Stefan Floeck, President of IEC Low Voltage Motors, ABB Motion, previews new research to be released shortly that highlights the importance of energy efficiency in electric motors to minimise electricity bills and carbon emissions.
As every engineer knows, energy is never truly lost — only transformed. But in today’s industrial environment, where only three out of five electric motors meet minimum energy performance standards, wasted potential shows up as high electric bills and unnecessary carbon emissions.
With the IEA reckoning global energy demand at 166 exajoules per year, the challenge isn’t just about producing more clean energy: it’s using what we already have more effectively. ABB’s upcoming whitepaper, “Energy efficiency: the decisive factor,” lays out how businesses can and must take efficiency seriously — starting with the electric motor, the backbone of industry.
The price of standing still
Electric motors consume 70% of industrial electricity, but most of the 300 million in use today are inefficient, representing a major savings opportunity. ABB’s research, surveying over 2,400 business leaders in 13 countries, found that 91% consider efficiency a decisive factor when choosing motors. Yet adoption is slowed by higher upfront costs (37%), system integration concerns (35%), and potential downtime (33%).
Focusing on integrated motor-drive packages from a single supplier can improve performance while simplifying integration and maintenance, helping to avoid the costs and delays typically associated with piecemeal upgrades. This solution is often the most cost-effective one in the long run.
TCO: The elephant in the room
Implementing energy efficiency into wider operations will require long-term thinking. While most businesses understand the importance of energy efficiency, only 41% are prioritizing total cost of ownership (TCO) when making purchasing decisions. Too many companies laser-focus on upfront costs, turning a blind eye to long-term savings.
TCO is a full-spectrum view of investment. It includes lifetime energy consumption, maintenance and repair costs, component longevity, and even operational downtime. Promisingly, 99% of companies said they track ROI from their energy initiatives. Still, the temptation to opt for a cheaper IE3 motor can win out over an ultra-efficient IE5 — especially if the ROI story hasn’t been communicated clearly. By opting for “good enough” today, businesses miss out on “great” tomorrow. Prioritising TCO helps them invest in both cost efficiency and environmental integrity simultaneously.
Coalition, not competition
Our research reveals a split in the supply chain. End users, closest to sustainability-conscious consumers, are leading adoption. But OEMs and distributors remain more cost-driven. Lacking external pressure, they need internal cost and sustainability goals to drive change.
Faster progress will depend on collaboration and shared sustainability targets. OEMs, end users, and distributors all benefit from transparency and tools like Environmental Product Declarations (EPDs). At ABB, we believe sustainability should be a coalition, not a competition. By combining their insights, the entire value chain can move faster and further toward a low-carbon future.
Plug into the opportunity
The takeaway here isn’t just to buy better motors — it’s to view efficiency as an innovation strategy and competitive edge. With the right motor choices and a focus on lifetime value, industrial businesses of any size can lower emissions, reduce operating costs, and meet sustainability goals without sacrificing performance.
The International Energy Agency stresses that energy efficiency is the “First Fuel.” Before we dig up more resources to build up more energy capacity, we need to patch the leaks in our existing system. That decision is in the hands of every lead engineer, procurement officer, and plant manager. And it starts with the electric motor.