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Who are HMS Company's Customers?
In the dynamic world of industrial communication and the Industrial Internet of Things (IIoT), grasping who your customers are and where they fit in the market is absolutely essential for any company's growth and strategic planning. For HMS Networks, a significant player in this space, this understanding has been particularly vital, especially given recent market shifts. Founded in Sweden in 1988 with the initial goal of enabling industrial devices to communicate, the company has continuously evolved its offerings to meet the changing needs of its clients.
HMS Networks' journey began with a core mission to connect machines and systems, facilitating automation and remote management, a purpose that has expanded dramatically over the years. While the initial market focus might have been on early adopters of industrial automation, today its customer base is much broader, serving a wide array of industrial applications. These range from factory automation and building management to vehicle communication, integrating solutions for data exchange, remote access, and embedded communication. The company's strategic acquisitions, such as Red Lion Controls in 2024, have significantly broadened its product portfolio and market reach, particularly in North America, making a refined understanding of its expanded customer base even more critical.
Understanding the HMS company customer demographics and the HMS company target market is key to navigating the industrial landscape. The company's audience analysis reveals a diverse group, primarily comprised of industrial manufacturers, system integrators, and automation engineers. These professionals are typically involved in sectors such as manufacturing, energy, transportation, and building automation, seeking reliable solutions for connectivity and data acquisition. The driving force behind their purchasing decisions often centers on improving operational efficiency, enhancing data visibility, and ensuring seamless communication between various industrial assets. For instance, a system integrator looking to implement a new SCADA system would be a prime example of an ideal customer for HMS company products, needing robust gateways and protocol converters to bridge different communication standards. The slight slowdown in the industrial network market in 2024, with an 10-11% decrease in newly installed nodes due to economic challenges, highlights the importance of precisely identifying and catering to these core customer segments. This has led HMS Networks to reorganize into three divisions as of January 1, 2025, to better serve these varied customer groups and leverage product synergies, especially after significant acquisitions. The company's commitment to understanding its HMS company customer profile and conducting thorough HMS company market segmentation ensures it remains responsive to market demands, offering solutions like the HMS BCG Matrix to help clients manage their product portfolios effectively.
Who Are HMS’s Main Customers?
HMS company primarily operates within the Business-to-Business (B2B) sector, focusing on providing industrial communication solutions. Its core customer base includes machine builders, system integrators, and industrial end-users across a variety of industries. These clients rely on HMS company's products for essential functions such as data exchange, remote management, and connectivity within industrial automation systems.
The company's strategic reorganization into three divisions as of January 1, 2025, highlights its commitment to serving distinct customer needs. The Industrial Data Solutions (IDS) division caters to those involved in industrial automation, offering tools for data connection, security, diagnostics, and visualization. The Industrial Network Technology (INT) division focuses on device makers, providing the underlying technology for real-time communication and control in industrial devices. Lastly, the New Industries (NI) division targets emerging sectors like Building Automation and Vehicle Communication, expanding the company's reach beyond traditional industrial automation.
Understanding the HMS company customer demographics reveals a focus on technical professionals and decision-makers within manufacturing, automation, and technology-driven industries. The HMS company target market is characterized by a need for reliable, secure, and efficient industrial communication technologies. Analyzing HMS company market segmentation shows a clear division based on the application and integration level of their products, from embedded components to complete data solutions.
Industrial Data Solutions (IDS) Customers
This segment primarily includes machine builders, system integrators, and end-users in industrial automation. They require solutions for connecting, securing, and visualizing industrial data. Key brands like Red Lion and Ewon serve this audience.
Industrial Network Technology (INT) Customers
The INT division targets device makers within industrial automation. Their customers need embedded communication technology for real-time control and security. Anybus is the primary brand for this segment.
New Industries (NI) Customers
This division serves niche applications in growing sectors outside traditional industrial automation, such as building automation and vehicle communication. Brands like Intesis and Ixxat are key here.
Geographic Focus and Growth
The acquisition of Red Lion Controls in 2024 significantly boosted HMS company's presence in North America. This region showed strong order intake, contributing to overall company growth. The company's 2024 sales reached SEK 3,059 million.
HMS Company Audience Analysis
The HMS company target audience consists of professionals seeking to enhance industrial connectivity and data management. Understanding the HMS company customer profile is crucial for tailoring solutions and marketing efforts.
- Machine builders and system integrators
- Industrial end-users in automation
- Device makers requiring embedded communication
- Companies in building automation and vehicle communication
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What Do HMS’s Customers Want?
The HMS company customer demographics reveal a strong need for reliable, secure, and efficient industrial communication and data exchange solutions. Key purchasing drivers include interoperability across various industrial protocols, seamless integration with existing infrastructure, robust cybersecurity, and the ability to facilitate remote access and monitoring. These preferences are rooted in the desire to optimize operational efficiency, enable predictive maintenance, support digital transformation, and ensure compliance within complex industrial settings.
