As AI driven automation grows, so does the pressure on the power infrastructure behind it. This piece explores how rising energy use and advanced materials are shaping the future of reliable, high performance industrial systems.
Senior Global Key Account Manager
The world of intelligent systems is changing quickly. Ideas that once felt far away, like fully connected operations or AI guided environments, are becoming part of everyday reality. With the continued rise of Industry 4.0 and the early movement into Industry 5.0, technologies such as machine learning, artificial intelligence and robotics are starting to shape how modern systems think, respond and adapt.
But with these new opportunities come new challenges. As digital platforms, automated processes and intelligent control systems become more advanced, the demands on the electronics and power infrastructure behind them continue to increase. The stability and performance of these environments rely on strong, reliable components that can support higher workloads and more connected ecosystems. When the electronics at the core work as they should, everything built on top of them becomes more resilient, efficient and ready for the future.
In 2024, global energy demand grew at twice the rate seen in the previous decade, according to the International Energy Agency (IEA). The expectation is for demand to rise even faster in the next decade as the industry accelerates towards autonomous material movement, AI adoption and intelligent mobile platforms. These systems operate for long hours without interruption, make rapid decisions in motion and rely on stable power to keep every action predictable and safe. In today’s modern production environments, overall performance is only as strong as the power systems that support it. As factories continue to digitalize and become more connected, expectations for dependable and continuous power are increasing just as quickly.
Even with the rapid pace of digital progress, adoption has been uneven. In 2025, only a 28% of organizations viewed their operations as fully smart. Yet by 2027, that number is expected to rise sharply to 76% as more decision making, monitoring and coordination shift toward AI driven systems (NAM) . The impact is already visible though with the industrial automation and control systems market projected to grow at a 10.6% CAGR from 2025 to 2030, driven by the push toward greater intelligence, efficiency and responsiveness (Grand View Research).
Morten Wierod, CEO of ABB
These rising global demands point to a clear need for new approaches in the way energy is generated, distributed, stored and used. Five key shifts are now shaping this transition:
- Power supplies and converters (AC/DC, DC/DC and UPS): Power supplies and converters are being re‑engineered for higher power density, broader input ranges, smarter control and lower environmental impact. Manufacturers are demanding higher efficiency, more versatile I/O and better thermal management to maintain operational integrity.
As a result, many next generation power supplies integrate digital control, real time monitoring and remote management that enables operators to track energy use, reduce idle consumption and optimize performance at scale. - Data centers: Data centers remain one of the most energy intensive environments, and their influence on global electricity demand continues to grow. As workloads expand, sustainability has become a core design requirement rather than an afterthought. Many facilities are moving toward modular power systems, grid‑supporting technologies, advanced cooling strategies and distributed energy resources to manage rising demand while maintaining stability for critical compute operations.
- Microgrids and grid decentralization: Grid decentralization is becoming a defining element of modern industrial strategy. Microgrids provide power continuity during grid disruptions and outages, build resiliency into the power grid and allow for increased power generation closer to power dense applications like high-automation production lines. Generating power closer to where it’s consumed delivers gains in efficiency, power quality and sustainability.
Morten Wierod, CEO of ABB
4. Electric vehicle (EV) charging infrastructure installations: As EV adoption sees an uptick, the charging infrastructure must grow with it and become more intelligent. Higher consumption places added stress on existing grids, accelerating the need for new components, stronger designs and more robust protection systems. Charging hardware must also withstand heat, moisture and corrosive conditions, making advanced materials and weather‑resistant designs essential.
5. Alternative energy sources: Renewable energy systems, such as wind and solar, are increasingly being integrated into operational environments to support more sustainable and energy-efficient facilities.
A leading example can be seen at the ABB Senatobia plant in the US where a solar‑supported microgrid with battery storage and digital energy management lowers energy use, cuts emissions and provides reliable backup power. In addition to that, a centralized system tracks real‑time consumption and power quality to improve optimize efficiency across the facility. This demonstrates how renewable generation, intelligent storage and smart controls integrated together can create a resilient and sustainable energy ecosystem.
As advanced motors, drives and intelligent control systems work together more closely, the expectations for speed, precision and reliability are higher than ever.
However, meeting these expectations requires managing several challenges at once:
- Higher thermal loads as processors, power electronics and high-performance drives deliver more capability, increasing the heat that must be managed to protect system integrity.
- Tougher environmental conditions including constant vibration, airborne dust, moisture and temperature fluctuation that place long term stress on critical components in motion control and power distribution equipment.
- Mechanical strain from thermal cycling, shock and continuous vibration, which can weaken solder joints, connectors and internal interfaces over time, leading to fatigue driven failures.
- Electrical and electromagnetic stress as high currents, fast switching power supplies and dense electrification architectures introduce risks such as component overheating and circuit level interference that can introduce system-wide performance risks
The urgency to get industrial automation right has never been greater as failure to implement automation properly can undermine profitability, compromise safety, reduce productivity and erode market position.
The challenges mentioned above have intensified the demand for advanced sustainable materials that strengthen performance and reliability for modern electronics. In today’s power conversion systems and their componentry, advanced materials reinforce the foundations of electronic design in three critical areas:
- Thermal Management: As power density rises and devices become more compact, heat becomes a major challenge for autonomous platforms, drive systems and other high-demand electronics. As a result, effective thermal control becomes essential to keep these systems stable during continuous operation. Thermal interface materials such as GAP PAD® and SIL PAD®, which span a wide range of thermal conductivities from typical values around 1 – 10 W/m-.K up to advanced silicone free formulations capable of 40 W/m-.K, provide these thermal capabilities along with complementary materials like greases, gels and phase change materials.
- Protection: Electrified and automated environments expose power equipment, sensors and control electronics to vibration, moisture, dust, chemicals and rapid temperature swings. To ensure continuous operation, protective materials such as solvent free conformal coatings, gasketing solutions and potting compounds shield sensitive components from mechanical stress and environmental damage. These materials help maintain long term performance even in demanding settings where uptime is critical.
- Bonding: Advanced LOCTITE® adhesive technologies provide structural strength and durability that often surpasses traditional mechanical fastening, particularly in applications involving vibration or thermal cycling. Adhesive bonding supports more compact designs, reduces assembly complexity and eliminates bulky hardware. Threadlockers, structural adhesives and thermally conductive formulations play a key role in next generation power systems by maintaining electrical integrity, resisting fatigue and supporting reliable performance over the full life of the equipment
Mika Kiviniemi, Project Manager at ABB’s Quality and Reliability Laboratory
As the industrial landscape accelerates toward more automated, connected and energy‑efficient operations, the reliability and sustainability of electronics and power systems become a decisive factor for long term competitiveness. Advanced materials play a crucial role in supporting this shift by delivering the thermal performance, environmental protection and integrity required by increasingly compact electronics and robust power systems. Ultimately, advanced materials act as the foundation to support creating power systems that are efficient, durable and capable to meet the escalating demands of Industry 4.0 and the emerging Industry 5.0.
With a global innovation network, dedicated electronics laboratories and deep expertise in materials development, Henkel continues to invest in next‑generation encapsulation and thermal technologies, including GAP PAD® materials, SIL PAD® materials, phase change materials, LIQUI-FORM® products and thermal adhesives. The company’s commitment is reinforced by strong collaboration with OEMs and Tier suppliers to accelerate the adoption of advanced materials across critical industrial and power electronics applications.
Eric Zhai, Global Market Strategy Sr Manager at Henkel
For a deeper exploration of these themes, our dedicated eBook offers expanded insights and if you’re looking to explore potential solutions together, let’s put your ideas in motion and shape the future of power and industrial automation.
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