VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Thursday, January 1, 2026
ABB Ltd
ABBN · SIX Swiss Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
ABB is a Switzerland-headquartered electrification and automation group organized into four business areas: Electrification, Motion, Process Automation, and Robotics & Discrete Automation. The core moats are deep engineering know-how plus global distribution and service networks, with switching costs and recurring lifecycle revenue around large installed bases. Process Automation adds workflow/data lock-in through DCS platforms (e.g., System 800xA) and lifecycle subscriptions. ABB agreed to sell the robotics business to SoftBank (announced 2025-10-08), expected to close in 2026, which would reduce exposure to the cyclical robotics market. Market cap as of 2025-12-31: about USD 136.29B (source: https://stockanalysis.com/quote/otc/ABBNY/market-cap/).
Primary segment
Electrification
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
4 segments · 6 tags
Updated 2025-12-31
Segments
Electrification
Low- and medium-voltage electrification equipment and solutions
Revenue
46.2%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Motion
Industrial motors, drives, generators and traction systems
Revenue
22%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Process Automation
Process and marine automation systems (DCS, instrumentation) and digital lifecycle services
Revenue
20.5%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Robotics & Discrete Automation
Industrial robotics and machine/factory automation (robots, AMRs, software and services)
Revenue
9.8%
Structure
Oligopoly
Pricing
weak
Share
—
Peers
Moat Claims
Electrification
Low- and medium-voltage electrification equipment and solutions
Revenue share derived from ABB Financial Report 2024 Note 24 third-party revenues (Electrification USD 15,190m of USD 32,850m total). Corporate and Other (about USD 523m) excluded from segment list. Source: https://search.abb.com/library/Download.aspx?Action=Launch&DocumentID=9AKK108470A7208&LanguageCode=en
Distribution Control
Supply
Distribution Control
Strength
Durability
Confidence
Evidence
Electrification reaches fragmented end-markets through an established distributor/channel partner network; distributor-led go-to-market improves coverage and lowers customer acquisition friction.
Erosion risks
- Distributor consolidation and multi-branding
- Low-cost competitor penetration in commodity components
- Direct-to-end-user model expansion by rivals
Leading indicators
- Distributor share of Electrification sales
- Gross margin vs raw material/labor inflation
- Channel inventory corrections (book-to-bill volatility)
Counterarguments
- Distribution is typically non-exclusive; competitors can access the same channels
- Large accounts can buy direct and multi-source
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
In safety- and uptime-critical electrification, long operating history and perceived technology leadership support premium positioning and repeat wins.
Erosion risks
- Quality or safety incidents
- Aggressive price competition reducing perceived differentiation
- Technology catch-up by fast-moving regional competitors
Leading indicators
- Win rate in large accounts and projects
- Service and replacement share of revenue
- Warranty/field failure trends
Counterarguments
- Many electrification categories are specification-driven and price-competitive
- Brand strength varies by product line and region
Motion
Industrial motors, drives, generators and traction systems
Revenue share derived from ABB Financial Report 2024 Note 24 third-party revenues (Motion USD 7,212m of USD 32,850m total). Source: https://search.abb.com/library/Download.aspx?Action=Launch&DocumentID=9AKK108470A7208&LanguageCode=en
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
A global service footprint (including partners) supports recurring service and retrofit revenue tied to a large installed base of motors/drives/traction equipment.
Erosion risks
- Independent service providers and customer in-sourcing
- Component standardization reducing OEM-specific service advantage
- Price pressure in commoditized motors/drives
Leading indicators
- Service order growth and service mix
- Retrofit/upgrade attach rates
- Operational EBITA margin stability through cycles
Counterarguments
- Many industrial customers have in-house maintenance capabilities
- Peers with similar scale also maintain service networks
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Technology leadership claims (e.g., in drives) and long operating history support consideration in performance-critical applications.
Erosion risks
- Competitor product performance parity
- OEM substitution in new builds
- Execution/quality issues impacting reputation
Leading indicators
- Share trends in premium drives and high-efficiency motors
- Customer NPS/service renewal rates
- Field reliability metrics
Counterarguments
- Technical specs and price often dominate purchasing decisions
- Switching is easier on new equipment than on installed base retrofits
Process Automation
Process and marine automation systems (DCS, instrumentation) and digital lifecycle services
Revenue share derived from ABB Financial Report 2024 Note 24 third-party revenues (Process Automation USD 6,722m of USD 32,850m total). Source: https://search.abb.com/library/Download.aspx?Action=Launch&DocumentID=9AKK108470A7208&LanguageCode=en
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength
Durability
Confidence
Evidence
DCS platforms and connected engineering/operations workflows create high switching costs; digital services and lifecycle subscriptions deepen lock-in over time.
