Why simulation, software, and automation are becoming central to modern industrial operations
By Michael Shepherd
For most of the past century, innovation across heavy industries focused primarily on the physical equipment used to perform work. Advances in machinery, materials, and mechanical performance drove productivity gains and defined competitive advantage.
Increasingly, a growing share of operational capability is being created not by the equipment itself, but by the digital systems that support and coordinate how that equipment is used. Planning software, optimization platforms, automation systems, and simulation technologies are becoming integral to how modern industrial operations function. Together, these tools form an expanding digital layer that sits around physical assets and increasingly determines how effectively they are deployed. More and more we will start to hear about Physical AI, which is the ultimate outcome of this digital trend.
Recent transaction activity across the sector reflects this shift.
Industrial Technology Is Moving Beyond the Machine
Large equipment manufacturers have historically competed on mechanical performance and reliability. Today, those same companies are investing heavily in technologies that improve how industrial systems are planned, operated, and optimized.
Over the past several years, a series of strategic acquisitions has illustrated how this landscape is evolving.
Sandvik’s acquisitions of Deswik (2021) and Polymathian (2022) expanded its capabilities in mine planning and operational optimization. Komatsu’s (2019) acquisition of Immersive Technologies highlighted the importance of simulation-based workforce development. Epiroc’s acquisition of ASI Mining strengthened its position in teleoperation and autonomous fleet control.
These transactions point to a broader shift. Leading OEMs are building integrated operating platforms that extend beyond equipment into software, data, and automation.
The Workforce and Simulation Layer
As industrial environments become more complex and data-driven, the role of the human operator is not diminishing. It is becoming more consequential.
Modern operations rely on tightly coordinated systems of equipment, software, and centralized control. In these environments, variability in operator performance can directly impact safety, productivity, and asset utilization.
Simulation technologies are emerging as a critical layer in addressing this challenge.
High-fidelity simulators allow operators to train in environments that replicate real-world equipment behavior with a high degree of accuracy. This accelerates workforce development, reduces risk, and enables more consistent performance across sites.
More importantly, simulation is evolving beyond training alone. As platforms become integrated with machine telemetry and operational systems, they are increasingly able to reflect real-world conditions and performance challenges. This creates a feedback loop in which training, operational data, and workforce performance continuously inform one another.
In high-cost industrial environments, even a single operational disruption can halt production for extended periods and result in significant financial impact. Simulation helps mitigate this risk by allowing operators to train and be evaluated in realistic virtual environments before operating in the field.
Simulation is a Foundation for Remote Operations and Autonomy
Simulation is becoming a foundational layer supporting remote operations, automation, and, over time, fully autonomous systems. It provides a controlled environment to develop, test, and refine both human and machine performance before deployment.
This is particularly relevant as industrial companies explore centralized operations centers, reduced on-site labor models, and autonomous equipment fleets.
The broader simulation ecosystem is expanding rapidly. It now includes technologies for digital environment capture and 3D modeling, real-time simulation platforms, and advanced physics engines capable of modeling complex material behavior. These systems are enabling not only training, but also remote operation of on-site equipment, thus removing the worker from any danger, operational planning, asset tracking, and the development and validation of autonomous machine models.
As a result, simulation is increasingly positioned at the intersection of workforce capability, operational performance, and next-generation automation.
A Recent Example: Sandvik and ThoroughTec
The announced acquisition of ThoroughTec by Sandvik (2026) provides a clear example of how these trends are converging.
GrowthPoint Technology Partners advised ThoroughTec, a South African developer of advanced, OEM-agnostic simulation and training software used across mining, construction, and emergency services, in its sale to Sandvik.
ThoroughTec will become part of Sandvik’s Mining division within its Parts and Services business. This positioning is notable, as it suggests simulation is being treated not as a standalone software capability, but as part of the broader operational and aftermarket ecosystem supporting equipment performance over time.
ThoroughTec’s simulators and training management platform help industrial operators improve safety, productivity, and equipment outcomes. As Sandvik integrates these capabilities with its machine data and digital platforms, the company aims to deliver data-driven, customized operator training based on real-world equipment performance.
The transaction reflects a broader strategic trend. Simulation is increasingly becoming foundational to Physical AI, automation, and remote operations across heavy industry. GrowthPoint previously advised on Komatsu’s acquisition of Immersive Technologies, which similarly highlighted the growing importance of simulation and workforce development in industrial environments.
The Emergence of the Industrial Technology Stack
Recent activity across the sector suggests that industrial technology is evolving toward a more integrated operating stack.
Key layers of capability are emerging:
- Planning and design
- Operational optimization and analytics
- Automation and fleet control
- Workforce training and performance
These layers are becoming increasingly interconnected. The companies that can integrate them effectively are likely to play a central role in the next phase of industrial technology development and operations which will correlate with higher productivity and better financial results.
Importantly, many of the most strategic capabilities in this stack are not physical assets. They are software, AI and data platforms and digital systems that enhance how those assets are operated.
A Sector Experiencing Structural Change
Heavy industries have always been capital intensive and technologically sophisticated. What is changing today is the degree to which digital infrastructure is becoming central to how they’re designed, operated, and optimized.
As this digital layer expands, the boundaries between equipment manufacturers, software providers, and operational technology companies are becoming less distinct.
GrowthPoint Technology Partners advises innovative technology companies serving industrial, infrastructure, and resource markets.
Our team works closely with founders and shareholders navigating strategic transactions in sectors undergoing technological transformation.
If you are building a technology company shaping the future of industrial operations, we welcome the opportunity to start a conversation. Schedule a call at your convenience, or send us a message.