Energy efficiency has become a board-level margin and risk issue, yet many industrial organisations in India are struggling to convert intent into sustained outcomes, according to a new report from ABB.

Based on a survey of 2,700 senior decision-makers across 15 countries and 15 industries, conducted in partnership with Sapio Research, the study shows that nearly two-thirds (64 per cent) of respondents in India have already invested in energy efficiency, while a further 32 per cent plan to do so within the next 12 months. However, progress is constrained by execution gaps.

Energy accounts for over one quarter (28 per cent) of operating costs in India, and more than seven in ten companies (72 per cent) report that rising energy costs continue to impact profitability, compared to 59 per cent globally. The challenge has shifted from reacting to price spikes to managing ongoing price volatility and structural exposure.

“In India, the conversation around energy efficiency has evolved from a cost-saving measure to a critical pillar of long-term business strategy. The next wave of competitive advantage will be defined by organisations that can bridge the execution gap, convert data into actionable insights and embed energy efficiency into their operational DNA,” said Amit Gupta, Local Division President, Motion Services in India, ABB. “It is no longer only about adopting technology; it is about building a culture of sustained, scalable execution to improve profitability and resilience in a volatile market.”

The study highlights that digital readiness in India has reached 80 per cent, exceeding the global average of 67 per cent, with organisations already using or prepared to deploy digital energy management tools. However, only 41 per cent consistently apply total cost of ownership (TCO) in investment decisions, despite 80 per cent agreeing it should guide purchasing.

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 changed,” he added. “Cost is no longer the primary constraint for many organisations globally, declining from 50 per cent to 43 per cent since 2022. The key challenges are organisational silos, skills gaps and lack of usable data. The focus must now shift to enabling businesses to convert intent into repeatable execution.”

In India, the most significant barriers include workforce resistance to new technology (42 per cent), lack of specialist resources (42 per cent), and insufficient digital skills (41 per cent).

The report also highlights a risk of ‘post-renewables complacency’. Among organisations in India that have adopted renewable energy (42 per cent of respondents), 36 per cent report reduced focus on energy efficiency.

While renewables lower carbon intensity, they do not reduce energy consumption volumes, leaving significant efficiency gains untapped. This limits opportunities to improve resilience, control long-term costs and reduce exposure to volatility.

Respondents cited reducing energy costs (53 per cent), lowering carbon footprint (43 per cent), and improving resilience and competitiveness (40 per cent) as their primary drivers for investing in energy efficiency.

The next phase of the industrial energy transition will be defined by delivery capability. Despite high levels of activity, efforts remain fragmented and lack long-term structure.

“To address the execution gap, ABB combines diagnostics, targeted modernisation of motor-driven systems, software-enabled optimisation tools, outcome-based financing and lifecycle services,” he concluded. “Through end-to-end energy intelligence, we enable industries to operate more efficiently and sustainably, moving beyond isolated initiatives towards sustained performance improvement.”