Siemens Strikes Gold Again in CAD and PLM With a Big Win in Shipbuilding

At the OEM level, it’s hard to strike gold in today’s PLM and CAD world. Competition is fierce, and when a big company makes a commitment to a specific solution—which practically all the big players have already done—it is a long-term commitment that can’t and won’t be easily changed. Therefore, broad-scale investments in new solutions are rare.

But when these rare occasions do happen, it makes for big news. Siemens Digital Industries Software’s Xcelerator platform with CAD and PLM programs Teamcenter and NX are perhaps the most outstanding examples seen during the latest 7-year period. They have made huge impacts, mainly in automotive—Mercedes Daimler in 2015 and Hyundai KIA Motors in 2021, for example—but also in aerospace and defense with Lockheed Martin in 2021. In these cases, we are talking about user numbers that lie between 4,000 to 8,000, according to my research.

Today, engineering.com can reveal a new deal that goes beyond these numbers.

South Korea's Hyundai Shipbuilding group, together with Siemens, plans to develop a new CAD software adapted specifically for ship design that is based on NX CAD and will help shipyards accelerate digital transformation. Teamcenter will play a crucial role in this setup, as well.

For Hyundai Shipbuilding group, this means that these solutions will replace the incumbent platform from Aveva. Furthermore, it means that Siemens also beat out competing Dassault Systèmes' 3DEXPERIENCE platform when it came to Hyundai deciding on its path into the digital ship design of the future.

10,000 potential users make the announced Siemens’ NX and Teamcenter deal with the South Korean Hyundai Shipbuilding group one of this year’s largest PLM investments. Siemens' partners are two Hyundai Shipbuilding group units: Korea Shipbuilding & Offshore Engineering (KSOE) and Hyundai Samho Heavy Industries. A key point is that they will jointly research, create and design a PLM platform that enables digital twin technology, while actively promoting digital transformation to enhance their competitiveness. In the picture, a 3D ship model designed in NX CAD.

A Memorandum of Understanding has been signed between the two parties containing what can be regarded as a binding statement that says together Hyundai shipyards and Siemens will create a platform that gradually will promote an autonomous smart shipyard by 2030.  

Looking at the number of R&D engineers, designers and product developers in this industry group, my conclusion is that we are talking about up to 10,000 potential users of the new NX solution and Teamcenter. However, neither party wants to confirm or deny these figures.

Digital Twin Technology in Focus

Siemens' partners are two specific Hyundai shipbuilding group units: Korea Shipbuilding & Offshore Engineering (KSOE) and Hyundai Samho Heavy Industries.

A key point of the deal is that they will jointly research, create and design a PLM platform that enables digital twin technology, while actively promoting digital transformation to enhance their competitiveness. 

Digital twins, which are virtual clones of objects or an infrastructure, enable design and manufacturing teams to speed up design. The South Korean shipyards have introduced ambitious advanced digital technologies and various design and production platforms for a transformation that requires an efficient platform for full computerization. 

Aiming at Superior Product Design. “In 1999, Samho Heavy Industries was entrusted to Hyundai Heavy Industries, and was formally incorporated as a member of Hyundai Heavy Industries Group in 2002. Since then, the company has been recognized for its superior quality in all business aspects, from R&D to product design at the front, to sales and customer support on the backend. Our synergetic approach to building top-notch products and delivering renowned customer care is what puts Hyundai Heavy Industries at the top,” says Hyundai Samho Heavy Industries’ CEO Kim Hyung-kwan. Today the company, together with Siemens Digital Industries Software, has taken important steps to realize its plans to establish a cutting-edge new Shipyard 4.0 digital platform solution mainly based on Siemens’ Xcelerator portfolio’s Teamcenter and NX CAD.

“Now is the best time for research and development on CAD exclusively for shipbuilding in order to promote a connected and predictable digital shipyard,” commented Hyundai Samho Heavy Industries’ CEO Kim Hyung-kwan, in a statement on April 10. “To overcome fierce competition with Chinese shipyards, the successful completion of digital transformation will be a farsighted program for the Korean shipbuilding industry,” he added.

Last year’s acquisition of the CAxFORAN is one of the foundational pillars in Siemens’ bet to become a leading actor in shipbuilding. FORAN will be added to Siemens’ Xcelerator portfolio, offering a comprehensive and integrated portfolio of software and services that covers all aspects of the ship lifecycle, from concept design through production to operations and optimized service lifecycle management.

The FORAN Acquisition Paves the Way to Powerful Growth in Shipbuilding

There are several interesting aspects to this big deal. In general, it confirms Siemens' strategic long-term investment in challenging major players in shipbuilding, such as Aveva or Dassault Systèmes. The conditions for Siemens to advance its position in the field is also good, especially after last year's acquisition of FORAN from the Spanish company SENER.

FORAN is CAD/CAE/CAM software for the design, construction and engineering of vessels and marine structures. The addition of the FORAN product and team to Siemens, together with its customer portfolio, brings experience and comprehensive know-how across complex commercial marine projects, defense industry standards and regulation compliance.