Common challenges faced by HMS company customers involve integrating older systems with modern IIoT infrastructure, breaking down data silos between disparate machines and networks, and managing the increasing complexity of industrial networks. The shift towards Industrial Ethernet, which represented 76% of new nodes in 2025, up from 71% in 2024, underscores a clear preference for scalable, real-time, and information-rich communication networks as digitalization and IoT adoption accelerate in manufacturing environments.
Customer feedback and market trends are pivotal in shaping the HMS company product development roadmap. The company is a recognized leader in remote access and data connectivity, offering solutions like Ewon for remote access and data, and N-Tron switches and Red Lion HMIs for industrial data solutions. The strategic acquisition of Red Lion Controls in 2024, and its subsequent integration, including the implementation of HMS' ERP and CRM systems, aims to enhance access to scalable industrial solutions for cloud connectivity, edge intelligence, and asset management, directly addressing customer demands for comprehensive, integrated offerings. The introduction of new products such as Ewon Cloud and Ewon Edge in December 2024 further illustrates the company's responsiveness to the growing need for secure edge and cloud communication. HMS also customizes its solutions, exemplified by a product designed to integrate Daikin Altherna heat pumps for building automation, catering to specific niche markets. Furthermore, the company's commitment to supporting the Paris Agreement by assisting customers in reducing CO2 emissions aligns with a growing preference for sustainable solutions, with a target to triple the handprint from 1 million tons to 3 million tons in avoided annual CO2 emissions by 2030.
Interoperability Needs
Customers prioritize solutions that seamlessly connect diverse industrial systems and protocols. This ensures smooth data flow and operational continuity.
Security Imperatives
Robust cybersecurity features are a critical purchasing factor. Protecting sensitive industrial data and preventing unauthorized access is paramount for operational integrity.
Efficiency and Optimization
The drive for operational efficiency and predictive maintenance significantly influences customer choices. Solutions that enhance performance and reduce downtime are highly valued.
Digital Transformation Support
Customers seek solutions that facilitate their digital transformation initiatives. This includes enabling remote access, data collection, and advanced analytics.
Integration of Legacy Systems
A key pain point is integrating older, legacy systems with modern IIoT infrastructure. Solutions that bridge this gap are in high demand.
Preference for Industrial Ethernet
The market shows a strong preference for Industrial Ethernet, with it comprising 76% of new nodes in 2025. This highlights a move towards more advanced communication technologies.
Product Development and Market Responsiveness
The company actively incorporates customer feedback and market trends into its product development. This proactive approach ensures its offerings remain relevant and competitive in the evolving industrial landscape. Understanding the Brief History of HMS provides context for this evolution.
- Market leadership in remote access and data connectivity solutions.
- Integration of acquisitions to offer comprehensive industrial solutions.
- Development of new products like Ewon Cloud and Ewon Edge to meet evolving needs.
- Tailoring solutions for specific niche markets, such as building automation.
- Commitment to sustainability, aligning with customer preferences for eco-friendly solutions.
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Where does HMS operate?
HMS Networks operates with a robust global geographical market presence, supported by over 20 local sales offices and an extensive network of distributors and partners. Historically, its primary markets have been Europe, the Americas, and Asia. The acquisition of Red Lion Controls in 2024 significantly bolstered its footprint in North America, leading to a projected shift in sales distribution. Following this integration, approximately 45% of HMS Networks' sales are expected from Europe, 39% from the Americas, and 16% from Asia.
In the first quarter of 2025, while Germany and Central Europe experienced some weakness, the United States showed stronger performance. The company's newer venture in the Middle East, based in Dubai, is demonstrating substantial growth, particularly in communication solutions for building automation. China has also shown positive development, with a strong quarter reported in 2024.
HMS Networks tailors its offerings and marketing strategies to local markets, reflected in its product portfolio that supports diverse industrial communication protocols. The adoption of industrial Ethernet protocols varies by region; for instance, PROFINET's market share grew to 27% in 2025 from 23% in 2024, EtherNet/IP increased to 23% in 2025 from 21% in 2024, and EtherCAT reached 17% in 2025 from 16% in 2024. The company's localized support and product development are further enhanced by integrating acquired entities like Red Lion, with manufacturing in the US, and PEAK-System in Germany. Despite a general market slowdown in 2024, especially in Europe, attributed to economic uncertainties and sector-specific overcapacity, HMS anticipates a return to growth, projecting an average of 7.7% for the industrial network market over the next five years.
Global Sales Office Network
HMS Networks operates over 20 sales offices worldwide, ensuring local support. This extensive network is complemented by numerous distributors and partners, facilitating broad market reach.
Post-Acquisition Market Distribution
Following the 2024 acquisition, the projected sales distribution is 45% Europe, 39% Americas, and 16% Asia. This indicates a significant strengthening of its presence in the Americas.
