Simulation Software - Global Market Outlook (2021 - 2028)

Simulation Software - Global Market Outlook (2021 - 2028)

According to Stratistics MRC, the Global Simulation Software Market is accounted for $11.42 billion in 2021 and is expected to reach $38.61 billion by 2028 growing at a CAGR of 19.0% during the forecast period. Simulation software is a program that allows companies to create a dummy process and observe an operation without actually performing it. It enables testing the same or modified system with different inputs, tracking, and analyzing responses. Simulation software is used widely to design equipment so that the final product could be close to the design specifications without being expensive in-process modification.

Market Dynamics:

Driver:

Emerging scope of simulations to digital twins

The usage of simulation is expected to increase as product development gets more complicated and sophisticated, and the risks and consequences of failure continue to rise. Companies will be much more reliant on their capacity to employ numerous physics and do entire system simulations. Furthermore, the capacity to create a ""digital twin"" and use real-world operational data from sensors to perform simulations based on live environments would broaden the scope of simulation's applications beyond engineers. As a result, the present level of simulation use indicates the potential for future prospects in many businesses throughout the world.

Restraint:

Integrating software is becoming more difficult, and data security is becoming more of a problem

Developers and testers are frequently confronted with a circumstance in which a simulation model performs well during testing but fails in real-world scenarios. Such discrepancies are known as data leakage. Data leakage is an error that occurs when information from the test and training sets is shared. The test set should represent previously unseen data in a real-world setting, whereas the training set contains data that has already been run on the system. Data leakage is common in most scenarios owing to human errors since developers have access to both train and test data sets. Data leaking causes an unexpectedly high simulation outcome, leading to firms or organisations being misled into implementing things in real-world circumstances. This has an impact on the simulation process as well as the total costs.

Opportunity:

Increasing spending on aerospace and military areas

Globally high spending on aerospace and military has provided an opportunity for simulation software innovation and implementation. The military frequently utilises war simulations to teach soldiers, which necessitates the usage of military simulation software. For such training, the US Army has employed virtual reality simulation technology. The incorporation of advanced technologies, such as AI and ML, can help military simulation software to become more efficient. The technology fulfills critical defense needs of command, control, and communications; manpower, personnel, and training; computing and software; electronics; and manufacturing technology. These defense models and simulations vary in a broad range from components of large weapons systems through system-level to simulations of missions and battles, and so forth. Such significant applications act as the opportunities for the growth of the global market in these industries.

Threat:

Large initial expenditure

The use of standardised benchmarking systems can assist researchers in making greater use of new technical advancements. Despite the existence of an effective MBS simulation tool, there is no common benchmark against which such software applications can be measured. Virtual prototypes of machinery, road and rail vehicle design, robotics, and even spacecraft control are all supported by MBS simulation technologies. Due to the lack of benchmarking methods, it is hard to compare the performance of various simulation approaches, posing a challenge for companies.

The software segment is expected to have a huge demand during the forecast period

Over the projection period, the software market is likely to maintain its dominance. Benefits such as data security, dependability, and uninterrupted testing have contributed to the segment's growth. Furthermore, finite element analysis is likely to play a significant role in the software segment's growth. FEA is frequently used to assess product quality, performance, and design in sectors such as automotive, aerospace, military, and electronics.

The service segment is expected to have the highest CAGR during the forecast period

The service segment's rise can be ascribed to a growing awareness of virtually enabled product development procedures among businesses and governments. Design and consultation, installation, and maintenance services are becoming increasingly popular among businesses. One of the leading competitors in the industry, ANSYS, Inc., offers consultancy and professional services for improving simulation workflow and compressing processes.

Region with largest share:

North America is projected to hold the largest share in the market. North America is an early adopter of simulation technology. The increase in the application of the simulation and analysis across verticals are the key driving factors for market growth. With the growing number of SME units in the region, coupled with the increasing focus on research and development activities in North America, the market is expected to witness significant growth over the forecast period.

Region with highest CAGR:

The Asia Pacific is projected to have the highest CAGR in the market. Asia Pacific is expected to witness extensive growth opportunities in the manufacturing and IT sectors during the forecast period. The existence of large population, developing infrastructure and technology and affluence of source are the major factors contributing to the growth of the simulation software market in the region.

Key players in the market:

Some of the key players profiled in the Simulation Software Market include The AnyLogic Company, ESI Group, SimScale GmbH, Altair Engineering, Inc., Dassault Systems, ANSYS, Inc., Autodesk Inc., The MathWorks, Inc., Synopsys Inc., Siemens Product Lifecycle Management Software Inc., GSE Systems, Bentley Systems, Inc., Altair Engineering, Inc., Hexagon AB (MSC Software Corporation), and PTC, Inc.

Key developments:

In June 2021: Siemens acquired Nextflow Software to speed simulations with advanced meshless technology. Nextflow Software become part of Siemens Digital Industries Software, where its offering will expand the Simcenter™ software portfolio, part of the Siemens' Xcelerator™ portfolio of software and services, with rapid meshless CFD capabilities to accelerate the analysis of complex transient applications in the automotive, aerospace, and marine industries such as gear box lubrication, tank sloshing or electric motor spray cooling.

In February 2021: MathWorks partnership with Aimotive, an automobile vehicle technology firm, has partnered with MathWorks. MathWorks will use the partnership to integrate AImotive's RoadRunner tool into aiSim, an automotive-grade simulation platform for end-to-end testing of automated driving software.

Deployment Covered:
Cloud
On-Premises

Components Covered:
Software
Services

Applications Covered:
Gamification
Research and Development
Product Engineering

End User Covered:
Automobile
Chemicals
Electrical and Electronics
Aerospace and Defense
Oil and Gas and Mining
Architecture, Engineering, Construction (ACE)
Ship Buildings and Marine
Healthcare and Pharmaceuticals
Industrial Manufacturing
Other End Users

Regions Covered:
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Spain
Rest of Europe
Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
South America
Argentina
Brazil
Chile
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances