Energy efficiency has moved beyond intent - execution now defines industrial advantage

Based on a survey of 2,700 senior decision‑makers across 15 countries and 15 industries, the study, developed in partnership with Sapio Research, finds that 63% have already invested in energy efficiency and a further 29% plan to within the next 12 months. Yet, progress is increasingly constrained by execution gaps. 

Energy still absorbs around a quarter of operating costs on average, and nearly 60% of companies say rising energy costs continue to threaten profitability, despite calmer wholesale markets. 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.

"Energy efficiency has become a foundation for business continuity, compliance, and long-term value creation. It’s a condition for market access," explained Erich Labuda, president of ABB's Motion Services division. "Today, leaders care about optimising energy use. What they struggle with is deployment, at scale, and over time."

Execution, not intent, is now the differentiator

The study shows that digital readiness has gone mainstream, with two thirds (67%) of respondents already using or ready to deploy digital energy‑management tools. However, readiness alone does not guarantee results. Only 37%  consistently apply total cost of ownership (TCO) when making investment decisions - despite eight in ten (81%) 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 Labuda. "Cost is no longer the main blocker - it has fallen from 50% to 43% since 2022. What’s holding companies back now are organisational silos, skills gaps and a lack of usable data. That’s a critical inflection point. It tells us the challenge is helping businesses turn intent into repeatable execution.”

Renewables alone are not enough

The research also points to a growing risk of ‘post‑renewables complacency’. Among organisations that have switched to renewable energy sources (39% of respondents), more than one third 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.

The next phase of the industrial energy transition will be defined by delivery capability. While activity levels are high across businesses, efforts remain shallow, lacking coordination and long‑term structure.

"To close the execution gap, ABB combines diagnostics with targeted modernisation of motor‑driven systems, software‑based optimisation tools, outcome‑based financing and lifecycle services," Labuda concluded. "End-to-end energy intelligence is another way we help industries outrun, leaner and cleaner - turning isolated initiatives into sustained performance gains."

The full report is available here.

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