Honeywell Technologies is looking to strengthen its presence in India by using artificial intelligence to expand its building, process and industrial automation businesses. The US-based company expects its Indian operations to reach $1 billion in revenue over the next two to three years, according to Anant Maheshwari, president of strategy and president and CEO of global regions, in an interview with The Economic Times. The company is increasingly focusing on what it calls physical AI, which combines artificial intelligence with industrial equipment, buildings and real-world operating systems.
The strategy comes as Honeywell Technologies positions itself as a focused automation company following a broader restructuring of the Honeywell group. Rather than competing only in conventional software applications, the company wants to apply AI to physical infrastructure, including factories, airports, energy facilities and commercial buildings. Its existing hardware, control systems, industrial software and engineering capabilities could help it capture demand as Indian businesses invest in automation and intelligent infrastructure.
Key Takeaways
- Honeywell Technologies expects its India operations to reach $1 billion in revenue within two to three years.
- The company is betting on physical AI to expand its automation business.
- Anant Maheshwari, president of strategy and CEO of global regions, outlined the strategy in an interview with The Economic Times.
- Physical AI combines AI software with industrial equipment, buildings and operational technology.
- Honeywell’s focus areas include building automation, process automation and industrial automation.
- India is an important market for the company as well as a source of engineering, innovation and manufacturing capabilities.
- The company is positioning its Honeywell Forge platform as part of its AI-enabled industrial offering.
Honeywell Targets $1 Billion India Revenue
Honeywell Technologies expects its Indian operations to achieve the $1 billion revenue milestone over the next two to three years.
The target reflects the company’s expectations of continued demand for automation technologies across India’s industrial and infrastructure sectors.
India has become an important market for companies supplying technologies used in factories, airports, hospitals, commercial buildings and energy facilities.
Honeywell’s business covers several of these areas, including:
- Building automation and energy management.
- Industrial automation and process control.
- Technology solutions for energy and sustainability.
- Engineering, research and development.
- Digital platforms and industrial software.
The company’s strategy is not limited to selling equipment. It also wants to combine software, data and AI capabilities with its existing hardware installations to offer customers more advanced automation solutions.
An important distinction is that the $1 billion target refers to Honeywell Technologies’ India operations as described in the latest report. It should not be confused with earlier revenue milestones reported for the broader Honeywell India business before the group’s restructuring.
What Is Physical AI?
Physical AI refers to artificial intelligence applied to real-world systems and environments rather than being limited to digital tasks such as generating text, images or computer code.
Traditional AI applications often work with information on computers and online platforms. Physical AI connects intelligent software with equipment, sensors, control systems and machines that operate in the real world.
For example, an AI system in a factory could analyse equipment performance, identify unusual operating patterns and help operators improve production efficiency.
In a commercial building, it could analyse energy consumption, temperature, ventilation and equipment performance to improve building operations.
In an industrial facility, AI could help detect equipment problems before they cause unexpected shutdowns.
Honeywell sees an opportunity to combine its decades of experience in industrial automation with newer AI technologies.
The company’s advantage, according to its strategy, comes from having access to operational data and understanding how industrial equipment and processes actually work.
How Honeywell Plans to Use Physical AI
Honeywell is focusing on bringing AI capabilities into environments where machines, equipment and infrastructure already operate through established control systems.
Its approach combines hardware, software, engineering knowledge and customer-specific operational data.
1. Smart factories and industrial automation
Factories use sensors and control systems to monitor production lines, machinery and industrial processes.
Physical AI can analyse information from these systems to identify inefficiencies, predict equipment failures and support production planning.
For manufacturers, the potential benefits include reduced downtime, improved productivity and better use of industrial assets.
2. Intelligent buildings
Large buildings such as airports, hospitals, hotels and commercial complexes require sophisticated systems to manage electricity, heating, ventilation, air conditioning, fire safety and security.
AI-enabled building automation can help monitor these systems and improve energy efficiency.
For example, a system could analyse occupancy levels and environmental conditions to adjust cooling and ventilation requirements.
3. Energy and process automation
Energy facilities and process industries depend on reliable control systems.
AI can help operators analyse operational data, identify unusual patterns and improve maintenance decisions.
However, these applications require high levels of reliability because errors in industrial environments can affect safety and production.
4. Predictive maintenance
Traditional maintenance often follows fixed schedules or takes place after equipment develops a problem.
AI-based predictive maintenance uses operational data to identify warning signs before equipment fails.
This can help businesses reduce unexpected shutdowns and manage maintenance expenses more effectively.
Honeywell Forge Is Central to Its AI Strategy
Honeywell has been developing its Forge platform as a digital foundation for industrial and building-related applications.
The platform is designed to connect operational information, analyse performance and support AI-enabled services.
In an earlier interview with Fortune India, Anant Maheshwari described Forge as an industrial Internet of Things platform developed to support AI-enabled applications and services.
Honeywell’s broader strategy is to combine the platform with its existing expertise in automation and control systems.
This is important because industrial AI requires more than access to a general-purpose AI model.
