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Simulation Software Market Trends

ID: MRFR//4314-HCR | 100 Pages | Author: Ankit Gupta| July 2024

Simulation Software Market Overview

Simulation Software Market size is projected to grow from USD 11.31 Billion in 2024 to USD 26.94 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.46% during the forecast period (2023 - 2032). Additionally, the simulation software market was valued at USD 10.00 Billion in 2023.

The rise in small- and medium-sized business units and the demand for eco-friendly workplaces are the key market drivers enhancing the market growth.

Figure 1: Simulation Software Market Size, 2022-2032 (USD Billion)

Simulation Software Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Simulation Software Market Trends

Benefits of simulation software are expected to drive market growth.

The desire for eco-friendly workplaces, a growth in the use of simulation software in the automotive and healthcare industries, and an increase in the usage of simulation in the aerospace and military industry are the main factors driving the worldwide simulation software of market CAGR. Notably, as a result of its superior feature, it is widely employed in the research and education sectors, which may promote industry expansion throughout the course of the projection year.

Real-time simulation scenarios are also incredibly cost-effective and time-efficient to create, and they help to support and improve essential business skills. As a result, market growth in the target market must be boosted. Furthermore, simulation software assists in attaining error-free output in a production process, preventing the production of defective items and the associated expenses. It also minimizes the time required for research and development tasks. The aforementioned benefits of simulation software are expected to drive market growth.

However, lack of awareness about simulation software and difficulties in obtaining accurate results are among the key factors expected to impede simulation software market revenue growth to some extent over the forecast period. The development and use of simulation software necessitates a high level of expertise in electronic circuits, power systems, mathematical models, Printed Circuit Board (PCB), signal analysis, signal integrity, Programmable Logic Controller (PLC), Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Multibody Dynamics. (MDB), thermodynamics, fluid dynamics, and network algorithms. Another major factor impeding market revenue growth is a lack of professionals with the necessary expertise in such processes.

Simulation Software Market Segment Insights

Simulation Software component Insights

The simulation software market segmentation, based on component includes software and service. In 2022, the software sector dominated the market and had the highest revenue share (almost 69.9%). The market segment is anticipated to maintain its dominance over the forecast period. The advantages of software, such as data security, dependability, and continuous testing, can be credited for this market segment's expansion. Finite element analysis is also anticipated to have a significant impact on the software segment's growth. FEA is frequently used to test the quality, performance, and design of products in industries like automotive, aerospace, defense, and electronics.

Simulation Software Deployment Insights

The simulation software market segmentation, based on deployment, includes cloud and on premise. In 2022, the market was dominated by the on-premise deployment segment, which brought in more than 71.8% of the total revenue. The early adoption of the software was cited as the reason for the significant share of this market. The software is installed locally using the on-premise deployment technique, which has been used for a long time. Companies that want to protect their data from hackers and maintain the secrecy of their data should use this technique.

Figure 2 : Simulation Software Market, by Deployment, 2022 & 2032 (USD billion)

Simulation Software Market, by Deployment

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Simulation Software Application Insights

The simulation software market segmentation, based on vertical, includes eLearning and R&D. In 2022, the R&D (research and development) segment held a sizable market share for simulation software worldwide, and during the forecast period, it is expected to rise significantly. The adoption of simulation software for product engineering, modeling, and research & development purposes by some of the largest organizations in the automotive, aerospace and defense, healthcare, and other industries is responsible for the rise of this market.

Simulation Software Vertical Insights

According to vertical, the automotive, aerospace & defense, industrial manufacturing, and healthcare sectors make up the worldwide simulation software market segmentation. Due to the early use of virtual tools for product development, the automotive category dominated the market and represented the greatest revenue share in 2022. Early usage of virtual technologies for product development was said to have contributed to the expansion. A movement toward the utilization of electric and autonomous vehicles is also being seen in the automobile industry. The primary factor fueling the expansion of this market sector is the use of simulation to improve production processes in this sector.

Simulation Software Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Throughout the forecast period, North America is predicted to experience a significant CAGR. The expansion of this market can be attributable to the rising expenditures on R&D activities for the introduction of cutting-edge products in the area.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.



Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s simulation software market accounts for the second-largest market share due to The growing number of automotive manufacturers and rising demand for more fuel-efficient vehicles are driving demand for simulation software used in the production of Internet-of-Things (loT) support devices. Further, the German simulation software market held the largest market share, and the UK simulation software market was the fastest-growing market in the European region

The Asia-Pacific Simulation Software Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the expansion of manufacturing activities in various industries and the rapidly changing healthcare and automotive industries. Moreover, China’s simulation software market held the largest market share, and the Indian simulation software market was the fastest-growing market in the Asia-Pacific region.

