Industrial businesses are facing challenges from every corner: geopolitical uncertainty, rising energy costs, increasing global competition, and evolving regulation. To survive, European industry must once again adapt. And this means embracing technology.
From achieving greater energy sovereignty to maximizing efficiency and making quicker, data-driven decisions on the shop floor – the solutions already exist to ensure industries don’t just survive, but flourish.
Hannover Messe 2026 revealed important conversations across diverse sectors. As energy tech leader, Schneider Electric’s team of around 300 people were on the ground, showcasing our solutions. Here are three takeaways from our experience:
1) Electrification: An immediate, practical lever
Energy has become a constraint on growth. Not only because of price volatility, but because uncertainty makes planning difficult: for production, for investments, for long-term contracts, for hiring. And this all while oil currently sits around $100 per barrel.
That’s why electrification is shooting up the board agenda. It offers cost certainty, while also working to make operations more efficient.
At Hannover, the message was clear: electrification and digitalization are no longer optional, but the twin engines of industrial growth and resilience. And importantly, the cost of not electrifying what is possible in industrial operations, will be more than the cost of changing technology.
So, what does “electrification” mean in practice for an industrial leader?
It means looking at every major energy use and asking a simple question: can this be done more efficiently, more predictably, and with less exposure to fuel volatility? For many, this is a yes. The technology exists today to make it happen.
But it’s important to not just look at electrification as a standalone action. It needs to be seen as a process in itself, tied to greater site visibility and understanding through digitalization.
The industrial leaders who will pull ahead are those combining electrification with data: monitoring, forecasting, optimization, maintenance, load management, and power quality. Turning energy from a bill into something you control.
This also speaks to a wider European reality. Some countries are now actively doubling down on incentives and frameworks that make electrification easier. France is one example of a market pushing harder to accelerate this shift. But while policy shifts are welcome, they can’t reach our targets alone. We need to invest in the grid, renewable assets, and electrification of full systems for industry to feel the full benefits of this shift.
2) Open, software-defined automation: Modernize without “rip and replace”
If your automation stack can’t talk to your energy management stack, then neither will give you data you can understand and use. You’re adding complexity, but not value.
That’s why open, software-defined automation is attracting so much attention. It’s a route to move faster without throwing away what already works. The trend has changed from “rip and replace” to “wrap and reuse.”
Today, enterprises on average deploy more than 10 different hardware solutions. We need to set up frameworks that talk to each other. System interoperability will be crucial to enable all businesses to get ahead faster.
This is where a software-defined layer can help modernize operations while protecting existing investments. Put simply: it becomes easier to upgrade, easier to integrate, and easier to keep improving over time.
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