Soaring Growth Ahead for Siemens' Smart Infrastructure: A Glimpse into the Future
Siemens Announces Ambitious Goals for Intelligent Infrastructure Development
Gear up, folks! Siemens AG’s Smart Infrastructure segment is set to conquer new grounds in the coming years, promising a boom that’s twice as rapid as the national economy's pace. This bold forecast was announced at their capital market day, with the projected growth surpassing the company's overall development.
Munich's New Nexus
Matthias Rebellius, the responsible board member, shared this exhilarating news at the SI capital market day in Zug. He predicted a market expansion of 5 to 6 percent in the upcoming mid-term (2029), equating to a total market size of a whopping €313 billion. In 2020, the market maintained its pace with the global economic growth, Rebellius informed us.
Booming in a Booming Market
What's propelling this growth spectacle? You may ask. Well, here are a few key factors:
Energy Efficiency and Sustainability
The smart building and smart infrastructure markets are experiencing a frenzy of growth, fueled by an increased focus on energy efficiency, sustainability, and productivity improvements. The smart building market, for instance, is estimated to skyrocket from $103 billion in 2024 to a mind-boggling $827.7 billion by 2034, growing at a CAGR of 24.4%[5].
Technological Advancements
Siemens Smart Infrastructure harnesses the power of the Internet of Things (IoT), artificial intelligence (AI), and 5G connectivity to elevate system capabilities for smart grids, metering, and building management. These cutting-edge technologies allow for seamless integration, predictive maintenance, and real-time analytics, consequently improving operational efficiency[1][5].
Smart Metering and Grid-Edge Solutions
The smart meter market is on a roll thanks to the expanded adoption of renewables and the urgent need for advanced metering infrastructure (AMI). Siemens is well-positioned to ride this wave by offering smart meters with grid-edge functionalities, catering to the expanding demand for data-rich insights, EV charging management, and capacity planning[1].
Electric Vehicle (EV) Infrastructure and Fleet Electrification
Siemens is making waves with solutions like Depot360 Home Charging Reimbursement and AI-based fleet charging management platforms, aimed at reducing capital and operational costs, streamlining reimbursement, and optimizing charging across locations. This empowers fleet operators to scale electrification efforts effectively[2][3].
Services and Managed Solutions
Siemens offers managed services, armed with expert support, analytics, and operational automation, adding value and stickiness for customers. This service-based strategy can lead to higher recurring revenues and margin expansion[3].
Industrial AI and Digitalization Policies
Siemens is thriving on favorable industrial AI policies that foster digital transformation, which in turn enables scalable AI-driven solutions within the Smart Infrastructure segment[4].
The path ahead is teeming with opportunities for Siemens’ Smart Infrastructure segment to grow while boosting those precious margins. It's a time to buckle up and ride the wave of digitalization, electrification, sustainability, and AI-driven optimization across energy, buildings, and transportation infrastructure[1][2][3][4][5].
- Siemens AG's Smart Infrastructure segment, as announced at their capital market day, is expected to grow at a rate that is twice as rapid as the national economy's pace, reaching a market size of €313 billion by 2029.
- Matthias Rebellius, a Siemens' board member, predicts a market expansion of 5 to 6 percent for the smart building and smart infrastructure markets, driven by increased focus on energy efficiency, sustainability, and productivity improvements.
- Siemens Smart Infrastructure utilizes technology such as the Internet of Things (IoT), artificial intelligence (AI), and 5G connectivity to enhance system capabilities in areas like smart grids, metering, and building management, thereby improving operational efficiency.
- Siemens is poised to benefit from the expanded adoption of renewables and the urgent need for advanced metering infrastructure (AMI), offering smart meters with grid-edge functionalities that cater to the expanding demand for data-rich insights, EV charging management, and capacity planning.
