PepsiCo, Siemens & NVIDIA Launch Digital Twin Revolution

PepsiCo announced a multi-year, industry-first collaboration with Siemens and NVIDIA at CES 2026 to transform plant and supply chain operations through advanced digital twin technology and AI. This groundbreaking partnership uses Siemens’ Digital Twin Composer powered by NVIDIA Omniverse to create physics-accurate 3D simulations that identify up to 90% of potential issues before physical modifications, delivering 20% throughput increases and 10-15% capital expenditure reductions.

Industry-First Digital Twin Collaboration

This collaboration marks a first-of-its-kind initiative for a global CPG company applying digital twins to reshape how plant and warehousing facilities are digitally simulated and tested, with early pilots already underway in the U.S., formally announced during the opening keynote at CES 2026.

Digital Twin Composer Capabilities

Solving Traditional Expansion Challenges

With demand for production and distribution capacity rising, PepsiCo is using AI and new digital approaches to process simulation and facility design to retool and optimize its existing physical footprint, as traditional expansion methods are slow and costly, limiting flexibility and scalability needed to meet growing consumer needs.

How Digital Twin Composer Works

PepsiCo and Siemens are digitally transforming select U.S. manufacturing and warehouse facilities by converting them into high-fidelity 3D digital twins that simulate plant operations and the end-to-end supply chain to establish a performance baseline. Within weeks, teams optimized and validated new configurations to boost capacity and throughput, giving PepsiCo a unified, real-time view of operations.

Leveraging computer vision technology, PepsiCo can now recreate every machine, conveyor, pallet route, and operator path with physics-level accuracy, enabling AI agents to simulate, test, and refine system changes virtually. The platform combines 2D and 3D digital twin data from Siemens’ comprehensive digital twin with physical real-time information in a managed, secure photorealistic visual scene.

Industrial AI Operating System

Siemens and NVIDIA are building an Industrial AI Operating System that reinvents the entire end-to-end industrial value chain through AI—from design and engineering to manufacturing, production, operations, and supply chains. Digital Twin Composer serves as the foundation for this industrial metaverse at scale.

The software connects high-performance 3D digital twins created using Siemens Xcelerator to real-world data sources including manufacturing execution software (MES), quality management systems (QMS), programmable logic controller (PLC) code, and industrial IoT data from across an open engineering ecosystem.

Real Results from Early Pilots

Initial U.S. pilots have demonstrated significant benefits. Teams achieved faster design cycles, identified hidden capacity within existing facilities, and validated investments in virtual environments before committing capital. The ability to move back and forth through time, precisely visualizing effects of weather changes, engineering modifications, and operational adjustments provides unprecedented optimization capabilities.

PepsiCo plans to scale this digital twin approach globally across its manufacturing and distribution network, potentially transforming operations for a company that generated nearly $92 billion in net revenue in 2024 serving products consumed over one billion times daily across 200+ countries.

Setting New Industry Standards

Together, PepsiCo, Siemens, and NVIDIA will set a new standard for scalable, technically sound digital twin and AI in industrial operations. The collaboration brings together Siemens’ Industrial AI expertise and comprehensive digital twin technology with NVIDIA’s AI and visualization capabilities.

Roland Busch, President and CEO of Siemens AG, showcased this partnership during the CES opening keynote alongside leaders from NVIDIA, Microsoft, PepsiCo, and Commonwealth Fusion Systems, spotlighting how the companies are accelerating the industrial AI revolution and turning AI into tangible value for industry and infrastructure.

This represents a fundamental shift in how global manufacturers approach capacity planning, facility upgrades, and supply chain optimization—moving from costly physical trial-and-error to precise virtual simulation that delivers measurable efficiency gains and capital savings.

For more CES 2026 coverage and industrial AI updates, visit TechnoSports.

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