India's Digital Readiness for Energy Efficiency Soars to 80%, Outpacing Global Average
A comprehensive new report from ABB, a global leader in electrification and automation, highlights that India's digital readiness for energy efficiency has surged to 80 percent, significantly ahead of the global average of 67 percent. This finding underscores India's proactive stance in adopting digital tools to manage energy consumption, positioning it as a frontrunner among international peers.
High Investment Intent Meets Execution Challenges
The study, developed in partnership with Sapio Research and based on a survey of 2,700 senior decision-makers across 15 countries including India, reveals that 64 percent of industrial leaders in India have already invested in energy efficiency initiatives. An additional 32 percent plan to do so within the next 12 months, indicating strong momentum. However, the report cautions that progress is increasingly hampered by significant execution gaps.
Energy costs constitute 28 percent of operating expenses on average in India, with 72 percent of companies citing rising energy costs as a threat to profitability. This concern exceeds the global average of 59 percent, highlighting the acute pressure on Indian businesses. Amit Gupta, Local Division President of Motion Services in India at ABB, emphasized, "The conversation around energy efficiency has matured from only a cost-saving tactic to a critical pillar of long-term business strategy."
Shifting Barriers: From Cost to Organizational Issues
Since 2022, the primary barriers to energy efficiency in India have evolved. While cost was previously a major blocker, it has decreased from 50 percent to 43 percent globally. The current challenges are more organizational:
- 42 percent of respondents cite workforce resistance to new technology.
- 42 percent report a lack of specialist resources.
- 41 percent identify a gap in digital skills.
Gupta added, "What's holding companies back now are organizational silos, skills gaps, and a lack of usable data. The challenge is helping businesses turn intent into repeatable execution." The study notes that responsibility for energy efficiency remains fragmented across various functions like executive management, operations, and finance, with no single department clearly accountable.
Digital Tools and Total Cost of Ownership Gaps
Despite high digital readiness, with many companies using or ready to deploy digital energy-management tools, only 41 percent of Indian firms consistently apply total cost of ownership (TCO) in investment decisions. This is despite 80 percent agreeing that TCO should guide purchasing, indicating a disconnect between awareness and practice.
Risk of Post-Renewables Complacency
The report also warns of a growing risk of 'post-renewables complacency'. Among Indian organizations that have switched to renewable energy sources (42 percent of respondents), 36 percent report a reduced focus on energy efficiency. While renewables lower carbon intensity, they do not reduce energy consumption volume, leaving untapped efficiency gains that could enhance resilience and control costs.
When asked about primary reasons for investing in energy efficiency, Indian respondents highlighted:
- Reducing energy costs (53 percent).
- Reducing carbon footprint (43 percent).
- Improving resilience and competitiveness (40 percent).
ABB's Role in Bridging the Execution Gap
To address these challenges, ABB offers solutions including diagnostics, modernization of motor-driven systems, software-enabled optimization tools, outcome-based financing, and lifecycle services. Gupta concluded, "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."
The report underscores that the next phase of India's industrial energy transition will be defined by delivery capability, urging businesses to embed energy efficiency into their operational DNA for long-term success in a volatile market.
