Simulation software predicts the behavior of a system using simulation tools, allowing users to observe operations through simulation rather than direct execution.
The primary simulation software components comprise software and services. Simulation software, a collection of instructions, data, or computer programs, is used to run machines and carry out specific activities. Deployed on-premises and in the cloud, simulation software is applied in product engineering, research and development, and gamification across various end-user industries, including automotive, IT and telecommunication, aerospace and defense, energy and mining, education and research, electrical and electronics, among others.
The simulation software market research report is one of a series of new reports from The Business Research Company that provides simulation software market statistics, including simulation software industry global market size, regional shares, competitors with a simulation software market share, detailed simulation software market segments, market trends and opportunities, and any further data you may need to thrive in the simulation software industry. This simulation software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The simulation software market size has grown rapidly in recent years. It will grow from $17.97 billion in 2024 to $20.15 billion in 2025 at a compound annual growth rate (CAGR) of 12.1%. The growth in the historic period can be attributed to training and skill development, risk management, product design and prototyping, medical research and training, efficiency and cost savings.
The simulation software market size is expected to see rapid growth in the next few years. It will grow to $36.31 billion in 2029 at a compound annual growth rate (CAGR) of 15.9%. The growth in the forecast period can be attributed to digital twin technology, rise of virtual reality (VR) and augmented reality (AR), cross-industry applications, remote work and collaboration, healthcare simulation advances. Major trends in the forecast period include cross-disciplinary simulation platforms, real-time simulation for rapid prototyping, simulation for cybersecurity training, human-in-the-loop simulation, focus on sustainability and environmental simulation.
The simulation software market is anticipated to grow due to the development of autonomous vehicles. Autonomous vehicles can sense their surroundings and operate without human intervention. Simulation software plays a crucial role in validating, designing, and optimizing products and solutions for autonomous vehicles. The General Office of Shanghai Municipal People's Government plans to increase investments in autonomous driving, expecting the autonomous driving business to grow to a $72 billion industry by 2025. The development of autonomous vehicles is expected to drive the growth of the simulation software market.
The increase in mining activities is anticipated to drive the growth of the simulation software market in the coming years. Mining activities involve the extraction of valuable minerals, ores, and other geological resources from the earth's crust. To efficiently locate and extract these resources, simulation software plays a crucial role in geological exploration by enabling mining companies to create accurate digital models of potential sites, helping predict and visualize the distribution of valuable minerals within a given geological formation. For example, in February 2023, the United States Geological Survey, a US-based federal agency covering biology, geography, geology, and hydrology research, reported that US mines produced approximately $98.2 billion in nonfuel mineral commodities in 2022, marking a $3.6 billion increase from the revised total of $94.6 billion in 2021. Therefore, the growth in mining activities is contributing to the expansion of the simulation software market.
Technological advancement is a prevailing trend in the simulation software market, with major players focusing on creating innovative technologies integrated with machine learning. Ansys, a US-based engineering simulation software company, introduced a machine learning-based partial differential equation solver in January 2022. This solution allows for more efficient simulations with less training data, ensuring quicker and more effective simulation processes.
Major companies in the simulation software market are introducing advanced solutions, such as autonomous vehicle simulation solutions, to gain a competitive advantage. Claytex Services Limited, a UK-based developer of simulation solutions, launched AVSandbox in June 2022. AVSandbox is designed exclusively for automotive OEMs and end-user organizations to test, develop, and validate autonomous vehicle safety. This solution provides a sensor-realistic simulation environment for autonomous vehicles, supporting the development and deployment of advanced driver assistance systems.
In August 2024, Synopsys, Inc., a US-based software company, acquired Ansys, Inc. for an undisclosed amount. Through this acquisition, Synopsys intends to bolster its presence in the simulation software market by merging advanced simulation capabilities with its electronic design automation tools, thereby improving the efficiency and accuracy of chip design processes. Ansys is a US-based company that provides simulation software.
Major companies operating in the simulation software market include Microsoft Corporation, Siemens AG, International Business Machines Corporation (IBM), Oracle Corporation, SAP SE, Rockwell Automation Inc., Dassault Systemes SE, Keysight Technologies Inc., Autodesk Inc., DNV GL AS, Ansys Inc., PTC Inc., Unity Technologies Inc., AVEVA Group plc, MathWorks Inc., Bentley Systems Incorporated, Altair Engineering Inc., Lanner Group Ltd., MSC Software Corporation, ESI Group SA, COMSOL Inc., Simulations Plus Inc., GSE Systems Inc., AnyLogic North America LLC, Cybernet Systems Corporation, Tecplot Inc., Simul8 Corporation, OpenFOAM Foundation
North America was the largest region in the simulation software market in 2024. The regions covered in the simulation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the simulation software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The simulation software market includes revenues earned by entities by simulation development services, training and support and maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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.
Simulation Software Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on simulation software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Where is the largest and fastest growing market for simulation software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The simulation software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The market characteristics section of the report defines and explains the market.
The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
The forecasts are made after considering the major factors currently impacting the market. These include:
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
Market segmentations break down the market into sub markets.
The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:1) By Component: Software; Services
2) By Application: Product Engineering; Research And Development; Gamification
3) By Deployment: On-Premises; Cloud
4) By End-user Industry: Automotive; IT And Telecommunication; Aerospace And Defense; Energy And Mining; Education And Research; Electrical And Electronics; Other End-User Industries
Subsegments:
1) By Software: Simulation Platforms; Modeling Tools; Analysis And Visualization Software
2) By Services: Consulting Services; Integration And Deployment; Support And Maintenance
Companies Mentioned: Microsoft Corporation; Siemens AG; International Business Machines Corporation (IBM); Oracle Corporation; SAP SE
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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Table of Contents
1. Executive Summary
2. Simulation Software Market Characteristics
3. Simulation Software Market Trends And Strategies
4. Simulation Software Market - Macro Economic Scenario Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics And Covid And Recovery On The Market
5. Global Simulation Software Growth Analysis And Strategic Analysis Framework
5.1. Global Simulation Software PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
5.2. Analysis Of End Use Industries
5.3. Global Simulation Software Market Growth Rate Analysis
5.4. Global Simulation Software Historic Market Size and Growth, 2019 - 2024, Value ($ Billion)
5.5. Global Simulation Software Forecast Market Size and Growth, 2024 - 2029, 2034F, Value ($ Billion)
5.6. Global Simulation Software Total Addressable Market (TAM)
6. Simulation Software Market Segmentation
6.1. Global Simulation Software Market, Segmentation By Component, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Software
Services
6.2. Global Simulation Software Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Product Engineering
Research And Development
Gamification
6.3. Global Simulation Software Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
On-Premises
Cloud
6.4. Global Simulation Software Market, Segmentation By End-user Industry, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Automotive
IT And Telecommunication
Aerospace And Defense
Energy And Mining
Education And Research
Electrical And Electronics
Other End-User Industries
6.5. Global Simulation Software Market, Sub-Segmentation Of Software, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Simulation Platforms
Modeling Tools
Analysis And Visualization Software
6.6. Global Simulation Software Market, Sub-Segmentation Of Services, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Consulting Services
Integration And Deployment
Support And Maintenance
7. Simulation Software Market Regional And Country Analysis
7.1. Global Simulation Software Market, Split By Region, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
7.2. Global Simulation Software Market, Split By Country, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion