Simulation Software Industry Overview
The global simulation software market size is estimated to reach USD 39.74 billion by 2030, registering a CAGR of 13.5% over the forecast period, according to a new study by Grand View Research, Inc. Simulation software is being used for training personnel. It is replacing the traditional real-time training techniques, which incurred huge investments annually for companies. The use of simulation for training purposes helps reduce training costs as companies need to make a one-time investment for software implementation. The software also helps enterprises minimize production costs by enhancing the product development process.
Simulation Software Market Segmentation
Grand View Research has segmented the global simulation software market on the basis of component, deployment, application, end-use, and region:
Based on the Component Insights, the market is segmented into Software, Services, Simulation Development Services and Training and Support & Maintenance.
- The software segment dominated the market in 2021 and accounted for the largest share of more than 70.5% of the global revenue. The segment is expected to remain dominant throughout the forecast period.
- The service segment is expected to register the fastest growth rate during the forecast period. The growth of the segment can be attributed to the growing awareness of virtually-enabled processes used for product development among companies and governments.
Based on Deployment Insights, the market is segmented into On-Premise and Cloud.
- The on-premise deployment segment dominated the market in 2021 and accounted for the largest share of more than 72.00% of the global revenue. The high share of this segment was attributed to the early adoption of the software.
- The cloud segment is expected to register the fastest CAGR over the next seven years. The growth of this segment can be attributed to the benefits offered, including easy implementation and cost-effectiveness, as compared to the traditional on-premise software.
Based on Application Insights, the market is segmented into Engineering, Research, Modeling & Simulated Testing, High Fidelity Experiential 3D Training, Gaming & Immersive Experiences, Manufacturing Process Optimization, AI Training & Autonomous Systems, Planning And Logistics Management & Transportation and Cyber Simulation.
- The engineering, research, modeling & simulated testing segment dominated the market and accounted for the largest revenue share of more than 36.5% in 2021. The high segment share is attributed to the robust adoption of simulation software by prominent end-use companies like Airbus, Boeing, Volkswagen Group, and others for product engineering, modeling, research, and testing purposes.
- The cyber threats have always been a concern for several industries, such as military & defense, enterprise, and others. The introduction of simulation solutions provides organizations with cyber situational awareness. This helps users identify malicious cyber-attacks within that network. Thus, with the rising concerns of cyber threats across the globe, it is anticipated to see massive adoption of cyber simulation tools and help the segment grow at a significant CAGR from 2022 to 2030.
Based on End-use Insights, the market is segmented into Automotive, Aerospace & Defense, Industrial, Electronics & Semiconductor, Transportation & Logistics, Healthcare and Others.
- The automotive segment dominated the market in 2021 and accounted for the largest revenue share of more than 24.7%. The growth was credited to the early adoption of virtual tools for product development.
- The aerospace & defense segment is expected to grow at a considerable CAGR over the forecast period due to the use of simulators for designing aircraft as well as defense equipment.
Simulation Software Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile
Key market players are strategically focused on partnership and collaboration activities to expand their geographical presence and overall product portfolios.
Some prominent players in the global Simulation Software market include
- Nestlé
- Altair Engineering, Inc.
- Autodesk Inc.
- Ansys, Inc.
- Bentley Systems, Inc.
- Dassault Systèmes
- MathWorks, Inc.
- Rockwell Automation, Inc.
- Simulations Plus
- ESI Group
- GSE Systems
Order a free sample PDF of the Simulation Software Market Intelligence Study, published by Grand View Research.
