The International Energy Agency’s Tracking Clean Energy Progress (TCEP) monitors advancements across over 50 key components of the energy system. Encouragingly, electrification is one of the technologies making strong progress. This is critical, as industries contribute nearly 30% of global greenhouse gas emissions, with sectors like steel, cement, and chemicals being major contributors.
Leading nations particularly in Europe and Asia are taking bold steps toward decarbonizing industries, leveraging government policies and initiatives to drive the global transition to electrification.
Let’s explore the top 10 countries that are frontrunners in industrial electrification and examine the regions that are pushing this global transformation.
10. Netherlands
The Netherlands is increasingly electrifying its heavy industry. With significant investments in offshore wind and solar energy, the country is reducing emissions and improving energy efficiency across sectors.
The Dutch government’s strong push toward a circular economy is further driving electrification, as industries are required to meet strict sustainability targets.
9. Finland
Finland’s vast forests make it a leader in the paper production industry that is now transitioning to electrified processes. The country is harnessing its abundant renewable energy sources, such as wind and biomass, to power its industrial sectors, particularly in pulp and paper manufacturing.
The country is also focusing on green hydrogen to decarbonize its steel production, ensuring that electrification plays a key role in the future of the Finnish industry.
8. Denmark
Denmark is a world leader in wind energy, which plays a pivotal role in its industrial electrification efforts. Denmark’s industrial sectors are increasingly being powered by wind-generated electricity. The country’s strong focus on offshore wind farms has allowed Denmark to export its renewable energy and knowledge to other regions.
Denmark’s green energy model is making its industries more sustainable while reducing the country’s overall carbon footprint.
7. South Korea
South Korea is making strides in industrial electrification through its leadership in electronics, semiconductors, and automotive manufacturing. Major companies are adopting electric technologies to power production processes, while the country is heavily investing in electric vehicles and battery technologies.
South Korean government is also providing strong support for renewable energy development, including solar, wind, and hydrogen, all of which contribute to electrifying its industrial base.
6. Japan
Japan is a global leader in high-tech industries, and its efforts to transition to cleaner energy, particularly in electronics, automotive manufacturing, and chemicals, are gaining momentum. The Japanese government has established ambitious targets for achieving carbon neutrality by 2050, with a specific emphasis on hydrogen fuel cell technologies.
Major companies are advancing electric technologies not just in transportation, but also in manufacturing processes, while others are driving innovations in battery storage that enable further electrification of industries.
5. The United States
The United States is making significant progress in industrial electrification. There is substantial growth in the use of solar and wind power to fuel industries. American manufacturers are increasingly shifting to electric production processes due to innovations in energy storage, smart grids, and electric equipment. Several states, especially California and New York, are pushing industries toward electrification as part of their clean energy mandates.
4. China
China, the world’s largest industrial producer and energy consumer, is making rapid progress in industrial electrification, driven by its commitment to reduce reliance on coal. While coal still plays a major role in China’s energy mix, the country’s aggressive investments in solar, wind, and hydropower are enabling electrification across key industrial sectors like automotive manufacturing, electronics, and cement production.
Despite its heavy industrial output, China’s rapid electrification is part of its broader effort to transition to a carbon-neutral economy by 2060.
3. Germany
Germany, Europe’s largest economy, is leading the charge in industrial electrification as part of its broader Energiewende (energy transition) initiative. The country is heavily investing in renewable energy, with wind and solar playing a crucial role in powering industries like automotive manufacturing, steel production, and chemicals.
While the automotive sector is at the heart of this electrification drive, Germany is developing electric technologies in sectors such as chemicals and heavy industries.
2. Norway
Norway’s reliance on hydropower - accounting for more than 98% of its electricity - has made it a leader in industrial electrification. Norway’s massive oil and gas sector is shifting to renewable electricity, using onshore wind and hydropower to electrify offshore platforms.
1. Sweden
Sweden stands out as one of the top countries in industrial electrification due to its ambitious goals for decarbonization. With 75% of its electricity generated from non-fossil fuel sources—primarily hydropower and wind—Sweden is electrifying sectors like steel production, mining, and manufacturing.
The wind power sector in Sweden is also expanding rapidly, offering a reliable source of energy for industries, helping to cement Sweden’s position at the forefront of industrial electrification in Europe.
The electrification of industry is no longer just an option —it’s a necessity. The countries leading this shift are proving that industrial systems can be transformed without compromising on efficiency or competitiveness. This isn’t about being ahead for the sake of it; it’s about survival in an ever-evolving landscape. The world’s energy systems are transforming, and those who don’t adapt will be left behind. The future of industries is electric, and the time to act is now.