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Simulation Software Market - By Offering, By Deployment Model, By Simulation (Finite Element Analysis, Computational Fluid Dynamics, Multibody Dynamics, Virtual Simulation, Agent-Based Simulation, System Simulation), By End-use Industry & Forecast, 2024 – 2032

  • Report ID: GMI8940
  • Published Date: Apr 2024
  • Report Format: PDF

Simulation Software Market Size

Simulation Software Market was valued at USD 13.1 billion in 2023 and is estimated to register a CAGR of over 12% between 2024 & 2032. Industry growth is attributed to the increasing adoption of virtual prototyping. Virtual prototyping allows companies to test products and processes in a simulated environment before physical prototypes are built. This reduces time-to-market, cuts down on development costs, and minimizes the risk of failure.

Simulation Software Market

Against this backdrop, in February 2024, Siemens Digital Industries unveiled simulation software tailored for electric vehicle (EV) developers and their supply chains, enabling precise prediction of e-machine performance, including axial-flux drives. Known as Simcenter E-Machine Design, this software seamlessly integrates electromagnetic and thermal simulation capabilities. By facilitating accurate virtual testing, the software diminishes the need for physical prototypes, thereby expediting innovation within the industry.

Consistent technological breakthroughs will play a key role in shaping the simulation software industry outlook through 2032. Constant advancements in computing power, algorithms, and simulation techniques have been a major driver of the market. As technology improves, simulations become more accurate, faster, and capable of handling larger and more complex datasets. This drives demand for simulation software across various industries, such as automotive, aerospace, healthcare, and manufacturing. For instance, in March 2024, Trimble unveiled the latest versions of its Tekla software suite for 2024, offering comprehensive solutions for designing, analyzing, detailing, and constructing steel structures. Tekla 2024 is designed to support firms undergoing digital transformations, capitalizing on the multiple benefits of embracing full digitalization.

Simulation software often operates within complex technological ecosystems, requiring seamless integration with other software tools and systems used within an organization. Achieving this integration can be challenging, particularly when dealing with legacy systems or proprietary software. Additionally, the complexity of simulation software itself present a barrier to adoption for users who lack specialized technical expertise. Simplifying user interfaces and improving interoperability with other software solutions could help mitigate these challenges.

Simulation Software Market Trends

The scope of simulation software is likely to expand into new application areas beyond traditional domains like engineering and manufacturing. Industries such as healthcare, logistics, finance, and entertainment are increasingly recognizing the benefits of simulation for optimizing processes, improving outcomes, and reducing risks. For instance, in March 2024, Mars, renowned for brands like M&M’s and Snickers, collaborated with engineering software leader Ansys to develop simulation software for packaging. This innovative approach enables virtual testing and prototyping, initially focusing on its Snacking range. By employing multi-physics simulation technology, Mars gains comprehensive insights into packaging production phases, including wrapping and drop tests. Researchers report significant reductions in development time (up to 40%) and plastic usage for testing (approx. 246 tons). This investment aligns with Mars's commitment to achieving 100% reusable, recyclable, or compostable packaging for its products.

Simulation Software Market Analysis

Simulation Software Market Size, By Offering, 2022 – 2032, (USD Billion)

Based on offering, the market is divided into software and services. In 2023, the software segment is growing at a fastest rate and is expected to cross USD 25 billion by 2032. The demand for simulation software is propelled by several factors. As industries aim for increased efficiency and cost-effectiveness, simulation software provides a valuable tool for optimizing processes, predicting outcomes, and mitigating risks. The complexity of modern systems, in line with the need for rapid innovation, necessitates thorough testing and prototyping, which simulation software facilitates without the need for physical prototypes. Additionally, the rise of digital transformation initiatives across various sectors fuels the adoption of simulation software as companies seek to leverage advanced technologies for competitive advantage and market differentiation.

