The simulation software market was valued at USD 8.24 billion in 2019, and it is expected to reach USD 19.22 billion, by 2025. The market is expected to witness a CAGR of 15.14% during the forecast period (2020 - 2025). The simulation software provides a rich training experience to the user for various end-user applications without using any physical asset and loss to the company, which is primarily the major reason to boost the market growth over the forecast period.
- The simulation software is primarily a replica based on the design of a real-life scenario incorporated with a specific set of mathematical formulas. It enables a user to observe the operation of a process by running a replicated simulation without actually implementing the program in actual.
- The integration and usage of 3D printing in various manufacturing processes is witnessing increased adoption across the globe. However, during the process, some distortion may occur due to which the major firms using the technology are investing in new simulation software solutions to understand and make the process distortion free.
- Also, due to its advantageous characteristics, simulation software is also widely used in education and research segment, which is also boosting the industry growth over the forecast period.
- Moreover, creating real-time simulation scenarios saves a lot of money and takes a lot less time to execute, which can encourage and enhance the core business competencies, which is expected to have a positive impact on the market growth.
Scope of the Report
Simulation is the imitation of the operation of a real-world process or system. The act of simulating something first requires a mathematical model to be developed, this replicated model represents the key characteristics of the physical process. The model basically represents the system itself, whereas the simulation software runs the operation of the system over time.
Key Market Trends
Automotive Segment to Witness High Growth
- The automotive industry across the globe is witnessing a paradigm shift in terms of adopting various advanced technologies in its value chain. The macro-trends, such as the emergence of autonomous vehicles and the constant drive towards more efficient and electric vehicles have majorly influenced the increased demand for simulations in the automotive sector, while the traditional demand in vehicle simulations continues to grow and gain general acceptance throughout the industry.
- Moreover, with the aid of simulation software, manufacturers are also testing multiple variants of the vehicle in all possible driving situations and terrains are played with immense effort, even before the existence of the prototype of the car. In September 2018, BMW has built a huge hi-tech driving simulation center in its Munich headquarters.
- With the increased R&D expenditure in the automotive industry, it is evident that with the emergence of autonomous vehicles, electric vehicles the simulation software market is poised to grow further.
North America Occupies the Largest Market Share
- With the growing number of SME units in the region coupled with the rising focus on research and development activities in North America, the market is expected to witness significant growth over the forecast period.
- Furthermore, the government in the North American region is constantly focusing on the innovations and investments for a greener work environment. The regulations associated with the eco-friendly work environment is becoming stringent in the region owing to which the companies are adopting simulators to test product viability before manufacturing it.
- Also, the smart city initiatives taken by the government in this region have positively impacted the adoption trend of the simulation and analysis technology to enhance the monitoring and improve the surveillance.
The simulation software market appears to be highly competitive with the presence of many domestic and international players in the market. The market is moderately concentrated moving towards the fragmented stage in the near future. The key strategies adopted by the major players in the market are product innovation, mergers, and acquisitions, partnerships. Some of the major players in the market are Siemens AG, Rockwell Automation Inc., Schneider Electric SE among others.
- June 2018 - Mathworks launched a predictive maintenance toolbox under MATLAB product which helps the engineers test and design predictive maintenance and condition monitoring algorithm.
- November 2018 - Siemens launched a new simulation software (Simcenter 3D AM Process Simulation) to predict distortion during 3D printing. The product utilizes a digital twin to simulate the process prior to commencing printing, which in turn helps in anticipating distortion and compensating through a corrected geometry.
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