7 minutes to read With insights from... Jens von der Brelie Client Director & Partner Jens.vonderBrelie@zuehlke.com Hannover Messe 2025 is the global meeting point for the industrial sector and the most important showcase for innovation and forward-looking strategies. As in previous years, artificial intelligence dominates the agenda, from automated production to generative AI. But is AI the only lever to secure the sector’s future?In this article, we examine the key topics that shaped Hannover Messe 2025 and highlight where real opportunities and challenges lie for businesses. We were on-site in Hannover, analysing technologies, engaging in discussions, and benchmarking trends against the experiences within our partner and client ecosystem. Here, we share our perspective on what truly drives the industrial sector forward. From hype to value creation: How AI is boosting profitability Just last year, the industrial sector was still debating which use cases could justify the AI hype and what real value could be gained. At Hannover Messe 2025, a wide array of practical AI solutions were showcased, from master data and production efficiency optimisation at Brückner Maschinenbau, to AI-driven downtime and cost reduction at Kanadevia Inova, and automated quoting processes at Burckhardt Compression.Inspirational talks, interactive tours and hands-on demos show how AI is transforming the industrial sector and setting new standards. They also make clear that emerging technologies bring new challenges.You can explore further exciting AI use cases across the entire industrial value chain here. Explore the use cases ' AI holds enormous potential to improve industrial profitability, but poor data quality, lack of expertise and insufficient infrastructure are still major hurdles. ' Jens von der Brelie Client Director, Zühlke A recent study by the VDMA, published just ahead of Hannover Messe 2025, highlights the potential of generative AI in mechanical and plant engineering. According to the study, consistent adoption could increase operational margins by up to 10.7%, equating to an additional €28 billion in sector-wide profits – with the greatest gains expected in sales and marketing, R&D, and planning. Yet only 0.74 percentage points of this potential profitability improvement are currently being realised. Key reasons: poor data quality, lack of AI expertise, and inadequate IT infrastructure.At Zühlke, our AI experts support organisations in laying the necessary foundations and in designing, developing, and scaling bespoke AI solutions that deliver sustainable efficiency and profitability gains. Accelerate your AI development with Zühlke Augmented Generation Leverage cutting-edge approaches to rapidly develop powerful AI solutions. Zühlke guides you from idea to implementation. Learn more The pressure is on: AI requires a strategic approach With stagnating productivity growth and rising costs, pressure across the industrial sector is mounting. Now is the time for companies to invest in the right use cases to fully unlock AI’s potential and secure long-term competitiveness. This calls for a strategic approach as the industry must avoid outpacing itself. AI is a vast and rapidly evolving field. We see enormous potential in Agentic AI, which is poised to have a significant impact on industrial value creation.Unlike reactive systems, Agentic AI actively pursues goals and makes decisions. It builds on large language models (LLMs) but introduces additional capabilities – as explored in our blog post on the topic.In the industrial sector, Agentic AI presents exciting new possibilities, from autonomous production optimisation to self-adapting supply chains. However, we are also aware of the current limitations. Today’s AI agents still struggle with complex tasks, logical reasoning, and self-verification. Nevertheless, the technology is advancing rapidly, and we are already working on real-world applications with a focus on responsibility and practicality. To the Agentic AI blog post Cybersecurity: the foundation of digital transformation As industrial systems become more connected, the risk of cyberattacks increases. As we highlighted in a previous article, in 2024 the industrial sector was the most frequently targeted by cyber incidents. Hannover Messe 2025 made one thing abundantly clear: cybersecurity can no longer be an afterthought. It must be an integral part of every product and service development process.Another recent VDMA study supports this conclusion. While cyber resilience in the mechanical and plant engineering sector is improving, the danger has not passed. 