Simulation Software Market Share, By Deployment Model, 2023

Based on deployment model, the market is categorized into on-premises and cloud. The on-premises segment accounted for 55.3% of the market share in 2023. On-premises deployment model is growing fastest in the market due to several factors. Many organizations, particularly those in highly regulated industries or with sensitive data, prefer the control, security, and customization offered by on-premises solutions. Additionally, certain applications require high computational power or low-latency environments that are better suited to on-premises deployment. These factors drive the demand for on-premises simulation software solutions over cloud-based alternatives.


North America Simulation Software Market Size, 2022 -2032, (USD Billion)

North America is the fastest-growing region in the global simulation software market with a major share of over 33% in 2023. North America boasts a robust technology ecosystem with a high concentration of innovative companies and leading research institutions driving advancements in simulation software. The region's diverse industrial landscape, spanning aerospace, automotive, healthcare, and manufacturing, creates a strong demand for simulation tools to optimize processes, enhance product development, and ensure regulatory compliance. Additionally, favorable government policies, access to capital, and a skilled workforce further support the growth of the simulation software industry in North America.

Simulation Software Market Share

Ansys and Dassault Systemes are leading the simulation software industry holding over 27% market share. Ansys has expertise in providing a comprehensive suite of simulation solutions tailored to diverse industries, offering advanced capabilities for finite element analysis, computational fluid dynamics, and electromagnetic simulations.

Dassault Systèmes, is renowned for its CATIA and SIMULIA brands, offers integrated simulation and design solutions empowering product innovation and optimization. These companies maintain their leadership through continuous innovation, strategic partnerships, and customer-centric approaches, catering to the evolving needs of industries such as aerospace, automotive, and manufacturing, thus solidifying their positions as leaders in the market.

Simulation Software Market Companies

Major players operating in the market are:

  • Altair Engineering, Inc.
  • Ansys
  • Autodesk, Inc.
  • Dassault Systemes
  • Bentley Systems, Incorporated
  • Siemens
  • Honeywell
  • Keysight
  • Aspen Technology, Inc.
  • Simscale GmbH
  • Synopsys, Inc.
  • Rescale, Inc.
  • Numeca International
  • Mathworks Inc.

Simulation Software Industry News

  • In March 2024, Ansys launched a web-based technology facilitating remote access to Computational Fluid Dynamics (CFD) simulations. This innovation allows users to conduct simulations from any location, enhancing collaboration, flexibility, and efficiency in engineering workflows, while ensuring seamless access to powerful simulation capabilities.
  • In January 2024, Synopsys, a leading chip design company, signed a definitive agreement to purchase ANSYS, a simulation software firm, in a deal valued at USD 35 billion. This acquisition could enhance Synopsys' standing within the electronic design automation (EDA) and simulation software sector, solidifying its market presence.

The simulation software market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Offering

  • Software
  • Services
    • Professional services
    • Managed services
    • Consulting services

Market, By Deployment Model

  • On-premises
  • Cloud

Market, By Simulation

  • Finite Element Analysis (FEA)
  • Computational Fluid Dynamics (CFD)
  • Multibody Dynamics
  • Virtual Simulation
  • Agent-Based Simulation
  • System Simulation
  • Others

Market, By End-users Industry

  • Manufacturing
  • Automotive
  • Aerospace and defense
  • Construction and architecture
  • Healthcare
  • Education and training
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • MEA
    • South Africa
    • UAE
    • Saudi Arabia
    • Rest of MEA


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The simulation software market was valued at USD 13.1 billion in 2023 and is set to grow at 12% CAGR between 2024 and 2032, driven by the increasing adoption of virtual prototyping.

The on-premises deployment model segment in the simulation software market accounted for 55.3% share in 2023 and is set to grow rapidly by 2032, owing to high computational power and low-latency requirements.

North America industry held a over 33% revenue share in 2023 and is set to expand rapidly by 2032, owing to the presence of a robust technology ecosystem.

Altair Engineering, Inc., Ansys, Autodesk, Inc., Dassault Systemes, Bentley Systems, Incorporated, Siemens, Honeywell, Keysight , Aspen Technology, Inc., Simscale GmbH, Synopsys, Inc., Rescale, Inc., Numeca International among others.

Simulation Software Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 300
  • Countries covered: 24
  • Pages: 250
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