SPS 2025 Sets the Tone for the Future of Automation
The Smart Production Solutions (SPS) 2025 exhibition in Nuremberg, Germany, reaffirmed its position as one of the world’s most influential events in industrial automation. With over 55,000 attendees and 1,175 exhibitors, the fair showcased how software, AI, and control systems are shaping the next phase of digital manufacturing.
While traditional automation areas such as drives, PLCs, and sensors remained vital, the spotlight shifted toward software-defined automation (SDA), industrial AI, and edge computing. Attendance from Chinese vendors rose by 41%, underscoring the increasingly global competition in factory automation technology.
1. Industrial Automation Market Shows Early Signs of Recovery
After a volatile 2025, the automation market appears to be stabilizing. According to data presented at SPS, order volumes and production activity are gradually rebounding. Siemens Digital Industries (DI) reported 9% comparable Q4 growth, driven by automation and software sales. Similarly, Beckhoff noted a 7–10% recovery outlook after inventory corrections. However, global trade uncertainty and fluctuating demand still pose risks. The ZVEI industry association confirmed cautious optimism, signaling that 2026 could mark a renewed upcycle for automation suppliers.
2. Software-Defined Automation Becomes a Core Innovation Priority
Software-defined automation (SDA) is redefining how control systems are designed and deployed. Instead of tying control logic to proprietary PLC hardware, SDA enables virtualized PLC (vPLC) environments and software-based control engineering. At SPS 2025, Siemens showcased its SDA architecture, built on Industrial Edge, virtual control runtimes, and the SIMATIC AX low-code platform. This shift allows automation tasks to run on standard x86 devices, enhancing scalability and flexibility. Rockwell Automation and Endress+Hauser presented similar concepts, treating field instruments as IT-ready assets that can receive software updates—much like mobile devices.
3. Agentic AI Takes the Next Step in Automation Engineering
Agentic AI moved from concept to demonstration. Vendors showed how AI agents can autonomously generate control logic, simulate processes, and assist engineers through human-in-the-loop workflows. Schneider Electric demonstrated AI agents within its EcoStruxure Automation Expert, automatically generating PLC applications from user specifications and verifying them through digital twins. Meanwhile, Siemens presented its Insights Hub Copilot Studio, enabling users to define AI “skills” such as OEE analysis or anomaly detection. These tools mark the transition from AI copilots to self-acting automation agents—a milestone for industrial AI adoption.
4. Edge AI Expands Beyond Vision Systems
Edge computing is becoming smarter and more autonomous. At SPS, vendors integrated neural processing units (NPUs) into IPCs and PLC controllers, enabling real-time inference without relying on the cloud. Bosch Rexroth and WAGO showcased IPCs with built-in NPUs for tasks such as PPE monitoring and near-miss detection, combining AI and control logic in one device. Beckhoff extended its TwinCAT Machine Learning Creator to time-series data, allowing engineers to classify machine behavior using internal signals. This shows that Edge AI is now applicable across diagnostics, predictive maintenance, and quality monitoring—not just vision.
5. Edge AI Software Stacks Mature into Full Pipelines
Vendors are evolving from selling hardware to providing complete AI orchestration stacks. These systems handle data ingestion, model deployment, and lifecycle management through containerized architectures. Advantech’s WISE-Edge platform demonstrated local retraining and federated learning capabilities, ensuring secure and scalable AI deployment. Meanwhile, Beckhoff’s integration of ML workflows into TwinCAT engineering tools shows how AI development can seamlessly fit into traditional PLC environments, bridging IT and OT disciplines.
6. Industrial DataOps and Unified Namespace Adoption Accelerate
Industrial DataOps platforms are maturing rapidly. Vendors such as United Manufacturing Hub (UMH) and i-flow presented advanced Unified Namespace (UNS) solutions that merge real-time and historical data streams. These systems use high-throughput backends like Kafka and NATS for scalable data exchange across factory and enterprise levels. The result is better contextualization of industrial data, enabling analytics, DCS integration, and enterprise-wide visibility without heavy custom coding.
7. Physical AI Brings Intelligence to the Factory Floor
A new narrative—Physical AI—emerged at SPS 2025. It describes how AI models interact with physical systems through sensors, motion control, and robotics. Beckhoff demonstrated its ATRO modular robot playing chess using an LLM-driven reasoning engine, showcasing AI-based perception and decision-making. This hybrid of deterministic control and cognitive reasoning signals a new phase of intelligent automation, where AI complements PLC logic instead of replacing it.
8. Single Pair Ethernet and Ethernet-APL Near Full Standardization
Connectivity took a leap forward as Single Pair Ethernet (SPE) and Ethernet-APL reached standardization milestones. The IEC 63171-7 connector standard now provides full interoperability for SPE implementations across devices. Companies like Rosenberger and Moxa showcased deployable solutions linking sensors to control networks over two-wire Ethernet. These technologies enable faster, safer communication over long distances—ideal for process automation and hazardous environments.
9. Data Centers Emerge as a Growth Market for Automation OEMs
Automation leaders are entering the data center infrastructure market. With AI compute driving massive energy and cooling demands, vendors like Schneider Electric, Siemens, and ABB are leveraging their control system expertise to manage uptime and efficiency. Schneider’s MotiveAir and Uniflair cooling systems, integrated with redundant PLC-based controls, now target near-zero downtime. Siemens promotes the “AI factory” concept, combining S7-1500H controllers and WinCC OA for scalable, high-availability operations.
10. OT Security Moves Closer to the Industrial Assets
Cybersecurity in operational technology (OT) is shifting from perimeter defense to in-network enforcement near critical controllers. Vendors such as TxOne and Fortinet are deploying inline intrusion prevention and ruggedized firewalls adjacent to PLCs and SCADA systems. These architectures enforce segmentation and zero-trust principles at the asset level, ensuring consistent protection across distributed plants.
Expert Commentary: The Convergence of Software and Industrial Automation
The SPS 2025 trends confirm a long-term transformation: industrial automation is becoming software-centric. The boundaries between PLCs, IT, and AI are blurring, leading to unified automation platforms that prioritize flexibility, cybersecurity, and sustainability. For integrators and end users, this means that adopting open standards, containerized software, and secure networking will define competitiveness in the coming decade.
Application Scenarios and Future Outlook
Automotive and Electronics Plants: SDA and Edge AI optimize production while minimizing latency.
Energy and Utilities: Unified namespaces improve DCS-SCADA data integration.
Data Centers: Industrial-grade automation ensures 24/7 uptime.
Smart Factories: Physical AI enables adaptive control and autonomous quality inspection.