Simulation Software Market Is Registering A CAGR Of 13.5% Over The Forecast Period

 Simulation Software Industry Overview

The global simulation software market size is estimated to reach USD 39.74 billion by 2030, registering a CAGR of 13.5% over the forecast period, according to a new study by Grand View Research, Inc. Simulation software is being used for training personnel. It is replacing the traditional real-time training techniques, which incurred huge investments annually for companies. The use of simulation for training purposes helps reduce training costs as companies need to make a one-time investment for software implementation. The software also helps enterprises minimize production costs by enhancing the product development process.

 

The need for developing prototypes and the chances of product failure are considerably reduced through the use of simulators, as the product is virtually tested for all possible glitches before the commencement of production. Furthermore, simulation-based tools help product developers reduce the time spent on R&D processes as it enables them to obtain a realistic view of a product or process under study or review. Organizations across the globe are increasingly implementing the program and analyzing tools to enhance the entire product development cycle, reduce time to production, ensure delivery of high-quality products in minimal time, and reduce the overall cost to the company with respect to R&D.

Simulation Software Market Segmentation

Grand View Research has segmented the global simulation software market on the basis of component, deployment, application, end-use, and region:

Based on the Component Insights, the market is segmented into Software, and Services.

  • The software segment dominated the market in 2021 and accounted for the largest share of more than 70.5% of the global revenue. The segment is expected to remain dominant throughout the forecast period. The growth of this segment can be attributed to the benefits of software, such as data safety, reliability, and uninterrupted testing. Furthermore, under the software segment, finite element analysis is expected to largely contribute to the growth of the segment.
  • The service segment is expected to register the fastest growth rate during the forecast period. The growth of the segment can be attributed to the growing awareness of virtually-enabled processes used for product development among companies and governments. Services, such as design and consulting, implementation, and maintenance are gaining popularity among various enterprises. ANSYS, Inc., one of the key players in the market, provides consultation and professional services for simulation workflow improvement and process compression.

 

Based on the Deployment Insights, the market is segmented into On-Premise, and Cloud.

  • The on-premise deployment segment dominated the market in 2021 and accounted for the largest share of more than 72.00% of the global revenue. The high share of this segment was attributed to the early adoption of the software. On-premise deployment is a traditional method of deployment that involves the installation of the software on-site. This method is beneficial for companies that wish to maintain the confidentiality of their data and secure the data from hackers.
  • The cloud segment is expected to register the fastest CAGR over the next seven years. The growth of this segment can be attributed to the benefits offered, including easy implementation and cost-effectiveness, as compared to the traditional on-premise software. Since the software is deployed over the cloud, it is easier to maintain and upgrade based on a client’s requirements. Moreover, cloud-based software can be used in applications, such as R&D and training & education.

 

Based on the Application Insights, the market is segmented into Engineering, Research, Modeling & Simulated Testing, High Fidelity Experiential 3D Training, Gaming & Immersive Experiences, Manufacturing Process Optimization, AI Training & Autonomous Systems, Planning And Logistics Management & Transportation, and Cyber Simulation.

  • The engineering, research, modeling & simulated testing segment dominated the market and accounted for the largest revenue share of more than 36.5% in 2021. The high segment share is attributed to the robust adoption of simulation software by prominent end-use companies like Airbus, Boeing, Volkswagen Group, and others for product engineering, modeling, research, and testing purposes. 
  • The shift from actual prototyping towards simulation is ubiquitous across many industries and the demand for modeling, designing, and simulated testing tools is intensified by the massive investments in high-growth applications including 5G, clinical trials, autonomous, electrification, and the Industrial Internet of Things(IIoT). Furthermore, cyber threats have always been a concern for several industries, such as military & defense, enterprise, and others.

 

Based on the End-use Insights, the market is segmented into Automotive, Aerospace & Defense, Industrial, Electronics & Semiconductor, Transportation & Logistics, Healthcare, and Others.

  • The automotive segment dominated the market in 2021 and accounted for the largest revenue share of more than 24.7%. The growth was credited to the early adoption of virtual tools for product development. Furthermore, the automotive industry is witnessing a shift toward the use of electric and autonomous vehicles. The use of simulation to enhance production processes in this industry is primarily driving the growth of this segment.
  • The other segment includes industries and sectors, such as construction, retail, and telecommunications. The aerospace & defense segment is expected to grow at a considerable CAGR over the forecast period due to the use of simulators for designing aircraft as well as defense equipment. Also, simulators are used in the defense industry for the purpose of training soldiers. Growing government concerns regarding terrorism and national security have resulted in increased investments in new and improved defense equipment that require the use of simulation software.

 

Simulation Software Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

 

Key Companies Profile & Market Share Insights

Key market players are strategically focused on partnership and collaboration activities to expand their geographical presence and overall product portfolios. For instance, in February 2021, Siemens partnered with EOS North America, which provides industrial 3D printing of metal and polymer technology. The partnership aims to improve additive manufacturing efficiency and profitability. Moreover, the partnership enables the customers of EOS North America to leverage the capabilities of Siemens including build process simulation, topology optimization, design validation, materials engineering & durability analysis, and process automation among others. In addition, the companies also actively made efforts to combat the COVID-19 situation by offering simulation analyses pertaining to the spread of the disease.

Furthermore, the companies are launching new products & services and are also focusing on maintaining competitive prices. The use of simulation software is enabling automobile manufacturers to test multiple variants of a vehicle across various driving terrains and situations before determining and finalizing the ideal prototype of the vehicle. Therefore, these manufacturers are opting for full-fledged implementation of simulation software solutions. For instance, in September 2018, BMW Group established a simulation center in Munich, Germany. The facility is equipped with a high-fidelity simulator, capable of representing rotational, longitudinal, and transverse movements of a vehicle in real-time. Some of the prominent players in the global simulation software market include:

  • Altair Engineering, Inc.
  • Autodesk, Inc.
  • Ansys, Inc.
  • Bentley Systems, Inc.
  • Dassault Systèmes
  • MathWorks, Inc.
  • Rockwell Automation, Inc.
  • Simulations Plus
  • ESI Group
  • GSE Systems

 

Order a free sample PDF of the Simulation Software Market Intelligence Study, published by Grand View Research.

 

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

 

Contact:

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Grand View Research, Inc.

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