Simulation Software Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Global Simulation Software Market Revenue Share & Technology Growth and is Segmented by Deployment (On-premises, Cloud), End-user Industry (Automotive, IT and Telecommunication, Aerospace and Defense, Energy and Mining, Education and Research), and Geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The market size and forecasts are provided in terms of value (USD) for all the above segments.

Simulation Software Market Size

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Simulation Software Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 12.12 Billion
Market Size (2029) USD 21.43 Billion
CAGR (2024 - 2029) 12.06 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Simulation Software Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Simulation Software Market Analysis

The Simulation Software Market size is estimated at USD 12.12 billion in 2024, and is expected to reach USD 21.43 billion by 2029, growing at a CAGR of 12.06% during the forecast period (2024-2029).

  • Initially, simulation software was only used to tweak production lines. However, in the current market scenario, it is being used to test new concepts, accelerate product developments, and demonstrate regulatory compliance.
  • Often, manufacturers invest in simulation software when there is uncertainty about making changes to a production line or when building a new line is too expensive. This is mainly due to the high cost of downtime in terms of operational efficiencies and a manufacturer's reputation on the line if customer orders are delayed. However, new use cases have proven that manufacturers can identify and solve issues in advance by investing in simulation software. Simulation software can also simulate how components work together to create new products and affect process flows to demonstrate compliance.
  • A few use cases for simulation software include Siemens modeling Electrolux's factories to identify operational efficiencies and anylogic helping General Dynamic (NASSCO) improve its handling of the thousands of parts flowing through their shipyards. Dassault Systèmes is assisting Global Trailers in fastening the processes for bringing new trailers to the market. Similarly, Fluor, an engineering and construction firm, aspentech, developed a solution to demonstrate that its sulfur tracking technologies help gas plants meet environmental requirements.
  • Notably, owing to its superior characteristics, it is widely used in education and the research segment, which may propel the industry growth over the forecast period. Moreover, creating real-time simulation scenarios saves a lot of money and poses less time to execute, which encourages and enhances the core business competencies. Therefore, this is expected to have a positive impact on market growth.
  • Furthermore, the upcoming trend of designing toolsets with machine learning capabilities significantly contributes to the market's growth. Also, significant investments were made to empower designers to reduce the number of errors, thereby saving considerable time, which is expected to produce future results.
  • Due to the growing demand for advanced manufacturing with intricate designs and the need to reduce the size while improving the performance of automotive compels, automotive manufacturers should increase their R&D investments and adopt simulation software.
  • The outbreak of COVID-19 pushed organizations to act quickly to protect employees, address critical challenges, and help fight to minimize losses. Simulation modeling can help organizations to develop strategies to respond quickly, safely, and effectively. For instance, according to Ansys Inc., simulation can be used to design UV light treatment systems for various environments and ensure that sufficient doses of UV light are delivered to deactivate viruses, triggering market growth.

Simulation Software Market Trends

Automotive Segment is expected grow at a faster pace.

  • The automotive industry is witnessing a paradigm shift in adopting multiple technologies in its value chain. Macro trends, such as the development of autonomous vehicles and the drive toward more efficient and electric vehicles, influence the increased demand for simulation in the automotive sector. In contrast, traditional demand in vehicle simulation continues to gain general acceptance.
  • Once used by automakers for limited use cases in vehicle design, high-performance computer (HPC) simulation, using computer-aided engineering (CAE) applications, has come a long way in improving and optimizing all aspects of product development, including the manufacturing process.
  • The most efficient and cost-effective manufacturing processes are now determined by the same CAE simulation tools used in the vehicle design process. Simulation has become exceptionally valuable as new materials, such as aluminum and plastics, are introduced and enables manufacturers to avoid expensive inefficiencies of the traditional trial-and-error approach to establishing the production process of a new vehicle.
  • With the aid of simulation software, multiple vehicle variants in all possible driving situations are played through with immense effort, even before the car's prototype. Presently, BMW is building a massive facility for such simulations in its Munich headquarters.
  • With the new system, which is expected to be fully operational, BMW intends to strengthen its development expertise in autonomous driving. Using highly dynamic simulations of real driving situations, the engineers want to carry out virtual tests of future HMI concepts, displays, driver assistance, and driving automation systems.
Simulation Software Market: Number of cars sold worldwide from 2020 to 2023* (Million Units)

North America Occupies the Largest Market Share

  • With the growing number of SME units in the region and the increasing focus on research and development activities in North America, the market is expected to witness significant growth over the forecast period.
  • In addition, the governments in the North American region are constantly focusing on innovation and investment for a greener work environment. The regulations associated with the eco-friendly work environment are becoming stringent in the region, and as a result, companies are adopting simulators to test product viability before manufacturing it.
  • Also, the innovative city initiatives taken by the government in this region have positively impacted the adoption trend of simulation and analysis technology to enhance monitoring and improve surveillance.
Simulation Software Market - Growth Rate by Region

Simulation Software Industry Overview

The simulation software market is highly competitive, with many domestic and international players. The key strategies adopted by the major players in the market are product innovation, mergers, acquisitions, and partnerships.

In November 2023, Ansys, the global player in engineering simulation software, and Materialise, a global player in 3D printing software and service solutions, are joining forces to deliver integrated digital solutions to help overcome workflow challenges in the AM industry. The partnership will seamlessly integrate Ansys Additive Suite into Materialise's data and build preparation tool, Magics. An initial solution, to be previewed at Formnext 2023 and arriving in Q2 2024, will provide a best-in-class workflow for managing AM industrial projects across industries, including the medical and aerospace sectors.

