Simulation Software Market Analysis Report By Component, By Deployment, By End Use, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The simulation software market size across the globe was valued at USD 7.19 billion in 2018. It is projected to witness a CAGR of 16.98% CAGR over the forecasted years, 2019 to 2025. The surging need for the creation of a virtual environment for testing the efficiency and applicability of various products is projected to drive the demand for simulation software across several industrial sectors.

The process of product simulation provides benefits like a decrease in production and training costs to many organizations. Also, such software is gaining acceptance in the defense sector as it can determine the impact and effects of several military weapons. Moreover, the rising adoption of such simulation software by automobile manufacturers for determining and reducing CO2 emissions is projected to drive its market demand.

This software is largely being adopted by several companies on account of their feature of reducing production costs. They provide a hassle-free output from the production process that can help in reducing manufacturing faults. It can thus facilitate in reduction of time consumed for R&D activities.

These virtual testing technologies are also making usage of AI (Artificial Intelligence) and IoT (Internet of Things) for their product development. It also facilitates testing with real-time situations and data, thereby reducing the costs incurred in physical testing. Thus, the market for simulation software is projected to gain traction in the upcoming years.

Component Insights

The component segment of software held the largest share across the global simulation software market in 2018 and is projected to continue its dominance over the forecasted period. This can be attributed to its benefits like reliability, uninterrupted testing, and data safety. The emergence of finite element analysis across sectors like aerospace, automotive, and defense is gaining traction across the globe, thereby driving the demand for simulation software.

The segment of services is projected to witness the highest CAGR from 2019 to 2025. This can be associated with rising awareness about the virtual process of product development across several organizations and governments. Services being offered like consulting and design, maintenance, and implementation of the simulation are driving the market growth.

Deployment Insights

The cloud deployment segment is projected to register the fastest growth with the highest CAGR from 2019 to 2025. This can be attributed to its features like cost-effectiveness and easy installation as compared to the conventional software. Moreover, ease of up-gradation and maintenance is driving the demand for cloud deployment.

In 2018, the on-premise segment of deployment held the largest share across the global market. It is the conventional deployment segment that involves on-site software installation. It is being used by organizations that are willing to maintain confidentiality and security of their data to protect it from security breaches.

End-Use Insights

The market can be classified into aerospace and defense, automotive, electrical and electronics, healthcare, industrial manufacturing, and others based on its end-use. In 2018, the automotive segment held the largest share across the global market. This can be associated with the rising adoption of such tools for rapid product development and testing.

The segment of aerospace and defense is anticipated to witness substantial growth from 2019 to 2025. This can be associated with the rising usage of simulators in designing defense equipment and aircraft. Moreover, the usage of simulators in training soldiers is also gaining traction across the globe. The increasing concerns about national security and terrorism have forced several governments to invest hugely in R&Ds, thereby driving the demand for simulation software in the upcoming years.

Regional Insights

In 2018, North America held the largest share across the global simulation software market and is projected to continue its dominance from 2019 to 2025. This can be attributed to the rising presence of key players across Canada and the U.S. Moreover, huge investments being made in activities of research and development to develop advanced software are projected to propel market growth.

The Asia Pacific is projected to register significant growth over the forecasted period. This can be associated with rising manufacturing and assembling activities being carried out across countries like India and Japan. Also, rapid developments in infrastructure and healthcare activities across this region are projected to further fuel up the demand for simulation software in the upcoming years.

COVID-19 Impact Insights

The market has been negatively impacted on account of the ongoing COVID-19 pandemic. This can be associated with the reduction in R&D investments across the automobile and aerospace sector. Also, the deployments in software updates and launches are getting delayed on account of lockdown and work from restrictions. These factors are projected to hinder market growth.

However, the market is projected to show substantial growth in the post-pandemic period. This can be associated with the rapid technological advances and shifting trend towards virtual testing and simulation of various machines and components without damaging them.

Simulation Software Market Share Insights

The key players in the market are Autodesk Inc., ANSYS, Inc., Altair Engineering, Inc., PTC, Dassault Systemes, and Simulations Plus. They are continuously engaged in implementing several strategies like mergers, acquisitions, investments, and partnerships to widen their global reach and expand their product portfolio.

This software is largely being used across the automobile industry for testing multiple vehicle variants. For example, BMW Group has established a simulation center in Munich, Germany in 2018. This center is well equipped with an enhanced fidelity simulator which is capable to represent transverse, longitudinal, and rotational vehicle movements.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For this study, Million Insights has segmented the global simulation software market based on component, deployment, end-user, and region:

• Component Outlook (Revenue, USD Million, 2014 - 2025)
    • Software
    • Service

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)
    • On-premise
    • Cloud

• End-Use Outlook (Revenue, USD Million, 2014 - 2025)
    • Automotive
    • Aerospace & Defense
    • Electrical & Electronics
    • Industrial Manufacturing
    • Healthcare
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
    • Europe
        • The U.K.
        • Germany
        • France
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa