Industry Talks by ARC Advisory Group

Digital twins are entering a third era - evolving from visualization and simulation tools into a foundation for industrial intelligence.In this episode of ARC Industry Talks, David Humphrey welcomes Jan Burian to explore what this evolution means for industrial organizations.The conversation traces how digital twins evolved from visualization and monitoring to advanced capabilities such as simulation, asset performance management, engineering validation and virtual commissioning. Today, the focus is on using digital twins to connect information across the industrial lifecycle and support better decisions.A key theme is the growing importance of context. Collecting data alone is no longer enough. Organizations need to connect data with engineering knowledge, operational information and real-world processes to generate actionable insights. Continuous synchronization between digital twins and their physical counterparts is also essential for maintaining trust and delivering value.David and Jan discuss how AI is becoming an integral part of digital twin environments. Rather than replacing engineering models, AI is combined with physics-based simulation and industrial knowledge. This can help automate model creation, contextualize information and make complex industrial systems easier to understand and manage.The episode also explores how digital twins expand beyond individual products, machines and production lines toward entire factories, infrastructure, supply chains and industrial ecosystems. The growing complexity of interconnected systems - including data centers and AI factories - creates new opportunities for digital twin technologies.Finally, the discussion examines the strategies of Siemens, Dassault Systèmes and AVEVA. Despite different historical strengths, all three are moving toward broader platforms that connect engineering, operations and industrial knowledge.The key takeaway: The value of digital twins is shifting from building increasingly sophisticated models to enabling better decisions.Trusted, continuously updated digital representations - enriched with context, engineering knowledge and AI - are becoming a foundation for industrial intelligence.For more insights, explore ARC Advisory Group’s research and industry analysis.Chapters(00:00) Welcome(00:24) The Third Era of Digital Twins(03:30) Siemens, Dassault and AVEVA(05:52) Why Now? Three Drivers(09:02) Context and AI(13:34) Bigger Twins, Converging Strategies(16:39) Key TakeawayWant to get in touch?We welcome your suggestions, ideas, feedback and criticism. Leave us a comment on Spotify or write to us at: ⁠[email protected]⁠.You can also reach us on LinkedIn (⁠@arcweb-europe⁠) or YouTube (@ARCadvisory).Subscribe to the ARCwire Industry Newsletter: ⁠https://www.arcweb.com/about/newsletters⁠Further readings:We’ve linked relevant ARC reports and resources in the show notes or visit: ⁠www.arcweb.com⁠· https://www.arcweb.com/industry-best-practices/beyond-buzzword-what-industrial-users-really-need-digital-twins⁠· https://www.arcweb.com/industry-best-practices/champions-radar-digital-twin-solution-machine-builders· https://brazil.arcweb-europe.com/⁠· https://brazil.arcweb-europe.com/br⁠· https://www.arcweb-europe.com/⁠· https://www.arcweb.com/events/arc-industry-leadership-forum-brazil⁠Enjoyed the episode? Subscribe, leave a review and share it with your network! Furthermore, you can subscribe to ARCwire Industry Newsletter at: ⁠https://www.arcweb.com/about/newsletters⁠Hosts: David Humphrey, Jan BurianProduced by: ikone productionsMore episodes at:· Spotify (⁠https://open.spotify.com/show/37B9kNLc6MyH3oWQNN0wVL?si=a598076ac6a14b3e⁠)· Apple (⁠https://podcasts.apple.com/tt/podcast/industry-talks-by-arc-advisory-group/id1848323518⁠)· Youtube (⁠https://youtube.com/playlist?list=PLRvAuS1b455RfGRBtnQI_-ePTItfIfi3F&si=FMMlpaZiZrp1rssE⁠)

In this episode of ARC Industry Talks, David Humphrey and Florian Güldner discuss Schneider Electric's planned $23 billion acquisition of PTC and what it could mean for the industrial software market.Schneider Electric's planned acquisition could reshape the industrial software market by combining PTC's PLM capabilities with AVEVA's engineering and operations software and Schneider's automation portfolio. This would change the automation landscape.David and Florian discuss the strategic fit, lessons from previous industry software deals, integration risks, and how AI, agentic engineering, software-defined automation, and virtual PLCs could create a continuous digital thread from product design to plant control.The conversation puts the deal in perspective: at around $23 billion it is roughly ten times what ABB paid for B&R and about seven times what Siemens paid for UGS nineteen years ago, making it the largest acquisition