Erosion risks
- Adoption of open automation standards reducing proprietary lock-in
- Cybersecurity incidents impacting customer trust
- Customer platform consolidation around alternative vendors
Leading indicators
- Installed base migrations (win/loss) for DCS upgrades
- Digital/subscription revenue mix
- Cybersecurity incident rate and disclosure
Counterarguments
- Large operators can and do switch platforms during major rebuilds
- EPC-led projects can favor standardized multi-vendor architectures
Installed Base Consumables
Demand
Installed Base Consumables
Strength
Durability
Confidence
Evidence
A large installed base drives recurring service revenue; ABB discloses that roughly half of the offering is service, mainly supporting the existing installed base.
Erosion risks
- Service disintermediation by third-party contractors
- Delayed brownfield spending in downturns
- Aging installed base replaced by competing platforms
Leading indicators
- Service order backlog and renewal rates
- Installed base upgrade cycle timing
- Service margin resilience through end-market cycles
Counterarguments
- Customers can outsource to independent service firms
- Service intensity depends on asset criticality and customer maintenance strategy
Robotics & Discrete Automation
Industrial robotics and machine/factory automation (robots, AMRs, software and services)
Revenue share derived from ABB Financial Report 2024 Note 24 third-party revenues (Robotics and Discrete Automation USD 3,203m of USD 32,850m total). ABB announced an agreement to sell the robotics business to SoftBank (expected close 2026). Sources: https://search.abb.com/library/Download.aspx?Action=Launch&DocumentID=9AKK108470A7208&LanguageCode=en; https://www.reuters.com/world/asia-pacific/abb-sell-robots-business-softbank-538-billion-deal-2025-10-08/
Installed Base Consumables
Demand
Installed Base Consumables
Strength
Durability
Confidence
Evidence
Robotics includes field service, spare parts and digital services; service growth can partially smooth cyclical hardware demand.
Erosion risks
- Customers multi-source and reduce OEM service dependence
- Third-party integrators/service firms capture lifecycle revenue
- Rapid product cycles reducing longevity of parts/service revenue
Leading indicators
- Service revenue growth vs new robot orders
- Installed base service attach rate
- Robotics segment margin vs volume
Counterarguments
- Robots can be serviced by third parties; OEM service is not always required
- Service is smaller than hardware, limiting moat impact in down cycles
Ecosystem Complements
Network
Ecosystem Complements
Strength
Durability
Confidence
Evidence
System integrators and machine builders act as complements that expand reach and embed ABB solutions into customer production lines.
Erosion risks
- Integrator preference shifts to alternative robot OEMs
- Software/platform layer captured by non-OEM vendors
- Low-cost entrants erode integrator economics and OEM selection
Leading indicators
- Share of indirect sales via integrators
- Number/quality of strategic integrator partnerships
- Application-cell and software attach rates
Counterarguments
- Integrators are not exclusive and can switch OEMs quickly
- Some end-users standardize on multi-OEM fleets
Evidence
The Electrification Business area delivers products to end customers through a global network of channel partners. More than half of the Business area's revenue is derived from distributors ...
Direct company disclosure supports the channel/distribution moat mechanism.
With its long history, ABB has retained technology and market leadership and close long-term relationships with customers and channel partners ...
Supports the reputation/brand-based trust claim as a barrier to entry.
Motion, along with its channel partners, has an industry leading global service presence.
Direct company disclosure supports the service network moat claim.
The Drive Products Division is a global technology leader ...
Supports the brand/technology positioning component of Motion's moat.
The automation offering includes ABB Ability System 800xA, complemented by ABB Care, a subscription-based lifecycle management program ...
Supports workflow/tooling lock-in and recurring subscription mechanism.
Showing 5 of 9 sources.
Risks & Indicators
Erosion risks
- Distributor consolidation and multi-branding
- Low-cost competitor penetration in commodity components
- Direct-to-end-user model expansion by rivals
- Quality or safety incidents
- Aggressive price competition reducing perceived differentiation
- Technology catch-up by fast-moving regional competitors
Leading indicators
- Distributor share of Electrification sales
- Gross margin vs raw material/labor inflation
- Channel inventory corrections (book-to-bill volatility)
- Win rate in large accounts and projects
- Service and replacement share of revenue
- Warranty/field failure trends
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.