Siemens Eyes India as Key Growth Market, Projecting Top 3 Global Ranking in Three Years

Mumbai: Global engineering and technology giant Siemens has expressed confidence that India will emerge as one of its top three or four markets globally within the next three years, surpassing even established markets like Germany and France. Currently, India is Siemens’ fifth-largest market, contributing 3.5-4% of the company’s total revenue.

Senior executives at Siemens cited the country’s rapidly expanding infrastructure as a major catalyst for this expected growth. With investments flowing into key sectors such as locomotives, cement, chemicals, and more, Siemens sees India as the fastest-growing market in the world, second only to China in terms of infrastructure development.

Strategic Shift Towards Technology and Innovation

Speaking at the Transform-Innovation Day 2024 in Mumbai, Peter Koerte, member of the managing board and chief technology officer at Siemens AG, outlined the company’s evolving strategy. Siemens, traditionally known for its manufacturing prowess, has recently pivoted towards becoming a technology-focused firm. This shift is underscored by its $10.6 billion acquisition of Altair Engineering, which enhances Siemens’ software capabilities—a key growth area that currently contributes about 8% of its total revenue.

“India’s infrastructure expansion is second only to China, and it’s a key driver in our growth here,” Koerte said, adding that the company was shifting its focus to integrate software in nearly every product. “Every device shipped today has software embedded,” he noted, underscoring the growing importance of India’s role in Siemens’ technology transformation.

India’s Role in Software and Workforce Growth

Siemens is focusing on expanding its software presence in India, with a current workforce of 10,000 employees in Pune and Bengaluru. Koerte mentioned that the company is actively recruiting in areas such as AI and generative AI to support its broader technological transformation. “Over 80% of our capability is hardware, with 12% from software. We aim to increase our software share both organically and inorganically,” he said.

India’s role in Siemens’ tech expansion is becoming increasingly significant, with the company positioning itself to not only expand in manufacturing but also lead in the software and digital sectors.

Manufacturing and Infrastructure Investments

Despite the growing emphasis on software, Siemens’ path to becoming one of the top markets globally still relies heavily on its manufacturing and infrastructure initiatives in India. Sunil Mathur, managing director and CEO of Siemens India, highlighted public capital expenditure as a major driver of growth, while private capital expenditure continues to rise in areas like semiconductors and data centres.

Siemens currently operates 32 factories across India and has committed an additional €100 million towards expanding its facilities. The company’s diverse portfolio in the country spans infrastructure, industrial solutions, and mobility, reinforcing its long-term commitment to the Indian market.

Showcasing Innovation at Transform-Innovation Day 2024

At the Transform-Innovation Day 2024, Siemens unveiled some of its latest innovations, including digital twin technology, intent-based network design for secure planning, and cloud integration solutions. These technologies are set to play a crucial role in Siemens’ expanding footprint in India, aligning the company’s global expertise with the rapid development taking place in the country.

With India’s growing importance as a market for Siemens, the company’s investments in both technology and infrastructure are poised to solidify its position as a leading player in the region, continuing to contribute to the nation’s development and technological advancements.