the automation industry has seen. The transaction still requires regulatory approval and is expected to close in the third quarter of 2027.Looking back, the episode traces how automation companies entered the PLM space, from Siemens buying UGS in 2007 to the Rockwell–PTC partnership that never became the growth platform both sides had expected. The lesson: a good strategy fit does not guarantee strong sales, aligned sales channels or lasting execution.Another key theme is where the synergies actually are. Florian plays devil's advocate, pointing out that independent software vendors such as Hexagon, Cadmatic, Bentley and Autodesk continue to thrive, and that 70 to 80 percent of PLC business comes from machine builders rather than from the end users who buy PLM software. David points to Schneider's pending acquisition of Cognite as the missing piece: the contextualization layer that could become the company's industrial AI foundation.The key takeaway: the deal does not hinge on the purchase price, the overlapping products or the integration, but on Schneider Electric's ability to execute.Chapters(00:00) Welcome & ARC Events: Orlando, SPS, NAMUR(0:45) ARC Forum Rio de Janeiro: November 10–12(1:22) Schneider Electric to Acquire PTC – USD 23 Billion(2:54) What PTC Adds: Product Design, PLM and Vuforia(4:29) The PLM Market and How Automation Vendors Got There(6:43) Rockwell & PTC: The Partnership That Didn't Scale(8:17) Software vs. Hardware: Two Lifecycles(9:48) The Risks: Price, Overlap and Staying Open(10:30) Devil's Advocate: Where Are the Synergies?(12:40) Cognite and the Industrial AI Foundation(15:33) Software-Defined Automation and the Virtual PLCWant to get in touch?We welcome your suggestions, ideas, feedback and criticism. Feel free to leave us a comment on Spotify or write to us at: [email protected]. You can also reach us on LinkedIn (@arcweb-europe) or YouTube (@ARCadvisory). Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newslettersFurther readingsWe've linked relevant ARC reports and resources in the show notes or visit: www.arcweb.com• https://www.arcweb-europe.com/• https://www.arcweb.com/best-practice-surveys/arc-sentiment-index-survey• https://www.arcweb.com/blog/schneider-electrics-proposed-ptc-acquisition-could-redefine-industrial-digital-thread• https://www.linkedin.com/pulse/schneider-electricptc-industrial-ai-battle-shifts-digital-humphrey-ibdbe/Enjoyed the episode? Subscribe, leave a review and share it with your network! Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newslettersHosts: David Humphrey, Florian GüldnerProduced by: ikone productionsMore episodes at:• Spotify (https://open.spotify.com/show/37B9kNLc6MyH3oWQNN0wVL?si=a598076ac6a14b3e)• Apple (https://podcasts.apple.com/tt/podcast/industry-talks-by-arc-advisory-group/id1848323518)• Youtube (https://youtube.com/playlist?list=PLRvAuS1b455RfGRBtnQI_-ePTItfIfi3F&si=FMMlpaZiZrp1rssE)

In this episode of ARC Industry Talks, Florian Güldner is joined by ARC analyst Stefan Miksch to explore Brazil’s changing industrial landscape and the developments shaping its automation and technology markets.The discussion looks at Brazil’s evolving position in the global industrial economy, including changing trade relationships, increasing market openness and the growing role of technology and modernization.Stefan shares insights from ARC’s market research, including an estimated Brazilian process and discrete automation market of around $3.5 billion, representing approximately 2% of the global automation market. Process industries account for around 80% of the market, with energy, utilities, oil and gas and biofuels playing major roles.The conversation also explores the growth of automotive, food and beverage, packaging and machinery, as well as the increasing use of AI, digitalization, Industry 4.0, MES and advanced analytics to improve industrial operations.Another key theme is Brazil’s technology ecosystem. Global automation suppliers operate alongside strong local companies such as WEG, Altus, SMAR and Radix, supported by local integrators and engineering companies. This combination of global technology and local expertise is creating new opportunities for modernization.Throughout the episode, Florian and Stefan discuss how technology, changing trade dynamics and Brazil’s strong industrial ecosystem could shape the next phase of industrial development.The key takeaway: Brazil combines a large and diversified industrial market with a growing technology ecosystem and increasing demand for modernization. AI, digitalization, automation and changing global trade dynamics could all play an important role in shaping what comes next.The episode also looks ahead to the ARC Industry Forum in Rio de Janeiro, November 10–12, 2026, bringing together industrial users, technology suppliers