Moreover, FORAN is a widely spread shipbuilding solution with more than 150 shipyard and design office customers across 40 countries. The technology, says Siemens Digital Industries Software’s CEO, Tony Hemmelgarn, “provides a strong position for Siemens to better support customers across the marine industry.”

Of course, there is no disadvantage for the FORAN platform to be within the Siemens sphere. Siemens ’global reach and the integration of the FORAN team into Siemens helps guarantee current FORAN clients’ continuity and improvement to the services provided, with a strategic vision for ongoing developments.

Digital Twins and Threads. Siemens CAD Flagship NX in combination with the company's other CAx tools, such as Simcenter for simulation, Teamcenter as PLM backbone, ALM tool Polarion for software design, and in the manufacturing extension also tools such as Tecnomatix for digital production, all play key roles in solutions for digital twins and threads. In this context, Siemens Digital Industries' chief, Tony Hemmelgarn, has often spoken about the twin concept related to three areas or aspects, where the "twin" can activate different pieces depending on what is to be handled. Why? One good reason, for example is that you do not want to let the twin be weighed down by data related to the manufacturing process when the product is in operation. It is therefore divided into three phases: 1) Ideation, a twin aspect for the product's creation process and product development. 2) Realization, an aspect of the product's manufacturing phase with links to a digitally controlled manufacturing process. 3) In operation, a twin for the end-user product, with PLM feedback functions.

The Transition to Shipyard 4.0

In today’s race towards sustainable shipping, shipyards need to innovate faster and deliver “greener” ships that comply with strict safety and environmental regulations. As the resulting complexity in marine design and build reaches unprecedented levels, risks and inefficiencies in the current design and manufacturing process need to be minimized. Software is critical to optimize this process, cut costs and increase productivity without compromising quality.

In his comments on the purchase, Hemmelgarn specifically points to the potential brought to the table by Siemens’ strong digital twin and thread technologies.

"Our marine digital twin is adding preeminent capabilities to integrated ship design and engineering digital thread solution," he says. "With FORAN's extensive tools to the Xcelerator portfolio and leveraging the team's industry expertise, we will be able to offer commercial and naval shipbuilding customers better control of their ship design and manufacturing process as they transition to Shipyard 4.0."

High Ambitions. “We want to be the dominant solution provider for all shipyards in the future. It is a big strategic initiative of Siemens,” says Siemens VP and “owner” of the company’s CAD business around NX, Bob Haubrock. He added that a crucial point in today's product development world is that nothing stands alone; “to achieve an efficient value chain and an interconnected product lifecycle, everything must be connected.”

The NX CAD Owner in Siemens

A key role in CAD development at Siemens Digital Industries Software is played by NX chief and senior VP of Product Engineering Software, Bob Haubrock. He is the man who intends to ensure that Siemens takes the step up to make NX the market's largest high-end CAD solution. This would mean that Siemens has to surpass the total figures that apply to their toughest competitor, Dassault Systèmes' CAD software CATIA. According to the latest statistics—as of 1Q 2022—from the software analyst Griffin Securities' calculation model, this solution has approximately 285,000 professional users globally, says analyst Jay Vleeschhouwer. At Griffin Securities, the term “professional users” is defined as users who have active commercial licenses with licensees who pay subscription or maintenance costs.

The figures from Griffin do not reveal how NX is doing here, as Siemens does not break these out these in its reports. But it is clear, in any case, that in light of a number of large orders since 2015, the company has significantly moved its positions vis-à-vis CATIA.

Bob Haubrock "owns" the NX segment within Siemens, and he has what he describes as “a trump card that outshines most of what competitors can offer: a far-reaching integration and the best capabilities in the company's Xcelerator portfolio.”

The Xcelerator portfolio is the center point that secures seamless access to all the digital tools needed for things such as digital twins and threads, simulation and analysis, electronics design, software development, manufacturing control, IIoT (Industrial IoT) and more. It is a strong portfolio for leadership within PLM and broadly integrated CAD.

“We want to be the dominant solution provider for all shipyards in the future.  It is a big strategic initiative of Siemens,” says Haubrock, explaining that in today's product development world, nothing stands alone. “To achieve an efficient value chain and an interconnected product lifecycle, everything must be connected.”

Moreover, this is exactly what Haubrock is aiming at in the development work together with the South Korean Hyundai shipyards.

“Correct,” he says. “With NX, but combined with the shipbuilding features of FORAN, this is what we’re aiming at. What differentiates a shipbuilding CAD solution from a “normal” one? Examples of specific shipbuilding features are relational storage of data for speed and coordinate systems in ships.  We will also maintain the strengths of NX from outside of shipbuilding, including world-class quality and Teamcenter integration.”

What is Teamcenter’s role in this context? 

“Very important as Teamcenter in the future will manage all aspects of all data of every ship through the life cycle of the ship.  So, the connection with NX with seamless and embedded integration to Teamcenter is crucial,” Haubrock says.

He adds that all Hyundai shipyards will move to this one solution in the future—a giant step towards Siemens’ goals to become a leader in the shipbuilding segment.