Cloud-based Simulation Application Global Market Report 2024

The cloud-based simulation application market size has grown strongly in recent years. It will grow from $3.57 billion in 2023 to $3.87 billion in 2024 at a compound annual growth rate (CAGR) of 8.5%. The growth observed in the historic period can be attributed to several key factors. Firstly, data breaches and security incidents have heightened awareness regarding the importance of robust cybersecurity measures, prompting organizations to invest in cloud-based solutions to enhance their security posture. Additionally, regulatory compliance requirements have driven organizations to adopt cloud-based platforms that offer built-in security features and facilitate compliance with industry regulations.

The cloud-based simulation application market size is expected to see strong growth in the next few years. It will grow to $5.41 billion in 2028 at a compound annual growth rate (CAGR) of 8.7%. The anticipated growth in the forecast period can be attributed to several key factors such as the expansion of the internet of things (IoT) and the proliferation of connected devices are expected to drive demand for cloud-based simulation applications, as organizations seek to simulate and optimize IoT deployments and processes.

The cloud-based simulation application market is witnessing significant growth driven by the increasing demand for ease in industrial automation. Industrial automation, geared towards minimizing human intervention in industrial processes, is fueled by various factors including operational resilience, regulatory compliance, intellectual property protection, remote accessibility, and the convergence of operational technology (OT) and information technology (IT) systems. Cloud-based simulation applications provide industrial organizations with the flexibility, scalability, accessibility, and innovation necessary to expedite development, streamline processes, and foster continuous improvement in industrial automation systems. Notably, data from October 2022 published by the International Federation of Robotics underscores a notable uptick in the installation of industrial robots globally, indicating a surge in demand for industrial automation solutions.

Key market players are addressing this demand by introducing virtual development environments such as AI Workbench. AI Workbench, a comprehensive platform or toolkit, facilitates the development, deployment, and management of artificial intelligence (AI) and machine learning (ML) projects. For example, Renesas Electronics Corporation's December 2023 rollout of AI Workbench offers automotive AI engineers an integrated virtual development environment, empowering them to design, simulate, and optimize automotive software within the cloud. Leveraging Microsoft Azure services, engineers can conduct tasks such as performance evaluation, debugging, and verification using simulation tools online, eliminating the need for extensive hardware setups.

In April 2022, Ansys strengthened its foothold in cloud-based simulation by acquiring OnScale. This strategic acquisition equips Ansys with a cloud-native, web-based user interface (UI) for seamless access to its simulation technologies across devices, enhancing accessibility and usability. OnScale's cloud engineering simulation capability enables engineers to tackle complex mechanical and 3D structures through its cloud-based design environment, complementing Ansys' offerings and solidifying its position in the cloud-based simulation application market.

Major companies operating in the cloud based simulation application market are Amazon.com Inc., Alphabet Inc., Microsoft Corporation, Huawei Technologies Co. Ltd., Intel Corporation, International Business Machines Corporation (IBM), Cisco Systems Inc., Broadcom Inc., VMware Inc., Palo Alto Networks Inc., Juniper Networks Inc., Fortinet Inc., Akamai Technologies Inc., F5 Networks Inc., Splunk Inc., Check Point Software Technologies Ltd., FireEye Inc., Trend Micro Inc., CrowdStrike Holdings Inc., Zscaler Inc., Sangfor Technologies Inc., Cloudflare Inc., Rapid7 Inc., Barracuda Networks Inc., Pulse Secure LLC.

North America was the largest region in the cloud based simulation application market in 2023. The regions covered in the cloud based simulation application market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the cloud based simulation application market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A cloud-based simulation application is a software tool or platform that allows users to create, execute, and analyze simulations using cloud computing infrastructure. Rather than installing the software on local computers or servers, users access the simulation application over the internet, utilizing remote servers and resources provided by a cloud service provider. This approach offers scalability, flexibility, and accessibility, allowing users to conduct simulations from anywhere with an internet connection without the need for extensive local computing resources.

The main types of cloud-based simulation applications include Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). SaaS involves accessing software over the internet, where users pay for subscriptions rather than purchasing the software outright. It finds applications in various industries such as manufacturing, media and entertainment, construction, automotive, transportation and logistics, healthcare, defense and aerospace, energy and power, and others. SaaS is utilized for purposes such as training, process improvement, outcome prediction, and risk management.

The cloud based simulation application market research report is one of a series of new reports that provides cloud based simulation application market statistics, including cloud based simulation application industry global market size, regional shares, competitors with a cloud based simulation application market share, detailed cloud based simulation application market segments, market trends and opportunities, and any further data you may need to thrive in the cloud based simulation application industry. This cloud-based simulation application 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 cloud-based simulation application market consists of revenues earned by entities by providing services such as simulation modelling, simulation execution, visualization, integration, and security. The market value includes the value of related goods sold. The cloud-based simulation application market also includes sales of virtual machines, high-performance servers, processors, security hardware and networking infrastructure. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.


This product will be delivered within 3-5 business days.