Simulation Software Market Size, Share, Growth Analysis, By Component(Software and Services), By Deployment(On-Premise and Cloud), By Region - Industry Forecast 2024-2031


Report ID: SQMIG45E2083 | Region: Global | Published Date: July, 2024
Pages: 157 |Tables: 59 |Figures: 75

Simulation Software Market Insights

Simulation Software Market size was valued at USD 14.8 billion in 2019 and is poised to grow from USD 16.55 billion in 2023 to USD 40.5 billion by 2031, growing at a CAGR of 11.83% in the forecast period (2024-2031).

The use of simulation software allows one to virtually mimic a real-world scenario in order to assess the viability and effectiveness of various commodities and methods. It is projected that advantages like reduced production costs and training costs will propel the market. Additionally, simulation technologies play a big role in understanding the effects of military equipment. In order to reduce CO2 emissions, they help automakers select the best car prototypes. As a result of the decreased production costs, many businesses adopt simulation software. The software facilitates the development and virtual testing of multiple prototypes. It also helps to ensure error-free output throughout the production process, avoiding the production of defective goods and the costs involved. It also makes it easier to cut down on the amount of time spent on R&D. It is projected that each of these factors would encourage market growth. In the past, creating intricate machinery for their products required businesses to invest a significant amount of money. Although prototypes were easily accessible, failure rates were high, needing additional R&D expenses to reduce such product failures.

Spending on prototypes and correcting issues with the existing products resulted in an increase in pre- and post-production costs. In these situations, using simulation software helps to reduce the need for manually testing numerous prototypes, hence reducing the risk of product failure. This motivates companies to spend money on simulation software. Manufacturers from all over the world are investing in the development of AI-related technologies in order to adapt to the volatile, complex, unpredictable, and ambiguous (VUCA) environment. These AI-enabled devices are put through simulated testing procedures, which involve observing how they operate in real-world situations.

US Simulation Software Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 14.8 billion

Largest Segment

On-premises

Fastest Growth

On-premises

Growth Rate

11.83% CAGR

Global Simulation Software Market ($ Bn)
Country Share for North America Region (%)

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Simulation Software Market Segmental Analysis

Global simulation software market is segmented based on the Component, deployment, and region. Based on Component, the market is segmented into Software and Services. Based on deployment, the market is segmented into On-Premise and Cloud. Based on Region it is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Simulation Software Market Analysis by Component

In 2021, the software segment held the biggest market share and was responsible for more than 70.5% of global sales. Throughout the forecast period, the segment is anticipated to continue to dominate the global market. This market expansion can be linked to software's advantages, including data security, dependability, and continuous testing. Finite element analysis is also anticipated to significantly contribute to the growth of the software industry. To test for product quality, performance, and design, FEA is frequently used in the automotive, aerospace, defence, and electronics industries. However, during the projected period, the service segment is anticipated to increase at the quickest rate. The segment expansion can be ascribed to governments and businesses becoming more aware of the virtual procedures employed for product creation. Services like design and consulting, implementation, and maintenance are becoming more and more popular with different businesses. One of the major companies in the market, ANSYS, Inc., offers professional advice and services for streamlining and compressing the simulation workflow.

Simulation Software Market Analysis by Deployment

Based on deployment, On-premises and cloud are other market segments that have been established. In 2021, the market was dominated by the on-premise deployment segment. The early adoption of the software was cited as the reason for the significant share of the 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. The main elements fostering the segment's expansion are these advantages pertaining to data security and confidentiality.

By 2028, the market segment is anticipated to hold the largest share. Over the next seven years, the fastest CAGR is anticipated for the cloud segment. The advantages provided, including as simple setup and cost effectiveness as compared to conventional on-premise software, can be credited with the segment's growth. The software is simpler to maintain and upgrade based on customer needs because it is deployed via the cloud. Additionally, cloud-based software can be applied to projects like research and development and training and education.

