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The simulation software market size is estimated to grow at a CAGR of 12.94% between 2023 and 2028. The market size is forecast to increase by USD 15,989.56 million. The growth of the market depends on several factors such as the increasing need for product innovation and development, rising complexity in engineering and manufacturing processes and growing demand for virtual training and education solutions. Simulation software is designed to imitate real-world processes, systems, or scenarios and allows users to study and understand the behaviour, performance, and outcomes of these simulations. Simulation software finds applications in various industries, including aerospace, automotive, manufacturing, healthcare, defense, gaming, and research and development. It offers capabilities to model complex systems, simulate physical phenomena, predict outcomes, optimize processes, and make informed decisions based on the simulation results.
This simulation software market report extensively covers market segmentation by component (software and services), deployment (on-premise and cloud), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The increasing need for product innovation and development is notably driving the market growth. The increasing need for product innovation and development is a significant driver in the global simulation software market. Simulation software enables organizations to simulate and analyze the behaviour of their products in a virtual setting, allowing for a comprehensive understanding of performance, functionality, and potential issues. Furthermore, simulation software allows for virtual testing of product designs in various scenarios and conditions that may be difficult or costly to replicate in a physical environment. For instance, automotive manufacturers can simulate crash tests, aerodynamic performance, and vehicle dynamics to ensure safety and performance standards are met.
Moreover, aerospace companies can simulate the behaviour of aircraft under different flight conditions. This virtual testing capability reduces the need for physical testing, saves time, and lowers costs associated with prototyping and testing iterations. Thus, the increasing need for product innovation and development across industries, coupled with the capabilities of simulation software, will lead to its widespread adoption, which will drive the growth of the market in focus during the forecast period.
Growing recent developments related to simulation software solutions are an emerging trend shaping the market growth. The growing emphasis on recent developments in simulation software solutions is one of the emerging trends in the global simulation software market. Several vendors contribute to this trend by launching new solutions, mergers and acquisitions, and new investments to increase their market reach. Some of the recent developments are in October 2022, Ansys Inc. unveiled its most recent product with the goal of providing customers with easier access to the company's selection of simulation tools. To launch its new Ansys Gateway powered by AWS solution, Ansys collaborated with Amazon Web Services Inc., a provider of on-demand cloud computing platforms and a division of Amazon.com In.
Similarly, in May 2022, the market-leading Creo CAD software from PTC Inc. just released its ninth edition. Engineers can quickly create their best product ideas with Creo 9's cutting-edge technologies, including generative design, real-time simulation, and additive manufacturing. Thus, growing recent developments related to simulation software solutions will drive the growth of the market in focus during the forecast period.
Integration and compatibility issues with simulation software solutions a significant challenges hindering market growth. Integration and compatibility issues with simulation software solutions are one of the significant challenges in the global simulation software market. Simulation software often needs to be integrated with other software systems and workflows to enable seamless data exchange, collaboration, and interoperability. However, achieving smooth integration can be complex and time-consuming, posing challenges for organizations seeking to incorporate simulation software into their existing infrastructure. One of the primary integration challenges lies in the compatibility of simulation software with other software tools used in the organization's workflow.
Additionally, legacy systems and outdated software architectures can create compatibility issues when trying to integrate simulation software. Older systems may not have the necessary capabilities or application programming interfaces (APIs) to integrate with modern simulation tools, leading to data conversion problems or limited interoperability. Organizations may need to invest in upgrading their existing systems or implementing middleware solutions to bridge the gap between different software platforms. This could become a major challenge for the growth of the market during the forecast period.
The market share growth by the software segment will be significant during the forecast period. The software segment of the global simulation software market represents the core simulation applications and tools that enable the creation, manipulation, and analysis of simulated models and environments. Simulation software offers a wide range of functionalities to model, simulate, and analyze various systems, processes, or scenarios. One of the key aspects of the software component is its modelling and simulation capabilities.
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The software segment was the largest and was valued at USD 8,888.68 million in 2018. Moreover, simulation software caters to different industries and applications, offering specialized capabilities for specific domains. For example, in the automotive industry, simulation software may include features for vehicle dynamics, crash simulations, or aerodynamics. In the aerospace industry, it can simulate aircraft performance, flight dynamics, or structural analysis. The simulation software is designed to address the specific needs and challenges of various sectors, enabling users to model and simulate complex systems accurately. Thus, the growing demand for simulation solutions in different end-user industries will drive the growth of the software segment in the market in focus during the forecast period.
On-premises deployment in the global simulation software market refers to the traditional method of installing and operating the software on the user's own physical infrastructure, typically within their organization's premises. Additionally, on-premises deployment also gives organizations greater control over their data privacy. Since the data reside within their own infrastructure, they can implement their own security protocols and ensure compliance with relevant regulations and policies. This level of control can be particularly important for industries that handle sensitive or confidential data. Such wide benefits of on-premises solutions will increase its adoption, which, in turn, will boost the growth of the market in focus through the on-premises segment during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America held the highest share of the global simulation software market in terms of revenue in 2023. The region's market size is driven by factors such as the high adoption of advanced technologies, a strong focus on innovation and product development, and the presence of major simulation software vendors. The market is expected to experience steady growth during the forecast period due to ongoing advancements in simulation technology and the increasing demand from various industry verticals, such as manufacturing. The North American simulation software market caters to a diverse range of industry verticals. This includes automotive, aerospace and defense, healthcare, manufacturing, energy, architecture and construction, gaming and entertainment.
In addition, each industry utilizes simulation software for different purposes, such as product design and development, virtual testing and prototyping, training and education, process optimization, and research and development. Thus, the growing need for simulation software in these end-user industries will further drive the growth of the regional market during the forecast period.
The outbreak of COVID-19 in 2020 severely affected the growth of the simulation software market in North America. However, the lockdown restrictions were lifted in the second half of 2020, owing to large-scale vaccination drives across North America. Additionally, the pandemic acted as a catalyst for digital transformation across industries. Organizations in North America are recognizing the value of simulation software in optimizing processes, improving efficiencies, and reducing physical dependencies. Such factors are expected to drive the growth of the regional market during the forecast period.
The Simulation Software Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Simulation Software Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Altair Engineering Inc. - The company offers simulation software such as Altair HyperWorks suite for multi-disciplinary simulation and optimization.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The simulation software market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 - 2022.
Simulation Software Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.94% |
Market Growth 2024-2028 |
USD 15,989.56 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.54 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Altair Engineering Inc., ANSYS Inc., AnyLogic North America LLC, Autodesk Inc., Bentley Systems Inc., COMSOL AB, Cybernet Systems Corp., Dassault Systemes SE, Design Simulation Technologies Inc., Hexagon AB, Koninklijke HaskoningDHV Groep B.V., PTC Inc., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Simio LLC, SimScale GmbH, Simul8 Corp., Synopsys Inc., and The MathWorks Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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