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01. Market leader with world class technology

Our market leading position is based on cutting-edge technology, our ability to scale and decades long domain expertise, which has created high barriers to entry.

Cutting edge technology

We continuously evolve our offering in order to remain a relevant and trusted partner to our customers. Our annual R&D investments amount to approximately 4 to 5 percent of revenue. We focus our R&D spend on key areas of innovation and have deployed a total of more than $7 billion since 2016, developing best in class core competencies in the fields of electrification and automation. This has resulted in cutting edge technology creating superior value for our customers by increasing productivity and lowering their ecological footprint.

 

Our comprehensive offering includes traditional products and servicessoftware-enabled products and systems as well as software and digital services that we sell separately and combined as scalable solutions. Superior software is a key differentiation of our digital offering and about 60 percent of our approximately 7,000 employees in R&D are active in software development.

Ability to scale

Our four business areas are a market leader and have a global number 1 or 2 position. This gives us strong economies of scale, large R&D budgets and a high pricing power.

Our global scale with local presence allows us to quickly scale innovations across the globe. Our revenues are well balanced across regions, as we do business in 100+ countries that we mostly serve from local factories in 65 countries. ABB’s customer coverage is unprecedented with a service presence in 100+ countries and more than 6,000+ channel partners across the globe.

Decades long domain expertise

With a history of more than 130 years, ABB not only invented or pioneered many power and automation technologies, but has retained technology and market leadership in many of these areas. Being present in various verticals for decades has resulted in our unique domain expertise, a large installed base and long-term relationships with end-customers and channel partners, enabling a deep understanding of customer needs and operations.