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Schneider Electric Responds to the Growing Need for Industrial Automation Modernization
2026-08-13Industrial manufacturers are facing a difficult combination of challenges.
They need to modernize aging automation systems while maintaining production continuity.
At the same time, they need to introduce:
- Artificial intelligence
- Advanced analytics
- Edge computing
- Industrial IoT
- Cybersecurity
- Digital engineering
This creates a major modernization challenge.
Many factories cannot afford long production shutdowns simply to replace existing automation infrastructure.
Schneider Electric has been expanding its industrial automation modernization strategy, including approaches that combine automation technology with modern computing infrastructure and digital services.
The objective is to provide manufacturers with a more flexible path toward intelligent industrial operations.
Why Industrial Modernization Is Becoming Urgent
Manufacturing facilities often contain automation equipment installed many years ago.
These systems may include:
- PLC controllers
- HMIs
- Industrial networks
- Drives
- Remote I/O
- SCADA systems
Although the equipment may continue operating reliably, it may not support newer digital technologies as easily as modern platforms.
Manufacturers therefore face a choice:
- Continue operating legacy systems.
- Replace everything at once.
- Modernize gradually.
For many factories, gradual modernization is the most practical approach.
Modernization Must Protect Production Continuity
Industrial production cannot simply stop whenever a new digital technology is introduced.
Factories may operate continuously for:
- Days
- Weeks
- Months
A major automation replacement project can require extensive planning.
Engineers need to consider:
- Control logic
- I/O configurations
- Network architecture
- Operator interfaces
- Safety systems
- Production procedures
Modernization strategies therefore increasingly focus on minimizing disruption.
Edge Computing Provides a Bridge Between Legacy and Digital Systems
Industrial edge computing can play an important role in modernization.
Edge devices can process data close to the production equipment.
This can provide:
- Low-latency processing
- Local analytics
- Data filtering
- AI inference
Edge computing can also provide a bridge between existing automation equipment and modern digital applications.
Instead of immediately replacing every controller, companies can sometimes add digital capabilities around the existing automation layer.
Industrial AI Requires Real-Time Data
AI applications depend on operational information.
Manufacturing facilities generate data from:
- Sensors
- PLCs
- Drives
- Robots
- Machines
This data can be used for:
- Predictive maintenance
- Quality analysis
- Process optimization
- Energy management
However, AI systems need access to reliable information.
Modernization therefore needs to improve data connectivity as well as control functionality.
Predictive Maintenance Is a Practical Modernization Goal
One of the fastest ways to demonstrate value from digital modernization is predictive maintenance.
Industrial equipment often produces signals indicating changes in condition.
These may include:
- Increased motor current
- Higher temperature
- Abnormal vibration
- Longer cycle time
- Changes in energy consumption
Analytics systems can identify these trends.
Maintenance teams can then investigate before equipment failure occurs.
This can improve:
- Equipment availability
- Maintenance planning
- Production stability
Modern Automation Systems Need Stronger Data Architecture
Digital transformation is not simply about connecting machines to the internet.
Industrial data must be organized properly.
Manufacturers need to know:
- Where data comes from
- What equipment generated it
- What operating condition existed
- How the information should be interpreted
This requires structured industrial data architectures.
Modern automation platforms increasingly provide mechanisms for connecting operational technology with software applications.
This makes data a usable resource rather than simply a collection of machine signals.
Industrial Cybersecurity Becomes Part of Modernization
Connecting older industrial equipment to modern networks introduces cybersecurity concerns.
Manufacturers need to protect:
- PLC systems
- Engineering workstations
- Industrial networks
- Production data
- Remote access
Cybersecurity strategies may include:
- Network segmentation
- Access controls
- Authentication
- Secure communication
- Continuous monitoring
A modernization project that ignores cybersecurity can create new risks.
Therefore, cybersecurity must be included from the beginning.
Energy Management Is Becoming a Core Automation Function
Manufacturers are also under pressure to improve energy efficiency.
Automation systems can provide detailed information about:
- Motor operation
- Production loads
- Electricity consumption
- Equipment utilization
This allows companies to identify energy-intensive operations.
Digital analytics can then help determine how production processes can be optimized.
The combination of automation and energy management can improve both operating costs and sustainability.
Modernization Supports Flexible Manufacturing
Manufacturers increasingly need production systems capable of adapting quickly.
Market conditions can change rapidly.
Factories may need to produce:
- New products
- Smaller batches
- Customized components
Flexible automation architectures make these changes easier.
Modern PLC systems, software platforms and industrial networks can support faster configuration and integration.
This flexibility is becoming an important competitive advantage.
Industrial Automation Is Moving Toward Software-Defined Systems
One of the most important long-term trends is the increasing role of software.
Traditional automation systems were heavily dependent on dedicated hardware.
Modern platforms increasingly combine:
- Controllers
- Industrial computers
- Software
- Edge systems
- Cloud services
This allows manufacturers to update digital capabilities without necessarily replacing all physical equipment.
Software-defined automation therefore provides a potential pathway for long-term modernization.
AI Will Change the Role of Automation Engineers
As AI becomes more integrated into industrial systems, automation engineers will increasingly work with:
- Data analytics
- AI applications
- Digital twins
- Edge computing
- Industrial software
Traditional PLC programming will remain important.
However, engineers will increasingly need to understand how machine data can be used to improve production.
This creates a broader role for automation professionals.
The Future of Schneider Electric Industrial Automation
The direction of industrial automation is becoming increasingly clear.
Future factories will combine:
- PLC control
- Industrial software
- Edge computing
- AI
- Digital twins
- Cybersecurity
- Energy management
Manufacturers will increasingly expect automation suppliers to provide complete modernization strategies rather than isolated hardware products.
This means industrial automation companies will play a larger role in digital transformation.
Conclusion
Schneider Electric’s continued focus on industrial automation modernization reflects a major challenge facing manufacturers worldwide.
Factories need to adopt AI, digital technologies and advanced analytics, but they also need to protect existing automation investments and maintain production continuity.
Modernization strategies based on edge computing, industrial software, connected automation and AI provide a practical path forward.
The future industrial facility will not necessarily be built entirely from new equipment.
Instead, existing automation assets will increasingly be connected with new digital technologies.
For manufacturers, this approach can provide a more flexible route toward intelligent, efficient and future-ready production.
As industrial AI and digital transformation continue accelerating, automation modernization will remain one of the most important priorities for factories around the world.