and system integrators to discuss cybersecurity, open automation, industrial AI and digital transformation.Featured perspectives will include Petrobras, Braskem, Nestlé and Vivix, with discussions covering remote operations, Industry 4.0, open automation and the challenge of scaling industrial AI beyond individual pilots.Chapters00:00 Why ARC Is Taking the Forum to Brazil3:53 Beyond BRICS: Brazil Is Not China4:57 The Infant Industry Argument – and Why It Failed6:10 Sizing the Market: USD 3.5 Billion, 80% Process7:44 Infrastructure, Oil & Gas and 100% Biofuels9:13 Remote Operations10:42 Discrete Automation: Automotive Leads13:13 Food & Beverage, Machine Builders and Modernization17:33 The Local Vendor Ecosystem: WEG, Altus, SMAR, Radix20:11 ARC Forum RioWant to get in touch?We welcome your suggestions, ideas, feedback and criticism. Feel free to leave us a comment on Spotify or write to us at: [email protected]. You can also reach us on LinkedIn (@arcweb-europe) or YouTube (@ARCadvisory). Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newsletters Further readingsWe’ve linked relevant ARC reports and resources in the show notes or visit: www.arcweb.com • https://brazil.arcweb-europe.com/• https://brazil.arcweb-europe.com/br • https://www.arcweb-europe.com/• https://www.arcweb.com/events/arc-industry-leadership-forum-brazil• https://www.arcweb.com/industry-best-practices/brazils-industry-dawn-new-era Enjoyed the episode? Subscribe, leave a review and share it with your network! Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newsletters Hosts: Stefan Miksch, Florian GüldnerProduced by: ikone productionsMore episodes at:• Spotify (https://open.spotify.com/show/37B9kNLc6MyH3oWQNN0wVL?si=a598076ac6a14b3e)• Apple (https://podcasts.apple.com/tt/podcast/industry-talks-by-arc-advisory-group/id1848323518) • Youtube (https://youtube.com/playlist?list=PLRvAuS1b455RfGRBtnQI_-ePTItfIfi3F&si=FMMlpaZiZrp1rssE)

What's driving the next wave of industrial transformation?In this month's ARC Industry Talks – News, David Humphrey and Florian Güldner review the most-read industry topics of the past four weeks, based on ARC's ArcWire readership.They start with digital twins, which are evolving beyond visualization, simulation and asset monitoring into intelligent platforms connecting physical assets, operational data, engineering knowledge, simulation, AI and human expertise — a possible foundation for linking engineering, operations and enterprise intelligence.Next, the two examine ARC's research on the Collaborative Autonomous Enterprise: what separates industrial AI PaceSetters from the mainstream, and why data silos, legacy applications and organizational barriers still limit the potential of AI. The goal is not simply to deploy AI, but to make it part of a broader operational strategy on the way to autonomous optimization.The episode then turns to Software-Defined Automation (SDA) as a practical bridge between industrial AI and real-time machine execution, bringing together machine-level integration, edge inference, lifecycle management, cybersecurity and the flexibility required for Physical AI.Another major theme is the convergence of IT, OT and ET. As industrial organizations become more connected, integrating these domains grows more important for efficiency, innovation, resilience and lifecycle management — and increasingly a question of breaking down traditional silos.The key takeaway: connectivity accelerated after COVID, AI is now driving further investment, and transformation is moving beyond individual technologies. New architectures, connectivity and IT/OT/ET convergence are creating the foundation for the next stage — from automation toward autonomy.Plus updates on ARC's upcoming forums: the ARC Industry Forum in Rio de Janeiro, November 10–12, 2026, and the European Forum in Sitges in May 2027, on From Automation to Autonomy: Scaling Intelligence, Openness and Collaboration.Want to get in touch?We welcome topic suggestions, feedback and criticism. Leave a comment on Spotify or write to [email protected]. Find us on LinkedIn (@arcweb-europe) and YouTube (@ARCadvisory). Subscribe to the ARCwire Industry Newsletter: https://www.arcweb.com/about/newslettersFurther reading — more at www.arcweb.comhttps://brazil.arcweb-europe.com/https://brazil.arcweb-europe.com/brhttps://www.arcweb-europe.com/https://www.arcweb.com/events/arc-industry-leadership-forum-brazilhttps://de.surveymonkey.com/r/QBCK2LDhttps://www.arcweb.com/industry-best-practices/digital-twins-evolve-industrial-intelligence-platforms-comparing-strategieshttps://www.arcweb.com/open-digital-ecosystem-ode-working-grouphttps://www.arcweb.com/industry-best-practices/orchestrating-collaborative-autonomous-enterprise-aligning-sap-digitalhttps://www.arcweb.com/industry-best-practices/software-defined-automation-emerges-missing-link-physical-aihttps://www.arcweb.com/industry-best-practices/convergence-unlocked-transforming-itotet-futureEnjoyed