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A header image for a Siemens Transition Report 2025 featuring a futuristic building with a sleek design.
Infrastructure Transition Monitor Report

From carbon-heavy to climate-ready

Meeting the challenges of industrial decarbonization

Global insights for a sustainable future

Based on a global survey of 1,400 executives and supplemented with in-depth expert interviews, the Siemens Infrastructure Transition Monitor 2025 provides comprehensive insights into the global transformation of infrastructure. This study examines, in three distinct reports, the interconnected pillars of change:

  • How the evolution of energy infrastructure - enabled by digital technologies - is driving progress toward a net zero future
  • The progress, priorities, and issues in the decarbonization of buildings
  • The industrial sector's progress toward sustainability
Key findings

Advancing viable industrial decarbonization

Between 2023 and 2025, industrial firms made progress in renewable energy, electrifying heating/cooling, and the decarbonization of core operations. However, the latter remains the least developed of the organizational infrastructure transition goals. In 2025 we find that more organizations have adopted detailed decarbonization plans and science-based targets, but financial pressures have increased: more respondents now say their organization puts cost and revenue considerations first when choosing a decarbonization strategy.

Electrification of everything

Electrification is seen by most industrial firms as the most realistic path to net zero, but many say their ambitions are held back by inadequate grid infrastructure. Firms want smarter grids which can integrate with their own energy assets and operate in close collaboration with the surrounding energy ecosystem. Industrial organizations are working to optimize their electrified operations with AI and digital twins, enabling real-time management, boosting efficiency and resilience.

63% of industrial respondents say:

Digitalization is a critical enabler of the energy transition.

59% of industrial respondents say:

My organization intends to use our energy assets to profit from demand-side flexibility mechanisms.

45% of industrial respondents say:

My organization shows mature or advanced efforts in demand-side flexibility.

Stable, predictable policy is required

Policy uncertainty is a major barrier to industrial decarbonization, with most industrial companies citing it as a growing threat to the energy transition. Stable policy enables long-term planning and capital investment. This gives organizations the confidence to make decisions that involve long-term capital outlay, such as replacing fossil-fuel systems with low-carbon alternatives or investing in on-site energy storage. Yet more than half of industrial sector respondents report that uncertainty about the future energy system is delaying investment in clean energy technologies.

For long-term investment decisions, we need stability to act decisively. The clearer the energy roadmap from governments and utilities, the faster we can decarbonize.
Jan Fassbender, Head of Global Facilities and Engineering, Boehringer-Ingelheim
Partner Insight

The imperative for digital integration

By Jessica Lam, Senior Vice President Sustainability – Sonepar

The race to decarbonize is no longer just about installing greener hardware; it is about how intelligently we manage the flow of energy and data that underpins modern operations. Sustainability today depends on visibility — and visibility depends on digital integration.

Too many organizations are still running on fragmented systems that cannot talk to each other. This leaves them piecing together emissions data from disparate sources, slowing down reporting and limiting their ability to act. Integrated digital platforms change the game. By consolidating product, energy, and CO₂ data in one place, they create a single source of truth that makes sustainability transparent, actionable, and comparable across entire value chains.

Once this foundation is in place, technologies such as AI and IoT reveal their full potential. Predictive analytics can uncover patterns in consumption, while connected sensors enable real-time monitoring of factories, fleets, and offices. Electrical distribution is rapidly becoming digitalized. In this context, Sonepar is transforming into a digital company and aims to become the world's leading B2B electrical equipment distributor offering an omnichannel experience to all its customers.

We are investing €1 billion between 2022-2026 to accelerate our digital transformation. We already see how AI-driven systems improve inventory management, accelerate financing approvals, and enhance customer experience. The same principles can be applied to energy: learning algorithms that anticipate demand, identify inefficiencies, and propose immediate adjustments.

Bringing these advances together can be transformative. Since 2022, Sonepar has invested more than €2.5 billion to modernize our supply chain: construction, distribution and transportation networks, state-of-the-art technologies, automation, and robotics. Our global distribution centers now have automated picking and sorting systems and intelligent energy management systems. Our facilities not only improve throughput and accuracy but also reduce their environmental impact and improve resource efficiency.

Image of Jessica Lam, Senior Vice President Sustainability – Sonepar

The next frontier for many firms is demand response. Global electricity demand is expanding by 4.4% in 2024 and is expected to grow by close to 4% again in both 2025 and 2026. This is much faster growth than previous years – the average from 2015 to 2023 was 2.6%. This puts a lot of capacity pressure on power grids, while they also need to become more dynamic as renewable penetration and behind-the-meter activity rises. Companies must move from being passive consumers to active participants in power grids.

However, to do this, they need systems which can integrate technologies such as energy management software, solar panels, electric vehicle charging infrastructure, battery storage and smart buildings. It underlines how mastering data and advancing digital capabilities is crucial to making decarbonization scalable. The transition is not only about cleaner electrons, but also about smarter decisions, and we now have the tools to optimize both.

Get full insights on industry

Meeting the challenges of industrial decarbonization

About the research

The Siemens Infrastructure Transition Monitor (ITM) is a biennial research study launched in 2023. Now in its second edition, the ITM tracks the evolving state of the world's transition toward net zero over time, highlighting the most urgent priorities and the path ahead for businesses and governments. The ITM is based on a global survey of 1,400 leaders and senior executives from both the private and public sector. In 2025, survey respondents were drawn from 19 countries and 37 sectors (grouped into eight major industry segments for reporting purposes). The research also draws on insights from in-depth interviews with a select group of leaders and experts.

  • Dr. G Ganesh Das, Chief, Collaboration and Innovation, Tata Power Company
  • Sabine Erlinghagen, CEO Grid Software, Siemens Smart Infrastructure
  • Jan Fassbender, Head of Global Facilities and Engineering, One Human Pharma, Boehringer Ingelheim
  • Edmund Fowles, Founding Director, Feilden Fowles Architects
  • Daniela Haldy-Sellmann, SVP and General Manager Energy and Natural Resources Industries, SAP
  • Thomas Kiessling, Chief Technology Officer, Siemens Smart Infrastructure
  • Brian Motherway, Head of Energy Efficiency and Inclusive Transitions, International Energy Agency
  • Andreas Schumacher, Executive Vice-President Strategy, Mergers & Acquisitions, Infineon Technologies
  • Susanne Seitz, CEO Buildings, Siemens Smart Infrastructure
  • Dr. Sean Woolen, Assistant Professor, Department of Radiology and Biomedical Imaging, University of California