Siemens Infrastructure Transition Monitor 2025 provides insights into how Energy, Industry, and buildings are powering the infrastructure transition
Powering the Future: The Energy Sector’s Digital Revolution
The Siemens Infrastructure Transition Monitor 2025 reveals a dramatic acceleration in the digital transformation of global energy infrastructure. Over 70% of energy sector respondents now see digital technologies—especially AI, grid software, and smart meters—as essential to the energy transition. Resilient energy supply has risen from third in 2023 to become the top priority in 2025, and 74 % of respondents say that AI is helping make critical infrastructure more resilient.
Key progress areas include national energy independence, large-scale energy storage, and renewable energy expansion. Clean energy investment has soared to $2.2 trillion in 2025, now double that of fossil fuels (which saw a decline over the past two years).
Digitalization is enabling smarter, more flexible grids. Case studies from Italy and the Netherlands highlight how digital twins and advanced grid software are optimizing operations and reducing emissions. 63% of respondents believe that the benefits of increased use of autonomous systems outweigh the costs, and a high proportion (62 %) believe their region is ready to implement autonomous systems in power. Autonomous systems to manage power grids promise lower costs, greater efficiency, and improved reliability.
From Carbon-Heavy to Climate-Ready: Decarbonizing Industry
Industrial organizations are making notable strides in decarbonization, with 65% identifying electrification as the most realistic path to net zero. Progress is evident in electrifying heating, increasing onsite renewables, and decarbonizing core operations. However, 57% of respondents say inadequate grid infrastructure is holding back electrification, and nearly half (48%) cite high costs as a barrier.
Scope 3 emissions also remain a major challenge, with declining target adoption despite an increase in those with Scope
1 and 2 targets, reflecting the complexity and expense of tracking indirect emissions. Despite these challenges, 57% of industrial leaders plan to boost investment in energy efficiency, and 63% see digitalization – particularly through demand-side flexibility and AI-driven optimization – as critical enablers of the transition. Leading industrial companies are leveraging digitalization – AI, digital twins, and other smart technologies – to improve efficiency, reduce emissions, and navigate uncertainty.
Case studies from the semiconductor and pharmaceutical sectors demonstrate how data-driven energy management and digital control systems can deliver substantial cost and emissions savings.
Inside Smarter Buildings: Innovations for Cost and Carbon Savings
Buildings are increasingly recognized as strategic assets in the journey to net zero. Energy efficiency in buildings has become the number one infrastructure priority for organizations over the next three years, with over half planning to increase
investment in energy efficiency (57%), smart building technologies (55%), and building electrification (54%).
Despite this momentum, retrofitting
rates remain below 1% globally—far short of the 2% annual rate needed to meet net zero goals. Financial barriers are significant, especially in commercial real estate, where 60% say decarbonization is too expensive. Smart financing models such as Energy-as-a-Service are emerging as practical solutions, enabling upgrades financed by guaranteed energy savings.
Digitalization is one of the most powerful enablers: over half of respondents say digital tools have strong potential to cut costs (56 %) and emissions (53 %), and similar numbers say they are ready to implement autonomous building systems (54 %). The challenge now is to scale these solutions, remove financial and policy barriers, and coordinate action across the ecosystem.
Case studies from healthcare and higher education show how digital platforms and data-driven commissioning can yield dramatic energy and emissions reductions. The report concludes that while technologies exist, scaling solutions and removing financial and policy barriers are essential for full-scale transformation.
India’s Next Leap: Reinventing Infrastructure for a Smarter, Greener Tomorrow
For most Indian organizations, minor adjustments won’t suffice. Nearly two-thirds (60 %) believe the solution lies in completely reinventing their business models, a bold shift that will demand substantial effort and innovation (compared to a global average
of 49 %).
Longer term, the shift from smart to autonomous technology is also gaining momentum, when it comes to both energy grids and buildings. Despite cybersecurity fears, the benefits of autonomous systems are seen to far outweigh the risks. 69 % of Indian organizations are already poised to implement autonomous systems in power grids, and over half (51 %) are ready to adopt autonomous building technology, with 60 % saying the benefits outweigh the costs.
In industry, electrification and digitalization are advancing, but barriers like high costs, policy uncertainty, and inadequate grid infrastructure persist. The report concludes that scaling solutions, removing barriers, and fostering collaboration are essential for India’s sustainable, resilient future.
(Communication by the management of the company)