Honeywell Reshapes Industrial Automation: Updated Segment Structure to Amplify Growth
TAGS: #control systems #PLC integration #DCS solutions #factory automation #process automation technology #building automation
Strategic Realignment Strengthens Automation Focus
Honeywell’s New Reporting Structure Overview
Honeywell has announced an updated business segment structure to sharpen its focus on automation, process technology, and building control systems. The new segmentation reflects the company’s strategy to improve transparency and align operations with long‑term growth trends. This restructuring aims to enhance the relevance of industrial automation, PLC, DCS, and control systems across markets.
Redefining Segments Around Core Automation Capabilities
Under the updated model, Honeywell will report four primary segments starting in early 2026: Aerospace Technologies, Building Automation, Industrial Automation, and Process Automation and Technology. Each segment will encompass business units designed for distinct customer needs and technical domains.
In particular, Industrial Automation will continue to support critical hardware and software offerings such as sensors, edge devices, and measurement systems used across factory automation use cases. This sharpened segmentation aligns with customer demand for integrated control systems and scalable automation solutions.
Industrial Automation’s Expanded Role in Factory Controls
The Industrial Automation segment will include mission‑critical components like sensing solutions, measurement tools, and software that enable real‑time data acquisition and process control. Such technologies are essential foundations for control systems, PLC integration, and automated monitoring in manufacturing and industrial environments.
By organizing around these core technology pillars, Honeywell positions this unit to better serve industries pursuing digital transformation and smart factory initiatives.
Process Automation and Technology: End‑to-End Control Systems
In addition to Industrial Automation, Honeywell’s Process Automation and Technology (PA&T) segment will provide full lifecycle support for process plants. PA&T bundles project engineering, aftermarket services, and advanced process technology—key for optimizing DCS deployments and improving operational efficiency across sectors like energy and chemicals.
This structure helps customers adopt scalable automation architectures that integrate PLC and DCS platforms with analytics and digital twin capabilities.
Building Automation Emphasizes Integrated Infrastructure Controls
Honeywell’s Building Automation segment focuses on integrated facility controls, safety systems, and analytics. Although separate from factory automation, these technologies share important data connectivity and control principles with broader industrial automation platforms, especially in smart campus and multi‑site operations.
This segment’s strength in system interoperability supports enterprise‑wide automation strategies that span manufacturing and facilities management.
Broader Strategic Context: Segment Realignment Ahead of Spin‑Offs
This updated structure is part of Honeywell’s multi‑stage portfolio transformation. The company plans to spin off its Aerospace Technologies business by the second half of 2026 and earlier spun off its Advanced Materials unit. As a result, the remaining segments will form a more focused automation leader competing globally in industrial and process control technologies.
From an industrial automation perspective, this shift reduces complexity and allows dedicated leadership teams to pursue technology investments that address trends like AI‑assisted control systems, digital twins, and cyber‑secure automation architectures.
Industry Perspective: Why This Matters for Automation Customers
This restructuring signals a broader industry shift where long‑standing control systems like PLC and DCS converge with digital solutions and analytics platforms. By concentrating segments around automation and process technology, Honeywell can accelerate innovation and support customers in upgrading legacy control systems to more flexible, data‑driven architectures.
From my professional viewpoint, companies that adopt such strategic segmentation can respond faster to customer needs, align R&D budgets with market demand, and reduce internal friction when delivering integrated automation solutions.
Practical Application Scenarios
Modernizing Control Systems in Industrial Plants
A global chemical producer used insights from Honeywell’s process automation portfolio to retrofit DCS logic and integrate advanced analytics. This approach reduced unplanned downtime by improving predictive maintenance and data visibility across production lines.
PLC Integration in Smart Factories
A discrete manufacturer deployed industrial sensors and PLC controllers from Honeywell’s Industrial Automation segment to standardize communications between automation assets. As a result, the facility achieved better real‑time monitoring and faster fault diagnostics.