55% of surveyed companies reported experiencing negative impacts from security incidents – down from nearly 70% in 2019. We attribute this drop to better security measures and increased awareness within companies. However, cyberattacks still cause damage, costing hundreds of billions annually.Notably, the study highlights that for the first time, social engineering and phishing top the list of threats, ahead of human error and sabotage. At Zühlke, we’re seeing a growing demand for cybersecurity solutions tailored to industrial clients.Regulations such as the EU's Cyber Resilience Act (CRA) and NIS2 Directive are central themes. They directly affect around two-thirds of businesses, yet we find many small and medium-sized enterprises (SMEs) remain unprepared.Zühlke supports companies with tailored security solutions that embed protection into systems from the start, preventing vulnerabilities that could later result in reputational damage, costly fixes, or severe financial loss. Digital ecosystems & new business models: achieving ROI at last Hannover Messe 2025 confirmed another key trend: in the face of shrinking margins, commoditised products, and increasing global competition, subscription-based business models are making the leap from hype to tangible value.Over recent years, many companies have invested heavily in new technologies (IoT, AI, digital products, software, etc.), and are now asking themselves how to monetise them. Common hurdles include sales teams unable to sell solutions instead of products, or digital offerings with insufficient profit margins.Companies that stick to traditional business models risk falling behind, losing both time and market share. Our whitepaper 'Subscription-Based Business Models' explores this in detail. Get the whitepaper Our conversations at Hannover Messe 2025 revealed a clear trend: digital ecosystems enable collaboration across platforms, secure data sharing, and joint innovation. From smart machine connectivity to business models built on big data and AI, many exhibitors showcased the benefits of cross-company collaboration.What’s long been common in consumer markets is now gaining traction in the industrial sector – the shift from one-off sales to recurring revenue models. For industrial companies, subscription-based models offer numerous benefits:Predictable revenue: Stable, recurring income streams.Customer retention: Long-term contracts increase lifetime value.Strategic partnerships: Joint focus on shared value and mutual strengths.Sustainability: Shared incentives to extend product lifecycles and promote circular economy principles.Data-driven development: Usage insights enable tailored services and new revenue sources.Zühlke helps companies design and implement digital and subscription-based models with a focus not just on technology, but also on organisational transformation and measurable return on investment. Further key topics at Hannover Messe 2025: familiar names, new priorities Alongside AI, cybersecurity, and business model innovation, we would like to mention four other strategic fields of action that were a recurring topic of discussion on the stages and will emerge as key strategic priorities for the coming years: Sustainability as a business driver Sustainability as a business driver The Messe confirmed our thesis: sustainability is moving from a regulatory obligation to a strategic enabler. Companies are investing in sustainable products, circular economy models, and carbon-neutral production processes – not purely for compliance, but to drive efficiency, reduce costs, and achieve market differentiation. Research shows: sustainable investments are delivering strong financial returns. Learn more here Industrial Metaverse Industrial Metaverse Digital twins, augmented and virtual reality, and collaborative virtual environments are now enhancing real-world industrial processes, from optimisation and predictive maintenance to immersive training. The convergence of physical and digital worlds unlocks new efficiencies: improved plant planning, realistic employee training, and seamless global collaboration. Yet it also raises new challenges around data integration and infrastructure. Zühlke brings deep expertise in developing and implementing digital twins and AR/VR solutions, from concept to deployment. Skills shortages & workforce transformation Skills shortages & workforce transformation At Zühlke, we view the skills gap not merely as an HR issue, but as a strategic risk to innovation and production capacity. Digital tools – such as assistance systems, AI-powered knowledge bases, and intuitive human-machine interfaces can offer impactful solutions. They enable more efficient use of existing staff, accelerate onboarding, and make expertise more widely accessible through tools like remote support, digital learning platforms, and automated planning. Resilient value chains Resilient value chains Recent years have highlighted the fragility of global supply networks. In response, many industrial firms are investing in digitising their supply and value chains to detect risks earlier and respond more flexibly. Digital twins, intelligent inventory management, and data-driven simulations help test critical scenarios and identify alternative sourcing or production paths. Key challenges remain, particularly around data availability and partner collaboration. Zühlke helps businesses build networked, transparent, and scalable digital ecosystems that can weather disruption. Conclusion: AI is a tool, not the sector’s sole saviour Hannover Messe 2025 makes it clear that the industrial sector stands at a turning point – not just technologically, but strategically. AI alone is not enough. Businesses must embrace holistic transformation, including digital business models, robust cybersecurity, sustainable innovation, and agile operating models. Get in touch to continue the conversation! Get in touch Learn how Zühlke can support your transformation journey! Our industrial sector expertise
' AI holds enormous potential to improve industrial profitability, but poor data quality, lack of expertise and insufficient infrastructure are still major hurdles. ' Jens von der Brelie Client Director, Zühlke