ABB was formed in 1988 through the merger of Sweden’s ASEA and Switzerland’s Brown Boveri. Today, the company employs 112,000 people in over 100 countries, with a market value of $190 billion. From the first IRB 6 robot to the 2025 sale of its robotics business to SoftBank. This is the story of building an automation empire.
In 1988, when two European electrical engineering companies, Sweden’s ASEA and Switzerland’s Brown Boveri, joined forces, no one suspected that this would create a company that would define industrial automation around the world for decades. ABB, as the new conglomerate was named, had ambitions from the very beginning to become a global leader, but the path to achieving this position was paved not only with technological innovations but also with a series of strategic decisions that could have ended in failure at any step. Today, in 2026, ABB is the undisputed hegemon in electrification and automation, employing around 112,000 people in over 100 countries, with a market valuation estimated at 190 billion dollars. This is the story of how the combination of Scandinavian precision and Swiss engineering created the foundations of modern industry and how this company, through decades of transformation, acquisitions and strategic pivots, built an empire that changed the face of global manufacturing.
ABB’s roots go back to the end of the 19th century, when companies that would revolutionise the transmission and use of electrical energy were being established in Sweden and Switzerland. Sweden’s ASEA, founded in 1883, was a pioneer in three-phase power transmission, and in 1893 it built Sweden’s first three-phase transmission system. Switzerland’s Brown Boveri & Cie, founded in 1891 by Charles Brown and Walter Boveri, supplied electricity on a large scale to Europe’s first combined heat and power plant. Both companies quickly became leaders in their fields, and their technological achievements, such as the development of very high-voltage alternating current transmission, laid the foundations for the electrification of the entire continent. For decades, the two companies developed in parallel, but it was only in 1988 that their paths crossed, creating a new quality in the electrical engineering market.
The decision to merge ASEA and Brown Boveri was made in 1988 and was one of the largest mergers in the history of European industry. The newly formed company, initially named ASEA Brown Boveri and later shortened to ABB, immediately became a world leader in the power engineering industry with a value of 50 billion dollars. This merger was a masterpiece of corporate engineering. 850 subsidiaries and 180,000 employees operating in 140 countries were integrated. It was an unprecedented process on a global scale, requiring not only excellent coordination but also the development of a common organisational culture combining Swedish and Swiss traditions.
The new company quickly began to expand its activities into new markets and technological areas. In 1990, ABB acquired the robotics division of the American company Cincinnati Milacron, which was the first step towards building a leadership position in industrial automation. At the same time, the company was dynamically developing its presence in Asia, where by 1994 it already employed 30,000 people and had 100 manufacturing plants. Expansion into emerging markets, especially in Asia, was a key element of ABB’s strategy, which assumed that the future of industry would be played out not only in Europe and America but above all in the dynamically developing economies of the Far East.
Technologies that changed the world
From the very beginning of its operations, ABB focused on technological innovations that would define the future of industry. As early as 1974, even before the merger, ASEA introduced the world’s first commercial, fully electric, microprocessor-controlled industrial robot, the IRB 6. This event initiated a global revolution in industrial robotics that permanently changed the way production is carried out in factories around the world. Over the following decades, ABB continuously pushed the boundaries of robotics, introducing such groundbreaking solutions as fast delta robots for packaging and sorting, and the world’s first truly collaborative industrial robot, YuMi, in 2015. YuMi, whose name means „you and me,” was designed to work directly alongside humans without the need for protective barriers, opening up new possibilities for human-machine collaboration.
ABB’s innovations were not limited to robotics, however. The company was also a pioneer in process automation systems. In 2004, it introduced the Extended Automation System 800xA, which revolutionised the way production processes are managed in the oil, paper, metallurgical and many other industries. This system, installed in thousands of plants around the world, enabled continuous productivity improvement and the integration of various processes into a single coherent whole. In 2026, ABB introduced the Automation Extended program, a strategic evolution of its distributed control systems that enables industrial modernisation without operational risk, protecting existing investments and enabling the gradual introduction of new technologies. This approach, allowing innovation without interrupting production, has become a hallmark of ABB in the era of industrial digitalisation.
Another breakthrough was the Azipod technology, introduced in 1990. It is a gearless, 360-degree rotating propulsion system in which the electric motor is located in a submerged pod outside the ship’s hull. Azipod revolutionised the shipbuilding industry, providing greater manoeuvrability, fuel efficiency and emission reduction. This technology has found application in cruise ships, ferries and even icebreakers, becoming one of ABB’s most recognisable products worldwide. In 2020, ABB supplied the Azipod system for the Viking Glory ferry, which became one of the most energy-efficient ferries in the Baltic.
Strategic acquisitions. Building an empire through takeovers
ABB’s history is also a history of strategic acquisitions that allowed the company to expand its competencies and enter new markets. In the first decade of the 21st century, ABB made a series of key acquisitions that strengthened its position in electrification and automation. In 2010, it acquired American motor manufacturer Baldor Electric, significantly strengthening its offering in drives and mechanical transmissions.
Two years later, in 2012, ABB acquired Thomas & Betts, a company specialising in low-voltage products. The next step was the acquisition in 2018 of GE Industrial Solutions, General Electric’s electrification division, for 2.6 billion dollars. These three acquisitions, supplemented by the earlier acquisition of the Austrian company B&R in 2017, which made ABB the largest player in the Austrian industrial automation market, created a comprehensive supplier of industrial solutions in ABB, offering products at every level – from electrical components to advanced automation systems.
In 2020, ABB decided to sell its Power Grids business, that is, its power transmission networks, to Hitachi. This was a strategic pivot aimed at focusing on the areas with the greatest growth potential, namely electrification and automation. This sale allowed ABB to divest a lower-margin segment and concentrate resources on developing future technologies. In 2022, the company also spun off its turbocharging business.
Today, ABB consists of around 20 divisions, grouped into four business areas: Electrification, Motion, Process Automation and Robotics & Discrete Automation. This structure, based on clearly defined pillars, allows the company to manage efficiently and respond quickly to changing market needs.
A new chapter in history
The year 2025 brought another groundbreaking decision that shook the industrial world. In October 2025, ABB announced the sale of its robotics business to the Japanese SoftBank Group for 5.375 billion dollars. The transaction, which was to be finalised in mid-2026, came as a shock to many market observers who had become accustomed to seeing ABB as synonymous with industrial robotics. This decision was driven by business logic, however. ABB thus obtained approximately 2.4 billion dollars in non-operating income and approximately 5.3 billion dollars in net cash proceeds. These funds were to be used for further development in electrification and process automation, which the company had identified as its strategic priorities.
The sale of robotics does not mean, however, that ABB is withdrawing from automation. On the contrary, the company is focusing on developing advanced control systems, artificial intelligence and software that form the brain of modern factories. Process automation, which after the sale of robotics became an even more important pillar of ABB’s operations, includes solutions for the chemical, oil, energy and many other industries. It is in these areas that ABB sees the greatest growth potential in the coming years, especially in the context of the energy transition and industrial digitalisation.
In 2026, ABB continues its strategy, focusing on innovation and sustainable development. The company is a leader in solutions for smart buildings, data centres, Industry 4.0 and e-mobility. Its automation and electrification systems are used in key sectors of the economy, from energy production to transport and infrastructure. ABB has for years maintained a leading position in the distributed control systems market, and according to ARC analysts, the company has effectively held this position continuously since 1999. This demonstrates the consistency and strategic stability that are the foundation of the global automation empire built by ABB.
Photo: ABB
