Digital upgrades in drives promise 164 TWh energy savings
Recent research by IoT Analytics has identified four primary digital upgrades as being central to improving operational efficiency in industrial drives.
The findings stem from IoT Analytics' Digitalization of Industrial Drives - Adoption Report 2025, which surveyed companies that integrate motors into their equipment. According to the report, 99% of OEMs and system integrators believe that the digitalisation of industrial drives enhances system efficiency.
Key upgrades
The research highlights four main areas where digitisation is currently providing the most value: simulation, customisation, reliability and uptime, and cybersecurity. These upgrades are regarded as significant contributors to improved energy use and overall system performance. By deploying such digital solutions, manufacturers can optimise drive operations and reduce resource consumption.
The adoption report notes that digitalisation could deliver extensive energy savings. IoT Analytics estimates that increased efficiency from the digitalisation of drives could lead to a worldwide reduction in electricity consumption of 164 TWh. This saving is roughly equivalent to the output of 21 one-gigawatt nuclear reactors.
The report also establishes that while technology enables new efficiencies, substantial challenges remain for widespread adoption. According to the findings, these barriers are more human than technical, with organisational resistance and management expectations seen as central issues slowing implementation.
Industry perspective
Joaquin Fernandez, Market Analyst at IoT Analytics, comments that "Electric motor systems account for a dominant share of plant electricity, with drives having an immediate impact on how efficiently that energy is used and how reliably these assets perform. As energy costs rise and efficiency rules, reliability targets, and security obligations tighten, manufacturers are investing in drive system digital solutions such as simulation, customization, reliability & uptime, and cyber security. The business case is compelling, yet execution is a people problem: our 2025 study finds that resistance to new ways of working and unrealistic management expectations delay adoption more than technology constraints."
The analyst's observations align with the survey's conclusion that strategic investment in digital solutions is growing, with companies seeking to address several concerns at once: meeting regulatory demands, lowering operating costs, and reinforcing cyber resilience. As digitisation progresses, assets such as industrial drives become increasingly integrated into larger manufacturing systems, requiring operators to adopt new processes and workflows.
Barriers and benefits
The report's evidence suggests that the technical case for digitising drives is solid and quantifiable, particularly due to the prospect of significant electricity savings and improved reliability. Nonetheless, organisational culture, workforce training, and change management remain to be addressed before full benefits can be achieved.
Additional findings from the report indicate that companies at different stages of digital maturity are adopting solutions at varying rates. The more digitally mature organisations are already implementing advanced analytics and simulation tools to model performance and forecast maintenance, while those earlier in their digital transformation journey are focused on basic monitoring and simple system upgrades.
Market context
The research reflects ongoing industry trends driven by rising energy costs, the need to comply with efficiency regulations, and security concerns related to the increased connectivity of industrial systems. Alongside direct financial advantages, companies are recognising that digitalisation supports broader sustainability targets and longer asset life spans through predictive maintenance and enhanced reliability.
IoT Analytics has produced a public analysis detailing the report's key findings and the role of digital upgrades in unlocking energy savings and operational improvements in the industrial sector.
