GMI Research analysis indicates that the Simulation Software Market size was estimated at USD 14.4 billion in 2021 and is slated to register a double digit CAGR of 12.7% over the period 2022-2029 and is projected to reach USD 37.5 billion in 2029.

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Key Simulation Software Market Drivers

Major factors driving simulation software market are growing focus of companies on reducing their production and training costs, rising adoption of advanced technologies like Augmented Reality/ Virtual Reality and investments in aerospace and defense industries. In addition, major enterprises worldwide are partnering or acquiring simulation companies to utilize simulation solutions. For instance, Boston Consulting Group, a global management consultancy firm based in United States completed the acquisition of The Simulation Group, a technology and software company. This acquisition helped the company to expand its team of data scientists, to help its client in making better decisions. In May 2022, BMW Group partnered with Ansys, to develop simulation tool chain, for its advanced driver assistance systems. Simulation software gaining traction in various industry verticals like healthcare, electrical and electronics and industrial manufacturing. Majority of accidents at construction sites happen due to faults in vehicles and equipment. Adoption of computer based-simulation software can minimize such incidences.

Prototyping products requires huge cost, as manufacturers have to develop complex mechanisms. Additionally, chances of failure in prototyping are also high and the amount spent on prototyping of existing products leads to increased post production cost. Thus, using simulation software will reduce the chances of product failure and eliminates the need for manually testing multiple prototypes. Autonomous vehicles and electric vehicles are becoming popular in the Automotive industry. Major companies are using simulation software to test efficiency of these vehicles using real-world situations. For instance, Tesla, a multinational automotive company created virtual simulation using video game software Unreal Engine for testing its autopilot and self-driving. Demand for of vehicles will increase in future, as governments in various countries, are promoting the adoption of these vehicles to combat climate change, which will create lucrative growth opportunities for the simulation software market.

However, simulation software performs efficiently during testing, but often fails in real time-situation, which results into data leakage coupled with lack of standard for measuring software applications, are some of the factors restricting the simulation software market growth.

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Based on Component, Software segment is projected to hold the largest simulation software market share.

Engineers and product developers are increasingly adopting simulation software to evaluate and optimize product designs to by modelling in real-world computer generated environments. Simulation software develops models which are governed by mathematical equations. Analysing such models help engineers in making predictions related to defects, stress, and lifecycle of products. Additionally, vendors are focussing on incorporating advanced technologies like digital additive manufacturing and digital twin with simulation software, to expand its capabilities, which in turn is attracting companies in healthcare and automotive industry to increase its adoption. As organizations are increasingly using simulation software, at the same time, demand for simulation services like support and maintenance is also increasing.

Based on Deployment Mode, On-Premises segment is projected to lead the market due to its early adoption.

On-premise deployment is suitable for companies who wants to maintain their data confidentiality and secure data from cyber-attacks. Cloud segment is estimated to expand at the fastest rate due to its easy deployment and cost-effective features Furthermore, cloud-based software finds its application majorly in training and development and research and developments and can be upgraded as per user’s requirements.

Based on Vertical, healthcare simulation software segment is estimated to expand at the fastest rate.

Healthcare simulation software enable healthcare professionals to automate and routine structure and repetitive practices of healthcare. In the healthcare industry, these software eases the medicine development process and helps in streamlining clinical trials and supply chain processes. In addition, as the incidences of critical diseases like cancer and sclerosis are increasing, demand for development of drugs in medicines will rise, which will create lucrative growth opportunities for the segment. Simulation software are increasingly adopted in the aerospace and defense industry to analysing alternative force structure and formulating plans of operation.

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Based on Region, North American region is forecast to dominate the market.

In the North American region various enterprises are aggressively investing in research and development activities. Application of simulation of software is expanding in different industry verticals, which is one of the major factors propelling market growth in the region. Additionally, North American region is home to some of the leading vendors like Cybernet Systems Corp., Altair Engineering Inc., and Autodesk, Inc. Asia-Pacific simulation software market is driven by growing demand from IT and manufacturing industries, presence of massive population and technological innovations in the simulation software.

