Some fundamental considerations regarding power electronics and machine electronics are discussed. The historical development of ideas in this field is examined, the applications in the field of electric traction for rail vehicles are summarised and possible future developments are outlined. A systematic approach to power electronics, based upon the control of energy flow in switching convertors, is presented. This approach takes into consideration the different possible switching functions, the modulation functions, the realisation of these switching and modulation functions, the realisation of these switching and modulation functions by practical power semiconductor switches and the different classes of forced turn-off and commutation in power electronic circuits. Subsequently the concepts of topology and structure are defined, leading to different generic topologies for singular convertors. The structure of the five different families of composite convertors are examined, and practical examples are given. The systematic approach to machine electronics presented in the paper is based on a power flow model, using the unifying concept of rotating field theory. In combination with previously defined systematics for power electronics, this enables a systematic approach to the different classes of variable speed drives, based on power flow considerations. The historical developments of some power electronic and machine electronic ideas are traced, starting at the beginning of this century. Since the introduction of power semiconductor switches, applications of the older ideas have increased exponentially in all fields, making it impossible to cover all of them. As a consequence the development of power electronics and control of machines by electronic convertors in the field of electric traction is discussed in some detail, because this represents a record of important engineering achievements in this field. In conclusion, the present state and future trends of power and machine electronics are examined. This evaluation covers the development in the field of switching devices regarding the improvement of interfacing between signal and power electronics, the decrease of switching transition times, the reduction of device losses during conduction, and device developments for decreasing energy storage devices in convertors. The development of power electronic convertors for the reduction of the number of components in the topology and the development of convertors with a high frequency link are then covered, related to the expected development of switching devices. New directions of development regarding the electronic conditioning of the electromechanical energy conversion process concerning the elimination of undesirable effects and losses are important. The implementation of these trends by utilising the improved switching characteristics of power electronic switches and the information processing capability of microprocessors is discussed. This is then extended toward control aspects, where both these characteristics enable solutions not possible hitherto. Field control of AC machines imparts control characteristics equal to, or better than, those obtainable with DC machines to the systems, while the processing capability of microprocessors allows the configuration of adaptive machine electronic systems. Finally attention is given to the interfacing of power electronic and machine electronic systems to the power supply network. If the exponential growth of the installed capacity of equipment in the future is to be handled, active compensation of the distorted currents drawn from the supply by this equipment will have to be considered seriously.