Industry drives net-zero push with electrification focus

Industrial organisations are preparing to increase spending on electrification, demand-side flexibility and digital tools as they work to cut emissions, according to a new Siemens survey.

The Siemens Infrastructure Transition Monitor, which polled 1,400 senior executives and government representatives in 19 countries, found that 65% of industrial leaders rank electrification as the most effective lever for reaching net-zero targets. The findings also point to wider use of onsite renewables and increased efforts to decarbonise core operations.

Electrification focus

The survey suggests electrification is now central to many industrial transition plans. Respondents also cited grid investment and operational changes as key parts of their decarbonisation approach.

The share of organisations classed as mature or advanced in onsite renewable energy production rose to 42%, up from 27% in 2023. The share rated mature or advanced in decarbonising core operations increased to 38% from 27% over the same period.

The data suggests some companies are moving beyond pilots into broader programmes. Progress remains uneven, with most organisations still not classed as mature or advanced in either onsite generation or core operational decarbonisation.

Flexibility mechanisms

Demand-side flexibility featured prominently in responses. The research describes it as managing consumption in line with market conditions and grid needs, with potential benefits for both emissions and costs.

Nearly six in ten organisations (59%) said they plan to use energy assets to benefit from flexibility mechanisms. Almost half (45%) said their efforts are already mature or advanced.

Interest in flexibility reflects a shift in how some operators view energy systems. Rather than treating energy use as fixed, companies are increasingly assessing how processes, storage, and onsite generation can shift consumption over the course of a day or week.

Digital as enabler

Digitalisation also emerged as a key theme. In the survey, 63% of industrial leaders said it is a critical enabler of decarbonisation.

Siemens linked this to smarter energy management and AI-driven optimisation, alongside greater attention to data flows across the energy system. More than half of respondents (56%) said better data sharing between energy producers and consumers would improve efficiency, while 58% linked improved data sharing to greater resilience.

Overall, the results suggest industrial decision-makers see operational data as part of the energy transition. That includes closer monitoring of consumption and generation, and the use of analytics to adjust production schedules and asset utilisation.

Policy uncertainty

The research also highlights concerns about regulation and government policy. Almost two-thirds of respondents (63%) said policy uncertainty is a growing threat to the energy transition.

Regulatory uncertainty also appears to be affecting capital allocation. According to the survey, 60% said it discourages private-sector investment in renewables, and 57% said uncertainty about the future energy system is delaying clean energy investment.

For industrial companies with long-lived assets, uncertainty can affect decisions about electrifying heat, upgrading grid connections, installing onsite generation, and building flexibility into processes. The findings suggest delays are possible even when technology options and internal targets are in place.

Matthias Rebellius, a member of the managing board and CEO of Smart Infrastructure at Siemens, said that industrial investment plans depend on the policy environment.

"Industrial companies are proving that sustainability and competitiveness can advance together. They are investing in electrification, flexibility and digital technologies that deliver results today. What they need now is long-term policy clarity and supportive regulations to plan ahead with confidence and accelerate the transition to cleaner, more efficient operations."

The Infrastructure Transition Monitor is a biennial study commissioned by Siemens. It covers energy, buildings and industry respondents across 19 countries, including private-sector executives and government representatives.

The next edition is expected to track whether electrification and flexibility plans translate into higher deployment, and whether regulatory changes reduce the uncertainty respondents said is holding back investment.