Asia Pacific (APAC) firms are scaling up energy transition to meet surging demand, according to industry research conducted by ABB’s Energy Industries division.

ABB said in a research on Wednesday that nearly two-thirds (65 percent) of energy leaders in Asia Pacific (APAC) believe progress in the energy transition in the region is developing at sufficient speed.

The Asia Pacific Energy Transition Readiness Index 2025 surveyed over 4,000 business leaders responsible for automation, electrification, digitalization and sustainability strategies across ten industries and 12 geographical markets.

The findings reveal significant opportunities across the region alongside challenges requiring coordinated actions.

The Index focuses on energy-intensive industries such as chemicals, data centers, energy and power generation, manufacturing, oil and gas, transportation and others.

Based on 20 indicators across Strategy, Technology and Infrastructure, Finance, and Talent, the research indicates that 60 percent of companies are at a high or average readiness level, with 40 percent at early stages.

“It is encouraging to see that APAC leaders remain committed to sustainability and energy transition goals,

“Accelerating readiness will take a combination of policy certainty, technology innovation, financial investment and focused collaboration,” said Anders Maltesen, President of ABB’s Energy Industries division, Asia.

The research also shows growing momentum for digital transformation, with 71 percent of respondents identifying artificial intelligence (AI) and automation as key enablers of the energy transition.

The survey data points to an opportunity for companies to leverage AI for data-driven energy management, accelerate investment in smart grid solutions and support interoperability.

Findings show that energy transition investments are accelerating, with 99 percent of organizations increasing their transition-related spending over the past year.

The share of leaders anticipating that transition investments will grow by 50 percent or more is set to more than double over the next five years.

Additionally, over 73 percent of companies plan to allocate at least 10 percent of their capital expenditure to transition initiatives, indicating a sustained investment trajectory.

Meanwhile, automation, electrification and digitalization are becoming key levers for greater efficiency, sustainability and resilience.

The survey responses indicate that digitalization (38 percent) and automation (35 percent) are being prioritized for operational transformation, while electrification (27 percent) is driving decarbonization and progress toward net-zero goals.

The Index also identifies that where challenges exist, collaboration across sectors can help.

Almost three quarters (62 percent) call for stronger government incentives, while 60 percent want more cross-regional collaboration on grid infrastructure, and 56 percent advocate for increased private sector investment.

The research indicated solar is poised to lead APAC’s energy transition, with 73 percent of surveyed organizations already adopting it and 45 percent planning major expansions in the next five years.

Hydropower (55 percent) and wind (51 percent) are also widely used, while emerging sources like green hydrogen (37 percent), bioenergy (33 percent), and geothermal (25 percent) are gaining traction.

Conducted between May and June 2025, the research demonstrates APAC’s strong commitment to the energy transition.

However, it noted unlocking the region’s full potential will require stronger alignment between investment priorities and transition demands; faster adoption of key technologies; and deeper stakeholder engagement.

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