Benzinga | Aug 16, 2021 04:24PM EDT

How Siemens Aims To Grab Market Share From ABB, Schneider Electric, Honeywell, Johnson Controls?

* Siemens AG (OTC:SIEGY) is exploring acquisitions and investments in building management software, electric vehicle charging as office blocks and apartments become more connected, and drivers switch to e-vehicles, Reuters reported.

* Siemens aims to drive its Smart Infrastructure (SI) division by tapping its vast software base and software developers. It is also targeting the e-mobility business.

* It has recently moved beyond its traditional customers to expand its base by (euro)120 billion annually.

* Siemens spent (euro)550 million in 2021 on a software acquisition for its mobility business and $700 million on electrical component supplier Supplyframe.

* It aims to win market share from ABB Ltd (NYSE:ABB), Schneider Electric SE (OTC:SBGSF) (OTC:SBGSY), Honeywell International Inc (NASDAQ:HON), Johnson Controls International PLC (NYSE:JCI) by growing revenue between 4% - 6% in the medium term, which is above the market rate of 3%.

* Siemens aims to double the share of SI revenue from its digital business to nearly 10% by 2025. The diversification justifies the higher software margins.

* Price Action: SIEGY shares closed lower by 0.01% at $84 on Monday.