On May 25, 2026, Siemens issued an official notice to adjust the list prices of many of its products.
Among them, the average increase in the classic S7-1200 G1 series PLC products reached 15%. At the same time, the official gave clear advice: “It is strongly recommended to migrate from S7-1200 G1 to S7-1200 G2.”
In the field of industrial automation, it is not new for manufacturers to increase prices of old products in order to promote the replacement of new products, but this adjustment has a special industry background.
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Since its launch in 2010, the 1200 series has become a benchmark product for small and medium-sized automation scenarios due to its high cost performance and ease of use. The G1 version has been in service for more than ten years.
It will not be until the 2024 Hannover Messe that Siemens will publicly debut the new generation controller SIMATIC S7-1200 G2 for the first time, which is the first major iteration of the series in ten years.
It is planned to be officially launched in the winter of 2024, and orders will be fully accepted in the first half of 2025.
This generation of products has been given a clear mission since its birth: to inherit the market foundation of G1, while solving the shortcomings of the first-generation products in computing power, communications, and edge computing capabilities, and adapting to the new demand for equipment intelligence in the context of Industry 4.0.
G2 is not a simple performance improvement, but a redefinition of the entire small PLC positioning. It is no longer just a basic logic control terminal, but an industrial node with edge data processing capabilities.
On March 26, 2026, Siemens officially issued a pre-notification of the SIMATIC S7-1200 G1 delisting plan, clarifying the delisting node and replacement plan for the core automation controller SIMATIC S7-1200 G1 series, delineating a key timeline for equipment upgrades and project transformation in the industrial automation field, and also providing a clear migration path for existing users.
If the price increase of G1 is the “external force” that drives user migration, then the product strength of G2 itself is the “internal reason” for this replacement to be accepted by the market.
The difference between the two is no longer a simple parameter iteration, but a span of capability dimensions.
This compact PLC features a space-saving design, enhanced performance (such as CPU and communications) and scalability (such as memory) to bring powerful processing power for faster data processing; a cost-effective and scalable fail-safe solution for safe and efficient operations; efficient motion control for precise, versatile automation; and NFC-enabled wireless access for better monitoring and reduced downtime.
More importantly, the official clearly stated that this price adjustment does not involve the S7-1200 G2 series.
This means that users do not need to pay for increased costs, but can directly obtain a new generation of products with improved performance and more complete functions. This choice of “same cost, upgraded performance” has almost no reason to refuse in industrial automation procurement.
In the field of industrial automation, it is a common practice in the industry for manufacturers to speed up the switch to new products by adjusting the prices of old products.
From the early delisting of the S7-300 and the price increase of spare parts year by year, to the price increase of the Mitsubishi FX3 series to promote the FX5, the logic behind it is highly consistent.
As old products enter the end of their life cycles, supply chain costs rise and production capacity shrinks. Guiding users to switch to new products through price adjustments can not only alleviate the pressure on spare parts supply, but also promote user technology upgrades and reduce long-term maintenance costs.
But this time the price adjustment of S7-1200 G1 is superimposed on a special industry background, that is, the global supply and demand imbalance of storage components.
The notice clearly mentioned that this adjustment is a “necessary response to global market conditions, especially the significant increase in demand for memory and solid-state drive (SSD) components.” The core driver of this situation is the outbreak of the artificial intelligence and data center industries.
The demand for industrial-grade storage in AI servers has increased exponentially, directly squeezing the supply in the industrial control field. The prices of DDR4 and industrial-grade NAND Flash have risen sharply during the year, and the costs of PLC and IPC products that rely on these components have naturally increased.
For end users, choosing G2 to replace G1 is far more than just “no price increase and good performance”, it is also a key step to avoid future production risks.
As G1 gradually enters the end of its life cycle, it will face problems such as reduced spare parts supply, extended maintenance cycles, and gradually reduced technical support.
Once equipment fails, the waiting time for spare parts may directly affect the production plan, and old models that have been discontinued may even face the dilemma of having no spare parts to replace.
As the official new generation product, G2 not only has proven technical maturity, but also enjoys long-term technical support and spare parts supply.
What do you think of Siemens’ price increase this time?
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