Global Simulation Software Market By Deployment

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Simulation Software Market Regional Insights

North America dominated the global market in 2021. Due to the presence of significant players from the United States and Canada, the region is anticipated to maintain its dominance over the projected period. It has been noted that businesses in these nations spend on R&D initiatives to release technologically superior products. Additionally, the region is renowned for being an early user of cutting-edge technologies.

Over the course of the forecast, the market is expected to grow at the fastest rate in Asia Pacific. The increased industrial operations in local industries and sectors, like the automotive and healthcare industries, are to blame for the quick rise. The expansion of the regional market is consequently being driven by the expansion of the construction and healthcare verticals in nations like Japan and India. In 2021, Europe also held a large portion of the market. The expansion of the regional market was mostly attributed to nations like Germany and the U.K. Increasing defence spending in the region and widespread AI technology adoption are two major drivers boosting market expansion.

Global Simulation Software Market By Region
  • Largest
  • Fastest

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Simulation Software Market Dynamics

Simulation Software Market Driver

  • Simulator software is becoming more and more necessary as cloud breaches brought on by improper setup clouds proliferate. The simulation software reduces production and training costs while improving operational effectiveness. Some significant firms have teamed with or acquired simulation businesses to provide simulation solutions. For instance, Deloitte Consulting collaborated with Simio to create a simulation method that would reduce operational costs for an HVAC company. Bentley Systems bought Citilabs and Orbit Geospatial Technologies to expand its analytics and mobile simulation software. Procedures for simulation help address problems prior to the creation of prototypes. Through the agreement, Ansys will be able to offer customers a wide variety of photonics equipment and a full suite of solutions.
  • Industries as diverse as automotive, aerospace and defence, electrical and electronics, industrial manufacturing, and healthcare have used simulation products and services to not only reduce costs but also save lives. According to the US Bureau of Labor Statistics, faulty equipment and vehicles are to blame for a number of fatalities and accidents that occur on construction sites. Any on-the-job training involving novice machinery operators might be risky. As a result, computer-based simulation has found success as a teaching strategy. A simulation programme is now more sophisticated than a real machine. Take flight simulators, a type of simulation software that is currently necessary training for pilots in order to obtain and maintain a licence.

Simulation Software Market Restraint

  • The simulation software market is finding it tough to grow as a result of problems integrating software and rising data security worries. Developers and testers frequently run across the issue where the simulation model performs well during testing but fails in real-world conditions. Data leakage is the term used to describe these variations. Data leaking is a problem that could arise from sharing data across the training and test sets. The test set should represent previously unseen data in a real-world scenario while the training set consists of data that has already been processed by the system. Considering that developers have access to both the train and test data sets, data leaks are frequently the result of human mistake. A simulated process outcome that is exceptionally high due to data leakage prompts firms or organisations to use it in real-world situations. Both the overall cost and the simulation procedure are impacted by this.

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Simulation Software Market Competitive Landscape

Global simulation software market is highly competitive and somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D.

Simulation Software Market Top Player's Company Profiles

  • ANSYS, Inc.
  • Siemens AG
  • PTC Inc.
  • Altair Engineering, Inc.
  • Dassault Systèmes SE
  • Autodesk, Inc.
  • MathWorks, Inc.
  • MSC Software Corporation
  • SimScale GmbH
  • COMSOL AB
  • Synopsys, Inc.
  • ESI Group
  • Bentley Systems, Incorporated
  • NUMECA International
  • Exa Corporation
  • Altium Limited
  • Aspen Technology, Inc.
  • AVEVA Group plc
  • Keysight Technologies, Inc.
  • Granta Design Limited

Simulation Software Market Recent Development

  • In February 2021, MathWorks and Aimotive, a provider of automotive vehicle technologies, will partner. Through the cooperation, MathWorks will be able to integrate AImotive's RoadRunner tool into its aiSim, an automotive-grade simulation platform for testing autonomous driving software from beginning to finish.

