Research by ABB’s Energy Industries division reveals that the energy transition in Asia Pacific (APAC) is gaining momentum, with 65% of industry leaders believing that progress is sufficient to meet rising demand.
The Asia Pacific Energy Transition Readiness Index 2025 highlights a significant commitment to sustainability, with 99% of businesses increasing their investments in energy transition initiatives over the past year.
Notably, 73% of respondents plan to allocate at least 10% of their capital expenditure to transition-related projects. This sustained investment trajectory is critical as the region grapples with energy demands, driven by rapid economic growth and urbanisation.
“It is encouraging to see that Asia Pacific leaders remain committed to sustainability and energy transition goals,” says Anders Maltesen, president of ABB’s Energy Industries division in Asia. He emphasised that achieving these goals will require policy certainty, technological innovation, financial investment, and focused collaboration among stakeholders.
The survey indicates that artificial intelligence (AI) and automation are seen as key enablers of the energy transition, with 71% of respondents recognising their potential to drive efficiency and enhance energy management.
As automation and digitalisation take centre stage, 38% of respondents prioritise digital transformation, while 35% focus on automation for operational improvements. Electrification, cited by 27%, is also crucial for achieving decarbonisation and net-zero targets.
Despite these encouraging findings, challenges remain. Many respondents highlighted the need for stronger government incentives and cross-regional collaboration on grid infrastructure. Approximately 62% of leaders called for enhanced incentives, while 60% advocated for collaborative efforts to bolster energy infrastructure.
The research also reveals that solar energy is leading the charge in APAC’s energy transition, with 73% of organisations already adopting it and 45% planning significant expansions in the next five years. Other renewable sources like hydropower (55%) and wind (51%) are also prevalent, while emerging technologies such as green hydrogen (37%) and bioenergy (33%) are gaining traction.
As the region moves forward, unlocking its full potential will depend on aligning investment priorities with transition demands, rapidly adopting key technologies, and fostering deeper stakeholder engagement.
