Enterprise AI
Siemens Delivers 20% Throughput Gain for PepsiCo with Digital Twin AI at CES 2026
The multi-year collaboration deploys high-fidelity 3D digital twins to simulate manufacturing upgrades, producing immediate operational gains and projected capital savings while extending to energy system modernizations.
Siemens is an industrial technology provider that has achieved concrete AI results in manufacturing through digital twin simulations with PepsiCo.
Executive Summary
Siemens deployed its Digital Twin Composer software in a collaboration with PepsiCo and NVIDIA to create high-fidelity 3D digital twins of select U.S. manufacturing and warehouse facilities. The initial deployment allowed simulation of upgrades to these facilities, enabling virtual testing of changes before physical implementation. This approach has already delivered a 20 percent increase in throughput on initial deployment at one of PepsiCo's U.S. Gatorade plants within three months.
The quantified business outcome includes an estimated 10 to 15 percent reduction in capital expenditure through the use of virtual validation. PepsiCo plans to scale the digital twin approach globally after the initial U.S. facilities. The multi-year collaboration was announced during the CES 2026 opening keynote and represents an industry-first effort to transform plant and supply chain operations through advanced digital twin technology and AI.
For C-suite leaders in manufacturing, this case illustrates how AI and digital twins can deliver measurable ROI in supply chain operations by reducing risks associated with physical upgrades and accelerating innovation cycles. The involvement of NVIDIA supports the technical foundation for the Industrial AI Operating System aimed at the end-to-end industrial value chain. Siemens Energy is separately advancing system modernizations to meet power demands of AI infrastructure with measurable efficiency gains.
What background preceded the CES 2026 industrial AI announcements?
Prior to the CES 2026 event, Siemens had been developing AI technologies for industrial applications, focusing on digital twins to bridge the gap between virtual and physical worlds in manufacturing. The company identified opportunities in sectors like food and beverage where supply chain complexities demand innovative solutions for facility optimization.
PepsiCo, seeking to reimagine its supply chain performance, entered into this collaboration to transform operations through advanced digital twin technology and AI. The announcement came during the CES 2026 opening keynote, highlighting the strategic importance of the partnership with Siemens and NVIDIA.
The broader context includes Siemens' efforts in energy infrastructure, where Siemens Energy is modernizing systems to support the increased power demands from AI infrastructure. These efforts have produced measurable efficiency gains that complement the manufacturing deployments.
What new software and partnerships were announced at CES 2026?
Siemens unveiled the Digital Twin Composer software, which is scheduled to be available mid-2026 on the Siemens Xcelerator Marketplace. This tool is designed for end-to-end industrial value chain applications and supports simulation of manufacturing and warehouse facility upgrades.
The expanded partnership with NVIDIA aims to build the Industrial AI Operating System, enabling more comprehensive AI integration across industrial processes. Nine new AI-powered industrial copilots were also announced for software offerings including Teamcenter, Polarion, and Opcenter.
| Metric | Result | Attribution |
|---|---|---|
| Throughput Increase | 20 percent on initial deployment | Siemens AG press release |
| Capital Expenditure Reduction | 10 to 15 percent estimate | PepsiCo announcement |
| Deployment Timeline | Within three months at Gatorade plant | Siemens Digital Industries Software blog |
The collaboration announcement emphasized the creation of high-fidelity 3D digital twins to digitally transform select U.S. manufacturing and warehouse facilities. This sets the stage for global scaling of the approach across PepsiCo operations.
What technical specifics define the Digital Twin Composer deployment?
The Digital Twin Composer facilitates the creation of high-fidelity 3D digital twins that allow PepsiCo to simulate upgrades to facilities. This virtual approach enables testing of different scenarios without disrupting ongoing operations at the plants.
By integrating with NVIDIA technologies, the system supports advanced AI computations necessary for accurate simulations and real-time optimizations in the supply chain. The overall system is positioned as the first digital blueprint that reimagines how the supply chain is designed, built, and scaled.
