Automotive Simulation Software Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Automotive Simulation Software Market Report is Segmented by Component (Solution [Physics-Based Simulation Platforms, and Data-Management and Integration Tools], Services [Implementation and Integration, and More]), Deployment Model (On-Premises, Cloud), End-User (OEMs, Automotive Component Manufacturers, and More), Application (Vehicle Dynamics, Powertrain and Battery Simulation, and More), and Geography.

Automotive Simulation Software Market Size and Share

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Automotive Simulation Software Market Analysis by Mordor Intelligence

The automotive simulation software market stands at USD 6.82 billion in 2025 and is forecast to expand to USD 12.95 billion by 2030, advancing at a 13.68% CAGR. Growth is propelled by the shift from hardware-centric design to virtual prototyping, the need to validate complex electric-vehicle (EV) and autonomous-driving systems, and the rapid maturation of cloud-based high-performance computing. Regulatory mandates such as the EU General Safety Regulation II and UN R171 are embedding virtual testing in approval workflows, while simulation-as-a-service business models broaden access for smaller firms. Leading vendors are embedding AI in scenario generation, shortening development cycles and lowering total cost of ownership. At the same time, moderate competitive intensity and ongoing consolidation signal a race to offer end-to-end platforms that cover mechanical, electrical and software domains.

Key Report Takeaways

  • By component, solutions led with 63.70% of the automotive simulation software market share in 2024; services are projected to expand at a 15.80% CAGR to 2030.
  • By deployment model, on-premises installations held 57.60% share of the automotive simulation software market size in 2024, while cloud deployments are forecast to grow at 18.50% CAGR through 2030.
  • By end user, OEMs accounted for 47.80% share of the automotive simulation software market size in 2024 and engineering service providers are advancing at a 14.78% CAGR to 2030.
  • By application, vehicle dynamics captured 32.30% of the automotive simulation software market share in 2024; autonomous-driving simulation is poised for the fastest 20.60% CAGR to 2030.
  • By geography, Asia-Pacific commanded 37.90% revenue share in 2024 and is set to record a 13.60% CAGR through 2030.

Segment Analysis

By Component: Solutions Dominate Despite Services Acceleration

Solutions generated the largest revenue, equivalent to 63.70% of the automotive simulation software market in 2024, underscoring the enduring reliance on physics-based engines from Ansys, Siemens and Dassault Systèmes. The automotive simulation software market size attributed to services, although smaller, is projected to rise at 15.80% CAGR as enterprises seek managed simulation, training and scenario-generation expertise.

Growth in services mirrors the scarcity of in-house CAE talent and the need to embed AI in simulation pipelines. Investments such as BMW i Ventures’ USD 20 million in Simr highlight demand for SimOps automation that simplifies multi-tool orchestration. Integration specialists are also capitalising on the move to cloud HPC, helping clients migrate legacy workflows and ensure IP protection.

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Note: Segment Share of all individual segments available upon report purchase

By Deployment Model: Cloud Disruption Accelerates

On-premises systems retained 57.60% share in 2024 because many OEMs prioritise data sovereignty. Yet cloud deployments are scaling at an 18.50% CAGR as usage-based pricing mitigates capital constraints and hyperscale compute supports massive scenario sweeps. The automotive simulation software market size captured by cloud offerings is therefore expected to expand rapidly over the forecast horizon.

Platforms such as Hexagon’s Virtual Test Drive X provide autonomous-driving validation with consumption pricing, while Siemens’ Simcenter-as-a-service enables global teams to run thousands of jobs in parallel. Persistent concerns over multi-tenant security and export-control rules temper uptake, but vendor roadmaps centred on confidential-compute and sovereign-cloud zones are narrowing the trust gap.

By End User: Engineering Service Providers Emerge as Growth Leaders

OEMs controlled 47.80% of 2024 revenue thanks to long-term digital-twin programs that span design to after-sales. However, engineering service providers are forecast to grow 14.78% CAGR, capturing clients that lack internal CAE bandwidth. Their share of the automotive simulation software market is set to rise as outsourcing counteracts the talent squeeze.

Acquisitions such as Hinduja Tech’s purchase of TECOSIM show service firms scaling domain breadth from crash to battery modelling. Component suppliers remain steady adopters of simulation for powertrain and thermal optimisation, while research institutes push the frontier on perception-stack testing using MATLAB-Simulink co-simulation environments.

Automotive Simulation Software Market
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Note: Segment shares of all individual segments available upon report purchase

By Application: Autonomous Driving Simulation Leads Innovation

Vehicle dynamics held a 32.30% stake in 2024, reflecting decades of deployment across chassis optimisation. The automotive simulation software market size for autonomous-driving and ADAS simulation is, however, projected to exhibit a 20.60% CAGR as firms tackle perception, prediction and planning validation.

Applied Intuition and MORAI deliver stochastic scenario libraries that help OEMs cover edge cases impossible to reproduce safely on public roads. Battery-thermal and crash-safety simulations remain essential for EV homologation, while process-level tools like ESI Group’s BM-Stamp fuel interest in stamping-line digital twins that shrink time-to-launch.

Geography Analysis

Asia-Pacific dominated the automotive simulation software market with 37.90% revenue share in 2024, buoyed by national EV targets, smart-mobility subsidies and a widening pool of local software talent. The region is forecast to grow 13.60% CAGR, driven by large-scale digital-twin factory rollouts such as NIO’s collaboration with Unity China that streamlines body shop commissioning. Government-backed autonomous-driving sandboxes across China, Japan and South Korea further accelerate software-centric validation.

North America remains a technological pacesetter thanks to the concentration of CAE vendors and vibrant venture-capital funding. Start-ups like Vsim and Coval collectively secured over USD 25 million in fresh capital during 2024, targeting AI-first scenario generation that complements traditional finite-element solvers. Regulatory clarity from NHTSA on virtual-testing data acceptance is expected to boost uptake among Tier-1 suppliers seeking faster ADAS certification cycles.

Europe leverages stringent safety and sustainability frameworks to foster simulation adoption. The automotive simulation software market benefits from EU Green Deal incentives that reward material-efficient design validated through multiphysics simulation. Cloud-sovereignty initiatives such as GAIA-X underpin vendor commitments to European data-residency, reducing IP-exposure fears for German luxury brands and French commercial-vehicle makers. Emerging regions in South America, the Middle East and Africa display rising demand as OEMs establish regional R&D hubs that rely on virtual collaborative platforms rather than expensive proving-ground expansions.

Automotive Simulation Software Market
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Competitive Landscape

The automotive simulation software market is moderately concentrated. Siemens’ USD 10.6 billion takeover of Altair in March 2025 produced the industry’s most extensive AI-powered multiphysics suite and tightened competition with Dassault Systèmes and Ansys. Ansys itself is poised to join Synopsys in a USD 35 billion deal, signalling closer integration of semiconductor, software and system-level simulation. Vendors are racing to infuse large-language-model assistants that reduce scripting needs and make complex solvers usable by non-experts.

Commercial strategy is shifting toward cloud marketplaces and consumption-based licences that undercut perpetual models. Siemens’ Simcenter on Rescale, Hexagon’s VTDx on Microsoft Azure and Dassault’s 3DEXPERIENCE on AWS exemplify the pivot. These channels lower entry barriers for mid-tier suppliers while giving vendors recurring revenue visibility. Niche challengers such as MORAI target unmanned-air-mobility test beds, while Simr focuses on SimOps automation that unifies disparate solver silos.

White-space innovation is clustering around AI-generated scenarios, confidential computing for IP protection, and verticalised toolchains for emerging domains like vehicle-to-everything communications. Partnerships with cloud hyperscalers deliver elastic compute, whereas collaborations with certification bodies integrate digital evidence directly into homologation dossiers. Collectively, these moves suggest a market moving from standalone point solvers to federated, AI-augmented platforms covering concept to after-sales.

Automotive Simulation Software Industry Leaders

  1. Ansys, Inc.

  2. Siemens AG

  3. Dassault Systèmes

  4. Autodesk, Inc.

  5. PTC Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Automotive Simulation Software Market Concentration
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Recent Industry Developments

  • March 2025: Siemens finalised its USD 10.6 billion acquisition of Altair Engineering, expanding AI-powered mechanical and electromagnetic simulation across the Siemens Xcelerator portfolio.
  • February 2025: Dassault Systèmes and Volkswagen deployed the 3DEXPERIENCE cloud platform to streamline vehicle development with virtual-twin experiences.
  • January 2025: Ansys, TÜV SÜD and Microsoft launched a cloud-based virtual-homologation toolchain to accelerate regulatory compliance.
  • January 2025: Hexagon introduced Virtual Test Drive X on Azure, offering consumption-priced, hyperscale validation for ADAS and AV systems.

Table of Contents for Automotive Simulation Software Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Growing demand for virtual prototyping
    • 4.2.2 Accelerated EV/AV programs require software-centric validation
    • 4.2.3 Shift toward cloud-based HPC and SaaS licensing
    • 4.2.4 Safety-driven regulations encouraging virtual testing
    • 4.2.5 OEM subscription revenue models for "simulation-as-a-service"
    • 4.2.6 VC inflow into SimOps automation platforms
  • 4.3 Market Restraints
    • 4.3.1 High upfront cost and integration complexity
    • 4.3.2 Enterprise IP and data-security concerns in multi-tenant clouds
    • 4.3.3 Shortage of skilled CAE simulation engineers
    • 4.3.4 AI-scenario model fidelity gaps for edge-case validation
  • 4.4 Evaluation of Critical Regulatory Framework
  • 4.5 Technological Outlook
  • 4.6 Porter's Five Forces
    • 4.6.1 Bargaining Power of Suppliers
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Threat of New Entrants
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Competitive Rivalry
  • 4.7 Impact Assessment of Key Stakeholders
  • 4.8 Key Use Cases and Case Studies
  • 4.9 Impact on Macroeconomic Factors of the Market

