By combining pneumatic and industrial electrical automation, Festo offers an extremely wide-ranging portfolio of hardware, software and AI to meet every industrial motion requirement. In a freewheeling interaction with Rakesh Rao, Frank Notz, Member of the Management Board, Sales, Festo SE & Co. KG, outlines emerging trends in industrial automation, the company’s ‘Seamless Automation’ solutions, strategies for global growth and India’s fast-evolving market.

How do you view current industrial trends, and what has changed in the past year?

The industrial landscape is evolving rapidly, with emerging technologies capturing considerable attention, such as humanoid robots. Humanoids are increasingly visible in the industry, similar to the hype we saw with cobots a few years ago. However, on the shop floor, the adoption is still limited. The key question is always: where is the use case? For humanoids, critical capabilities include hands and eyes, which determine their practical utility in manufacturing. It is not about humanoids running marathons but rather their ability to assist in assembly, part handling, and industrial tasks.

Software, and AI in particular, has accelerated significantly. Beyond AI, general software and ecosystem integration now play a larger role in managing data and connectivity. For example, leveraging product data—from design to installation—can improve operational efficiency. Over the past year, Festo has also expanded its footprint: we opened a facility in India and plan to open a factory in Turkey. Regional and ‘local-for-local’ manufacturing strategies have accelerated, partly influenced by tariffs, which also make local production in the US attractive.

What are the highlights of Festo at Hannover Messe 2026?

This year, Festo was a finalist for the Hermes Award 2026, which recognises transformative industrial innovations. Our breakthrough, Diffusion Bonded Manifolds for NextGen LifeScience Automation, enables ultra-compact, sterile, and contamination-free distribution in medical, diagnostic, and laboratory automation. This innovation supports personalised therapies and Organ-on-a-Chip applications and demonstrates how Festo’s technology can contribute to improving human life. The development of this technology, partly in India, reflects Festo’s global R&D capabilities and its commitment to impactful solutions.

Additionally, we have integrated software-defined features into existing products, including precise pressure control within our VTUX valve terminal. This enhances operational safety and reliability in highly regulated environments. Beyond product innovation, Festo places a strong emphasis on workforce reskilling and upskilling. In India, discussions around dark factories—facilities with minimal human intervention—are gaining traction, demonstrating the increasing importance of seamless automation across the industry.

Seamless automation is a core theme for Festo and comprises three dimensions:

• Seamless portfolio: Our portfolio spans pneumatic, electric, and digital solutions, providing a broad horizontal capability.
• Seamless connectivity: Solutions connect from PLCs to individual components, seamlessly integrating sensors, cylinders, and control architecture, regardless of brand.
• Seamless experience: End-to-end digital experience from conceptualisation to operation, customers can digitally select, commission, and operate components with engineering tool support and full digital twins.

This approach ensures a fully connected and flexible automation environment, supported by digital twins, engineering tools, and comprehensive technical support.

Could you elaborate on Festo’s operations in India?

Festo India opened a manufacturing facility in mid-2025, now fully operational, catering to local demand while serving Asian markets and selected global clients. The facility gradually localises products to meet specific regional requirements while maintaining global quality standards. 

In February 2026, we inaugurated the GCC Global Capability Center in Bangalore, which houses technical, commercial, and design support, alongside R&D and local value-added processes. This dual setup—the factory and GCC—is fully commissioned and operational, forming a strong base for regional and global operations.

How is Festo supporting SMEs in India on their automation journey?

Indian SMEs vary greatly. Some small companies, with as few as 20–50 employees, are highly specialised in areas like robotic integration. These firms leverage high skill levels to adopt advanced automation. Other small enterprises may focus on low-labour-intensive processes such as sheet metal fabrication, often semi-automated.

Our approach accommodates both types. We provide tailored solutions that match the capabilities and long-term perspective of the SME. High-end specialists increasingly utilise India’s software capabilities to integrate robotic automation efficiently. This support enables SMEs to grow rapidly and scale their operations with a clear value proposition.

Discussions around the defence sector are gaining momentum, particularly in Europe. Does Festo view defence as a significant growth opportunity?

Defence receives significant investment, but it is not a mass-production environment, which limits automation potential. Automation opportunities exist in areas like ammunition production, drones, and personal gear, where volume allows efficient automation. 

What is Festo’s global and India-specific outlook for 2026?

We anticipate continued growth. The year has started strongly, and while short-term market conditions are uncertain, we remain adaptable to capture emerging opportunities. India, in particular, is expected to outpace global growth due to foreign investment inflows and a significant demand for automation.

Indian equipment and machine builders are becoming more international, driving additional growth. The India-EU Free Trade Agreement facilitates smoother capital investments and enhances export potential, reinforcing India’s strategic importance in Festo’s global expansion plan.

Will the India-EU free trade agreement (FTA) boost your business?

Absolutely. Simplifying cross-border business facilitates investment decisions and operational planning. A free trade agreement eases duties, enables smoother capital investment, and encourages bilateral trade. For Festo, this confirms long-term strategic decisions and strengthens our position to support Indian exporters to the EU.

How do software and AI influence Festo’s strategy?

Software and AI are central to our approach, impacting not only product functionality but also operational insights and predictive maintenance. AI models enable prescriptive decision-making, allowing systems to optimise processes autonomously. This capability reduces dependency on manual interventions and improves efficiency across manufacturing operations. Moreover, software ecosystems allow better integration of components, seamless communication between devices, and data-driven insights that enhance productivity and operational safety.

Could you elaborate on Festo’s LifeTech initiatives?

LifeTech is a rapidly growing sector for Festo, encompassing medical technology, laboratory automation, and diagnostics. Our Diffusion Bonded Manifolds enable precision distribution in sterile environments, supporting therapies from personalised medicine to Organ-on-a-Chip technologies. By integrating AI and digital tools, we can improve process reliability, reduce contamination risks, and increase throughput. These solutions are part of Festo’s broader mission to enhance human health while advancing automation capabilities.

What role does workforce development play in Festo’s strategy?

Workforce development is crucial. As automation and AI advance, employees must be reskilled and upskilled to manage and optimise these technologies effectively. We invest in training programs, digital learning platforms, and hands-on workshops to ensure personnel are equipped to operate advanced systems. This approach ensures sustainable growth, operational excellence, and the effective adoption of new technologies across regions and industries.

Any final thoughts on Festo’s strategic focus for the future?

Festo remains committed to digitalisation, AI integration, and LifeTech innovations, while ensuring operational excellence through seamless automation. Our global expansion, particularly in high-growth markets like India, alongside workforce development initiatives, strengthens our position as a leader in industrial automation. By combining horizontal, vertical, and end-to-end integration, we deliver comprehensive solutions that enhance productivity, safety, and efficiency for clients worldwide.