Global Energy Intensity Analyzed

Global energy intensity – that’s how much energy it takes to make stuff – is expected to get better. By 2025, we’re looking at an improvement of 1.8%, a step up from the 1.1% we saw in 2024. This means businesses and factories are becoming more efficient with their energy use.

Key Points

• Energy intensity improving by 1.8% by 2025.
• China and India’s progress slowed in the last decade.
• India’s industrial demand growing rapidly (4% this year).
• China’s industrial demand growth around 3.5% this year.
• Industrial demand up twice as fast as transport.
• Buildings’ demand four times faster than industrial sector.

Regional Trends

Over the last ten years, China and India have been the biggest drivers of energy intensity improvements. However, their growth rates have slowed down compared to the earlier part of the decade. This is a significant shift worth watching.

Specifically, India’s industrial demand has been incredibly strong. From 2019 to 2024, its industrial demand grew at an average of 5% each year. That’s double the rate of growth seen in the transportation sector and four times faster than in the building industry.

India’s growth represents a major portion of the increase in global industrial demand since 2019, accounting for one-fifth of the total. This rapid growth is largely due to increased manufacturing and industrial activity.

Looking ahead, projections for 2025 show a possible turnaround for India, with industrial demand potentially increasing by over 4%. China’s growth is expected to be around 3.5%, reflecting a continued but more moderate expansion.

These trends demonstrate the importance of efficiency gains in these key economies and how they influence global energy consumption.

Energy intensity improvements in these nations will have a critical impact on the world’s climate future.