the episode? Subscribe, leave a review and share it!Chapters(0:00) Cold Open & Welcome(0:23) ArcWire: This Month's Top Stories(1:12) ARC Forum Rio de Janeiro: Dates, Sponsors & Speakers(1:57) Article 1: Digital Twins & AVEVA World(3:27) Open Ecosystems: The ODE Approach(4:11) Article 2: PaceSetter Report – Leaders, Mainstream, Laggards(6:57) ARC European Forum 2027: Sitges(7:44) Article 3: Software Defined Automation (SDA)(9:24) Article 4: IT/OT/ET Convergence(12:38) Big Picture: From Industry 4.0 to the AI Boom(14:21) Sign-OffHosts: David Humphrey, Florian GüldnerProduced by: ikone productionsMore episodes at:Spotify (https://open.spotify.com/show/37B9kNLc6MyH3oWQNN0wVL?si=a598076ac6a14b3e)Apple (https://podcasts.apple.com/tt/podcast/industry-talks-by-arc-advisory-group/id1848323518)Youtube (https://youtube.com/playlist?list=PLRvAuS1b455RfGRBtnQI_-ePTItfIfi3F&si=FMMlpaZiZrp1rssE)

AI is driving extraordinary growth in data centers, but the real challenge is the electricity needed to power it. In the first Coffee Talk since the new Industry Talks format was introduced, David Humphrey and Florian Güldner explore why the rapid growth of AI infrastructure could have implications far beyond data centers. As power consumption and density increase, data centers are becoming a testing ground for new approaches to electricity distribution, automation and energy management.The conversation looks at growing pressure on power generation and infrastructure before diving into 800 V DC architectures. David explains how higher-voltage DC delivers the same power with lower current, reducing losses, heat, copper requirements and the footprint of power distribution.Rather than supplying devices directly, 800 V DC provides a more efficient DC backbone, with power electronics converting energy to the levels required by individual systems.This is particularly relevant for industry. Technologies including robotics, servo drives, industrial PCs, PLCs, machine vision, batteries, EV charging, solar and energy storage already rely on DC internally. Future facilities could increasingly connect these systems through shared DC distribution and local microgrids.The discussion also explores the convergence of energy and automation. Future systems may need to consider production alongside energy availability, electricity prices, battery storage, solar generation and load shifting. This could move factories toward integrated energy and production systems.The future is likely to be a hybrid architecture combining AC grid connections with DC microgrids and multiple voltage domains.The episode concludes by looking at continued deployment of high-voltage DC in data centers, industrial DC microgrid pilots and the convergence of energy management, automation, electrification and computing.The key takeaway: AI is forcing data centers to rethink electricity, and industrial plants may be next. While 800 V DC is an important milestone, the bigger story is the move toward high-voltage DC distribution and DC-native energy systems that could reshape how future facilities generate, distribute and manage energy.Chapters(00:00) Welcome — A New Format(01:05) Why Data Centers Are a Growth Market(04:39) 1,000 Terawatt Hours by 2030(06:14) Where Does the Capital Come From?(07:30) Switching Gears: Electricity(08:52) Why 800 Volts DC(11:45) Factories Are Already DC(13:15) A Distribution Layer, Not a Socket(15:11) Automation and Energy Converge(18:43) The Key TakeawayWant to get in touch?We welcome yourtopic suggestions, ideas, feedback and criticism. Feel free to leave us acomment on Spotify or write to us at: [email protected] can also reach us on LinkedIn (@arcweb-europe) orYouTube (@ARCadvisory). Furthermore, you can subscribe to ARCwire IndustryNewsletter at: https://www.arcweb.com/about/newslettersFurther readingsWe’ve linked relevant ARC reports and resources in the show notes or visit: www.arcweb.com ·      https://www.arcweb-europe.com/·      https://brazil.arcweb-europe.com/  ·      https://de.surveymonkey.com/r/QBCK2LD·      https://www.arcweb.com/market-analysis/industrial-automation-data-centersEnjoyed theepisode? Subscribe, leave a review and share it with your network! Furthermore, you can subscribe to ARCwire Industry Newsletter at: https://www.arcweb.com/about/newslettersHosts: David Humphrey, Florian GüldnerProduced by: ikone productionsMore episodes at:·      Spotify (https://open.spotify.com/show/37B9kNLc6MyH3oWQNN0wVL?si=a598076ac6a14b3e)·      Apple (https://podcasts.apple.com/tt/podcast/industry-talks-by-arc-advisory-group/id1848323518)·       Youtube https://youtube.com/playlist?list=PLRvAuS1b455RfGRBtnQI_-ePTItfIfi3F&si=FMMlpaZiZrp1rssE)