Siemens AG recently announced the acquisition of Altair Engineering, a leading provider of industrial simulation and HPC software, for an enterprise value of approximately $10 billion.

This is Siemens’ largest acquisition to date and expands the company’s industrial software portfolio with core technologies in mechanical and electromagnetic simulation, data science, AI, and HPC.

The acquisition also aligns with Siemens’ “One Tech Company” program, a long-term strategy focused on driving internal digital transformation and increasing the company’s digital revenue share.l

Altair will be integrated into Siemens Digital Industries Software, supporting the expansion of the Siemens Xcelerator platform — a modular, open digital business platform that combines IoT, software, and services.

Who is Altair?

Altair Engineering, based in Troy, Michigan, specializes in software and cloud solutions for product development, HPC, simulation, data analytics, and AI.  The company offers an integrated suite of software products that optimize design performance across multiple disciplines, including structures, motion, fluids, thermal management, electromagnetics, system modeling, and embedded systems. 

Altair’s flagship product, HyperWorks, is a comprehensive CAE software suite widely used for simulation-driven design. Over the years, Altair has expanded its portfolio through strategic acquisitions, incorporating technologies such as computational fluid dynamics, electromagnetic simulation, and data analytics into its offerings. 

Strategic Fit

Altair brings a wide range of technical capabilities to Siemens that directly aligns with Siemens’ strategic roadmap for industrial software leadership:

Simulation and Digital Twin Integration

Altair brings a full-suite simulation portfolio, including:

• Multiphysics simulation for structural, thermal, fluid, and electromagnetic analysis.
• Electromagnetic simulation tools (e.g., Feko, Flux) critical for automotive and communications sectors.
• Topology optimization and generative design for lightweighting and design efficiency.

These tools will integrate with Siemens’ existing Simcenter portfolio and broaden simulation coverage across the product lifecycle. Siemens will also incorporate Altair’s simulation solvers into its digital twin infrastructure to increase fidelity, model resolution, and real-time responsiveness.

High-Performance Computing and Cloud

Altair’s HPC technologies, including Altair PBS Professional and Altair One (its cloud-native simulation platform), will extend Siemens’ ability to offer scalable, elastic compute resources for simulation workloads. These capabilities support hybrid and multi-cloud deployments and align with customer demand for distributed simulation environments.

Altair’s container-based deployment models and Kubernetes integration also strengthen Siemens’ ability to provide simulation-as-a-service across cloud-native DevOps workflows.

Data Science and Industrial AI

Altair’s data science and ML platform includes:

• Altair SmartWorks Studio and Knowledge Studio, used for no-code/low-code ML workflows.
• ModelOps integration for deploying AI models into production industrial systems.
• Graph analytics and automated feature engineering, which support advanced failure prediction, predictive maintenance, and process optimization.

These tools will augment Siemens’ industrial AI capabilities, particularly in verticals like energy, transportation, and discrete manufacturing. Siemens plans to embed these data science capabilities into its Xcelerator ecosystem to support customers with real-time analytics and closed-loop control systems.

Analysis

The acquisition allows Siemens to compete more directly with leading industrial software providers including Dassault Systèmes, Ansys, and Autodesk.

By combining Altair’s simulation depth with its own digital twin and automation infrastructure, Siemens strengthens its vertical integration capabilities across product design, manufacturing, and operational intelligence.

• Dassault Systèmes: Siemens now challenges Dassault’s 3DEXPERIENCE platform more directly by offering comparable breadth in simulation and PLM, combined with industrial AI capabilities.
• Ansys: Siemens expands its simulation footprint to include direct competition with Ansys in electromagnetic, thermal, and structural domains. Altair’s multi-physics and solver portfolio increases overlap.
• PTC and Autodesk: Siemens gains ground in cloud-based simulation and HPC workflows, areas where PTC and Autodesk have also made recent cloud-native investments.

Altair’s cross-industry customer base, especially in automotive, aerospace, and defense, also strengthens Siemens’ access to long-term strategic accounts.

Siemens’ acquisition of Altair delivers a significant enhancement to its industrial software stack, expanding simulation, HPC, and AI capabilities across the Siemens Xcelerator platform.

The acquisition supports Siemens’ strategic goal to increase digital revenue and solidify its position as a full-stack provider of industrial software and automation. Altair’s portfolio enables Siemens to deliver more comprehensive digital twin solutions and compete more effectively in an increasingly software-defined industrial landscape.

Competitive Outlook & Advice to IT Buyers

These sections are only available to NAND Research clients. Please reach out to info@nand-research.com to learn more.