Festo is committed to shape the future of automation: Frank Notz

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Festo is committed to shape the future of automation: Frank Notz

Festo is committed to shape the future of automation: Frank Notz

Articles
Apr 29,25

In this exclusive interview with Rakesh Rao, Frank Notz, Member of the Management Board Sales, Festo AG & Co. KG, elaborates on trends shaping the future of automation, Festo's new offerings and its plans for India.

Festo is committed to shape the future of automation: Frank Notz

The Germany based Festo, which is celebrating its 100th anniversary in 2025, is known for developing pneumatic and electrical automation technology for a wide range of industries. Today, the company has set standards in industrial automation technology and technical education. In India, Festo is setting up a new state-of-the-art manufacturing facility in Krishnagiri (Tamil Nadu), which is likely to open in June 2025. In conversation with Rakesh Rao during Hannover Messe 2025, Frank Notz, Member of the Management Board Sales, Festo AG & Co. KG, elaborates on trends shaping the future of automation, Festo's new offerings and its plans for India.

What are the major global trends shaping the automation industry today and how is Festo aligning itself with them?

One of the most important aspects in today’s automation landscape is the need to keep up with innovation while remaining deeply aligned with the changing needs of the market. At Festo, we began our journey with pneumatic solutions, but now we are focusing on delivering broader automation technologies. We are moving beyond being a pneumatic company to becoming a holistic automation solutions provider.

Another crucial area is people. Technology on its own cannot deliver results unless the people using it are skilled and trained. Therefore, we must ensure we have both the right technologies and the right people capable of using them effectively. Additionally, it is important to recognise that innovation is happening all over the world, not just in traditional hubs such as Germany or the United States. To stay ahead, we are decentralising our R&D operations to be closer to where new technologies are emerging, especially in regions like Asia. This helps us stay relevant and responsive to global innovation.

How is Festo approaching the integration of future technologies?

I strongly believe that the future of industrial automation will be shaped by software-defined hardware. While mechanical functions will always be present in industrial products, the advanced capabilities and value-added features will increasingly be driven by software. This means we need to focus on building ecosystems that allow our products to integrate seamlessly with other technologies.

Customers today are looking for integration that is smooth and efficient. They may be using products of various brands, but they expect these systems to connect and operate without compatibility issues. The key lies in creating open, flexible ecosystems that reduce integration time and improve ease of use. In the coming years, the success of automation companies will depend not only on the hardware they produce but also on how seamlessly that hardware integrates with software-driven environments.

Could you please elaborate on the concept of “being the best partner” for your customers?

In today’s competitive environment, delivering a good product is no longer enough. A successful product must be both cost-effective and tailored to the specific needs of the customer. There is no room for over-engineering if customers do not see a clear return on investment. Beyond the product itself, what matters most to customers is convenience and support.

They want fast availability, reliable service, easy return processes, and strong after-sales support. Time has become the most scarce and valuable resource for businesses, and people want to work with companies that respect their time. That is why being the best partner goes beyond offering the best product. It involves building long-term relationships based on trust, responsiveness, and added value.

Given the current global uncertainties, how do you see the market evolving in the short and long term?

It is true that we are in a period of global uncertainty right now. However, I believe this phase is temporary. Whether these challenges last three or six months, they will eventually ease. What remains constant is the tremendous potential of automation across all industries.

One key trend that we are observing is a move towards localisation. Countries are trying to become more self-reliant in critical sectors. This shift from a globalised supply chain model to a more regional or localised one may not be the most economically efficient, but it is expected to dominate the next decade. Every market will require its own customised solutions, and companies like Festo must be agile enough to adapt to these regional differences.

What is the significance of Festo’s new facility in India?

Our decision to invest in India is based on two strong strategic imperatives. First, we believe in the long-term potential of the Indian market. For many years, people spoke of India’s promise as a growth engine, and now we are finally seeing that promise being fulfilled. Increased foreign direct investment and the shift in global supply chains are bringing real benefits to India.

Second, India is competitive from an export standpoint. With the new facility, we aim to serve both the domestic market and international markets. Our vision is to create products in India that are not only used locally but also exported to other regions. We are particularly focused on process automation and stainless-steel components. We are also expanding our R&D capabilities to support the development of these products within India.

What types of products will be manufactured at this new Indian facility?

The focus of the new facility will be on relocating parts of our pneumatic and process automation portfolio to India. These will primarily be mechanical products such as cylinders and other pneumatic components. At this stage, we do not plan to manufacture electronics at the facility.

We will officially open the new facility in June 2025 with Phase I. We have already secured land for future expansion and are planning Phase II accordingly. This is part of our broader global manufacturing strategy, which also includes building new capacities in countries such as Turkey and Mexico. Now, our task is to efficiently utilise the new capacity and continue expanding based on future demand.

Which end-user industries are the major contributors to Festo’s revenue?

Automotive, food and beverages, and electronics and light assembly sectors each account for approximately 18 to 20 per cent of our global revenue. Looking ahead, I expect the electronics segment to grow more rapidly over the long term. The food sector will also remain strong, as more people are consuming processed and packaged food, which requires higher levels of automation.

Automotive is currently going through a significant investment cycle, especially with the development of electric vehicles and the continued production of combustion engines. In regions like Southeast Asia and India, we are seeing major investments from local companies. However, in Europe, I anticipate that once the current wave of investments concludes, there might be a period of reduced activity in the automotive sector.

How do you view the potential of hydrogen fuel technology?

I see clear potential in industrial sectors such as steel manufacturing, shipping, and heavy trucking. These applications can benefit from hydrogen, particularly if it is produced using renewable energy sources. For example, India has a great opportunity to lead in the production of green steel using hydrogen. Solar power can be used to generate hydrogen efficiently, which can then be used to reduce emissions in industrial operations. Hydrogen is also a viable solution for storing excess renewable energy and using it in large-scale industrial applications.

Is India’s growing electronics manufacturing sector a potential growth market for Festo?

The growth of electronics manufacturing in India presents significant opportunities. We are already witnessing substantial progress in chip manufacturing, PCB production, and the assembly of consumer electronics. Large companies like Apple are increasing their footprint in India.

Local manufacturing of chips and electronic components is essential for building a resilient supply chain. Wherever there is large-scale production, automation becomes a necessity—not just to reduce costs but also to ensure consistent quality. Festo is well-positioned to support this growth with automation solutions tailored to the electronics sector.

How do you envision the future of automation with Festo?

As a global leader in automation, Festo has a responsibility to continue pushing the boundaries of innovation. We must avoid complacency. Although we have a 100-year legacy, our journey is far from over. Being a family-owned company allows us to take a long-term view. We do not think in quarters; we think in generations.

Our job as today’s leadership is to ensure that Festo remains fit for the next 100 years. That means continuously challenging ourselves, adapting to changing market needs, and staying close to our customers. The future of automation is bright, and we are committed to shaping it through excellence, innovation, and trusted partnerships.