Schneider Electric shares the future strategy and focus areas
The next frontier: Transforming into an industrial technology leader.
During the 2023 Capital Markets Day, Schneider Electric, our mother company, shared its future strategy, known as The Next Frontier. The company aims to transform itself into an industrial technology leader, focusing on supporting four key end markets – Data Centers, Buildings, Industry, and Infrastructure. The goal is to achieve new levels of efficiency, sustainability, and resilience.
Schneider Electric, known for its strong industrial base in energy management and automation, has evolved into one of the largest industrial software tech companies. This digital and software evolution has positioned the company as a key player in the industrial tech sector, reinforcing its ability to tackle the complexities of an increasingly complex world.
Driving sustainability and combining electrification with digitization
Schneider Electric communicated its strong positioning in combining electrification and digitization solutions to drive sustainability. The company anticipates unprecedented growth opportunities supported by five megatrends: digitization and AI, the fight against climate change, the transition of the energy landscape, wealth evolution, and the need for reshoring and resiliency. These underlying megatrends offer significant potential for growth, even in a potentially volatile short-term environment.
Schneider Electric is uniquely positioned to capitalize on the opportunities ahead. The company’s distinct focus on sustainability, unique ecosystem of long-term partnerships, empowered multi-hub model, balanced global footprint, and strong people and culture all contribute to its success in navigating The Next Frontier.
Key focus areas for ambitious growth
Schneider Electric aims to drive sustainable growth by focusing on areas with growth potential and fostering a culture of agility. The company will prioritize meeting new and challenging needs in a faster and more agile manner.
Schneider Electric will embed sustainability in every dimension of its organization. The company will continue to be a trusted partner for its customers on their sustainability journey, combining digital and electric technologies to create a sustainable future.
The company recognizes the importance of staying ahead of changing needs and advancing technologies. The company will invest in organic growth through dedicated expansion in research and development (R&D), aiming to increase competitiveness and gain market share.
Schneider Electric sees prosumer and software solutions as critical areas for expansion. The company aims to position itself as a key player in the new energy landscape, leveraging its software companies to drive growth and value generation. The transition to subscription and software as a service (SaaS) will be accelerated.
Schneider Electric recognizes the transformative power of artificial intelligence (AI). The company plans to deploy AI internally for growth and efficiency, incorporate it into its products to benefit customers, and invest in data centers to support the computing power required for generative AI applications.
Ambitions and targets for future success
Schneider Electric has set ambitious goals for the future. The company aims to become a €50bn revenue company by 2027, with an adjusted EBITA of € 10bn. These targets reflect the company’s forward-thinking approach and its commitment to building on its strengths.
To ensure the delivery of its ambitions, Schneider Electric has developed concrete plans and targets that empower its teams to take action. The company is excited to lead the way forward in these extraordinary times, navigating The Next Frontier for Schneider Electric.
As Schneider Electric focuses on its mid-to-long term elements, the company remains committed to staying close to its customers and cultivating a culture of impact. By embracing its future strategy and capitalizing on growth opportunities, Schneider Electric aims to lead the way to a future that bridges progress and sustainability for all.