Engineering software market analysts are aware that the potential merger between Autodesk and PTC in early July is now off the table.
Mere talks of an acquisition between the two companies with overlapping products in computer-aided design (CAD) and product lifecycle management (PLM) solutions was enough to trigger market volatility. Notably, the speculation sent San Francisco-headquartered Autodesk’s shares down. When the deal was pronounced a no-go on July 14, 2025, Autodesk reiterated that it was focusing on “established strategic priorities in cloud, platform and AI (artificial intelligence)... and allocating capital to organic investment, targeted and tuck-in acquisitions.”
There were ramblings that the Autodesk-PTC deal could potentially be valued at up to $30 billion, marking the would-be merger as the largest deal in the CAD space this year.
The deal reflects an ongoing trend that has been unfolding over the past few years as OEMs seek to inoculate industrial offerings with supply chain software and enable end-to-end functionality.
READ MORE: How AI-Drive, Cloud-based CAS Supports Efficient Product Design
Other significant mergers affecting the CAD, computer-aided manufacturing (CAM) and computer-aided engineering (CAE) industries also indicated a rapid move toward streamlined technology roadmaps. Recall the $10 billion Siemens acquisition earlier this year of industrial simulation and analysis software provider Altair Engineering Inc. Another major development came from Synopsis, a company that specializes in silicon design, semiconductor IP, software tools for electronic design and automation (EDA) tools. Its move to acquire Ansys was driven by Ansys’ advanced multi-physics simulation and AI capabilities.
AI Makes Headway Amidst Business Resilience
If mergers and acquisitions are any indication, consolidation among CAD, CAE and CAM is greatly accelerated by AI and machine learning. The 3DS Technology Barometer Artificial Intelligence study asked manufacturing executives for insights on their perceptions about the use of AI. The survey commissioned by Solidworks revealed that respondents regard investing in AI-driven manufacturing solutions as a strategic imperative. Almost half of the executives surveyed view AI positively, with many expressing optimism and interest in its future potential, according to the survey. Mid-sized firms (defined as companies with annual revenues from $10 million to $100 million) are especially intrigued, as 59% report strong interest and 60% feel enthusiastic about the opportunities offered by AI solutions.
During Machine Design’s CAD, CAM, CAE Takeover Week (July 14-18, 2025), we highlighted how AI is leveraged to foster innovation and democratize access to advanced engineering tools.
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Autodesk released AutoConstrain earlier this year, a tool that has auto-generated about 900,000 geometric 2D sketch constraints, thereby drastically speeding up workflow and reducing manual oversight. In Solidworks, the AI Selection Helper completes complex edge-smoothing tasks in one action. Altair/Siemens is banking on PhysicsAI to support the development of geometric deep learning and GPU-accelerated solvers that deliver real-time finite element analysis/computational fluid dynamics (FEA/CFD) feedback. These advancements compress analysis timeframes from days to minutes while extending the usability of CAE tools to a broader spectrum of engineering disciplines and user profiles.
Smarter CAD for Smarter Design
Design engineers are multiple revisions away from having AI replace their design tools, but given the pace of change it would be short-sighted not to take notice. Industry leaders are constrained by macroeconomic and geopolitical factors. Driven by a demand for efficiency, they seize opportunities to focus on cloud, platform and AI.
READ MORE: AI Enhancements to CAD and CAE: Faster and Better Design with More Possibilities
As AI tools continue to evolve, we likely can expect tighter integration between AI and CAD, which will extend to closer alignment with PLM and enterprise resource planning (ERP) systems. These developments support broader strategic imperatives aimed at keeping companies competitive and ready for the future.
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