Regional Performance Trends (Q1 2025)
The USA showed better performance in Q1 2025, while Germany and Central Europe faced relative weakness. The Middle East, particularly Dubai, is experiencing strong growth in building automation communications.
Key Industrial Ethernet Protocol Adoption
PROFINET market share reached 27% in 2025, EtherNet/IP was 23%, and EtherCAT was 17%. These figures highlight the varying regional preferences for industrial communication standards.
China Market Growth
China continues to show good development, delivering a strong quarter in 2024. This signifies a key growth area for the company.
Middle East Expansion
The company's new business in the Middle East, based in Dubai, is experiencing strong growth. This is particularly noted in communication for building automation.
European Market Challenges
Europe faced a general market slowdown in 2024, influenced by economic uncertainties. Sectors like automotive and manufacturing experienced excess production capacity.
US Market Resilience
The USA demonstrated better performance in Q1 2025, indicating a more robust market environment compared to some European regions.
Localized Product Support
The company's diverse product portfolio supports various industrial communication protocols, differing significantly by geographic market. This approach ensures relevance and compatibility.
Future Market Growth Projection
HMS Networks anticipates a return to growth, projecting an average of 7.7% over the next five years for the industrial network market. This outlook is detailed in articles such as Revenue Streams & Business Model of HMS.
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How Does HMS Win & Keep Customers?
The company employs a comprehensive strategy for acquiring and retaining customers, utilizing a blend of direct sales, an extensive network of channel partners, and targeted digital marketing efforts. With over 20 sales offices globally and a broad base of distributors, the company effectively reaches and serves its diverse customer base. This infrastructure is key to attracting new clients and maintaining strong relationships with existing ones across various industrial sectors.
Customer acquisition is driven by active participation in industry trade shows and events, alongside robust digital marketing initiatives. These include content marketing, informative webinars, and search engine optimization focused on industrial communication and IIoT terminology. The recent organizational restructuring into three customer-centric divisions—Industrial Data Solutions, Industrial Network Technology, and New Industries—effective January 1, 2025, is designed to enhance customer focus and foster cross-selling. This strategic alignment, coupled with acquisitions such as Red Lion Controls and PEAK-System, broadens the product portfolio and provides integrated solutions, thereby attracting new customers. The company's strong order intake growth, with a notable 97% increase in Q1 2025, underscores the success of these acquisition strategies, particularly the impact of Red Lion in the North American market.
Direct Sales and Channel Partnerships
Leveraging over 20 global sales offices and a wide network of distributors and partners is fundamental to reaching new customers. This established infrastructure ensures broad market coverage and localized support for clients.
Digital Engagement and Content Marketing
Digital channels, including content marketing, webinars, and SEO tailored to industrial communication and IIoT, are crucial for attracting new business. This approach educates potential clients and establishes thought leadership.
Strategic Acquisitions and Portfolio Expansion
Acquisitions like Red Lion Controls and PEAK-System have significantly broadened the product portfolio. This allows for offering more integrated solutions, which is a key factor in attracting new customers seeking comprehensive industrial connectivity.
Customer-Focused Reorganization
The reorganization into three customer-focused divisions, effective January 1, 2025, aims to deepen customer relationships. This structure enhances customer focus and creates clearer accountability for business results.
Customer retention is built upon providing exceptional technical support, consistent software updates, and comprehensive professional training programs. The company prioritizes building long-term relationships through transparent communication regarding its product roadmap. Integrating ERP and CRM systems within recently acquired entities, such as Red Lion, is vital for utilizing customer data effectively. This enables targeted campaigns and personalized customer experiences, ultimately boosting loyalty and lifetime value. While formal loyalty programs are less common in the B2B industrial sector, the emphasis on operational reliability and network security is paramount for retaining customers. The company's products contribute to sustainability by optimizing energy usage and reducing service needs, aligning with customer values and fostering loyalty. The company has set an ambitious goal to increase its Net Promoter Score (NPS) for customer satisfaction from 25 to 50, demonstrating a strong commitment to enhancing the overall customer experience.
Technical Support and Updates
Providing robust technical support and continuous software updates are core to customer retention. This ensures product longevity and customer satisfaction.
Long-Term Partnerships
Emphasis on long-term partnerships and transparent communication about product roadmaps fosters trust and loyalty. This approach builds enduring customer relationships.
Data-Driven Customer Engagement
Leveraging ERP and CRM systems allows for data-driven segmentation and personalized campaigns. This enhances customer loyalty and lifetime value.
Operational Reliability and Security
Focusing on operational reliability and network security is critical for customer retention in the industrial sector. These factors directly impact customer operations.
Sustainability Alignment
Products that optimize energy usage and reduce service trips contribute to sustainability. This aligns with evolving customer values and strengthens loyalty.
Customer Satisfaction Goals
The company aims to raise its Net Promoter Score (NPS) from 25 to 50. This objective highlights a strong commitment to improving customer experience and loyalty.
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