Simulation Software Market - Growth, Trends, Forecasts (2020 - 2025)

The simulation software market was valued at USD 8.24 billion in 2019, and it is expected to reach USD 19.22 billion by 2025. The market is expected to witness a CAGR of 15.14% during the forecast period (2020 - 2025). Initially, simulation software was only used to tweak production lines. But in the current market scenario, it is being used to test new concepts, accelerate product developments, and demonstrate regulatory compliance.

• Often manufacturers are investing in simulation software when there is uncertainty about making changes to a production line or when building a brand-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 by investing in simulation software, manufacturers can identify and solve issues in advance. Simulation software can also be used to 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, for 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 it 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 toolset with machine learning capabilities is significantly contributing to the growth of the market studied. In 2019, significant investments were made to empower designers to reduce the number of errors, thereby, saving considerable time is expected to produce results in the future.
• Owing 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 to increase their R&D investments and adopt simulation software.
• For instance, in January 2020, Electric vehicle company, Arcimoto Inc., announced that it was working with XponentialWorks and ParaMatters, to design and additively manufacture lightweight components for its Fun Utility Vehicle (FUV). Deploying ParaMatters’ AI-powered generative design software and several elements are being redesigned, generating alternative parts that carry much of the same performance characteristics but at a lighter weight.
• The outbreak of COVID-19 has pushed organizations to act quickly to protect employees, address critical challenges, and help fight to minimize the 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. Thus, boosting the market growth.