A report from ABB shows that a 0.2% efficiency gain in large industrial motors could unlock up to $12 billion in savings [1].
These findings highlight a financial opportunity for global industrial operators to reduce costs by closing the gap between standard and high-efficiency motor specifications.
The data for the report was drawn from more than 1,000 large motors and generators [1]. These assets were delivered globally by ABB’s High Power division from its facility in Västerås, Sweden [1].
According to the report, the potential $12 billion in savings would be realized over a 25-year asset life [1]. This figure represents the cost to global operators resulting from the specification gap between standard options and Top Industrial Efficiency (TIE) motors [1].
Adopting the TIE option offers a relatively short return on investment. The report said the typical payback period for these efficiency gains ranges from a few months to three years [1].
Industrial motors rated above 375 kW account for an estimated 10% of the total fleet [1]. By targeting this specific segment of the fleet, companies can achieve energy reductions and financial gains through modest technical improvements.
“A 0.2% efficiency gain in large industrial motors could unlock up to $12 billion in savings.”
This report underscores how marginal technical gains in heavy industry can lead to exponential financial returns. By focusing on the 'specification gap' of the top 10% of the motor fleet, ABB suggests that industrial decarbonization and cost-cutting can be achieved without requiring radical new technology, but rather through the adoption of existing high-efficiency standards.