Top Market Players

Various notable players operating in the simulation software market are Bentley Systems, PTC Inc., Altair Engineering Inc., Ansys, Inc., Autodesk, Inc., Siemens PLM Software, Cybernet Systems Corp., CPFD Software, Design Simulation Technologies, and Dassault Systems, among others.

 Key Developments: 

• • In November 2022, Siemens Digital Industries Software acquired Avery Design Systems, major simulation independent verification IP supplier, based out of United States. Through this acquisition company, added Avery’s technology into its Xcelerator portfolio.
  • In September 2022, Altair, a pioneer in computational science and Artificial Intelligence (AI) announced that it has completed the acquisition of RapidMiner. This acquisition helped the company to strengthen its end-to-end data analytics (DA) portfolio.
  • In May 2021, NI completed the acquisition of monoDrive. This acquisition helped NI to expand its foothold in the ADAS and simulation markets.
  • In February 2021, MathWorks, a major developer of mathematical software entered into a partnership with Aimotive. This partnership enabled the company to add Roadrunner tool designed by Aimotive into its aiSim.
  • In April 2020, PTC, Inc., an American computer software company successfully launched its 3D computer-aided design software Creo 7.0. This software will help in making simulation a unified part of daily work.

Segments Covered in the Report:

The global simulation software market has been segmented on the basis of component, application, deployment mode, vertical, and region. Based on the component, the market is segmented into software and services. The software segment is further categorized into computational fluid dynamics, finite element analysis, and electromagnetic waves. The services market is further categorized into support & maintenance and design & consulting. Based on the application, the market is segmented into research & development and e-learning & training. Based on the deployment mode, the market is segmented into on-premises and cloud. Based on the vertical, the market is segmented into aerospace & defense, automobile, industrial manufacturing, electrical & electronics, education & research, healthcare, and others.

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Report Coverage	Details
Market Revenues (2021)	USD 14.4 billion
Market Base Year	2021
Market Forecast Period	2022-2029
Base Year & Forecast Units	Revenues (USD Billion)
Market Segment	By Component, By Application, By Deployment Mode, By Vertical, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Bentley Systems, PTC Inc., Altair Engineering Inc., Ansys, Inc., Autodesk, Inc., Siemens PLM Software, Cybernet Systems Corp., CPFD Software, Design Simulation Technologies, and Dassault Systemes, among others; a total of 10 companies covered
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Simulation Software Market by Component

• • Software
    • Computational Fluid Dynamics
    • Finite Element Analysis
    • Electromagnetic Waves
  • Services
    • Support & Maintenance
    • Design & Consulting

Global Simulation Software Market by Application

• • Research & Development
  • E-Learning & Training

Global Simulation Software Market by Deployment Mode

• • On-Premises
  • Cloud

Global Simulation Software Market by Vertical

• • Aerospace & Defense
  • Automobile
  • Industrial Manufacturing
  • Electrical & Electronics
  • Education & Research
  • Healthcare
  • Others

Global Simulation Software Market by Region

• • North America Simulation Software Market (Option 1: As a part of the free 25% customization)
    • By Component
    • By Application
    • By Deployment Mode
    • By Vertical
    • US Market All-Up
    • Canada Market All-Up
  • Europe Simulation Software Market (Option 2: As a part of the free 25% Customization)
    • By Component
    • By Application
    • By Deployment Mode
    • By Vertical
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Simulation Software Market (Option 3: As a part of the free 25% Customization)
    • By Component
    • By Application
    • By Deployment Mode
    • By Vertical
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Simulation Software Market (Option 4: As a part of the free 25% Customization)
    • By Component
    • By Application
    • By Deployment Mode
    • By Vertical
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Simulation Software Leading Market Players (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Bentley Systems
  • PTC Inc.
  • Altair Engineering Inc.
  • Ansys, Inc.
  • Autodesk, Inc.
  • Siemens PLM Software
  • Cybernet Systems Corp.
  • CPFD Software
  • Design Simulation Technologies
  • Dassault Systemes