Siemens assures its Xcelerator to tackle automation downturn

The German engineering group last month warned its full-year sales growth would be slower than expected, with revenues at its flagship digital industries division likely to fall around 8%. Still, the company’s industrial software business is doing well, with sales leaping 82% during the three months to end of June, mainly due to software sold by Xcelerator.

“Siemens is looking to its online digital platform Xcelerator to support future growth, including at its factory automation business which has been hit by weakening demand in China and Europe,” shared Managing Board Member Peter Koerte.

Siemens has long-term hopes for Xcelerator, a cloud-based platform set up in 2022. It is an integrated, open platform that combines advanced software solutions, IoT-enabled hardware, and digital services. It enables industries such as manufacturing, energy, and infrastructure to embrace digitalization and achieve higher levels of automation. Siemens has positioned Xcelerator as a critical tool for companies looking to streamline operations, optimize resource allocation, and reduce costs.

The company sounds bullish because Xcelerator incorporates AI and machine learning algorithms, which enable the system to analyze vast amounts of data, make informed predictions, and optimize workflows. This is particularly useful for identifying inefficiencies and suggesting adjustments in real time.

However, Koerte declined to provide financial figures for Xcelerator, which works with 400 partner companies on the platform, offering more than 900 products and services. But at the same time, he shared that Siemens’s divisions – mobility, smart infrastructure and digital industries – benefit from orders and applications related to Xcelerator.

China being one of the fastest growing markets, Koerte shared that Xcelerator had also been well received in India, Germany and the United States. Xcelerator is also helping to win orders with big customers, like Deutsche Bahn, which ordered 90 new regional trains for Munich in August.