Simulation Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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.

Simulation Software Industry Overview

Simulation Software Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 11.68 %

Major Players


*Disclaimer: Major Players sorted in no particular order


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Simulation Software Market Analysis

The simulation software market was valued at USD 7.80 billion in 2020, and it is expected to reach USD 15.09 billion by 2026. The market is expected to witness a CAGR of 11.68% during the forecast period (2021 - 2026). 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.

Simulation Software Industry Segments

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.

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 Trends

This section covers the major market trends shaping the Simulation Software Market according to our research experts:

Automotive Segment to Witness High Growth

  • 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 the 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 enable 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 by 2020, 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.
Automotive Industry Revenue, In USD billion, Global, Between 2017 and 2030

North America Occupies the Largest Market Share

  • With the growing number of SME units in the region, coupled with 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 smart city initiatives taken by the government in this region have positively impacted the adoption trend of the simulation and analysis technology to enhance the monitoring and improve the surveillance.
Simulation Software Market - Growth Rate by Geography (2020 - 2025)

Simulation Software Market Competitor Analysis

The simulation software market appears to be highly competitive, with the presence of many domestic and international players. The key strategies adopted by the major players in the market are product innovation, mergers, acquisitions, and partnerships. Some of the key developments in the market are:

  • March 2020 - Ansys Inc. entered into a definitive agreement to acquire Lumerical Inc., which is a leading developer of photonic design and simulation tools. The acquisition may add a wide range of photonics products to the Ansys Multiphysics portfolio, providing customers with a full set of solutions to solve its next-generation product challenges.
  • November 2019 - Altair Engineering Inc. launched a new manufacturing simulation solution for additive manufacturing, Inspire Print3D. The solution is aimed explicitly at selective laser melting (SLM). The company also claims that the software may provide a fast and accurate toolset to design and simulate manufacturing.

Simulation Software Market Top Players

  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

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

    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 Market Research FAQs

The Simulation Software Market is studied from 2018 - 2028.

The Simulation Software Market is growing at a CAGR of 11.68% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

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

Simulation Software Industry Reports

In-depth industry statistics and market share insights of the Simulation Software sector for 2020, 2021, and 2022. The Simulation Software research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Simulation Software report PDF.

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