Electricity's rising share of industrial energy

Electricity made up about 23% of global industrial energy use in 2022, up from roughly 19% in 2010. Industry is steadily electrifying — a slow but consistent shift that ties more of its energy cost, and its carbon footprint, to the power grid.

201019%202223%
Electricity as a share of global industrial energy consumption.

Source: IEA — Energy efficiency and industry analysis (2022)

What it means

As industry electrifies, two things follow: electricity bills become a larger share of the energy budget, and a plant's carbon intensity increasingly tracks the grid's. That makes both motor-system efficiency and the timing of electricity use — demand management — more valuable every year.

Context

Heavy industry has historically run on fuel — coal, gas, oil for heat and steam. The gradual rise of electricity's share reflects electrification of process heat, more electric drives, and the early stages of decarbonisation. The shift is unspectacular year to year but cumulative, and it changes where the financial and carbon leverage in a plant sits.

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