Digital Readiness Toward Energy Efficiency in India Reaches 80%, Surpassing Global Peers

ABB Report Highlights a Shift from Funding Challenges to "Execution Gaps" in India’s Industrial Sector

BENGALURU — March 17, 2026 — India has emerged as a global frontrunner in the digital transition for energy management, with 80% of industrial organizations declaring digital readiness—significantly higher than the global average of 67%. However, a new report by ABB, in partnership with Sapio Research, warns that high intent is not yet translating into sustained results.

While 64% of Indian industrial leaders have already invested in energy efficiency and another 32% plan to do so within the year, the "execution gap" remains a critical hurdle.

The Profitability Challenge: Why Intent Isn’t Enough

Despite a stabilization in wholesale energy markets, energy remains a dominant financial pressure point for the Indian industry.

• Operating Costs: Energy accounts for an average of 28% of operating costs in India.

• Profitability Threat: 72% of Indian companies cite rising energy costs as a direct threat to their margins, compared to a global perception of just 59%.

The report suggests that the challenge for executives has shifted. It is no longer about reacting to sudden price spikes, but rather managing structural exposure and persistent volatility through long-term efficiency.

Bridging the "Execution Gap"

According to Amit Gupta, Local Division President, Motion Services, ABB India, the next wave of competitive advantage will belong to those who can bridge the gap between having data and taking action.

The Three Main Barriers in India

1. Workforce Resistance: 42% of respondents cite employee pushback against new technologies.

2. Specialist Scarcity: 42% report a lack of specialist resources to manage efficiency projects.

3. Digital Skills Gap: 41% identify a shortage of digital literacy required to operate advanced energy-management tools.

The Risks of "Post-Renewables Complacency"

A concerning trend identified in the study is the rise of complacency among firms that have already transitioned to green power. Of the 42% of Indian respondents who have switched to renewables, 36% admitted to a reduced focus on energy efficiency.

"Renewables lower the carbon intensity, but they don’t reduce the volume of energy consumed. Significant gains remain untapped even for companies with green power." — ABB Report Insight

FAQ.

What is "Digital Readiness" in this context?

It refers to an organization’s capability to deploy and use digital energy-management tools, such as AI-powered analytics, IoT sensors on motor-driven systems, and real-time monitoring software to track and optimize power consumption.

Why is Total Cost of Ownership (TCO) not being applied?

While 80% of Indian executives agree that TCO (considering maintenance, energy use, and lifespan) should guide their purchases, only 41% actually apply it. This is often due to "organizational silos"—where procurement teams are incentivized to choose the lowest upfront capital cost (CAPEX) rather than the lowest long-term operating cost (OPEX).

Who is responsible for energy efficiency in a typical Indian firm?

The report finds responsibility is often fragmented across finance, operations, maintenance, and sustainability teams. Without a single function or leader being held accountable for efficiency KPIs, initiatives often lose momentum.