Retrofitting services update existing equipment and infrastructure with modern technologies, while manufacturing software development services provide automation and analytics. Siemens customers have achieved energy savings of 15–30%. These services are designed for manufacturers, facility managers, and building owners seeking efficiency, sustainability, and rapid return on investment through smart manufacturing modernization.
By 2026, retrofitting buildings using IoT development services can reduce emissions by 50–75% and save up to 77% compared to new buildings. Features include real-time monitoring, predictive maintenance, and energy optimization, improving efficiency and sustainability.
What is Retrofitting?
Retrofitting services involve updating existing assets with new technologies to improve productivity. Retrofitting buildings with intelligent HVAC and lighting control systems can reduce energy consumption by 30%. This approach extends the lifespan of assets, reduces costs, and supports sustainability without complete replacement, making it ideal for both industrial and commercial sectors.
Unlock efficiency potential with industrial retrofitting services and smart manufacturing solutions and ensure the resilience of your operations today.
Retrofitting services are developing at a full speed in the manufacturing industry. As the competition in the sector is razor-thin, every way to save operational spendings is pretty valuable, so turning to implement it in a clever fashion.
The representatives of manufacturing companies should put a tremendous effort into improving their production lines in order to optimize their production and reduce costs.
Any downtime brings heavy losses to the factories, so manufacturers consider the large volumes of components, their interoperability and plenty of factors in between.
In this blog post, we’ve decided to have a closer look at retrofitting in smart manufacturing. We will try to figure out how beneficial it could be for the industry in whole, what barriers it faces while being implemented.
As a software development company, we will explore the connections of retrofitting with the domains we are keen on the Industrial Internet of Things, machine learning and predictive maintenance.
We would also have a look at how deep retrofitting is applicable for saving energy in the buildings.
Retrofitting and Smart Factories: Benefits (Examples Inside)
As we’ve already mentioned, smart manufacturing aka ‘Industry 4.0’ is tightly connected with the concepts of predictive maintenance. To be precise, solutions developed in these domains help the ideas of retrofitting in their existence.
Purchasing new machines in line with the new smart technologies is way too expensive and is not practical especially for small and medium manufacturing companies. This is where retrofitting is a perfect fit.
Smart factory retrofit solutions enable an old machine or system to get access to new technologies. The details can be installed on an old machine or a particular part can be replaced with a new part with improved features.
When a machine or system is retrofitted, it acts as a smart machine and it generates plenty of data. This data is being gathered for the analysis. Implementing the ideas based on this data improves the productivity and efficiency of the machine’s work as well as increases the total lifespan of the machine and reduces the amount spent on the machine’s maintenance.
Quite a list of benefits:
- Huge cost savings
- Faster recovery after maintenance breaks
- Reduced number of errors/quality deviations in the production
- Increased safety at the factory
- Valuable analytics that helps to prevent downtime
Here is a look at the real-life examples.
Bosch installed its IoT (internet of things) gateway on a 300-kg cast-iron lathe, the production of which started in the 19th century.
The connected system consisted of sensors, software, and IOT-compatible industrial controls. Via these solutions, the team could track and monitor the condition of the lathe in real-time and even optimize its operations.
Dr Werner Struth, Bosch management board member responsible for industrial technology and manufacturing coordination, commented the following way:
“This is the only construction of its kind in the world. It shows that even ancient machines can be connected quickly and easily with the IoT gateway.”
If these sensors are compatible with the machines that are old, there should be no obstacles on the way of spreading retrofitting for the ‘younger older machines’. Well, in fact, there are some, and we are going to speak of it in the next section of the blog post, while there is another example of retrofitting applications.
Ypsomed is a healthcare company headquartered in Switzerland that produces several hundred million products a year and meets the highest medical technology standards.
Recently, Ypsomed Group and Harting became partners in a development project. They’ve managed retrofitting the legacy protocol plastic injection moulding machines with an integrated Industry 4.0 digital control system.
An important element of Industry 4.0 is the ability to apply digitisation to the production environment by adding more intelligence to existing processes.
Taking a digital retrofit approach allowed the speeding up of the existing processes for minimal cost over a short period of time, resulting in a fast return on investment and immediate productivity gains.
Due to the high proportion of individual plastic components in its products, Ypsomed possesses a large number of plastic injection moulding machines in its production plants.
