Manufacturing software has evolved rapidly over recent years as vendors aim to accommodate changing customer needs. From the shift to cloud-based platforms to the integration of Artificial Intelligence (AI) tools, manufacturing software is expected to solve operational challenges in a simplified and accessible manner. This has not always been possible due to gaping data silos and a lack of talent across the industry.
The year 2025 epitomized the transition. ABI Research observed numerous acquisitions made and partnerships forged across the manufacturing software market intended to expand internal capabilities. At the same time, manufacturers are wary of AI hype. Today, manufacturing software that integrates AI must go beyond technology capabilities and demonstrate clear Return on Investment (ROI).
ABI Research’s Manufacturing Software Semiannual Update: 2H 2025 report takes a deep dive into these latest trends. This article shares several key findings compiled by our analyst team, including notable market updates and software growth outlooks.
Table of Contents
- Product Design Software
- Product Lifecycle Management (PLM) Software
- Simulation Software
- Manufacturing Execution System (MES) Software
- Industrial Data Management Software
Product Design Software
Market Updates
- Siemens introduced Designcenter at CES 2025. This software solution complements the company’s Simcenter, Teamcenter, and Opcenter offerings.
- PTC’s Onshape AI Advisor was announced in October 2025. Manufacturers can use the Generative Artificial Intelligence (Gen AI) assistant within the Onshape design platform to gain real-time guidance, troubleshoot issues, and receive recommendations.
- Autodesk proclaimed its plans for foundational neural Computer-Aided Design (CAD) models in its Fusion and Forma products at Autodesk University (AU) 2025.
- Dassault Systèmes added an AI-powered companion called AURA to its 3DEXPERIENCE platform. This integration bolsters the software suite by providing internal knowledge and retrieving information from 3DSwym.
Key Stat
The product design software market is currently an oligopoly. Four industrial tech vendors (Autodesk, Dassault Systèmes, Siemens, and PTC) accounted for 94% of the revenue share in 2025.
Product Lifecycle Management (PLM) Software
Market Updates
- PTC announced multiple AI assistants in 2025 across its PLM software suite, Arena. These AI capabilities are designed to automate repetitive tasks, simplify information access, and enhance decision-making.
- Centric Software acquired Contentserv in February 2025 for US$230.6 million, expanding its PLM capabilities to include downstream product content for consumer goods.
- Siemens expanded Teamcenter X into a four-tiered Software-as-a-Service (SaaS) PLM suite for Small and Medium Businesses (SMBs). Moreover, the company acquired Dotmatics for US$5.1 billion to strengthen life sciences data and digital thread capabilities.
- Aletiq raised US$6.5 million in March 2025 to develop PLM tools for small manufacturers. This strategic move highlights the growing demand for PLM software solutions tailored to underserved smaller firms.
Key Stat
Siemens, PTC, Dassault Systèmes, Autodesk, and SAP account for 80% of PLM software market share. Siemens was ranked the overall leader by ABI Research, with an 83.1/100 score. The German vendor was both the top innovator and top implementer of PLM software.
Simulation Software
Market Updates
- Siemens released Simcenter X Advanced in December 2025, combining multiple simulation tools into one cloud platform. This includes HEEDS, STAR-CCM, Amesim, Simcenter 3D, and Femap. Furthermore, the company’s complete acquisition of Altair Engineering in March 2025 enhances its simulation and High-Performance Compute (HPC) capabilities.
- Synopsys finalized its US$35 billion acquisition of Ansys in July 2025. The move highlights the growing demand for combined electronic and mechanical simulation tools.
- NVIDIA expanded its partnerships with PTC and Ansys in mid-2025 to embed Omniverse into their platforms. This will enhance NVIDIA’s simulation software with real-time visualization.
- Rockwell Automation launched Emulate3D Factory Test at Hannover Messe in March 2025, using NVIDIA Omniverse to simulate factory layouts and test fault conditions.
Key Stat
ABI Research forecasts the manufacturing sector to increase its spending on simulation software from US$7.1 billion in 2025 to US$15 billion by 2035.
Manufacturing Execution System (MES) Software
Market Updates
- GE Vernova sold its Proficy Software business to TPG for US$600 million in September 2025. Tulip acquired Akooda in October 2025 to boost its AI capabilities for contextualizing enterprise data and providing real-time operational visibility.
- Critical Manufacturing acquired Convanit in July 2025, adding visual AI tools to support no-code model training for image-based inspection and integration with MES workflows.
- Inductive Automation released Ignition 8.3 and Sepasoft 4.0 in September 2025, with new features for Information Technology (IT)/Operational Technology (OT) convergence and better data processing. It also began developing Model Context Protocol (MCP) to support Agentic AI, set to launch in 2026.
Key Stat
According to ABI Research’s latest projections, the MES software market size will eclipse US$40 billion by 2035. Market shares are more fragmented than other manufacturing software segments.
Industrial Data Management Software
Market Updates
- TPG acquired PTC’s industrial connectivity and Internet of Things (IoT) business (Kepware and ThingWorx, respectively) in November 2025 for up to US$725 million. The move reflects a shift toward focusing on core offerings and highlights challenges in monetizing OT data and connectivity.
- Emerson completed its acquisition of AspenTech in March 2025, purchasing the remaining 45% for US$7.2 billion and valuing the company at US$17 billion. This solidifies Emerson’s position in industrial data and analytics.
- Litmus Automation released a Model Context Protocol (MCP) server in May 2025 to support Agentic AI workflows, marking a significant step in enabling AI automation at the edge.
- Cognite launched Atlas AI in September 2025, a no/low-code platform designed to simplify AI development and deployment.
- HighByte updated its Intelligence Hub (version 4.3) to include new MCP tools. The update enhances Agentic AI capabilities for real-time, shop floor data contextualization.
Key Stat
Manufacturing data generation is anticipated by ABI Research to more than double between 2025 and 2030, reaching 4.4 Zettabytes (ZB) by 2030.
Conclusion
In 2025 and 2026, manufacturing software is in a state of accelerated innovation as customer preferences shift and workloads evolve. The software vendors that succeed recognize their shortcomings and often make the necessary acquisitions or collaborations to stay ahead. They also take the time to understand the direction the manufacturing sector is headed, using detailed forecasts, competitive assessments, and trend analysis.
Technology advisory firms like ABI Research provide the above, in addition to ongoing advisory services. Our analyst strategy calls provide the technology intelligence needed to optimize manufacturing software portfolios, fend off competitors, and align marketing campaigns with what industrial customers truly demand. Learn more by setting up a strategy session today.
Download the report: Manufacturing Software Semiannual Update: 2H 2025
