ABB: How a 0.2% Industrial Decision Scales to Billions

Article Operations ABB: How a 0.2% Industrial Decision Scales to Billions By Charlie King June 03, 2026 undefined mins Share this article Prioritise Us on Google Share this article Prioritise Us on Google MOLM Västerås Factory Manufacturing. Credit: ABB ABB’s report, The Industrial Efficiency Gap: How a 0.2% Decision Scales to Billions, highlights how a tiny efficiency gain can unlock billions of dollars A 0.2% gain might seem insignificant in industrial engineering, but ABB suggests it can translate into billions at scale. In its report,  The Industrial Efficiency Gap: How a 0.2% Decision Scales to Billions , ABB identifies large motors and generators as a critical yet often overlooked lever in industrial decarbonisation. These assets typically operate for decades, with their use phase responsible for roughly 99% of lifetime CO₂ emissions. Drawing on analysis of more than 1,000 large motors and generators delivered from its Västerås facility between 2015 and 2025, ABB demonstrates how specification decisions made today can influence energy costs, emissions and operational performance for years. David Bjerhag, Global Business Line Manager, High Speed Synchronous, ABB "Industry has spent decades optimizing what happens inside a plant. Yet large motors and generators have rarely been part of that conversation, even though they run continuously for 25 years and sometimes even more, converting more energy than almost anything else on site,” says David Bjerhag, Global Business Line Manager, High Speed Synchronous, ABB. “What our data shows is that the gap between a standard machine and a TIE-optimised one is not technological. It is a specification gap. The companies closing it fastest are the ones where the engineer who selects the motor and the CFO or CSO responsible for energy performance are aligned around a single metric: total cost of ownership. That alignment is what TIE is designed to create." Why electrification isn’t enough Industrial electrification is accelerating across sectors such as oil and gas, metals, chemicals, utilities, and pulp and paper, but ABB cautions that electrification alone will not deliver sufficient gains. According to the report, overall system efficiency depends on the entire motor-driven system, including driven equipment, controls and operating profile. Even so, the motor or generator remains central, setting the baseline for energy conversion efficiency. Within this context, ABB positions its Top Industrial Efficiency (TIE) option as a practical pathway to improved performance without adding complexity or compromising reliability. Procurement priorities For procurement teams, the report delivers a clear message: each request for quotation for a large motor or generator represents an opportunity to secure long-term value. ABB argues that the primary barrier is not technology, cost, or complexity, but rather a short-term purchasing mindset shaped by regional energy pricing and fragmented value chains that separate capital expenditure decisions from operational costs. This dynamic places procurement in a strategic role, as the upfront premium for higher-efficiency equipment can be offset by sustained reductions in energy expenditure. Credit: ABB The report recommends prioritising total cost of ownership over initial purchase price. ABB states that specifying the TIE option can deliver payback within a few months to three years, after which the remaining lifespan of the asset contributes directly to cost savings and productivity gains. Manufacturing impact ABB estimates that large motors rated above 375 kW currently account for approximately 10.4% of global electricity consumption, with demand expected to double by 2040. Given their widespread use across heavy industry, even marginal efficiency improvements can scale significantly across sites and regions. ABB reports that a typical TIE upgrade increases synchronous machine efficiency from around 98.5% to between 98.7% and 98.8%, while induction-based systems can often achieve gains of 1 to 1.5 percentage points. As a proof point, the report highlights a 56 MW TIE-optimised synchronous motor delivered to a steel plant in India in 2025. ABB states that the machine achieved a verified efficiency of 99.13%, setting a new world record, and is projected to deliver US$5.9m in electricity savings while avoiding 45,000 tonnes of CO₂ over its lifetime. The billion dollar saving opportunity ABB’s financial case centres on scale and long-term impact. The report states that if all standard machines delivered by ABB’s Västerås factory over the past decade had been specified using the TIE option, global industry could already have saved 11.1 TWh of electricity and nearly US$1bn based on US energy costs. It also estimates that 5.9 million tonnes of CO₂ emissions could have been avoided, equivalent to removing approximately 1.3 million cars from the road for one year. Looking more broadly at the installed base, ABB suggests that a 0.2% efficiency improvement across large industrial motors could deliver annual savings of 4 to 6 TWh. Over a 25-year lifecycle, this could amount to 100 to 150 TWh of electricity saved, alongside cumulative cost savings of US$9.5bn to US$12bn and emissions reductions of 60 to 75 million tonnes of CO₂. Company portals ABB Executives David Bjerhag Global Business Line Manager Tags Sustainability procurement manufacturing Electrification