Simulation Software Key Market Trends

  • A potential for innovation and the usage of simulation software has been made possible by the significant global spending on aerospace and the military. The military routinely uses war simulations, which make use of military simulation software, to train its personnel. The US Army has utilised virtual reality simulation technologies for this type of training. Modern technologies like AI and ML can be used to military simulation software to improve its performance. Companies like Entrust Solutions have created innovative simulation solutions to take advantage of this opportunity.

Simulation Software Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to our Global simulation software market analysis, the software aids in the creation and simulated testing of numerous prototypes. Additionally, it aids in achieving error-free output during a production process, preventing the manufacture of defective goods and the associated costs. Additionally, it facilitates the reduction of R&D activity time. All of these elements are anticipated to promote market expansion. In the past, manufacturers had to spend a lot of money inventing complicated machinery for their products. Prototypes were readily available, but failure rates were significant, necessitating further R&D costs to lower such product failures.

Report Metric Details
Market size value in 2019 USD 14.8 billion
Market size value in 2031 USD 40.5 billion
Growth Rate 11.83%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Component
    • Software and Services
  • Deployment
    • On-Premise and Cloud
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • ANSYS, Inc.
  • Siemens AG
  • PTC Inc.
  • Altair Engineering, Inc.
  • Dassault Systèmes SE
  • Autodesk, Inc.
  • MathWorks, Inc.
  • MSC Software Corporation
  • SimScale GmbH
  • COMSOL AB
  • Synopsys, Inc.
  • ESI Group
  • Bentley Systems, Incorporated
  • NUMECA International
  • Exa Corporation
  • Altium Limited
  • Aspen Technology, Inc.
  • AVEVA Group plc
  • Keysight Technologies, Inc.
  • Granta Design Limited
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Simulation Software Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Simulation Software Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Simulation Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Simulation Software Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Simulation Software Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Simulation Software Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Simulation Software Market size was valued at USD 14.8 billion in 2019 and is poised to grow from USD 16.55 billion in 2023 to USD 40.5 billion by 2031, growing at a CAGR of 11.83% in the forecast period (2024-2031).

Global simulation software market is highly competitive and somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D. 'ANSYS, Inc.', 'Siemens AG', 'PTC Inc.', 'Altair Engineering, Inc.', 'Dassault Systèmes SE', 'Autodesk, Inc.', 'MathWorks, Inc.', 'MSC Software Corporation', 'SimScale GmbH', 'COMSOL AB', 'Synopsys, Inc.', 'ESI Group', 'Bentley Systems, Incorporated', 'NUMECA International', 'Exa Corporation', 'Altium Limited', 'Aspen Technology, Inc.', 'AVEVA Group plc', 'Keysight Technologies, Inc.', 'Granta Design Limited'

Simulator software is becoming more and more necessary as cloud breaches brought on by improper setup clouds proliferate. The simulation software reduces production and training costs while improving operational effectiveness. Some significant firms have teamed with or acquired simulation businesses to provide simulation solutions. For instance, Deloitte Consulting collaborated with Simio to create a simulation method that would reduce operational costs for an HVAC company. Bentley Systems bought Citilabs and Orbit Geospatial Technologies to expand its analytics and mobile simulation software. Procedures for simulation help address problems prior to the creation of prototypes. Through the agreement, Ansys will be able to offer customers a wide variety of photonics equipment and a full suite of solutions.

A potential for innovation and the usage of simulation software has been made possible by the significant global spending on aerospace and the military. The military routinely uses war simulations, which make use of military simulation software, to train its personnel. The US Army has utilised virtual reality simulation technologies for this type of training. Modern technologies like AI and ML can be used to military simulation software to improve its performance. Companies like Entrust Solutions have created innovative simulation solutions to take advantage of this opportunity.

North America dominated the global market in 2021. Due to the presence of significant players from the United States and Canada, the region is anticipated to maintain its dominance over the projected period. It has been noted that businesses in these nations spend on R&D initiatives to release technologically superior products. Additionally, the region is renowned for being an early user of cutting-edge technologies.

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