A system analysing a factory or building must understand the equipment, operating conditions and safety requirements involved.
Honeywell believes its domain knowledge and access to operational data can help it develop solutions suited to these environments.
Why India Is Important to Honeywell’s Growth Strategy
India is becoming an important market for automation companies as businesses invest in manufacturing, infrastructure and digital transformation.
Several sectors are creating opportunities for Honeywell’s products and services.
| Sector | Potential demand for Honeywell |
|---|---|
| Manufacturing | Factory automation and industrial control systems |
| Airports | Building management, safety and ground infrastructure |
| Healthcare | Building automation and energy management |
| Energy | Process automation and operational technology |
| Commercial real estate | Smart building and energy-efficiency solutions |
| Industrial facilities | Predictive maintenance and AI-enabled operations |
India is also important as an engineering and innovation centre.
In a January 2026 interview with Financial Express, Maheshwari said Honeywell India had more than 14,000 employees, three advanced manufacturing facilities and four global centres of excellence.
He also described India as a source of innovation for Honeywell’s international operations.
This means the country serves two purposes: it is a market for automation products and a base for developing technologies that can be used elsewhere.
Honeywell’s Restructuring Creates a More Focused Automation Business
Honeywell has been reorganising its global operations to focus more clearly on individual business segments.
Honeywell Technologies has emerged as a focused automation business serving building, process and industrial markets.
The company’s June 2026 Investor Day outlined a three-year financial framework targeting 4% to 6% organic sales growth, segment margins of approximately 24% and double-digit annual adjusted earnings growth.
Its strategy places automation, software and AI at the centre of future growth.
The restructuring is relevant because it allows the company to communicate a more focused business strategy to customers and investors.
Physical AI is part of this broader direction, rather than a standalone technology experiment.
Why Physical AI Could Become a Major Industrial Opportunity
The AI industry has largely attracted attention through chatbots, image generators, coding assistants and other software applications.
However, a significant opportunity exists in applying AI to physical operations.
Factories, power plants, airports, hospitals and commercial buildings generate large amounts of operational data. Much of this information is connected to specialised equipment and control systems.
Using AI to interpret that data could help companies improve efficiency, reduce operating costs and make better maintenance decisions.
However, physical AI faces challenges that are different from those of consumer AI applications.
Industrial systems require reliability, security and predictable behaviour. A chatbot producing an incorrect answer is different from an automated system making an incorrect decision about industrial equipment.
Companies therefore need domain expertise, reliable data and strict safety controls before deploying AI in mission-critical environments.
This is where Honeywell hopes its existing industrial experience will provide an advantage.
The Bigger Picture
Honeywell’s India strategy reflects a broader shift in the AI industry from digital applications towards physical operations. As businesses invest in factories, infrastructure, energy systems and smart buildings, demand for technologies that combine AI with real-world equipment could increase. Companies with established industrial relationships, operational data and engineering expertise may have opportunities to participate in this market.
For India, the opportunity extends beyond adopting foreign technology. Honeywell’s engineering and manufacturing presence also highlights the country’s potential role in developing automation solutions for global markets. Whether physical AI becomes a significant revenue driver will depend on customer adoption, measurable productivity improvements and the ability to deploy reliable systems at scale.
Looking Ahead
Honeywell Technologies will focus on expanding its Indian business through automation, engineering, manufacturing and AI-enabled industrial solutions. The company’s $1 billion revenue ambition over the next two to three years will depend on demand from sectors such as manufacturing, energy, airports and commercial infrastructure. Its ability to convert physical AI projects into larger commercial deployments will be an important factor in achieving that target.
The wider industrial AI market is still developing, and businesses will need to evaluate the financial and operational benefits of deploying these technologies. Honeywell’s established position in industrial control systems gives it an existing customer and technology base, but competition and implementation challenges remain. The coming years will show whether physical AI can become a meaningful growth engine for its India operations.
Frequently Asked Questions
1. What is Honeywell’s India revenue target?
Honeywell Technologies expects its Indian operations to reach $1 billion in revenue within the next two to three years, according to Anant Maheshwari.
2. What is physical AI?
Physical AI refers to artificial intelligence applied to real-world environments such as factories, buildings, industrial equipment and energy facilities. It combines AI software with sensors, machines and operational control systems.
3. Who is leading Honeywell’s India strategy?
Anant Maheshwari, president of strategy and president and CEO of global regions at Honeywell Technologies, discussed the company’s India growth plans and physical AI strategy.
4. What is Honeywell Forge?
Honeywell Forge is the company’s digital platform for industrial and building-related applications. It supports data analysis, operational monitoring and AI-enabled services.
5. Which industries could benefit from Honeywell’s physical AI technology?
Manufacturing, energy, airports, healthcare, commercial real estate and industrial facilities could use physical AI for automation, predictive maintenance, energy management and operational efficiency.
6. Why is India important to Honeywell?
India is both a growing market for automation technologies and an engineering and manufacturing base. Honeywell has a substantial workforce and technology operations in the country, supporting domestic customers and international projects.
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