The market for simulation software is expected to grow at a CAGR of around 13.3% from 2020 to 2027 and expected to reach the market value of around US$ 30.4 Bn by 2027.
Simulation Software is designed with the process of modeling a real phenomenon based on a set of mathematical formulas. Basically, it’s a program that allows its users to observe an operation without performing it in real, with the help of simulation software. It is widely used in designing equipment for analyzing specifications and features, which can save the extra expenses that will incur in case of further modification or alteration. Some of the major features associated with the simulation software include evaluation, comparison, and optimization of alternative designs, plans, and policies, especially during the designing or development phase. It is also a decision analysis and support tool for explaining and defending decisions to various stakeholders.
The increasing use of simulation technology across the varied industry verticals like architecture, engineering, construction, aerospace & defense, automotive, electrical & electronics, healthcare, energy and mining, and education and research is primarily driving the market growth. The benefit of reduction in production expenses and training costs with the use of simulation software is supporting the growth. The ongoing development and usage of advanced technologies for simulation is particularly for avoiding the production of faulty products that can shatter the budget of operations. Furthermore, high spending on simulation in aerospace, healthcare, and defense is projected to create potential opportunities over the forecast period from 2020 to 2027.
On the other hand, complexities in integrating software and increasing data security concerns are likely to hinder the growth over the forecast period from 2020 to 2027.
Segment Instance of Global Simulation Software Market
In 2019, Software segment lead the global simulation software market
The software segment is further bifurcated across finite element analysis (FEA), computational fluid dynamics (CFD), and electromagnetic (EMAG). The increasing usage of simulation software owing to its beneficial usage for engineers and product designers for modeling real-world events at lesser cost with the help of computer-generated environments is boosting the demand and usage in the global market.
North America dominated the simulation software market in 2019
The advance industrial infrastructure of the developed economies like US and Canada is primarily contributing to the dominating share of the region. The presence of major players in the region along with their advance featured offerings is additionally boosting the regional market value. Moreover, the continuous growth in the research and development activities of major end use industry verticals is expected to create growth in the regional market.
Asia Pacific is estimated to growth at a maximum CGAR (%) during the forecast period
The continuously developing economies at a rapid pace are estimated to support the major growth of the region. Ongoing industrialization and globalization in the prominent economies of the region are evolving the technological infrastructure across the industry verticals in order to decrease operational cost and complexities associated the product development and research activities. Additionally, increasing investment and expansion plans of major industry players in the developing economies of the region is further projected to create growth over the forecast period.
Key Market Players
The players profiled in the report include Altair Engineering Inc., Ansys Inc., Autodesk Inc., Bentley Systems Incorporated, CPFD Software LLC, Dassault Systèmes, Design Simulation Technologies, Rockwell Automation Inc., Schneider Electric, Siemens AG, Synopsys Inc., The MathWorks Inc., and COMSOL Group.
Market By Component
Market By Deployment Mode
Market By Application
Market By Industry Vertical
Architecture, Engineering, Construction (AEC)
Aerospace & Defense
Electrical & Electronics
Energy and Mining
Education and Research
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
The market for simulation software is expected to reach a market value of around US$ 30.4 Bn by 2027.
The simulation software market is expected to grow at a CAGR of around 13.3% from 2020 to 2027.
Software is the leading segment by component in the simulation software market
The increasing use of simulation technology across the varied industry verticals, benefit of reduction in production expenses and training costs with the use of simulation software, and ongoing development and usage of advanced technologies for simulation are some of the factors driving the market growth.
Altair Engineering Inc., Ansys Inc., Autodesk Inc., Bentley Systems Incorporated, CPFD Software LLC, Dassault Systèmes, Design Simulation Technologies, Rockwell Automation Inc., Schneider Electric, Siemens AG, Synopsys Inc., The MathWorks Inc., and COMSOL Group are some of the prominent players in the market.
North America held the highest market share in the simulation software market
Asia Pacific is expected to be the fastest growing market over the forecast period