Simulation Software Market Leaders

  1. Siemens AG

  2. Rockwell Automation Inc.

  3. Schneider Electric SE

  4. Autodesk Inc.

  5. Ansys Inc.

*Disclaimer: Major Players sorted in no particular order

Simulation Software Market Concentration
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Simulation Software Market News

  • In March 2023, Simulations Plus, Inc., a provider of modeling and simulation software and services for pharmaceutical protection and effectiveness, announced that it joined into a cooperative research contract with the Institute of Medical Biology of the Polish Academy of Sciences to develop new compounds for the RORγ/RORγT nuclear receptors using its advanced artificial intelligence machine learning technology in the ADMET Predictor software platform.
  • In January 2023, Real-Time Innovations (RTI), the software framework organization for autonomous systems, reported its association with Ansys, a player in simulation software. This partnership accelerates developing, testing, and deploying high-performance and high-reliability distributed procedures by authorizing them to be simulated without their underlying hardware, which may have restricted availability or be cost-prohibitive.

Simulation Software Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Impact of the COVID-19 on the Market

    4. 4.4 Market Drivers

      1. 4.4.1 Growing Automotive Sector

    5. 4.5 Market Restraints


    1. 5.1 Deployment Type

      1. 5.1.1 On-premise

      2. 5.1.2 Cloud

    2. 5.2 End-user Industry

      1. 5.2.1 Automotive

      2. 5.2.2 IT and Telecommunication

      3. 5.2.3 Aerospace and Defense

      4. 5.2.4 Energy and Mining

      5. 5.2.5 Education and Research

      6. 5.2.6 Electrical and Electronics

      7. 5.2.7 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East & Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Altair Engineering Inc.

      2. 6.2.2 The MathWorks Inc.

      3. 6.2.3 Autodesk Inc.

      4. 6.2.4 Cybernet Systems Corp.

      5. 6.2.5 Bentley Systems Incorporated

      6. 6.2.6 PTC Inc.

      7. 6.2.7 CPFD Software LLC

      8. 6.2.8 Design Simulation Technologies Inc.

      9. 6.2.9 Synopsys Inc.

      10. 6.2.10 Siemens AG

      11. 6.2.11 Ansys Inc.

      12. 6.2.12 Dassault Systèmes SE

      13. 6.2.13 Simio LLC

      14. 6.2.14 Lanner Group Ltd

      15. 6.2.15 SIMUL8 Corporation

      16. 6.2.16 CONSELF Srl

      17. 6.2.17 SolidWorks Corporation

      18. 6.2.18 Rockwell Automation Inc.

      19. 6.2.19 The COMSOL Group

      20. 6.2.20 Schneider Electric SE

    3. *List Not Exhaustive


**Subject to Availability
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Simulation Software Industry Segmentation

Simulation is the imitation of the operation of a real-world process or system. The act of simulating something first requires a mathematical model to be developed. This replicated model represents the key characteristics of the physical process. The model basically represents the system itself, whereas the simulation software runs the operation of the system over time.

The Simulation Software Market is segmented by Deployment (On-premise, Cloud), End-user Industry (Automotive, IT and Telecommunication, Aerospace and Defense, Energy and Mining, Education and Research), and Geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Deployment Type
End-user Industry
IT and Telecommunication
Aerospace and Defense
Energy and Mining
Education and Research
Electrical and Electronics
Other End-user Industries
North America
Latin America
Middle East & Africa
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Simulation Software Market Research FAQs

The Simulation Software Market size is expected to reach USD 12.12 billion in 2024 and grow at a CAGR of 12.06% to reach USD 21.43 billion by 2029.

In 2024, the Simulation Software Market size is expected to reach USD 12.12 billion.

Siemens AG, Rockwell Automation Inc., Schneider Electric SE, Autodesk Inc. and Ansys Inc. are the major companies operating in the Simulation Software Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Simulation Software Market.

In 2023, the Simulation Software Market size was estimated at USD 10.82 billion. The report covers the Simulation Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Simulation Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The major factors driving the Simulation Software Industry are a) Increased product development complexity b) Growing emphasis on product quality and innovation

Simulation Software Industry Report

The simulation software industry is on a remarkable growth trajectory, fueled by the escalating need for efficient solutions to slash production and training costs across diverse sectors. This surge in demand is driven by the desire to boost performance, mitigate risks, and streamline operations through virtual testing and prototyping. The adoption of cutting-edge technologies like Digital Twin, AR/VR, and 3D printing is revolutionizing processes in key industries such as aerospace, automotive, and healthcare, with the automotive sector, in particular, seeing rapid growth due to advancements in autonomous and electric vehicles. Simulation software is crucial in accelerating product development and ensuring compliance, especially in the North American market, known for its emphasis on innovation and sustainability. The competitive landscape is marked by key players focusing on innovation, strategic alliances, and mergers to strengthen their market presence. As per Mordor Intelligence™ Industry Reports, the simulation software market is witnessing significant size, share, and revenue growth, offering a comprehensive forecast outlook and historical analysis. Businesses leveraging simulation software stand to optimize operations and secure a competitive advantage in the digital era. Get a glimpse of this dynamic industry with a free report PDF download from Mordor Intelligence™.

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Simulation Software Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)