Building Energy Simulation Software Market Report 2025

This Building Energy Simulation Software market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The building energy simulation software market size has grown rapidly in recent years. It will grow from $5.85 billion in 2024 to $6.67 billion in 2025 at a compound annual growth rate (CAGR) of 14%. The growth in the historic period can be attributed to growing smart city projects, need for sustainable construction practices, demand for sustainable and energy-efficient solutions, increase in adoption of IoT and Smart Building technologies, retrofitting of existing buildings.

The building energy simulation software market size is expected to see rapid growth in the next few years. It will grow to $11.14 billion in 2029 at a compound annual growth rate (CAGR) of 13.7%. The growth in the forecast period can be attributed to government regulations and policies for energy efficiency, advancements in building information modeling (BIM) and simulation technologies, emergence of net zero energy buildings, increasing awareness of environmental impact, government regulations to reduce carbon emissions. Major trends in the forecast period include Integration of artificial intelligence (AI) and machine learning (ML), integration with Building Information Modeling tools, integration with AR and VR, integration with Internet of Things (IoT), integrated with Building Information Modeling (BIM) and Internet of Things (IoT).

Rising energy demand is anticipated to drive the growth of the building energy simulation software market. As cities increasingly become centers for electricity-dependent activities, including transportation, heating, cooling, and the use of electronic devices, the demand for energy intensifies. Building energy simulation software helps optimize energy usage and enhance grid efficiency by offering valuable insights into consumption patterns and supporting informed decision-making. For example, in 2022, the Energy Information Administration, a U.S.-based government agency, reported that primary energy consumption in the United States reached 100.4 quadrillion British thermal units (quads), marking a 3% increase from 2021. Thus, rising energy demand is fueling the growth of the building energy simulation software market.

Leading companies in the building energy simulation software market are developing technologies such as hybrid compilers (HyCo) to improve the accuracy and efficiency of energy modeling, optimize building designs for energy performance, and allow real-time analysis of energy consumption patterns. A hybrid compiler (HyCo) combines multiple modeling approaches to enhance the precision and effectiveness of energy simulations in building design. For example, in December 2023, Renesas Electronics, a Japan-based semiconductor manufacturer, launched the AI Workbench. The AI Workbench is designed to support automotive AI engineers with an integrated virtual environment for designing, simulating, and fine-tuning their software directly in the cloud. This platform utilizes Microsoft Azure services, giving engineers access to advanced tools without requiring local installations or physical evaluation boards.

In October 2023, Glodon Company Limited, in collaboration with EQUA Simulation AB, unveiled innovative solutions aimed at promoting sustainable MEP (mechanical, electrical, and plumbing) design. This strategic partnership endeavors to mitigate the carbon footprint of MEP systems and optimize energy consumption. By championing science-driven design and refurbishment decisions, the initiative targets building owners, governmental bodies, and end users. EQUA Simulation AB, a Sweden-based firm specializing in simulation tools, contributes its expertise to bolster the development of sustainable MEP design solutions.

Major companies operating in the building energy simulation software market are Siemens AG, Dassault Systèmes, Honeywell International Inc., GE Vernova Inc., Schneider Electric, Johnson Controls International plc, Carrier Corporation, Trane Technologies plc, Harbinger Group Inc., Autodesk Inc., Trimble Inc., UL Solutions, Integrated Environmental Solutions (IES) Ltd., ANSYS Inc., Bentley Systems Incorporated, Aurora Solar Technologies Inc., WeaveGrid Inc., EnergyCAP LLC., GARD Analytics, DesignBuilder Software Ltd., EnergyPlus, EnergySoft LLC, Batia Construction Company, Carmel Software Corporation., Equest Software Inc.

North America was the largest region in the Building Energy Simulation Software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the building energy simulation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the building energy simulation software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Building energy simulation software entails specialized computer programs crafted to model and simulate the energy performance of buildings. These sophisticated solutions leverage algorithms and input data to analyze factors including building design, materials, heating, Ventilation, Air Conditioning (HVAC) systems, and environmental conditions. The aim is to optimize energy efficiency and provide valuable insights for decision-making in both construction and retrofit projects.

The primary components of building energy simulation software encompass software and services. Software comprises computer programs tailored for modeling and analyzing the energy usage of buildings. These solutions can be deployed either on-premise or via cloud-based platforms, catering to organizations of varying sizes including small and medium enterprises (SMEs) and large enterprises. Additionally, these software solutions find utility across diverse end-user industries such as architecture and construction, government and defense, automotive and transportation, manufacturing and engineering, among others.

The building energy simulation software market research report is one of a series of new reports that provides Building energy simulation software market statistics, including Building energy simulation software industry global market size, regional shares, competitors with a Building energy simulation software market share, detailed Building energy simulation software market segments, market trends, and opportunities, and any further data you may need to thrive in the Building energy simulation software industry. This Building energy simulation software research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The building energy simulation software market consists of revenues earned by entities by providing services such as software licensing, consulting, training, and technical support. The market value includes the value of related goods sold by the service provider or included within the service offering. The building energy simulation software market also includes sales of data acquisition devices, sensors, and monitoring equipment used for collecting real-time data on building performance parameters. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

This product will be delivered within 3-5 business days.