Industrial Firms Face $11.28M Revenue Gap from Automation Issues

A newly released study reveals that industrial companies could unlock an annual opportunity of $11.28 million to enhance their competitiveness by addressing inefficiencies linked to closed automation systems. The research, conducted by the global analysts at Omdia and unveiled by Schneider Electric on November 26, 2025, highlights significant revenue losses that mid-sized organizations are incurring due to outdated practices.

The report, titled “Open vs. Closed: The $11.28M Question for Industrial Leaders,” emphasizes that closed industrial automation systems are diminishing competitiveness. For mid-sized companies, these inefficiencies result in an average revenue loss of 7.5%. This figure escalates for large enterprises, where the average loss amounts to $45.18 million annually. Smaller manufacturers face even more considerable challenges, potentially losing up to 25% of their annual revenue.

Understanding the Revenue Impact

According to the findings, the financial impact of closed automation systems stems from a range of operational inefficiencies. These include unplanned downtime, the need for compliance retrofits, and delays in production. Such issues often remain hidden beneath the veneer of reliability associated with legacy systems.

The study underscores the increasing necessity for organizations to reassess their automation strategies. As industries are pushed to innovate and adapt to new technologies, maintaining reliance on outdated systems may hinder growth and profitability. The research suggests that transitioning to more open systems can lead to improved efficiency and reduced costs.

Industry-Wide Implications

The implications of this research extend beyond individual companies, affecting the overall competitiveness of the industrial sector. The findings suggest that by addressing these automation challenges, firms can not only reclaim lost revenue but also position themselves better for future advancements.

As global markets become increasingly competitive, the need for innovative solutions in automation cannot be overstated. Companies that proactively adapt to new technologies and systems stand to benefit significantly, both in terms of efficiency and profitability.

In conclusion, the report from Schneider Electric serves as a crucial reminder for industrial leaders to evaluate their current systems critically. By recognizing the hidden costs associated with closed automation systems, businesses can work towards unlocking substantial revenue opportunities that are essential for thriving in a rapidly evolving market.