As AI, robotics and autonomous systems reshape industry, power systems are being pushed to their limits. This article breaks down the evolving energy landscape and reveals how advanced materials are enabling the reliable, high‑performance electronics needed for the future of industrial automation.
Senior Global Key Account Manager
The rapid evolution of Industry 4.0 and the emerging Industry 5.0 is transforming modern manufacturing at an unprecedented pace through machine learning (ML), artificial intelligence (AI) and robotics. This shift is ushering in a new era of autonomous production environments that are smarter, more connected and far more capable. It also reflects a broader global push toward more sustainable and energy aware industrial operations where efficiency and environmental stewardship are integrated into every stage of production.
With this progress, however, comes a new set of challenges that organizations must face. As manufacturers integrate AI and other smart control and automation solutions, the demands placed on the electronics and power infrastructure supporting these technologies continue to grow. Reliable operation begins with high performing electronics, which determine the stability, resilience and efficiency of modern power systems and advanced automation platforms.
In 2024, global energy demand grew at twice the rate seen in the previous decade, according to the International Energy Agency (IEA). The expectation currently 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.
Although manufacturing is becoming more digitized, only 28% of firms considered their operations to be smart in 2025 (NAM) but by 2027, that number is expected to soar to 76%. Despite the low adoption rate in 2025, the payoff of smart operations, specifically from AI driven automation, is huge for industrial manufacturers with the industrial automation and control systems market projected to grow at a 10.6% CAGR from 2025 to 2030 (Grand View Research).
As power needs rise, power generation, distribution, delivery, conversion and storage are evolving in five profound ways:
1) Power supplies and converters (e.g: 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 reduced heat consumption, all of which contribute to more sustainable operations by lowering electricity consumption and reducing cooling loads.
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
2) Data centers: Data centers continue to exert massive influence on global power demand, with them operating one of the most energy intensive environments in the industrial landscape. As workloads grow, sustainability becomes a non-negotiable design priority. Many facilities have employed modular power systems, grid-enhancing technologies, smart cooling and distributed energy resources to improve efficiency and reduce environmental impact while simultaneously achieving the stability required for mission critical compute loads.
3) 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.
Tim Holt, Executive VP Grid Technologies at Siemens Energy.
Microgrids and energy storage facilities employing smart grid technologies and enhanced control systems enable more accurate load balancing, improved predictive maintenance and greater energy resilience across expanding industrial networks.
4) Electric vehicle (EV) charging infrastructure installations: As EV adoption sees an uptick, the charging infrastructure must also expand while becoming smarter. Rising consumption places stress on existing grids, requiring new components, upgraded designs and improved grid systems. Additionally, charging equipment must be able to withstand heat, moisture, dirt and corrosive environments, making advanced protective materials essential.
5) Alternative energy sources: Renewable energy systems, such as wind and solar, are increasingly being integrated into industrial facilities as part of a wider push for renewable sourcing and energy-savvy production environments. A leading example can be seen at the digital native factory of Siemens in Nanjing, China where the site incorporates high efficiency pumps, smart cooling systems, photovoltaic arrays, battery energy storage, microgrid energy management and a rainwater recovery system. A recent expansion added additional solar capacity, bringing total output to more than 3.5 megawatts peak.
As motors, drives and AI systems work together more closely, the expectations for speed, precision and uptime continue to climb. However, meeting these expectations requires managing several challenges at once:
- Greater heat generation as processors, drives and controllers become more powerful
- Smaller devices that pack heavier workloads into tighter spaces
- Rough environmental conditions including vibration, dust, humidity and temperature swings
- Continuous operation which leaves little room for component degradation or failure
- 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 critical areas:
1) 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 greases, gels and phase change materials.
2) Protection: Power systems operate in harsh environments where motors, drives and sensors are exposed to extreme temperatures, moisture, corrosive materials and vibration. Therefore, protective solutions such as solvent-free conformal coatings, gasketing materials and potting compounds are used to safeguard vital electronics so they can operate continuously at peak performance.
3) Bonding: Advanced LOCTITE® adhesive solutions provide high bonding strength and can outperform traditional mechanical fastening methods in terms of strength, vibration resistance and fatigue resistance. Adhesive bonding reduces processing steps, lowers assembly costs and eliminates the need for bulky fasteners, supporting the growing need for more compact and efficient device designs. Solutions such as threadlockers, assembly adhesives and thermally conductive adhesives support the stringent requirements of next generation power systems by maintaining long term durability and stable electrical performance.
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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