Industrial power systems are set to move from largely passive electrical infrastructure towards actively managed networks that can generate, store and optimise energy in response to operational and grid conditions, according to a new ABB whitepaper.
The shift is being driven by rising energy costs, constraints on grid capacity and the growing financial impact of unplanned downtime. ABB’s ‘Future of Electrification Service 2026–2035’ report argues that electrical infrastructure will increasingly become an operational asset, rather than simply a utility or maintenance cost.
The report estimates that energy already accounts for 25.4% of industrial operating costs, while 59% of organisations identify rising energy costs as a major threat. It also estimates that unplanned downtime costs the world’s largest companies around $1.4tn annually, with 69% of industrial plants experiencing outages at least monthly.
Despite those pressures, investment decisions do not always reflect the wider cost of electrical infrastructure. ABB says 81% of senior decision-makers believe total cost of ownership should guide capital decisions, but only 37% apply it in practice.
As industrial sites become more electrified and interconnected, the report predicts a move towards coordinating electrical assets and energy flows in real time. AI, automation, energy storage and digital asset management are expected to play a growing role in this transition.
Rather than simply consuming electricity, industrial sites could increasingly generate and store power, then adjust consumption or discharge stored energy according to production requirements, electricity prices or conditions on the wider grid.
“The boundary between energy producer and energy consumer is beginning to disappear,” said Stuart Thompson, President of Electrification Service at ABB.
The same trend could change how electrical equipment is maintained. ABB expects service models to move beyond traditional maintenance and equipment ownership towards services focused on outcomes such as uptime, resilience and performance.
The report also envisages closer coordination between industrial sites, data centres, utilities and battery storage systems, creating a more dynamic energy ecosystem in which power can be managed according to changing operational requirements.
ABB identifies five areas it believes organisations should consider over the next decade: strategic asset management, AI and digital solutions, energy storage, energy and carbon services, and advisory services.
