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Danfoss

Megatrends

Global megatrends create significant opportunities for Danfoss

In a changing world, Danfoss is more relevant than ever

From climate change and regionalization to urbanization, electrification, and food and water constraints, global megatrends are creating significant business opportunities for Danfoss. At the same time, digitalization and AI are growing rapidly. 

As a technology leader, Danfoss plays a key role in addressing global challenges and delivering sustainable solutions. 

With our broad portfolio, leading application know-how, and significant investments in innovation and regionalization, we enable industries, cities, and communities to transition to a more resilient, low-carbon future while increasing competitiveness in a fast-changing world.

 

Regionalization
Regionalization

Accelerated localization

Global supply chains are being rewired for local

  • +70% of supply chain leaders are considering regional or local strategies to enhance supply chain resilience and mitigate geopolitical tensions.
  • The EU targets 40% domestic production of clean tech by 2030 to increase energy security.
  • Global trade restrictions rising with 3,000 new restrictive measures implemented in 2024 (tariffs, import bans etc.) marking a shift towards regionalized trade policy.
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megatrends-digitalization
Digitalization & AI

Scaling intelligent solutions

From connectivity to cognition — AI is revolutionizing value creation

  • Global data creation is set to reach 180 trillion gigabits by 2025 (x3 volume in 2020).
  • By 2030, data centers will consume 1,200 TWh of electricity (+15% CAGR) while water usage is expected to rise to 1.7 M m3/day (+5% CAGR).
  • Early adopters of AI have seen ~10-15% productivity increase per use-case after full implementation.

Data centers
Climate Change
Climate Change

Towards a low-carbon future 

Energy efficiency is the fastest route to net zero

  • Global emissions must fall by 7–9% annually to meet 1.5°C targets — but they are increasing +1%.
  • Energy efficiency alone can deliver over 40% of the emissions reductions needed by 2040.
  • By 2030, over 70% of new power capacity will come from renewables — contributing to 3x investment needs in grids and storage.


Learn about energy efficiency
Electrification

Powering the transition

Electricity will be the backbone of tomorrow’s energy system

  • Driven by current regulation (e.g., European Green Deal, Glasgow Declaration) EV's are projected to make up +70% of global new car sales by 2040.
  • Electricity demand is set to double by 2050 — with electrification accounting for more than 70% of building energy use, driven by heating and cooling​.
  • The agriculture & construction sectors generate ~40% of global emissions, but are set to help reduce GHG emissions, with electrical machinery making up +50% of all equipment in 200
Read about electromobility
Urbanization
Urbanization

Sustaining life in mega-cities

A rising urban population creates new requirements for infrastructure and buildings

  • Resource use increasing by 2030 as middle class will rise to +50% of global population and urban areas will house 60% of population
  • By 2030, 1 in 2 people will live in areas facing high water stress — with cities most at risk
  • Cities drive +70% of global energy use and CO2 emissions



Read about urban efficiency
Food & Water Supply

Securing tomorrow’s resources

Climate-driven disruption and growing demand are intensifying global food and water resilience

  • Food production must rise 50–60% by 2050 — while 40% of food is lost or wasted today.
  • By 2030, 40% of the global water demand may not be met under a business-as-usual scenario.
  • Climate extremes like droughts, floods, and heat are disrupting food and water systems e.g., putting 25% of global crop production at risk by 2050.


Read about energy and water
Our Purpose

We engineer a better future

We engineer solutions that increase machine productivity, reduce emissions, lower energy consumption and enable electrification. 

We are family-owned company dedicated to creating long-term value for all our stakeholders.

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