Control systems + automation
WRITE @ THE BACK
Open versus closed automation systems New research conducted by global technology research firm Omdia and unveiled by Schneider Electric in November last year reveals that closed industrial automation systems are eroding competitiveness and costing mid-sized organisations, on average, 7.5% of their revenue.
Open, software-defined automation offers a scalable, future-ready solution that modernises legacy systems and strengthens industrial competitiveness.
T he research highlights how these costs stem from operational ineiciencies, downtime, compliance retrofits, and delayed production, issues o¦en masked by the perceived reliability of legacy automation systems. For large enterprises, losses average $45.18 million per year, while smaller manufacturers face steeper proportional impacts, losing up to 25% of annual revenue. Traditional, hardware-defined automation systems, built for static environments, struggle to meet today’s dynamic industrial demands. Their rigidity turns routine updates into costly technical projects and proprietary architectures limit data access, reducing visibility and responsiveness. At the core of the challenge is hardware complexity. Most companies operate across two to 10+ distinct platforms, each with unique maintenance needs. This fragmentation drives vendor dependency; 30% of issues Key findings Hidden cost penalties: closed industrial systems cost mid-sized industrial companies 7.5% of rev- enue through downtime, ineiciencies, and com- pliance retrofits every year. Rigid infrastructure slows response: 77% of sys- tems need physical updates; fragmented plat- forms increase complexity and delay action. Open, so¦ware-defined automation oers a way forward: by decoupling so¦ware from hardware it enables faster decisions, real-time insights, and competitive resilience.
require specialised support, and this strains workforce eiciency due to the niche technical expertise required at a time when companies are facing workforce and skills shortages. Siloed systems also hinder predictive maintenance and the fast resolution of issues, leading to costly downtime and lost productivity. These ineiciencies scale across operations, limiting agility. The research underscores a need for transformation. Open, so¦ware-defined automation oers a scalable, future-ready solution that modernises legacy systems, accelerates ROI, and strengthens industrial competitiveness and resilience. By decoupling so¦ware from hardware, manufacturers gain the flexibility to integrate multi-vendor systems, adapt quickly to market shi¦s, produce small batches eiciently, and close engineering skills gaps. Real-time data becomes actionable, driving smarter decisions, boosting productivity, and reducing costs at scale. Schneider Electric customers are already realising these benefits. Many begin with pilot projects or asset-level trials, then expand to full-plant or multi-site deployments, unlocking full data ownership, improved quality control, and greater cost transparency, while protecting existing investments. “This research echoes what our customers tell us every day: industrial systems need to adapt as fast as their markets,” says Gwenaëlle Avice Huet, Executive Vice President, Industrial Automation, Schneider Electric. “It’s particularly encouraging that smaller enterprises stand to gain the most in annual savings, which can be reinvested in innovation and growth. Open, so¦ware- defined automation is a proven solution that empowers industrial players of all sizes to build resilience, drive innovation, and thrive amid rapidly shi¦ing consumer demands, regulatory pressure and market volatility.”
6 Electricity + Control FEBRUARY 2026
Made with FlippingBook flipbook maker