Schneider Electric hosted its Annual Capital Markets Day for investors and financial analysts, at the Tottenham Hotspur Stadium in London on 9th November 2023. This Research Note focuses on the French conglomerate’s perspective of its energy management and automation portfolio in the smart commercial buildings market. Key takeaways are highlighted across its offerings and vertical markets.

Schneider Electric End Markets

Schneider Electric segments its end markets exposure in four verticals: Industry, Buildings, Data Centers and Networks and Infrastructure. The group addresses the Buildings market with a portfolio of products, solutions and services, accounting for 34% of 2022 orders.

Schneider Electric is ranked as the number one provider of electrical distribution solutions, present in 1 out of 4 buildings, with primary products such as switchgear, panels and circuit breakers. Note that Residential buildings are included in this end market, with offerings such as the Wiser home automation brand.

Smart Buildings

The venue of Capital Markets Day was Tottenham Hotspur Stadium, which Schneider Electric claimed to be “the world’s most technologically advanced stadium, host of the first ever net zero carbon football match – fully equipped with Schneider Electric technology, incorporating offers of both Energy Management and Industrial Automation”.

Their smart buildings portfolio spans building management systems, workplace and facility management systems together with their core electrical distribution products and microgrid solutions.

Case studies presented included:

• At the John F. Kennedy Airport New Terminal 1, a rooftop solar installation and microgrid by Alphastruxure, the Carlyle/Schneider Electric joint venture, built under an energy-as-a-service model. The project features the largest rooftop solar array in New York City, and on any airport terminal in the United States, with all available and viable rooftop areas being used for solar.
• At JPMorgan Chase & Co headquarters, 270 Park Ave., New York City’s largest all-electric tower is being constructed with net zero operational emissions and exceptional indoor air quality that exceeds the highest standards in sustainability, health, and wellness. The EcoStruxure platform is part of the array of smart technologies that 270 Park Ave will utilize to be energy efficient and adapt to the future of work.

Data Centers

A separate end market to Buildings in the Schneider world, Data Centers business represents 19% of the group. Schneider Electric considers itself as the undisputed leader in the market, providing a large offering across the spectrum, including uninterruptible power supplies, cooling solutions, modular solutions and DCIM software.  There has been strong growth in both Enterprise and larger Data Center settings, where Artificial Intelligence is a driver.

Schneider Electric announced a $3 billion multi-year agreement with Compass Datacenters. The agreement extends the companies’ existing relationship that integrates their respective supply chains to manufacture and deliver prefabricated modular data center solutions. Since the inception of the initial agreement between the companies, Schneider Electric has manufactured and delivered about 150 modular data center solutions to Compass from its West Chester, OH operation.

Industry & Infrastructure

The strength of Schneider Electric’s industrial automation software portfolio was evident throughout these Capital Markets Day presentations, as the business has been augmented by the acquisition of Aveva, which was completed in Jan 2023.

Since its establishment in 1967, Aveva has grown from a niche design software developer to a global agnostic software company providing digital twin technology for the industrial asset lifecycle, from engineering through to operations and maintenance. Aveva’s software offerings are focused on the Industry and Infrastructure end markets accounting for 35% and 12% of 2022 orders, respectively.

Schneider Electric’s agnostic software, consisting of Aveva, RIB and ETAP, reported €1.9 billion revenues in 2022.  These brands complement EcoStruxure hardware and software for a complete digital twin.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.