Siemens Eyes India as Top 3 Market in Next Three Years

German engineering and technology giant Siemens expects India to become one of its top three or four markets globally within the next three years, surpassing Germany and France. Currently, India ranks as Siemens’ fifth-largest market, contributing 3.5-4% of the company's revenue. Senior company executives cited India’s rapid infrastructure development as a primary driver of this growth.

Infrastructure and Market Potential “India is the fastest-growing market in the world,” noted Peter Koerte, member of the managing board and chief technology officer at Siemens AG, during the Transform-Innovation Day 2024 in Mumbai. He highlighted that India’s infrastructure expansion—across sectors like locomotives, cement, and chemicals—is unmatched globally, second only to China.

Koerte emphasized Siemens’ strategic shift from being solely a manufacturing entity to becoming a technology-focused firm. This pivot is supported by their recent $10.6 billion acquisition of Altair Engineering, aimed at bolstering their software capabilities, which currently contribute 8% of total revenue.

Software and Workforce Expansion in India “Over 80% of our capability is hardware, with 12% from software. We aim to increase our software share both organically and inorganically,” said Koerte, adding that India plays a key role in this shift. The company’s workforce in Pune and Bengaluru now numbers 10,000, with ongoing recruitment for roles focused on AI and generative AI development. “Every device shipped today has software embedded,” Koerte remarked, underscoring India’s pivotal role in Siemens’ tech transformation.

Manufacturing and Infrastructure Focus Despite the enhanced focus on software, Siemens’ prediction that India will become its third-largest market remains tied to manufacturing and infrastructure investments. Sunil Mathur, managing director and CEO of Siemens India, indicated that public capital expenditure is a significant growth driver. “Private capital expenditure is growing in areas like semiconductors and data centres,” he said while acknowledging that sectors like automotive are experiencing temporary slowdowns.

Siemens currently operates 32 factories in India and has committed an additional €100 million for capex expansion to bolster these facilities. The company’s offerings in India span infrastructure, industrial, and mobility solutions.

Showcasing Innovation During the Transform-Innovation Day 2024, Siemens showcased its latest technological advancements, including digital twin technology, secure network planning through intent-based design, and seamless integration solutions from the shop floor to the cloud. These innovations are set to strengthen Siemens' position in India as it continues to expand its footprint and align with the country's rapid development trajectory.