IoT doesn't mean only "Internet of Things" but in this particular case mainly "Internet of Trains".
In addition to the agreement, Knorr-Bremse has also acquired a strategic minority stake in Nexxiot for EUR 60 million, becoming the Internet of Things (IoT) company’s largest shareholder. This will enable Knorr-Bremse to further leverage digital, data-driven business models, including subscription-based rail services and Software as a Service (SaaS) for rail customers.
In the first phase of the partnership, starting immediately, Knorr-Bremse will offer to retrofit Nexxiot’s data-gathering sensor technology to braking, entrance, HVAC, and other subsystems that are already in operation, and then connect them to Nexxiot’s cloud-based ecosystem. During the second phase, starting at a later stage, Knorr-Bremse will natively integrate its original equipment into the digital ecosystem.
“As a core element in our strategy, we’re using digitalization to leverage our already strong position in safety- and mission-critical rail vehicle systems, and to generate further growth and strong profitability,” explains Dr. Jürgen Wilder, Member of the Executive Board of Knorr-Bremse AG and responsible for the Rail Vehicle Systems division. “Together with Nexxiot’s dedicated team, we’re now pressing ahead with our ambition to add further value for our customers. By combining our systems technology with Nexxiot’s digital ecosystem, we’re creating a win-win scenario that will boost vehicle availability and lower the total cost of fleet ownership by leveraging a new generation of data-based services.”
Once Knorr-Bremse‘s rail brakes, doors, HVAC, sanitary, and other systems are connected with Nexxiot’s digital ecosystem and generating data-driven insights, customers will benefit from increased vehicle availability, optimized lifecycle costs, and greater operational efficiency.
“The partnership with Knorr-Bremse will help us build the best products and services for the industry. Together, we aim to accelerate the digitalization of key areas like rail freight and automation services. At the same time, we’ll also be able to speed up our expansion in the rail industry and continue our strong growth,” adds Stefan Kalmund, CEO of Nexxiot. “Specifically, our sensors and scalable cloud-based platform help turn rolling stock assets into connected, data-generating industrial objects. Leveraging rail data in real time will be a key success factor in helping make rail networks and rail services fit for the future.”
For example, based on the real-time analysis of rail data in Nexxiot’s ecosystem, Knorr-Bremse will be able to precisely project systems’ state of health and maintenance needs. In effect, clients will be able to service their fleets more proactively and cost-efficiently by taking advantage of Condition-Based and Predictive Maintenance. Also related to Operations Automation, the two companies will deliver strong customer use cases including, among others, data-driven features for Digital Freight Trains.
The closing of this transaction is subject to customary conditions, among others, the approval of the relevant antitrust authorities.