Their partner’s retrofit began with Harting’s Edge Computer MICA being installed and programmed as the protocol translator. Now the data transmitted via this protocol comes straight to a factory-wide ERP system and becomes available for the analysis.
Challenges of Retrofitting for Industry 4.0
The global Industry 4.0 retrofit solutions market is a multi-billion dollar yet to become a popular option amongst manufacturers. Everybody realizes that connecting traditional machines with smart technologies and with each other is not an easy task.
So carrying out the retrofitting process should be knowledge-based in order for the process to become optimized.
There are not so many companies that have gained experience in the sector. So you should carefully select a software supplier in order for the process of retrofit to go smoothly and lead to optimization.
If you’re looking for a software provider for your retrofit operations, Elinext is ready to help you with any type of software that would enable your manufacturing data gathering and analysis.
Security becomes an issue here as well. The protocols should securely transfer data after the introduction of the new elements to an old system. As the network is connected, one weak spot can expose the data and make the network susceptible to cyber-attacks.
Updating a protocol with continued security and assessing the risks is the key for all your efforts to not go in vain.
Retrofitting of Buildings (Crazy Numbers Inside)
Buildings in the US still have enormous potential for energy efficiency improvements that can be successfully realized in the bank account—not because we lack the technology, but because policy and retrofit implementation often lag behind existing capabilities (many marketed products are far less efficient than best-in-class options).
So what can retrofits actually achieve?
- Energy savings: Comprehensive (“deep”) retrofits of commercial buildings are typically designed to deliver whole-building energy savings of ~10–40%, depending on scale and original condition.
- Deep retrofit benchmark: Federal guidelines define a deep energy retrofit as a renovation that reduces a facility’s energy consumption by at least 40% through an integrated, all-systems approach.
What kind of savings and ROI can you expect from retrofits?
- According to the latest US CBECS data (2018), space heating alone accounted for approximately 32% of commercial building energy consumption; ventilation and lighting each accounted for approximately 10%, which is why HVAC, control, and lighting systems are such consistent winners in retrofits, according to the EIA.
- In offices in particular, appliance energy consumption can average approximately 30%, so standards for control systems and equipment may be much more important than expected.
What to Expect in 2026
- Many retrofit packages can pay for themselves in less than 5 years in real-world projects (especially when combining “quick wins” like lighting and control systems with longer payback periods).
- Examples of “quick” economic solutions are based on the laws of physics: upgrading to LED fixtures significantly reduces power consumption (e.g., ~12-22W vs. ~28-56W for a typical 4-foot fixture), so lighting is often the first step Stantec owners take.
- For electric HVAC systems, upgrading to a variable frequency drive (VFD) is typically estimated to have a payback of ~1.5-3 years in many applications (depending on the specific facility, but often attractive).
Seems like easy money? Well, at least it is worth the attention of investors if the estimations are correct.
But what kind of retrofits within a building could one make?
Well, low-cost, minor retrofits that are easy to implement and offer good value for the money and effort invested could include sealing with spray foam, adding insulation and upgrading the lighting systems,
All the way to deep retrofits, such as replacing the roof, or significantly rearranging windows, replacing the heating or ventilation systems.
That significantly increases the energy efficiency within the building and looks like a promising investment field.
The world has 1.6 trillion square feet of building stock, 99 percent of which is not green.
Retrofitting addresses how heat and cold are escaping or entering the building, the systems that cool or warm inhabitants, and how spaces are illuminated. It ultimately improves the experience of being inside the building.
By investing in retrofits that make your factory, or building more energy-efficient, you can achieve the following:
- amazing impact on lowering your energy costs
- reduce your maintenance requirements
- create a more pleasant interior environment for your occupants (buildings)
- increase the value and productivity of your building
- reduce your environmental footprint.
In smart manufacturing, legacy equipment limits data-driven decision making. Our industrial retrofitting services integrate IoT sensors and software, connecting legacy machines to modern platforms. This approach reduces downtime, increases efficiency, and delivers measurable cost savings for manufacturers facing digital transformation challenges.