Simulation Software Key Market Players & Competitive Insights

Leading market players are investing heavily in R&D in order to expand their product lines, which will help the simulation software market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, simulation software industry must offer cost-effective items.

Producing locally to reduce operational costs is one of the primary business strategies adopted by manufacturers in the simulation software industry to serve customers and expand the market sector. Some of the most important benefits to medicine have recently been provided by the simulation software industry. Major players in the simulation software market, such as Altair Engineering (U.S.), Bentley Systems (U.S.), Ansys, Inc. (U.S.), PTC (U.S.), Siemens PLM Software (U.S.), Autodesk, Inc. (U.S.), and CPFD Software (U.S.), as well as Cybernet Systems Co. Ltd. (U.S.), are working to boost market demand by investing in research and development activities.

Ansys, Inc. is a worldwide American corporation with its corporate headquarters in Canonsburg, Pennsylvania. It creates and sells CAE/multiphysics engineering simulation software and makes its goods and services available to clients all over the world. John Swanson started Ansys in 1970. In 1993, he sold his ownership stake to venture financiers. In 1996, Ansys went public on the NASDAQ. The business purchased other engineering design firms in the 2000s, gaining access to new technology for physics analysis, electronics design, and fluid dynamics. In March 2020, Lumerical Inc., a pioneer in the creation of photonic design and simulation tools, entered into a binding agreement to be acquired by Ansys Inc. The acquisition might expand Ansys Multiphysics' portfolio of photonics products, giving customers a comprehensive array of options for addressing the problems posed by its next-generation product needs.

Altair Engineering Inc. is a worldwide American information technology business based in Troy, Michigan. It offers simulation, IoT, high performance computing (HPC), data analytics, and artificial intelligence software and cloud solutions (AI). Altair Engineering created the HyperWorks CAE software program, as well as a number of additional software packages and suites. The firm was established in 1985 and became public in 2017. The stock ticker symbol ALTR is used on the Nasdaq stock exchange. In November 2020, Altair Engineering Inc. has introduced Inspire Print3D, a new production simulation solution for additive manufacturing. The solution is explicitly intended towards selective laser melting (SLM). The company also promises that the software would give a quick and accurate toolkit for designing and simulating production processes.

Key Companies in the simulation software market include

  • Allair Engineering (U.S.)

  • Bentley Systems (U.S.)

  • Ansys Inc. (U.S.)

  • PTC (U.S.)

  • CPFD Software (U.S.)

  • Siemens PLM Software (U.S.)

  • Autodesk Inc. (U.S.)

  • Cybernet Systems Co. Ltd. (U.S.)

  • Dassault Systemes (France)

  • Design Simulation Technologies

  • Inc. (U.S.)

  • Synopsys Inc. (U.S.)

  • MathWorks Inc. (U.S.)

Simulation Software Industry Developments

In January 2020, Electric vehicle company, Arcimoto Inc., announced that it was working with XponentialWorks and ParaMatters, to design and additively manufacture lightweight components for its Fun Utility Vehicle (FUV). Deploying ParaMatters’ AI-powered generative design software and several elements are being redesigned, generating alternative parts that carry much of the same performance characteristics but at a lighter weight.

In November, 2022 Siemens Digital Industries Software has added scalable, on-demand, high performance simulation capabilities to Siemens Xcelerator as a Service (XaaS) with the launch of Simcenter™ Cloud HPC software. As part of the ongoing collaboration between Siemens and Amazon Web Services (AWS), the new service is hosted on AWS, optimized for Simcenter solver technologies, and managed by Siemens.

In July 2022 Altair signed a memorandum of understanding with LG Electronics (LG) to accelerate the digital transformation of product development. Together, Altair and LG will promote research and development and the construction of a simulation platform. The two companies will share information in priority fields of research, including computer-aided engineering (CAE), data analytics, automation, and more.

Simulation Software Market Segmentation

Simulation Software Market by Component Outlook

  • Software

  • Service

Simulation Software Market by Deployment Outlook

  • Cloud

  • On Premise

Simulation Software Market by Application Outlook

  • eLearning

  • R&D

Simulation Software Market by Vertical Outlook

  • Automobile

  • Aerospace & Defense

  • Industrial Manufacturing

  • Healthcare

Simulation Software Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America


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