Posted in

What is the history of Schneider Electric’s development?

If you’ve ever worked with industrial automation, energy management, or building control systems, chances are you’ve crossed paths with Schneider Electric. For years, as a supplier working closely with their global teams, I’ve watched their evolution from a small French foundry to a $35 billion leader in sustainable energy solutions—and every step of that journey has shaped not just the company, but the way industries around the world manage power. Schneider

It all starts in 1836, when two brothers, Adolphe and Eugène Schneider, founded Schneider & Cie. in the small town of Le Creusot, France. Back then, their main business was metalworking: they manufactured steel rails for railways, cannons for the French army, and heavy machinery for factories. At that point, electricity was still a niche innovation, reserved for experimental labs and large infrastructure projects. Schneider Electric was just another industrial manufacturer, focused on what could be forged from metal, not what could be powered by electrons. That would change slowly, over more than a century of shifting markets and technology.

The first big turn came in 1919, after World War I. The war had devastated Europe, and governments were pouring money into rebuilding infrastructure, including power grids. Schneider, now a major industrial group, saw an opportunity to diversify beyond steel and heavy machinery. They launched their first electrical equipment division, targeting power transformers and switchgear—components that let utilities distribute electricity safely and reliably. For the next 50 years, the division grew quietly, as electricity became a staple in homes and factories across Europe. But Schneider was still a conglomerate with fingers in many pies: mining, construction, even shipbuilding. They didn’t have a singular focus on energy management yet.

The real transformation began in 1981, when the company rebranded as Schneider Electric and shifted its entire strategy to focus on electrical distribution and automation. This wasn’t just a name change—it was a bet that as computers became more accessible, industrial and commercial buildings would need smarter ways to use energy. At the time, most energy systems were siloed: factories used separate controls for machinery, lighting, and heating, with no way to coordinate them. Schneider Electric set out to build integrated systems that could optimize energy use, reduce waste, and cut costs.

That focus led to a string of acquisitions in the 1990s and 2000s that turned them into a global player. In 1992, they bought Modicon, a U.S. company that invented the programmable logic controller (PLC)—the small computer that’s the brain of modern factory automation. A year later, they acquired Square D, another American firm known for residential and commercial circuit breakers. Then, in 2000, they snapped up Telemecanique, a French leader in industrial control components. These weren’t just random purchases: each one filled a gap in their product line, letting them offer solutions for every part of the energy ecosystem, from a home’s light switch to a factory’s assembly line.

By the mid-2000s, Schneider Electric was no longer just a supplier of parts—they were a solutions provider. They coined a phrase that would become their mantra: “Life Is On,” a promise that their technology would keep people connected, safe, and productive. But it wasn’t until 2015 that they doubled down on a new global challenge: climate change. That year, they announced their “Race to Zero” initiative, committing to achieve net-zero carbon emissions across their own operations by 2025, and help their customers cut emissions by 1 gigaton by 2030. That shift marked a move from making money selling energy systems to making money selling sustainable energy systems—and it’s where their influence has grown most in the last decade.

Working as a supplier for Schneider, I’ve seen this shift firsthand. Ten years ago, most of our orders were for standard components: wires, switches, basic control modules. Today, 70% of the work we do is for their sustainable solutions: solar inverters for commercial rooftops, battery storage systems for remote villages, and energy management software that lets factories track and reduce their power use in real time. A few years back, we collaborated on a project with a local manufacturing plant that was wasting 20% of its energy on unoptimized lighting and machinery. Schneider’s team installed their EcoStruxure software, and within six months, the plant cut its energy costs by 18% and its carbon emissions by a similar amount. That’s the kind of impact they’re known for now—projects that don’t just sell products, but change how industries operate.

Of course, their journey hasn’t been without hurdles. In the 2010s, they faced criticism for expanding too quickly, acquiring companies without fully integrating their teams or products. There was also the challenge of navigating different global markets: in some regions, they had to adapt their solutions to work with older infrastructure, while in others, they had to build entirely new systems from scratch. During the 2020 pandemic, supply chain delays hit their operations hard, just like every other industrial company. But what impressed me most was how they responded: instead of waiting for the crisis to pass, they shifted many of their industrial projects to prioritize healthcare and residential buildings, creating more efficient HVAC and power systems for hospitals and remote homes. That flexibility is part of why they’ve stayed relevant for nearly 200 years—unlike many older industrial firms that clung to outdated models, Schneider has always been willing to pivot.

Today, Schneider Electric operates in more than 100 countries, with 135,000 employees. Their product line ranges from small, smart home devices to large-scale grid infrastructure, and their software is used by millions of businesses and utilities worldwide. But as a supplier, I’ve learned that their success isn’t just about size or technology—it’s about partnership. They don’t just negotiate for the lowest price; they work with suppliers like me to innovate, test new materials, and meet their strict sustainability standards. Last year, for example, they asked our team to develop a component made with 30% recycled metal, part of their goal to eliminate virgin plastic from their packaging by 2025. It wasn’t easy—we had to adjust our manufacturing processes to meet their durability requirements—but the end result was a product that cut their carbon footprint and gave us access to a much larger market.

Looking ahead, Schneider Electric’s next chapter is focused on two big trends: digitalization and decentralization. As more homes and businesses generate their own power with solar panels and wind turbines, the old centralized grid model is changing. Schneider is developing software that lets these small producers sell excess power back to the grid, creating a more flexible, sustainable energy system. They’re also investing in AI and the Internet of Things (IoT) to make buildings and factories even smarter—predicting equipment failures before they happen, adjusting energy use in real time, and cutting waste. For suppliers like me, that means more opportunities to collaborate on cutting-edge projects, not just deliver standard parts.

If you’re a business owner, facility manager, or energy professional looking to upgrade your systems or work with a trusted partner in sustainable energy, Schneider Electric is at the forefront. As a long-time supplier, I can say that their commitment to quality, innovation, and sustainability is unmatched in the industry. If you’re interested in learning more about their solutions or exploring a collaborative partnership, I encourage you to reach out to discuss your energy needs and how we can work together to build a more efficient, sustainable future.

B&R Industrial PC References

  1. Schneider Electric. (2023). 2023 Integrated Annual Report: Sustainability and Performance.
  2. History. (n.d.). Schneider Electric Official Website.
  3. Modicon History. (1999). Industrial Automation Heritage Collection.
  4. Schneider Electric. (2015). Race to Zero Initiative: Global Sustainability Commitment.
  5. EcoStruxure Platform Overview. (2022). Schneider Electric Energy Solutions Division.

Yuntengbao Automation (Xiamen) Co., Ltd.

Address: Room 013, 4th Floor, No. 606-4, Xinglong Road, Huli District, Xiamen City, Fujian Province, China
E-mail: lrene@plcsupplychain.com
WebSite: https://www.plcsupplychain.com/