Efficient motors and drives could cut global energy use by up to 10%
9 June 2025 
The wider use of technologies such as high-efficiency motors and VSDs (variable-speed drives) could cut global energy consumption by up to 10%, without needing to spend trillions of dollars on new infrastructure, argues ABB in a new White Paper that it has launched ahead of the International Energy Agency’s 10th Annual Global Conference on Energy Efficiency in Brussels, on 12–13 June.
It says that doubling the rate of annual energy efficiency improvements to 4% to in the period to 2030, could avoid a third of the emissions reductions needed for achieve net-zero – equivalent to China’s annual energy consumption.
The paper – called Achieving the COP28 UAE Consensus: The vital role of high-efficiency motors and drives in net energy addition and lower emissions globally – identifies the massive untapped potential for energy efficiency in the industrial sector. It sees rapid adoption of high-efficiency technologies, combined with energy audits, digitalisation and connectivity, as being key to cutting industrial energy use. Greater investment and regulation are also needed urgently to help scale up the technologies to advance the energy transition.
In 2024, ABB points out, global energy demand grew by 2.2%, outpacing the average for the past decade. Nearly 40% of this growth was driven by the industrial sector, with industrial use of electricity increasing by 4%. It warns that the energy efficiency of motors and drives has been neglected in comparison with other approaches to sustainable energy.
The report demonstrates the impacts that energy-efficient technologies can have on industry, including rapid returns on investment, and more efficient long-term operations.
ABB reports that between November 2024 and May 2025, it screened more than 10,500 systems driven by industrial motors. From these, it prioritised 5,900 which, it calculates, would be capable of average energy savings of 43% – totalling around 941,000MWh, or the annual energy use of 91,715 US homes.
With more than 300 million industrial electric motors in use globally, and 45% of the world’s electricity being consumed by motors, adopting high-efficiency technologies can achieve significant energy and CO2 savings. IE3 motors achieve about 96% efficiency. IE4 machines reduce energy losses by a further 15%, and IE5 motors have 20% lower losses than IE4. Correctly sizing motors for their applications can further enhance industrial efficiency.
Even greater savings are possible using VSDs, which typically cut power consumption by 25%. But only around 25% of industrial motors are currently controlled by drives.
ABB is calling on policymakers to increase their cooperation with the private sector. They must encourage industries to adopt more efficient technologies through incentives, subsidies and tax breaks, helping to address the growing and unexpected demands on energy grids from loads such as data centres and AI.
“Around the world, rising energy demand, climate pressure, and geopolitical instability are converging to create an urgent need for smarter energy use,” says Erich Labuda, president of ABB’s Motion Services division. “Energy efficiency is one of the most powerful, yet under-used, tools we have to address these global challenges. It reduces emissions, strengthens energy security, and boosts industrial resilience – all with technologies that are available today.
“Proven solutions including high-efficiency motors and drives are already delivering double-digit energy savings,” he points out. “With payback periods as short as seven months, the business case is clear. Now is the time to scale up. Our White Paper highlights that doubling the rate of energy efficiency improvements to 4% annually until 2030 could avoid a third of the emissions reductions needed for net-zero – equivalent to China’s annual energy consumption.
“Energy efficiency isn’t an optional upgrade – it’s a critical one,” says Labuda. “Greater energy efficiency not only enhances energy independence but also spurs economic growth, making the adoption of these solutions a clear and sensible choice.”