Elinext software development expert
Conclusion
Retrofitting services and retrofitting buildings are driving the smart manufacturing trend, offering rapid ROI and sustainable development. For example, Schneider Electric and Nestlé achieved a 20% reduction in downtime and a 340-ton reduction in CO₂ emissions in one year. By 2026, the IoT market in manufacturing will reach $87.9 billion, and retrofits can save up to 77% compared to new construction while reducing emissions by 50–75%. These results highlight the critical role of retrofits in ensuring manufacturing is future-ready.
Retrofitting Services: Terms Explained
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Industrial IoT (IIoT) Integration
Industrial IoT (IIoT) Integration connects sensors and devices in factories to collect and analyze data. It enables real-time monitoring, predictive maintenance, and automation, boosting efficiency and reducing costs
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PLC (Programmable Logic Controller) Upgrades
PLC upgrades involve updating industrial controllers to support advanced automation and connectivity. This allows legacy machines to integrate with modern systems, improving reliability, flexibility, and smart manufacturing capabilities.
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Predictive Maintenance
Predictive maintenance uses sensor data and analytics to forecast equipment failures. By retrofitting machines and due to predictive maintenance software development services, companies like General Motors saved $20M/year by reducing unplanned downtime and optimizing maintenance schedules.
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Sensor Retrofitting
Sensor retrofitting adds modern sensors to existing equipment, enabling real-time data collection. This cost-effective upgrade supports analytics, predictive maintenance, and extends the useful life of legacy assets.
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Edge Computing Systems
Edge computing systems process data locally on the factory floor, reducing latency and bandwidth needs. In retrofitting, edge devices enable rapid decision-making and real-time automation for smart manufacturing.
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Machine Connectivity (Machine-to-Cloud Integration)
Machine connectivity links industrial equipment to cloud platforms, enabling centralized monitoring and analytics. Retrofitting legacy machines with connectivity modules supports scalable digital transformation.
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Digital Twin Implementation
Digital twin implementation creates a virtual replica of physical assets using real-time sensor data. Retrofitting enables digital twins, supporting simulation, predictive maintenance, and process optimization.
FAQ
What is retrofitting in smart manufacturing?
Retrofitting services are solutions that upgrade existing manufacturing equipment with new technologies. They are used to add sensors, automation, and connectivity to legacy systems. Businesses use them to improve efficiency, enable predictive maintenance, and achieve smart manufacturing without full equipment replacement. For example, ABB reduced costs by 3–5%.
Why is retrofitting becoming a trend now?
Retrofitting services are gaining popularity as companies seek cost-effective ways to modernize. They are used to upgrade legacy assets for digital transformation. Businesses use them to cut energy costs, reduce emissions, and stay competitive. 80% of executives plan to invest in smart manufacturing by 2026.
How does retrofitting support smart manufacturing?
Retrofitting services are upgrades that enable legacy equipment to connect with smart technologies. They are used to add IoT sensors, automation, and analytics. Businesses use them to enable real-time monitoring, predictive maintenance, and process optimization. Siemens clients saw 15–30% energy savings.
What are the main benefits of retrofitting services?
Retrofitting buildings and retrofitting services are upgrades that improve efficiency and sustainability. They are used to reduce energy use, extend asset life, and lower costs. Businesses use them to achieve rapid ROI and meet environmental goals. For example, retrofitting can cut emissions by 50–75% and save up to 77% vs. new builds.
What industries use retrofitting services the most?
Industrial retrofitting services are solutions for upgrading existing assets. They are used most in manufacturing, automotive, electronics, food & beverage, and pharmaceuticals. Businesses use them to modernize operations and boost efficiency. P&G and BP improved reliability and reduced downtime with retrofitting.
What challenges are involved in retrofitting services ?
Retrofitting buildings involves upgrading existing structures with new tech. Challenges include high upfront costs, integration complexity, and the need for skilled staff. Businesses face risks like technology obsolescence. Integrating IoT into old systems can require custom solutions and ongoing training.
How do retrofitting services improve predictive maintenance?
Retrofitting services are upgrades that add sensors and connectivity to legacy equipment. They are used to enable predictive maintenance by collecting real-time data. Businesses use them to forecast failures and reduce downtime. Frito-Lay cut planned downtime to 0.75% using predictive maintenance systems.
What is the future of retrofitting services in manufacturing?
Retrofitting services are expected to drive smart manufacturing growth. They are used to modernize legacy assets for Industry 4.0. Businesses will use them for digital twins, predictive analytics, and sustainability.
