Can B&R’s Portfolio Reinvigorate ABB’s Market Ambitions?

The Swedish-Swiss multination engineering conglomerate ABB prepares to dive deeper into the industrial automation space. The company recently announced that it has agreed to acquire B&R automation – a company having expertise in providing innovative automation solutions to different industrial requirements. The addition will definitely expand ABB’s capabilities, as B&R’s new-age product line comprising of high-end servo motion, Industrial PCs and software and hardware suites for PLCs has performed remarkably in the market.

ABB ranks amongst the top automation solution providers in the world and certainly aims to extend its dominance in the newer segments of the market. Having already acquired SVIA last year, it appears that ABB is planning to make some serious improvements in its robotic solution offering. To some extent, the acquisition also reaffirmed ABB’s continued market leadership in industrial automation. Moreover, the recent appointment of Sami Atiya a former Siemens executive as a key personal in the company’s robotics division clearly explains ABB’s growing interest in the particular segment.

Over the past couple of years, new names have emerged in industrial automation space. While robust industrialisation across the globe continues to create lucrative business opportunity, the arrival of new entrants is making the market fiercely competitive. Undoubtedly, the present Chief executive officer of ABB — Ulrich Spiesshofer, essentially realises the need for constantly developing and enhancing the company’s capabilities to maintain a positive growth momentum. In the modern world, industrial requirements of automation solutions are purely designed to address their core purpose and nothing less, especially in manufacturing. Which is why the company looks forward to developing solutions that are capable of integrating all the components of industrial automation using a single technology.

B&R will be its first major strategic acquisition in over four years. Serving over 4,000 clients globally, B&R has witnessed immense success in recent years and surely holds a lineage in offering automation software and solutions. The company remains unchallenged in several advanced robotic applications for machine and factory automation. Moreover, being a specialist is designing factory automation solutions particularly for sectors such as packaging, chemical and food and beverage, it will create a wider client base for ABB going forward. Both the companies are committed to investing heavily in research and development projects to better facilitate technological connectivity and offer a wider range of choices. Reportedly, ABB’s annual R&D budget is close to $1.5 billion, having a dedicated workforce of around 30,000 engineering specialists and technologists. The forthcoming term, machines and factories automation will remain crucial for driving the Fourth Industrial Revolution and the IIoT.

About the Author

Nikhil Kaitwade

With over 8 years of experience in market research and consulting industry, Nikhil has worked on more than 250 research assignments pertaining to chemicals, materials and energy sector. He has worked directly with about 35 reputed companies as lead consultant for plant expansion, product positioning, capacity factor analysis, new market/segment exploration, export market opportunity evaluation and sourcing strategies.

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