The software integrates with existing Siemens offerings such as Teamcenter and Opcenter through the new AI copilots, extending intelligence across design, engineering, and operations phases of industrial processes.
How were the quantified results measured in the PepsiCo case?
At one U.S. Gatorade plant, the deployment led to a 20% increase in throughput. This was accomplished by using the digital twins to identify and implement efficiency improvements in the manufacturing process over a three-month period.
The virtual validation process contributed to the estimated Capex savings by allowing PepsiCo to avoid costly physical trials and errors during the upgrade simulations. These results form the basis for the planned global scaling of the technology.
What are the market and stakeholder implications for manufacturing executives?
Executives should note that this deployment shows how AI can deliver quick wins in productivity while planning for longer-term cost reductions in capital projects. The global scaling plans indicate the potential for widespread adoption across similar industries facing supply chain challenges.
Stakeholder implications include enhanced ability to anticipate issues in operations, which can lead to better risk management and innovation acceleration as described in the project announcements. Other manufacturers can use this as a benchmark for their own digital transformation initiatives.
The case provides peer executives with a model for evaluating integration of AI with existing software ecosystems, particularly in sectors where facility upgrades carry high capital costs and operational risks.
What expert reactions have been recorded regarding these industrial AI advances?
The announcements have been accompanied by statements from key executives involved in the project, providing direct perspectives on the strategic direction of industrial AI.
We are deploying the first digital blueprint that reimagines how the supply chain is designed, built, and scaled, a first for the industry.Athina Kanioura, CEO, Latin America, and Global Chief Strategy & Transformation Officer of PepsiCo
Roland Busch, President and CEO of Siemens AG, has noted that industrial AI is no longer a feature but a force that will reshape the next century through AI-native capabilities embedded end-to-end across design, engineering and operations.
What developments are expected next in this industrial AI initiative?
The Digital Twin Composer is set for release mid-2026, allowing more companies to access the tool through the Siemens Xcelerator Marketplace. Further expansions of the NVIDIA partnership are expected to enhance the capabilities of the Industrial AI Operating System.
Siemens continues to develop additional AI features for its portfolio to support customers in various sectors, building on the nine new copilots announced for products including Teamcenter, Polarion, and Opcenter.
- Unveiling of the Digital Twin Composer at CES 2026
- Announcement of the PepsiCo collaboration
- Expansion of the Siemens NVIDIA partnership
- Release of nine new AI copilots
- Availability of the software on the Xcelerator Marketplace
How does this align with broader energy infrastructure needs for AI?
Siemens Energy is involved in efforts to modernize energy systems to meet the demands of AI-scale power requirements, contributing to efficiency gains that support the overall AI ecosystem in industrial settings.
This complements the manufacturing focus by ensuring that the power infrastructure can sustain the computational needs of advanced AI deployments across sectors including manufacturing and emerging fusion research applications.
Frequently asked
What is the primary outcome of the PepsiCo deployment with Siemens?
The primary outcome is a 20% increase in throughput achieved within three months at a Gatorade plant, along with estimated 10-15% Capex reductions through virtual validation.
When will the Digital Twin Composer be available to other enterprises?
The software is scheduled to be available mid-2026 on the Siemens Xcelerator Marketplace.
Sources
- Siemens AG — PepsiCo and Siemens are digitally transforming select U.S. manufacturing and warehouse facilities by converting them into high-fidelity 3D digital twins. This approach has already delivered a 20 percent increase in throughput on initial deployment
- PepsiCo, Inc. — At CES 2026, PepsiCo announced a multi-year, industry-first collaboration with Siemens and NVIDIA to transform plant and supply chain operations through advanced digital twin technology and AI. This approach has already delivered a 20 percent increase in throughput
- Siemens Digital Industries Software — PepsiCo achieved a 20% increase in throughput at one of their U.S. Gatorade plants within three months. The company estimates a 10-15% reduction in capital expenditures (CAPEX)