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Social Innovation

OPPORTUNITY & BUSINESS IMPACT AREAS FOR SOCIAL INNOVATION

Social Innovation in Energy – The Value at Stake

“THE CONVERGENCE OF OT AND IT WILL CREATE A $1.5 TRILLION ANNUAL OPPORTUNITY FOR SOCIAL INNOVATION BUSINESS IN THE FIELD OF ENERGY DIGITIZATION BY 2025”

$1.5 Trillion value at stake =

Estimated Value in Savings $515 Billion

10%
Reduced electricity spending

$345 billion savings in energy usage

4,000 TWh
Added Renewable Generation

$345 billion savings in energy usage

10%
Reduction in Plant Emissions

$345 billion savings in energy usage

$345 billion savings in energy usage

$120 billion savings in avoided CO₂

$50 billion savings in CO₂ emissions

Value of Clean Power Infrastructure
& Equipment

$800 Billion

Value of Smart Energy Infrastructure Market (IT Solutions)

$210 Billion

1,600 GW of renewables capacity added between 2017 & 2025

6 Gt of annual CO₂ emissions reduced or avoided by 2025

96% electrification by 2025, up from 86% in 2017

At Hitachi, business in the field of digital transformation is defined as Social Innovation, which, in our previous white papers (http://social-innovation.hitachi/en-gb/about/white-papers/), we described as “the deployment of technology and new business models to bring about real positive change to the lives of individuals and societies, creating shared value.” This means that IT-OT convergence and digital transformation is at the very heart of Social Innovation business.

By combining the stakeholder benefits with an analysis of real market opportunity, we’ve identified financial impact in three main areas: the value of the power infrastructure and equipment for delivering clean energy; the value of smart energy infrastructure (ICT solutions) for bringing digital intelligence and efficiency; and the value of the benefits to customers and society.

In monetary terms, these three combined areas of impact show that an incredible $1.5 trillion is at stake annually by 2025 in terms of market opportunity and benefits to businesses, customers and society.

This is without even trying to quantify some of the enormous benefits, such as the social, health and economic improvements that will be felt around the world by addressing the need to bring electrification to the 1.2 billion people that currently lack access to electricity, or the improvements in air quality, safety, reliability and security of energy supply that will enable both individuals and businesses to operate more efficiently and sustainably.
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