Gartner Recommends Cutting Energy Costs in Manufacturing – Here’s How Smart Energy Management Can Help

Manufacturers around the world are facing a new energy reality. Energy prices are rising, markets are becoming more volatile, and ESG reporting and decarbonization requirements are growing stricter. Yet many companies still lack clear visibility into where and how they consume energy and more importantly, where they waste it.

What the Data Shows

According to Gartner’s March 2025 report - Strategiesto Reduce Energy Costs in Manufacturing

  • 64% of large manufacturers and only 24% of medium-sized companies track both energy consumption and efficiency.
  • As a result, many manufacturers are unable to detect hidden inefficiencies or calculate the return on investment (ROI) of energy-saving initiatives.
  • This leads to unnecessary waste, higher operating costs, lower competitiveness, and increased ESG risk exposure.

Gartner’s Recommendation: Adopt EMOS

To address these challenges, Gartner recommends implementing Energy Management and Optimization Systems (EMOS) that enable manufacturers to:

  • Monitor energy consumption in real time
  • Evaluate the efficiency of individual machines and processes
  • Base energy-saving actions on data, not assumptions

Having access to real-time energy data is now fundamental to cost-effective energy management. Manufacturers with detailed consumption analytics can:

  • Make smarter investment decisions
  • Optimize procurement strategies
  • Quickly identify and address avoidable energy losses
“Visibility of energy consumption enables manufacturing strategy leaders to identify procurement, operating expenditure (opex), and capital expenditure (capex) energy savings opportunities.”
Gartner, 2025 (Strategies to Reduce Energy Costs in Manufacturing)

Beyond Monitoring: Strategy, Collaboration, and On-Site Energy Generation

In addition to real-time monitoring, Gartner advises manufacturers to take a more strategic and integrated approach to energy management. This includes implementing structured systems for energy metering and control, as well as establishing clear, data-driven performance metrics to track energy efficiency and identify waste.

Another key recommendation is to foster stronger collaboration between operations and procurement teams. When these departments work together and share real-time energy insights, companies can make better purchasing decisions and respond more effectively to changing market conditions.

Gartner also emphasizes the importance of exploring investments in on-site energy generation. In an environment marked by price volatility and aging grid infrastructure, local energy sources can offer both cost stability and long-term resilience.

Technologies such as photovoltaic (PV) solar systems, battery energy storage, cogeneration units, and heat pumps can significantly reduce a manufacturer’s reliance on external energy suppliers. They also help limit peak demand charges and enable dynamic, automated energy consumption control based on real-time pricing or production needs.

Download the full report with specific energy cost savings measures

Find out how FLOWBOX Microgrid helps control consumption, on-site energy production, and storage.

Smart Energy Management in Action: Meet FLOWBOX EMOS

This is where FLOWBOX EMOS comes in — a powerful EMOS platform that helps manufacturing companies monitor, analyze, and optimize energy usage, production, and storage as one connected ecosystem.

FLOWBOX puts the full EMOS cycle into practice:

  • Real-time monitoring at the equipment level
  • Automatic anomaly detection - leaks, standby consumption, off-hours operation
  • Data-driven prioritization of energy-saving measures
  • Autonomous control of consumption, on-site generation, and storage based on real-time tariffs, weather forecasts, and operational needs
  • Impact evaluation and reporting – including ROI modeling, ESG compliance, and ISO 50001 support

Final Thought: Measuring Isn’t Enough. You Have to Manage.

Both Gartner’s findings and the experience of leading manufacturers confirm one thing:

Without accurate data, intelligent analysis, and active energy control, sustainable cost reductions aren’t possible.

It’s no longer enough to just monitor energy consumption. You need to understand what drives it, identify opportunities, and manage your energy system like a living, dynamic part of your business.

FLOWBOX EMOS gives you the tools to do just that — from the first sensor reading to ROI simulation and autonomous energy control.

Want to know where your energy is going and how to get it under control?

Get in touch. We’ll show you how FLOWBOX can help your operations save energy, lower costs, and become more resilient.

Ask for DEMO or discuss more about FLOWBOX EMOS