As the world around us changes, today’s industries face a critical challenge in remaining competitive. In Europe, industries are grappling with high energy costs, stringent environmental regulations, slow digital transformation, supply chain disruptions, workforce shortages, and geopolitical uncertainty. These complex and fast-changing environments require businesses to adopt new approaches to ensure their resilience and competitiveness. Innovation and technology are playing key roles in reshaping the industrial landscape, creating new opportunities for efficiency and sustainable growth. To stay competitive, businesses must embrace modern manufacturing techniques and balance the risk of investing in new technologies and solutions against the risk of underinvesting in these critical growth enablers.
Technologies like software-defined automation, AI, machine learning, and digital twins offer the promise of significant savings in time and money, while having many applications in the industrial sector. As many industries continue to prioritise operational agility, the adoption of these integrated, advanced digital solutions is not just a competitive advantage but a necessity for long-term success, helping to reduce costs and meet sustainability obligations, and secure their position in the global market.
As the need for transformation becomes evident, there has never been a more opportune moment for businesses to transition to modern manufacturing. Now is the time to seize the opportunity to lead a digital transformation at speed to boost competitiveness, economic growth, and resilience.
The EU Clean Industrial Deal announced in February 2025 promises increased support and incentives for boosting Europe’s industrial competitiveness, along with growing demand for sustainably produced commodities. The plan aims to bring down energy prices and incentivise industries to accelerate the transition to cleaner and more circular products. It backs circular practices and sustainable manufacturing, and supports renewable energy projects, industrial decarbonization, and financial guarantees for energy-intensive industries. The deal is backed by €100bn in financing, representing a much-needed uplift for businesses tackling high energy prices and market uncertainty, and a welcome incentive to embrace clean manufacturing.
Underpinned by Europe’s industrial footprint and ecosystem, single market, and leadership in green and digital technologies, including automation and electrification, there is a palpable opportunity for industry to lead the way in ensuring the continent’s competitiveness and resilience for the future.
Embarking on a digitalization journey and transitioning to modern manufacturing is crucial for businesses aiming to stay competitive in today's fast-paced market. The key lies in embracing innovation and new technologies, particularly automation. Traditional automation systems, designed decades ago, often struggle to adapt to the demands of a data-driven future, limiting flexibility and efficiency. Open, software-defined automation (SDA) overcomes these challenges by seamlessly integrating next-generation Information Technology (IT) and Operational Technology (OT), empowering companies to achieve unprecedented levels of industrial performance. By leveraging the data generated through automation, businesses can derive valuable insights for enhanced decision-making, leading to greater efficiency and productivity. SDA optimizes resource utilization, promotes environmentally friendly practices, and enhances supply chain resilience through its adaptable and modular design, all while reducing operational costs. It allows businesses to scale their operations, innovate, and implement new functionalities without being constrained by existing hardware limitations.
Without software-defined automation, we cannot unleash the full power of digitalization and AI in industrial settings. It is the backbone of our digital revolution, enabling businesses to harness the potential of advanced technologies and drive transformative change.
Transitioning from traditional automation to software-defined automation is like moving from diesel cars to electric vehicles.
Think of traditional automation as diesel cars: they are reliable and have been around for a long time, but they are limited by their design. Requiring regular maintenance and producing higher emissions, traditional automation systems need frequent manual updates and are less efficient. Now, imagine software-defined automation as electric cars. These represent the future, offering greater efficiency, flexibility, and sustainability. Electric cars run on advanced technology, require less maintenance, and can be easily updated with new software.
Just like the transition to electric cars, the shift to software-defined automation doesn’t need to happen overnight. Businesses can ensure a smooth transition and the ultimate success of their digitization journey by implementing solutions over a gradual timeline, protecting their existing investments and minimizing disruption.
At Schneider Electric, we are committed to supporting businesses as they transition to modern manufacturing and tackle industry challenges with open, software-defined automation. Since 2020, we've been leading the way with our EcoStruxure Automation Expert (EAE), the world’s first open, software defined automation system.
Building on this success, we are now introducing the EcoStruxure Automation Expert Platform. This platform provides a unified environment for managing control applications like Control Logic, Motion, HMI, Safety, and Simulation. It integrates various processes to simplify engineering and maintenance, allowing multiple users to work on the same project simultaneously, enhancing efficiency and speeding up development.
Schneider Electric is also a founding member of UniversalAutomation.org, which is providing the industry standard for open automation, enabling innovation and collaboration. The “open” aspect of software-defined automation is critical: it breaks down barriers between different systems and vendors, fostering interoperability and flexibility. Think of our electric cars example: with open SDA, there is no need for the engine and the stereo to be made by the same vendor in order for the software to work.
With software defined automation and an open approach, we are paving the way for a more efficient, collaborative, and innovative industrial future.
Join our LinkedIn live event featuring Barbara Frei, Schneider Electric EVP Industrial Automation, and key members of UAO to learn about the current shift in industrial automation.
