Currently UK industrial and manufacturing sectors are facing dual challenges of contributing to national 80% reduction targets in CO2 emissions by 2050 (compared to 1990 levels) and improving economic competitiveness in the face of low cost imports. Since energy consumption is the main source of CO2 emissions and directly related to products being manufactured, improving energy efficiency in energy intensive sectors is key to achieve CO2 targets. Energy consumption is unlikely to meet the targets unless energy efficiency opportunities and technologies are fully explored and timely changes are made to business models and policies This study explores potential energy efficiency improvements from three perspectives: system efficiency of steam networks, waste heat recovery technologies and bioenergy/waste utilisation. Two UK energy-intensive sectors, iron and steel, and food and drink, are selected for analysis and discussion. Potential business models for energy efficiency are also reviewed as there are now a variety of energy service companies who can support adoption of appropriate technologies. Furthermore, drivers and barriers to the adoption of energy efficiency technologies are considered in this paper revealing the factors affecting the diffusion of energy efficient and waste heat recovery technologies and their interactions and interdependencies to energy consumptions. Findings show that it is possible to achieve energy consumption reduction in excess of 15% from a technical point of view, however improving energy efficiency in UK industry has been hindered due to some inter-related technical, economic, regulatory and social barriers. The findings help to demonstrate the significant potential for energy efficiency improvement in two industrial sectors, as well as showing the specific types of technologies relevant for different sectoral processes. The range of business models show opportunities for implementation and for developing innovative business models, addressing barriers, and using enablers to accelerate the diffusion of energy efficiency technologies in UK industry.