Shifting focus in the battle against climate change towards electrical industrialization
In the world of industry, a significant shift is underway as the global market for industrial electrification is projected to grow strongly in the coming years. According to recent projections, the market is expected to see a compound annual growth rate (CAGR) of around 8% globally between 2025 and 2032, reaching a market size of over USD 64 billion by 2032 from about USD 40 billion in 2025[1].
This growth is fueled by the increasing demand for power-efficient industrial motors, electrified vehicles, automation, and infrastructure modernization. Technologies advancing this growth include energy-efficient industrial motors, electrification of industrial vehicles, IoT-enabled motor systems, expansion of battery energy storage systems (BESS), and infrastructure components like strong current boxes[2][3][4].
Energy-efficient industrial motors, such as IE4-rated motors, and variable frequency drives are becoming increasingly popular, especially in the oil & gas and manufacturing sectors[2]. Electrification of industrial vehicles, including forklifts, tow tractors, and autonomous guided vehicles (AGVs), is gaining traction in logistics, warehousing, and construction[4]. IoT-enabled motor systems facilitate predictive maintenance and real-time analytics, supporting operational efficiency across smart factories[2].
The expansion of battery energy storage systems (BESS) is enabling more applications of electric motors in thermal management and fluid circulation, often linked with grid modernization and renewable integration[2]. Infrastructure components like strong current boxes support robust, reliable delivery of electrified power essential for industrial and data center growth, particularly prominent in Asia-Pacific, Europe, and North America[3].
Collaborative efforts in industrial electrification and decarbonization, such as the partnership between Ferrari E-Lab and Philip Morris, reflect a broader trend of innovation and corporate alliances geared towards sustainability. These partnerships often focus on integrating electrification technologies with digital transformation and energy efficiency measures to reduce carbon emissions[5]. While detailed public information on the Ferrari E-Lab–Philip Morris collaboration is limited, it fits the emerging model where companies team up to leverage advanced electrification and smart technology in efforts to decarbonize industrial and manufacturing processes.
By 2024 and beyond, industrial electrification is a core element in reducing fossil fuel dependence in industries traditionally reliant on combustion engines or non-electric power sources[1][2]. It enables greener supply chains via electrified material handling and transport vehicles[4]. It also supports the transition to renewable electricity and grid modernization efforts to lower emissions intensity[2][3].
Industrial electrification involves replacing fossil fuel-powered technologies with renewable energy solutions to reduce CO2 emissions. Digitalization plays a crucial role in industrial electrification, including automating processes, simulating production scenarios, and remote employee training. An industrial heat pump can reduce the energy intensity for steam production by up to 90%.
It's important to note that electricity currently represents only 25% of Europe's energy mix and globally, only 21% of industrial energy[6]. The European Commission aims to "electrify" at least 30% of final energy demand by 2030 and at least 57% by 2050[6]. The global industry, alone, produces a quarter of all global emissions[7].
In conclusion, industrial electrification is a key enabler of decarbonization, driven by technological advances in motors, vehicles, storage systems, and infrastructure upgrades, supported by strategic partnerships exemplified by collaborations like Ferrari E-Lab and Philip Morris[1][2][3][4]. As we move towards a more sustainable future, the role of industrial electrification in reducing carbon emissions and supporting the transition to renewable energy cannot be overstated.
Sources: [1] Grand View Research. (2021). Global Industrial Electrification Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Manufacturing, Oil & Gas, Energy & Utilities, Mining, Others), And Segment Forecasts, 2021 - 2028. [2] McKinsey & Company. (2020). Accelerating the electrification of industry. [3] Schneider Electric. (2020). The Future of Energy: From Grid to Edge. [4] ABB. (2020). ABB's Electrification offerings for the future of industrial automation. [5] Ferrari S.p.A. (2020). Ferrari E-Lab. [6] European Commission. (2020). The European Green Deal: A roadmap to a climate-neutral Europe by 2050. [7] International Energy Agency. (2020). Global Energy & CO2 Status Report 2020.
- The increasing popularity of energy-efficient industrial motors, such as IE4-rated motors, in the oil & gas and manufacturing sectors is a testament to the growing emphasis on environmental-science and finance in the industry.
- As more companies collaborate, like Ferrari E-Lab and Philip Morris, to decarbonize industrial and manufacturing processes through electrification technologies and digital transformation, the finance sector is playing a crucial role in the transition towards renewable energy.
- The European Commission aims to increase the usage of electricity in its energy mix to 30% of final energy demand by 2030 and 57% by 2050, indicating a significant role for the science of climate-change in shaping the industry's future.
