PRNewswire
Bengaluru (Karnataka) [India], March 17: Energy efficiency has become a board-level margin and risk issue, but many industrial organizations in India are struggling to turn intent into sustained results, according to a new report from ABB.
- 64 percent of industrial leaders in India have already invested in energy efficiency and a further 32 percent plan to within 12 months
- Energy consumes 28 percent of operating costs in India, and 72 percent say rising costs threaten profitability - but barriers have shifted since 2022, from cost to data, skills and organizational silos
- Key barriers to energy efficiency in India include 42 percent workforce resistance to new technology, 42 percent lack of specialist resources and 41 percent gap in digital skills
Based on a survey of 2,700 senior decision-makers across 15 countries (including India) and 15 industries, the study, developed in partnership with Sapio Research, finds that nearly two-thirds (64%) of respondents in India have already invested in energy efficiency and a further 32 percent plan to within the next 12 months. Yet progress is increasingly constrained by execution gaps.
Energy absorbs over one quarter (28%) of operating costs on average in India, and more than seven in ten companies (72%) say rising energy costs continue to challenge profitability, despite calmer wholesale markets. The latter is significantly exceeding the profitability threat perception across the world, which is 59 percent. The issue is not lack of ambition or funding. For executives, the challenge has shifted from reacting to price spikes to managing persistent price volatility and structural exposure.
"In India, the conversation around energy efficiency has matured from only a cost-saving tactic to a critical pillar of long-term business strategy. The next wave of competitive advantage will be defined by those who can bridge the 'execution' gap, turning data into actionable insights and embedding energy efficiency into the operational DNA of their organization," explained Amit Gupta, Local Division President, Motion Services in India, ABB. "It's no longer just about adopting technology; it's about building a culture of sustained, scalable execution to enhance profitability and resilience in a volatile market."
Execution, not intent, is now the differentiator
The study shows that digital readiness in India has reached 80 percent, well above the average global figure (67%), with respondents already using or ready to deploy digital energy-management tools. However, readiness alone does not guarantee results. Only 41 percent of Indian companies consistently apply total cost of ownership (TCO) when making investment decisions - despite 80 percent agreeing it should guide purchasing.
At the same time, responsibility for energy efficiency remains fragmented across executive management, operations, sustainability, maintenance and finance, with no single function clearly accountable.
"The barriers to energy efficiency have fundamentally changed," added Amit. "Cost is not the major blocker for many organizations globally - it has fallen from half (50%) to 43 percent since 2022. What's holding companies back now are organizational silos, skills gaps, and a lack of usable data. That's a critical inflection point. The challenge is helping businesses turn intent into repeatable execution."
In India, the most significant barriers to energy efficiency are the workforce being resistant to new technology (42%), a lack of specialist resource (42%), and a lack of digital skills (41%).
Renewables alone are not enough
The research also points to a growing risk of 'post-renewables- complacency'. Among organizations in India that have switched to renewable energy sources (42% of respondents), 36 percent report a reduced focus on energy efficiency.
While renewables lower the carbon intensity of energy, they do not reduce the volume consumed - meaning significant efficiency gains remain untapped, even for companies that have already secured green power. As a result, opportunities to strengthen resilience, control long-term- costs and reduce exposure to volatility are being left on the table.
When asked about their primary reasons for investing in energy efficiency, respondents in India said reducing their energy costs (53%), reducing their carbon footprint (43%), and improving resilience and competitiveness (40%).
The next phase of the industrial energy transition will be defined by delivery capability. While activity levels are high across businesses in India and globally, efforts remain shallow, lacking coordination and long-term- structure.
"To help close the execution gap, ABB brings together diagnostics, targeted modernization of motor-driven systems, software-enabled optimization tools, outcome-based financing and lifecycle services," concluded Amit. "Through end-to-end energy intelligence, we enable industries to operate leaner and cleaner, helping them move beyond isolated efficiency initiatives toward sustained and comprehensive performance improvements."
For the full report, visit this page.
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this 'Engineered to Outrun'. The company has over 140 years of history and around 110,000 employees worldwide. ABB's shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
ABB Motion, a global leader in motors and drives, is at the core of accelerating a more productive and sustainable future. We innovate and push the boundaries of technology to contribute to energy efficient, decarbonizing and circular solutions for customers, industries and societies. With our digitally enabled drives, motors and services we support our customers and partners to achieve better performance, safety and reliability. To help the world's industries outrun - leaner and cleaner, we deliver motor-driven solutions for a wide range of applications in all industrial segments. Building on over 140 years of domain expertise in electric powertrains, our more than 23,000 employees across 100 countries learn and improve every day. go.abb/motion
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