Tech Report 2024: The New Pathway of Infrastructure

How digitalization enables decarbonization and resource efficiency for business operations

By the end of 2024, organizations around the world will have invested $2.5 trillion in digital transformation for the year. The same amount of money needed to purchase one of the world’s largest companies — Alphabet (Google) or Amazon, on current valuations — plus all of the 100 most valuable sports franchises in the world.

So what is the link between digitalization and accelerating sustainable outcomes?  

Given current climate goals, there is an urgent need for increased investment in digital solutions that improve sustainability and business performance.  

In our latest tech report, "Digital Transformation, Sustainable Returns: The New Pathway of Infrastructure", the evidence points to digitalization as the key to effective infrastructure transformation - particularly in energy, buildings, and industrial operations. 

So how are we doing?  

When it comes to the role of digitalization in enabling the transformation towards more sustainable infrastructure, there has been significant progress, but there are also some shortcomings. This is both a challenge and an opportunity for creating better buildings, energy systems, and industrial operations, accelerating decarbonization, and meeting critical climate targets. 

“Having the right data is central to the ongoing improvement in the efficiency of energy use and electrical distribution” - Ciaran Flanagan, Head of Data Centers Solutions, Siemens  

Our study mentioned above is based on research of 650 global senior executives from 13 countries. Here’s what we found: 

1. Advances in digitalization enable more sustainable infrastructure  

55% of respondents say that digital technologies have significant or massive potential to advance the decarbonization of their operations. Respondents rated productivity as the area with the greatest potential to benefit from digital technologies. This highlights the growing recognition that digital solutions are essential to reducing carbon footprints. However, there is still 45% who say they see little or no such potential.  

“When companies gain access to granular data – whether it's on energy use, system performance, or environmental conditions – they can make smarter, faster decisions. It’s not just about saving energy, it’s about redesigning processes to be leaner and more effective, boosting productivity and energy efficiency at the same time” - Thomas Kiessling, CTO Siemens Smart Infrastructure 

2. 54% of organizations are advanced in data-driven operations 

Just over half of organizations rate themselves as mature or advanced in data-driven management of systems, resources, or infrastructure. 41% are in early development, and only 5% say they have no existing or planned activity.  

3. Organizations rate AI as the most impactful technology area for decarbonization and resource efficiency 

Respondents expect #AI – with its ability to analyze vast datasets and optimize operations – to have the biggest positive impact on both areas over the next three years. For this to happen, more will need to be done to improve the energy efficiency of AI. 

4. Data gaps pose a major challenge to decarbonization efforts 

A significant proportion of respondents say they have little to none of the data they need in areas that are key to improving decarbonization and resource efficiency: 44% lack emissions data, 44% lack decentralized energy resources data, and 30% lack energy consumption data.  

“We're trying to determine which data we need, but we’re also aware that there’s data we might not even know we need yet. This presents a real challenge for strategic planning in an industry that's changing so rapidly" - Evan O'Mahoney, Chief Information Officer, CPS Energy 

5. Digital platforms are an advantage for business 

Respondents highlighted five factors as the top benefits of adopting digital business platforms: scalability; time and cost efficiency; faster implementation; reliability; and interoperability. Collaboration is arguably the most underappreciated benefit.  

So how do we move forward? 

Smart infrastructure and digital solutions are essential for decarbonization and to increase resource efficiency for buildings, energy systems, and industrial operations. Whilst there has been significant progress in recent years, there is still an immense untapped potential, especially when it comes to data-driven operations.  

As organizations shift towards using digital technologies, it is also important to keep in mind that there is still a considerable lack of data which is hindering progress towards sustainability goals. Closing this gap is crucial. Organizations must embrace a collaborative, data-driven approach that seamlessly integrates digitalization and sustainability into their operations to drive meaningful change and contribute to a more sustainable future. 

View the full report here.

Copyright Siemens AG