Siemens Smart Infrastructure (SI) has surpassed its previous mid-term targets, achieving an 11% compound annual growth rate for revenue from fiscal 2020 to 2024. The company reported a record profit margin of 17.3% in fiscal 2024, exceeding the targeted range of 11-16%. Over the past four years, SI more than doubled its digital business revenue to €1.7 billion, surpassing its €1.5 billion target announced in 2021.
For fiscal 2025, SI aims for revenue growth between 6-9% and a profit margin range of 17-18%. The company's current strong position is expected to help it capitalize on global megatrends such as electrification, decarbonization, resource efficiency, data and AI, resilience, and people-centricity. In fiscal 2024 alone, SI helped customers avoid 44 million tons of CO2 emissions.
"We set ambitious commitments and we delivered. Now, we’re raising the bar again with new targets to unlock the next level of value creation," said Matthias Rebellius, member of the Managing Board of Siemens AG and CEO of Smart Infrastructure. "As a global technology leader in this rapidly evolving market, our Smart Infrastructure business is in a sweet spot."
Ralf P. Thomas, Chief Financial Officer of Siemens AG, commented on SI's achievements: "Over the past years, Smart Infrastructure impressively demonstrated how successful a well-prepared and consistently executed transformation can be."
In its next phase, SI will invest in its global presence with a local-for-local strategy and capacity expansion while nurturing talent in key markets like the United States and India. These investments aim to deliver scalable results in established end markets such as data centers, healthcare, and power utilities.
The company plans to maintain a resilient business mix by expanding its digital and service business while focusing on high-margin products to increase recurring revenue. Its digital revenue growth is attributed not only to software but also remote and data-driven services.
SI is strengthening its technological leadership across Buildings, Electrification, and Electrical Products by integrating innovations into the Siemens Xcelerator portfolio. This open digital business platform combines SI’s offerings with partner competences for customer benefit.
In fiscal 2024, SI exceeded expectations for order intake in the data center business with around a 60% growth rate. It realized over €3.6 billion in orders and boosted revenue growth above 50% to more than €2 billion.
SI's addressable market continues to grow at an estimated rate of 5-6% mid-term and is forecasted to reach over €300 billion by 2029 from €185 billion in 2020.
Innovation remains central to SI's strategy with products supporting electrification like SENTRON ECPD and blueGIS portfolio launched ahead of European regulations. Strategic acquisitions include C&S Electric in India (2021), Brightly Software (2022), Trayer Engineering (2024), and Danfoss Fire Safety (2024).