Why software-defined automation is reshaping industrial automation
- 23 Jul 2025
- 4 min read
In today’s industrial landscape, volatility, uncertainty, complexity, and ambiguity (V.U.C.A.) are the new normal. Leaders are under immense pressure to do more with less—less cost, less time, less energy, and fewer resources—while simultaneously delivering better outcomes. Incremental improvements are no longer sufficient. Staying competitive requires a fundamental transformation characterized by agility, efficiency, and intelligence.
Yet, at the heart of industrial operations—automation systems—many organizations remain tethered to outdated technologies. Legacy systems, often rigid, proprietary, and built for pre-digital eras, are increasingly becoming obstacles rather than enablers. In response, Schneider Electric is spearheading a paradigm shift with its open, software-defined automation (SDA) solution, offering industries a pathway to agility, resilience, and competitiveness in the face of rapid change.
Industrial automation has long been the cornerstone of efficiency and productivity. However, most existing systems were designed decades ago, well before the advent of artificial intelligence (AI), cloud computing, and advanced connectivity. These legacy systems are closed by design, locking plants and factories into proprietary ecosystems that stifle innovation and inflate costs.
According to ABI Research, rigid and proprietary automation structures are becoming increasingly expensive to maintain, especially as skilled engineers retire. The total cost of ownership (TCO) is rising not because of hardware, but due to the complexity of maintaining and programming outdated systems.
Meanwhile, over 75% of industrial companies are grappling with labor shortages and a rapidly retiring workforce. ABI Research emphasizes that modern engineers prefer low/no-code environments and natural language coding, making legacy systems unattractive to the next generation of talent.
Additionally, the fragmented nature of legacy systems inhibits scalability and complicates modernization. Machines from different vendors often cannot communicate seamlessly, limiting integration and unified decision-making. This lack of interoperability not only drives up maintenance costs but also undermines performance and competitiveness.
To overcome these barriers, the industrial sector is undergoing a fundamental shift toward open, software-defined automation (SDA). Unlike traditional systems tied to proprietary hardware, SDA decouples software from hardware, creating an adaptable, vendor-agnostic framework that prioritizes agility and innovation.
Schneider Electric has emerged as a global leader in this transformation. As a founding member of UniversalAutomation.org, Schneider Electric is not only advocating for open standards like IEC 61499, but also actively building solutions that enable them. Its EcoStruxure Automation Expert solution, launched in 2020, is the industry’s first software-centric automation solution.
This modular and flexible approach empowers businesses to modernize legacy infrastructure, scale operations, and innovate without the constraints of vendor lock-in. ABI Research highlights Schneider Electric as a front-runner in the SDA market.
The benefits of open, software-defined automation extend far beyond flexibility. Organizations adopting this approach are experiencing measurable improvements in efficiency, innovation, and cost-effectiveness.
Reduced Downtime and Faster Commissioning
Schneider Electric’s EcoStruxure Automation Expert delivers up to 70% improved engineering efficiency and reduces commissioning time by as much as 60%. Software-defined automation allows for more updates without production shutdowns and supports centralized deployment across the organization.
Lower Total Cost of Ownership (TCO)
By eliminating vendor lock-in and streamlining integration, open automation dramatically lowers lifecycle costs. ABI Research notes that the cost of automation lies more in design and maintenance than hardware, and SDA simplifies these processes.
Enhanced Scalability
SDA enables manufacturers to scale operations without being constrained by hardware decisions made at the start of a project. ABI forecasts that installed base of edge servers will increase by more than 60% by 2027, supporting the rise of SDA adoption.
Flexibility alone does not define the future of industrial automation. The true power of open systems lies in their ability to harness intelligence at every level of the enterprise.
For example, predictive maintenance—enabled by AI and analytics—allows businesses to pre-empt equipment failures, reducing downtime and repair costs. Meanwhile, data-driven insights enable continuous performance improvements, from supply chain optimization to energy efficiency.
The shift to open, software-defined automation is not just a technological upgrade—it is a strategic imperative. In a world defined by uncertainty and rapid change, businesses need systems that are:
- Flexible by Design: Capable of adapting in real-time to shifting market conditions.
- Resilient at the Core: Engineered to withstand disruptions and recover quickly.
- Intelligent at Scale: Powered by data-driven insights and predictive capabilities.
- Efficient and Sustainable: Minimizing energy use, waste, and emissions.
- Collaborative by Nature: Leveraging open ecosystems to foster innovation.
This human-centric and inclusive vision is shaping the future of industry. ABI Research underscores that SDA supports end-to-end integration, enabling centralized design, engineering, and management of automation systems.
By embedding sustainability and resource efficiency into its strategy, Schneider Electric is driving long-term value for businesses, society, and the planet. The results are tangible: open automation not only improves operational efficiency but also aligns with broader goals such as decarbonization and electrification.
As the industrial sector navigates the challenges of a V.U.C.A. world, the need for transformation has never been more urgent. Legacy systems, while once effective, are now liabilities, inhibiting innovation and scalability in an era that demands agility and intelligence.
Schneider Electric’s commitment to open, software-defined automation represents a bold and necessary departure from the status quo. Backed by ABI Research’s findings, it’s clear that SDA is not just a trend—it’s the future. By breaking down silos, fostering interoperability, and embedding intelligence into every layer of operations, Schneider Electric is helping industries thrive in an increasingly competitive landscape.
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