Siemens Acquires Altair Engineering To Enhance Its AI And Digital Twin Simulation Capabilities

Siemens Acquires Altair Engineering To Enhance Its AI And Digital Twin Simulation Capabilities

In October, Siemens announced the acquisition of Altair Engineering, a leading US-based provider of simulation software, in a deal valued at approximately $10 billion. The move comes as demand for digital twin and simulation technology continues to grow, with the 2024 Verdantix industrial transformation global corporate survey showing that 66% of decision-makers plan to increase spending on process simulation software over the next 12 months. The acquisition will enable Siemens to integrate Altair's mechanical and electromagnetic expertise - along with its AI proficiency - into the Siemens Xcelerator portfolio, creating a comprehensive digital twin suite for AI and physics-based design and simulation for industrial facilities.

Verdantix finds that the market for digital twins for industrial facilities will reach $27.6 billion in 2040. Digital twins deliver value throughout the entire project lifecycle: from feasibility and conceptual design through to operation, maintenance and decommissioning. By leveraging advanced analytics, machine learning and physics-based simulations, digital twins can improve budgeting, validate designs, streamline inventory, optimize supply chains and ensure seamless handovers in capital projects. In the operation phase, they boost asset performance by solving data gaps with virtual sensors. Digital twins also help manage sustainability by running what-if simulations to maximize production within emission limits and evaluate eco-friendly material options. The acquisition of Altair illustrates Siemens's continued commitment to accelerating digital and sustainable transformation while further expanding its reach into the US markets.

As industries increasingly prioritize efficient design cycles, streamlined production and lower emissions, solutions that span the entire asset or plant lifecycle are crucial. Siemens's acquisition of Altair further solidifies its position as a key player in providing end-to-end digital solutions. However, Siemens is not alone in the race to provide holistic digital solutions to industrial customers. Several other major players have made similar moves to strengthen their digital offerings. For example, AspenTech now offers a comprehensive digital solutions portfolio in collaboration with Emerson - spanning from engineering design and simulation to production and operations management - covering industries ranging from oil and gas to digital grid management. Meanwhile, AVEVA allows for seamless data integration and end-to-end value chain optimization through its CONNECT platform, giving firms a marketplace for data sharing and operational insight. Finally, with its smart digital reality backbone, Hexagon provides a unified view of real-time data on engineering, design and operational projects.