The industrial sector of the European Union accounts for one-quarter of the region’s annual energy consumption on its own, ranking only behind transportation—which represents 32%—and households—at 26%—according to the latest data from the European Commission. As a result, the energy expenditures faced by both large companies and SMEs become one of the most significant expenses, not only for their economic activity but also for society as a whole.
IoT: Up to 30% Energy Savings
As in many other fields, technology emerges as a key ally in reducing that substantial expense. Therefore, the Internet of Things can cut energy consumption by up to 30%, as estimated by 1NCE.
1NCE Attends Enlit in Bilbao
The IoT giant—acronym for Internet of Things—highlights the benefits this technology can bring to all kinds of businesses during its participation in Enlit Europe (booth 1.B70), the largest and most influential energy transition trade fair in the world, kicking off today and running through the day after tomorrow. Following Paris in 2023 and Milan in 2024, Bilbao will host this year’s event, which is expected to be the largest gathering to date, with 15,000 visitors, over 700 exhibiting companies from 140 countries, and 500 speakers.
Data-Driven Decision Making
But how exactly do large corporations and SMEs benefit in this regard? In which areas can IoT help reduce energy bills?
- Real-time data analysis, which helps businesses assess and quantify their own energy consumption, as well as identify waste patterns.
- Installation of smart meters, providing immediate information on electricity, gas, and water usage to support decisions based on clear, reliable data that lead to reduced expenditure in these areas. Specifically, companies that adopted smart measurement reported a 15% reduction in energy consumption within just six months, as tracked by 1NCE.
- Deployment of sensors to adjust lighting based on actual use, avoiding unnecessary costs, which can save between 20% and 40%.
- IoT-powered fleet management solutions have the potential to reduce fuel costs by an average of 15%, and in some cases, even up to 25%, according to calculations by 1NCE, which align with figures from other industry players like Transforma Insights.
- Predictive maintenance tools utilize data to anticipate equipment failures, enabling scheduling maintenance before breakdowns occur and preventing energy waste.
- Setting up alerts for abnormal consumption by integrating predictive analytics into monitoring systems to reduce energy waste by up to 20%. Additionally, real-time data-based adjustments can lower peak consumption charges, which may account for up to 50% of the total energy bill in retail stores.