SPS 2025: Light on Innovation, Rich on Future Visions

KEYWORDS: Smart Production Solutions, SPS Fair, Discrete Automation, Artificial Intelligence, Software-Defined Automation

Overview

A proven forward-looking strategy is to innovate during challenging economic periods, to ensure a competitive edge when conditions improve. This approach was evident at the Smart Production Solutions (SPS) trade fair held in Germany in November. Despite a generally subdued atmosphere among automation suppliers, incremental innovations were widespread, and the most inspiring developments came from the bold future visions shared by leading automation companies.

Key Impressions and Takeaways

• Exhibitors displayed a noticeably more positive and relaxed attitude compared to previous years, reporting improvements in both lead quantity and quality.
• Industrial Software-Defined Automation (ISDA) emerged as the most discussed and hyped topic at the fair. Suppliers are addressing multiple facets of SDA, including virtualization as a deployment model, fleet asset management, and open SDA as an interoperability enabler.
• SDA is increasingly linked with DevOps, driven by new engineering tool concepts inspired by IT practices—these are far more advanced than traditional programming tools.
• Artificial Intelligence (AI) dominated the event, with applications ranging from copilots and multi-agent systems to quality inspection, adaptive controls, and smart maintenance strategies.
• Startups such as luffy.ai, Pronetiques, and Flecs showcased innovative solutions, underscoring the sector’s dynamism.
• Many exhibitors voiced concerns about European and German bureaucracy, citing rising administrative burdens, limited investment in data centers (leading to hyperscaler dependency), and insufficient foreign direct investment.
• Despite these challenges, most exhibitors expressed optimism for 2026. While automotive remains the weakest sector, energy and AI are expected to drive growth over the next two years.
• The current AI hype is anticipated to fade, leading to market consolidation. Increasing regulatory complexity (EU AI Act, U.S. laws) will push companies toward implementing AI governance. For industrial users, AI’s tangible value remains unclear, with few able to link investments to financial outcomes—resulting in tighter budgets and slower adoption.

ARC Advisory Group clients can view the complete report at the ARC Client Portal.

Contact Us if you would like to speak with the author.

Obtain more ARC In-depth Research Market Analysis.