Siemens, a global technology leader in automation, electrification, and digitalization, has acquired Altair Engineering Inc., a U.S.-based provider of simulation, high-performance computing (HPC), and artificial intelligence (AI) solutions. The acquisition aligns with Siemens’ long-term goal of expanding its AI-powered industrial software portfolio, strengthening its position in the digital industries space and accelerating the convergence of physical and digital technologies in manufacturing, energy, and mobility sectors.
The acquisition marks a pivotal move in the industrial software market, reflecting Siemens’ intent to lead the next wave of industrial transformation—one driven by intelligent automation, predictive analytics, and AI-enabled design.
Strategic Rationale Behind the Acquisition
Siemens initiated the acquisition process to integrate Altair’s deep capabilities in multiphysics simulation, cloud-native engineering tools, and machine learning algorithms into its digital industries segment. The combination offers a powerful synergy between Siemens’ existing digital twin and automation solutions and Altair’s computational intelligence suite.
Altair’s tools enable engineers and designers to test, simulate, and optimize product performance in virtual environments before entering production. These capabilities allow manufacturers to reduce time-to-market, lower development costs, and improve quality assurance. Siemens expects the integration to drive innovation in areas such as autonomous vehicle development, smart factory design, renewable energy infrastructure, and advanced materials engineering.
With this move, Siemens reinforces its vision of delivering a comprehensive, AI-driven industrial ecosystem that combines hardware, software, and cloud infrastructure.
Altair Engineering: A Leader in Simulation and AI
Founded in 1985 and headquartered in Troy, Michigan, Altair Engineering built a strong global reputation for its simulation and AI technologies. The company served clients across industries including aerospace, automotive, telecommunications, electronics, and healthcare.
Altair’s portfolio includes:
- HyperWorks – A flagship CAE (computer-aided engineering) platform for structural, thermal, fluid, and electromagnetic simulations.
- SimSolid – A meshless simulation tool enabling design engineers to test structural performance rapidly without traditional meshing.
- Altair SmartWorks – A cloud-based platform for AI model development, machine learning pipelines, and predictive maintenance.
- PBS Works – An HPC workload management tool that allows efficient scaling of computational tasks across cloud and on-premise clusters.
Altair’s strength lies in combining engineering simulation with machine learning and data science, creating tools that help engineers design smarter, lighter, and more efficient products. The company holds a significant share in the simulation software market and has continued to expand through internal innovation and strategic acquisitions.
Impact on Siemens’ Digital Industries Business
Siemens operates its industrial software and automation products through its Digital Industries (DI) division, which includes the Xcelerator platform—an integrated suite for design, simulation, manufacturing, and lifecycle analytics.
With Altair now part of the Siemens ecosystem, the DI division gains access to next-gen simulation and AI capabilities. Engineers using Siemens’ PLM (Product Lifecycle Management) tools, such as NX and Teamcenter, can now integrate Altair’s physics-based simulations and real-time data analysis directly into their workflows.
The integration enables:
- Real-time design feedback using AI-driven simulations during the CAD modeling process.
- Predictive maintenance capabilities built into factory automation systems.
- Multiphysics simulation tools embedded into digital twin models.
- AI-driven generative design for optimizing product structure and performance.
Siemens plans to embed Altair’s SmartWorks platform into its automation and IoT stack, allowing plant managers and operators to analyze data from connected machinery and deploy machine learning models for process optimization.
Financial Terms and Market Implications
Siemens completed the acquisition through an all-cash transaction. Although the exact deal size remains undisclosed, industry analysts estimate the acquisition value to be between $5 billion and $6 billion, making it one of Siemens’ largest software-focused acquisitions in recent years.
The move signals continued consolidation in the industrial software market, where major players are aggressively integrating AI, cloud, and simulation tools into their offerings. Siemens has taken a clear position to compete with companies such as Dassault Systèmes, Autodesk, Ansys, and PTC, all of which are investing heavily in AI and digital twin platforms.
Siemens executives stated that the acquisition will deliver revenue synergies through cross-selling opportunities, global expansion, and new verticals. With manufacturing, energy, and transportation industries prioritizing digital transformation, demand for integrated AI-software solutions continues to surge.
Customer and Industry Benefits
Clients of both Siemens and Altair now gain access to a broader ecosystem of digital solutions. The unified platform allows engineering teams to shift from siloed software tools to a centralized, AI-driven innovation environment.
Benefits for customers include:
- Faster Product Development: Simulation-driven design shortens iteration cycles and eliminates physical prototyping delays.
- Cost Reduction: Predictive analytics helps prevent equipment failure, reducing unplanned downtime and maintenance costs.
- Sustainability Optimization: Engineers can simulate energy consumption, emissions, and material usage to design greener products.
- Design Democratization: Cloud-native tools and AI assistants empower more engineers, even with limited simulation backgrounds, to run complex models.
Industrial clients now have the tools to optimize both product design and manufacturing processes, closing the loop from idea to implementation. Altair’s AI models, trained on real-world performance data, can guide smarter design decisions across the supply chain.
Integration and Product Roadmap
Siemens established a joint task force to oversee product integration, roadmap alignment, and customer migration strategies. Key milestones include:
- Q2 2025: Altair’s core simulation tools become available on Siemens Xcelerator platform.
- Q4 2025: Full integration of SmartWorks with Siemens MindSphere, the company’s cloud-based industrial IoT operating system.
- 2026: Release of next-gen design environment combining NX, SimSolid, and AI-based generative engineering.
The companies will maintain customer support, training, and licensing continuity during the transition, ensuring uninterrupted access to mission-critical tools. Both firms also plan to invest in joint R&D to explore emerging areas such as AI model explainability, digital twin certification, and real-time industrial control systems.
Workforce, Talent, and Culture Alignment
Altair’s leadership and engineering teams will join Siemens Digital Industries, with the former CEO of Altair taking on the role of Chief Simulation Officer. The combined talent pool will drive innovation at the intersection of industrial engineering and data science.
Both companies share a strong culture of research, sustainability, and customer-centric design. This cultural alignment is expected to facilitate rapid collaboration across product and regional teams.
Employees at Altair’s offices in Michigan, California, India, Germany, and South Korea will continue supporting clients and contributing to product development under the Siemens brand.
Conclusion
Siemens’ acquisition of Altair Engineering marks a transformative step in the evolution of industrial software. By integrating advanced simulation and AI technologies into its digital twin and automation platforms, Siemens sets a new benchmark for intelligent product development and manufacturing innovation.
This acquisition redefines the competitive landscape and signals the emergence of a new era in industrial operations—one where software, data, and machine intelligence drive every aspect of design, production, and performance optimization. For global manufacturers seeking to innovate faster, reduce costs, and build smarter, more sustainable products, the Siemens-Altair union delivers a future-ready solution.