At the Smart Production Solutions (SPS) industrial automation fair held from 25-27 November in Nuremberg, Germany, analysts from IoT Analytics listed the following trends gleamed from the exhibition floor:
Market Recovery
The industrial automation sector is experiencing a notable upturn after a volatile year in 2025. Companies like Siemens reported significant growth in automation revenues, signalling a revitalisation of the market, although challenges such as global trade barriers persist.
Software-Defined Automation (SDA)
SDA is emerging as a priority for innovation, moving from a concept to a robust platform strategy. This approach separates control software from proprietary hardware, enhancing flexibility and scalability. Siemens and Rockwell Automation are among the leaders advocating for this shift.
Advancements in Agentic AI
The first demonstrations of agentic AI are now evident in the industry. Vendors are developing generative AI applications that can autonomously plan, execute, and verify tasks, while still maintaining human oversight to ensure accountability.
Expansion of Edge AI
Edge AI is evolving beyond traditional vision applications, with integrated Neural Processing Units (NPUs) allowing for real-time analytics at the edge. This development reduces the dependency on cloud solutions while broadening the scope of AI applications in industrial processes.
Maturity of the Edge AI Software Stack
There is a growing trend towards end-to-end edge AI software stacks that cover everything from data ingestion to application deployment. This maturity is enabling companies to manage AI workloads more effectively and flexibly across various hardware.
Rise of Industrial DataOps and Unified Namespace
As Industrial DataOps matures, the Unified Namespace (UNS) is becoming more widespread, allowing for streamlined data integration across systems. This advancement enables real-time and historical data to be accessible for better decision-making.
Emergence of Physical AI
Physical AI is being touted as the next evolution in automation, where AI systems interact with the physical world to make higher-level decisions, thereby integrating AI reasoning into established control systems.
Standardisation of Single Pair Ethernet (SPE)
The adoption of SPE is accelerating, thanks to the establishment of common standards. This technology facilitates more seamless industrial connectivity, essential for the growth of the Industrial Internet of Things (IIoT).
Data Centres as a New Growth Area
Industrial original equipment manufacturers (OEMs) are increasingly eyeing the data centre sector as a promising growth area, driven by the demand for automation in cooling and power management systems.
Shift in OT Security Focus
Operational technology (OT) security is transitioning from a perimeter-centric approach to one that enforces security closer to industrial assets. This shift is influenced by the need for robust cybersecurity measures, particularly in light of new regulations.
* Editor's note: FutureIoT editorial will be looking at these trends to highlight which trends will take share in Asia. We welcome industry participation .
