Electric Vehicle Virtual Prototyping Market Report 2026

The electric vehicle virtual prototyping market size has grown exponentially in recent years. It will grow from $1.23 billion in 2025 to $1.54 billion in 2026 at a compound annual growth rate (CAGR) of 24.6%. The growth in the historic period can be attributed to ev design complexity, cad software adoption, early simulation usage, cost reduction needs, reduced physical prototyping.

The electric vehicle virtual prototyping market size is expected to see exponential growth in the next few years. It will grow to $3.68 billion in 2030 at a compound annual growth rate (CAGR) of 24.4%. The growth in the forecast period can be attributed to AI-driven simulation growth, cloud computing expansion, autonomous system validation needs, rapid ev innovation cycles, digital engineering workflows. Major trends in the forecast period include expansion of digital twin adoption, growth of simulation-based design, integration of virtual validation tools, demand for faster ev development cycles, use of cloud-based prototyping.

The rising demand for electric vehicles is expected to propel the growth of the electric vehicle virtual prototyping market going forward. Electric vehicles (EVs) are automobiles powered by electric motors instead of internal combustion engines, using electricity stored in batteries or sourced externally, such as from charging stations. The growth in EV adoption is driven by advancements in battery technology, which improve range and reduce charging times, along with government incentives and emissions regulations promoting cleaner transportation. Electric vehicle virtual prototyping accelerates development by allowing manufacturers to test and refine designs digitally, resulting in faster innovation, improved performance, and reduced production costs. For instance, in July 2024, according to the Society of Motor Manufacturers and Traders, UK electric car sales reached 314,684 units, an 18% increase compared to 267,203 units in 2022. Therefore, the rising demand for electric vehicles is driving the growth of the electric vehicle virtual prototyping market.

Major companies in the electric vehicle virtual prototyping market are increasingly adopting strategic partnerships to enhance technology integration and broaden their market reach. A strategic partnership involves a collaborative relationship between organizations, pooling their resources, expertise, and efforts to achieve mutual objectives. For example, in December 2023, Hexagon Manufacturing Intelligence, a Sweden-based industrial technology firm, teamed up with JSOL Corporation, a Tokyo-based IT services provider, to advance virtual prototyping for electrified powertrains using multi-physics simulation. This partnership strengthens their existing technical alliance, offering global customers precise and efficient virtual prototyping of complex electro-mechanical systems. By integrating Hexagon’s simulation software with JSOL’s JMAG electromagnetic field analysis software, the collaboration aims to deliver faster, more comprehensive, and cost-effective system design in the virtual environment, thereby reducing the need for physical prototypes.

In September 2023, Keysight Technologies Inc., a US-based provider of electronic design and test solutions, acquired ESI Group SA for an undisclosed amount. This strategic acquisition is intended to enhance Keysight's offerings in the engineering and manufacturing sectors, potentially including advanced applications such as virtual prototyping. ESI Group SA, based in France, specializes in virtual prototyping and simulation software for the electric vehicle industry.

Major companies operating in the electric vehicle virtual prototyping market report include Siemens AG, Dassault Systèmes SE, Synopsys Inc., Autodesk Inc., Cadence Design Systems Inc., Arm Ltd., ANSYS Inc., Rivian Automotive Inc., Bentley Systems Incorporated, Lucid USA Inc., Altair Engineering Inc., Elektrobit Automotive GmbH, dSPACE GmbH, TWI Ltd., ESI Group SA, Fisker Inc., Fictiv Inc., Maplesoft, Numeca International N.V., 3E Rapid Prototyping Ltd., Monarch Innovation Private Limited, Claytex Services Ltd., EOMYS Engineering SAS.

North America was the largest region in the electric vehicle virtual prototyping market in 2025. The regions covered in the electric vehicle virtual prototyping market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle virtual prototyping market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric vehicle virtual prototyping market consists of revenues earned by entities providing services such as computer-aided design (CAD) services, virtual design and engineering, and prototyping software development. The market value includes the value of related goods sold by the service provider or included within the service offering. The electric vehicle virtual prototyping market also includes sales of prototyping software, simulation tools, and engineering analysis tools. 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.

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