Simulation Software Global Market Report 2024

The simulation software market size has grown rapidly in recent years. It will grow from $16.21 billion in 2023 to $18.36 billion in 2024 at a compound annual growth rate (CAGR) of 13.3%. The expansion during the historical period can be attributed to training and skill development, risk management, product design and prototyping, medical research and training, as well as efficiency and cost savings.

The simulation software market size is expected to see rapid growth in the next few years. It will grow to $31.06 billion in 2028 at a compound annual growth rate (CAGR) of 14.0%. The anticipated growth in the forecast period can be attributed to digital twin technology, the rise of virtual reality (VR) and augmented reality (AR), cross-industry applications, remote work and collaboration, and advances in healthcare simulation. Key trends expected in the forecast period involve cross-disciplinary simulation platforms, real-time simulation for rapid prototyping, simulation for cybersecurity training, human-in-the-loop simulation, and a focus on sustainability and environmental simulation.

The simulation software market is anticipated to grow due to the development of autonomous vehicles. Autonomous vehicles can sense their surroundings and operate without human intervention. Simulation software plays a crucial role in validating, designing, and optimizing products and solutions for autonomous vehicles. The General Office of Shanghai Municipal People's Government plans to increase investments in autonomous driving, expecting the autonomous driving business to grow to a $72 billion industry by 2025. The development of autonomous vehicles is expected to drive the growth of the simulation software market.

The simulation software market is poised for growth owing to the rising mining activities. Mining activities involve extracting valuable minerals, ores, or geological elements from the earth's crust. Simulation software aids mining companies in creating accurate digital representations of potential mining sites, predicting and visualizing mineral distribution within geological formations. According to Glacier Media Group in February 2023, US mines produced non-fuel mineral products worth approximately $98.2 billion in 2022, reflecting an increase of $3.6 billion from the revised 2021 total of $94.6 billion. The growing mining sector contributes significantly to the expansion of the simulation software market.

Technological advancement is a prevailing trend in the simulation software market, with major players focusing on creating innovative technologies integrated with machine learning. Ansys, a US-based engineering simulation software company, introduced a machine learning-based partial differential equation solver in January 2022. This solution allows for more efficient simulations with less training data, ensuring quicker and more effective simulation processes.

Major companies in the simulation software market are introducing advanced solutions, such as autonomous vehicle simulation solutions, to gain a competitive advantage. Claytex Services Limited, a UK-based developer of simulation solutions, launched AVSandbox in June 2022. AVSandbox is designed exclusively for automotive OEMs and end-user organizations to test, develop, and validate autonomous vehicle safety. This solution provides a sensor-realistic simulation environment for autonomous vehicles, supporting the development and deployment of advanced driver assistance systems.

In August 2021, Ansys, a US-based engineering simulation software company, completed the acquisition of Zemax for an undisclosed amount. This acquisition allows Ansys to expand its portfolio, offering comprehensive solutions for simulating sophisticated optical and photonics-enabled products. Zemax, a US-based optical system simulation software company, is now part of Ansys.

Major companies operating in the simulation software market report are Amazon.com Inc., Microsoft Corporation, Siemens AG, International Business Machines Corporation (IBM), Oracle Corporation, SAP SE, Rockwell Automation Inc., Dassault Systèmes SE, Keysight Technologies Inc., Autodesk Inc., DNV GL AS, Ansys Inc., PTC Inc., Unity Technologies Inc., AVEVA Group PLC, MathWorks Inc., The MathWorks Inc., Bentley Systems Incorporated, Altair Engineering Inc., Lanner Group Ltd., MSC Software Corporation, ESI Group SA, COMSOL Inc., Simulations Plus Inc., GSE Systems Inc., AnyLogic North America LLC, Cybernet Systems Corporation, Tecplot Inc., Simul8 Corporation, OpenFOAM Foundation.

North America was the largest region in the simulation software market in 2023. The regions covered in the simulation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the simulation software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary simulation software components comprise software and services. Simulation software, a collection of instructions, data, or computer programs, is used to run machines and carry out specific activities. Deployed on-premises and in the cloud, simulation software is applied in product engineering, research and development, and gamification across various end-user industries, including automotive, IT and telecommunication, aerospace and defense, energy and mining, education and research, electrical and electronics, among others.

The simulation software market research report is one of a series of new reports that provides simulation software market statistics, including simulation software industry global market size, regional shares, competitors with a simulation software market share, detailed simulation software market segments, market trends and opportunities, and any further data you may need to thrive in the simulation software industry. This simulation software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The simulation software market includes revenues earned by entities by simulation development services, training and support and maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.