5. MARKET SIZE AND GROWTH FORECAST (VALUE)

  • 5.1 By Component
    • 5.1.1 Solution
    • 5.1.1.1 Physics-based simulation platforms
    • 5.1.1.2 Data-management and integration tools
    • 5.1.2 Services
    • 5.1.2.1 Implementation and Integration
    • 5.1.2.2 Consulting and Training
    • 5.1.2.3 Managed Simulation Services
  • 5.2 By Deployment Model
    • 5.2.1 On-Premises
    • 5.2.2 Cloud
  • 5.3 By End User
    • 5.3.1 OEMs
    • 5.3.2 Automotive Component Manufacturers
    • 5.3.3 Engineering Service Providers
    • 5.3.4 Academic and Research Institutes
  • 5.4 By Application
    • 5.4.1 Vehicle Dynamics
    • 5.4.2 Powertrain and Battery Simulation
    • 5.4.3 Crash and Safety
    • 5.4.4 Autonomous Driving and ADAS
    • 5.4.5 Manufacturing Process Simulation
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 United Kingdom
    • 5.5.3.2 Germany
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Spain
    • 5.5.3.6 Nordics
    • 5.5.3.7 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 India
    • 5.5.4.3 Japan
    • 5.5.4.4 South Korea
    • 5.5.4.5 ASEAN
    • 5.5.4.6 Australia
    • 5.5.4.7 New Zealand
    • 5.5.4.8 Rest of Asia-Pacific
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 United Arab Emirates
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Egypt
    • 5.5.5.2.3 Nigeria
    • 5.5.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Ansys Inc.
    • 6.4.2 Siemens AG
    • 6.4.3 Dassault Systmes SE
    • 6.4.4 Autodesk Inc.
    • 6.4.5 PTC Inc.
    • 6.4.6 Altair Engineering Inc.
    • 6.4.7 The MathWorks Inc.
    • 6.4.8 Synopsys Inc.
    • 6.4.9 ESI Group SA
    • 6.4.10 IPG Automotive GmbH
    • 6.4.11 Gamma Technologies LLC
    • 6.4.12 Applied Intuition Inc.
    • 6.4.13 Hexagon AB (MSC Software & Adams)
    • 6.4.14 AVL List GmbH
    • 6.4.15 Nvidia Corp.
    • 6.4.16 Cadence Design Systems Inc.
    • 6.4.17 Simerics Inc.
    • 6.4.18 Mechanical Simulation Corporation
    • 6.4.19 UberCloud Inc.
    • 6.4.20 Simr Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Automotive Simulation Software Market Report Scope

Automotive simulation software refers to specialized applications designed to model, simulate, and analyze various aspects of vehicle design and performance. The revenue caters through subscription and licensing format among end-users.

The automotive simulation software market is segmented by component (solution, services), by deployment (on-premises, cloud), by end-user (OEM, automotive component manufacturers, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component Solution Physics-based simulation platforms
Data-management and integration tools
Services Implementation and Integration
Consulting and Training
Managed Simulation Services
By Deployment Model On-Premises
Cloud
By End User OEMs
Automotive Component Manufacturers
Engineering Service Providers
Academic and Research Institutes
By Application Vehicle Dynamics
Powertrain and Battery Simulation
Crash and Safety
Autonomous Driving and ADAS
Manufacturing Process Simulation
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Spain
Nordics
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
ASEAN
Australia
New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Egypt
Nigeria
Rest of Africa
By Component
Solution Physics-based simulation platforms
Data-management and integration tools
Services Implementation and Integration
Consulting and Training
Managed Simulation Services
By Deployment Model
On-Premises
Cloud
By End User
OEMs
Automotive Component Manufacturers
Engineering Service Providers
Academic and Research Institutes
By Application
Vehicle Dynamics
Powertrain and Battery Simulation
Crash and Safety
Autonomous Driving and ADAS
Manufacturing Process Simulation
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe United Kingdom
Germany
France
Italy
Spain
Nordics
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
ASEAN
Australia
New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Egypt
Nigeria
Rest of Africa
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Key Questions Answered in the Report

What is the current value of the automotive simulation software market?

The market is valued at USD 6.82 billion in 2025 and is projected to reach USD 12.95 billion by 2030.

Which segment is growing fastest in the automotive simulation software market?

Cloud deployment is the fastest-growing segment with an 18.50% CAGR through 2030 thanks to elastic compute and usage-based pricing.

Why is Asia-Pacific the largest regional market?

High EV production, government-funded autonomous-driving programs and expanding digital-twin factories give Asia-Pacific 37.90% revenue share and a 13.60% CAGR outlook.

How are new safety regulations influencing adoption?

EU General Safety Regulation II and UN R171 embed virtual testing in approval processes, making simulation mandatory for ADAS and autonomous features.

What is the biggest challenge limiting market expansion?

A shortage of skilled CAE engineers—reported by 94% of employers—slows deployment of advanced simulation workflows despite strong demand.

Which companies are reshaping competitive dynamics?

Siemens (via Altair), Ansys (via Synopsys), Applied Intuition and MORAI are redefining platform breadth, cloud delivery and AI-driven scenario generation within the market.

Page last updated on: June 22, 2025