Simulation Software Market Report 2025

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 Systèmes 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.

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 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 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.

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