead, purchasing specifications often prioritize upfront costs rather than overall operational expenses. ABB argues that organizations that evaluate equipment using total cost of ownership are better positioned to achieve energy and sustainability targets.
ABB’s Top Industrial Efficiency Approach
ABB’s Top Industrial Efficiency (TIE) program is designed to provide customers with motors and generators that deliver the highest possible efficiency levels without compromising reliability or technical requirements. The initiative is available to original equipment manufacturers, engineering contractors, and end users seeking long-term performance improvements.
The report indicates that TIE-equipped systems generally achieve efficiency levels of approximately 98.7 to 98.8 percent, compared with around 98.5 percent for standard alternatives. In some applications, particularly those involving induction-based technologies, efficiency improvements can be even greater.
Potential Environmental Benefits
ABB estimates that applying a 0.2 percentage-point efficiency improvement across comparable industrial equipment worldwide could save between 4 and 6 terawatt-hours of electricity annually. This amount of energy would be sufficient to power approximately 750,000 to one million households in developed economies each year.
Over a 25-year period, the cumulative savings could reach between 100 and 150 terawatt-hours. The associated reduction in carbon dioxide emissions is estimated at 60 to 75 million metric tons, a figure comparable to permanently removing between 13 and 16 million passenger vehicles from the roads.
Industry Collaboration Seen as Key
To accelerate adoption of high-efficiency technologies, ABB recommends that companies integrate energy performance requirements into procurement processes and place greater emphasis on lifecycle costs when evaluating equipment investments.
The report also encourages closer cooperation among manufacturers, engineering firms, and equipment suppliers to ensure that energy-efficient solutions are considered early in project planning and deployed on a broader scale.
ABB, a global technology company specializing in electrification and automation, says improving industrial energy efficiency will play a critical role in supporting sustainable growth while helping businesses remain competitive in an increasingly energy-conscious economy.