The global simulation software market is anticipated to grow at a significant CAGR of 15.6% during the forecast period (2021-2027). The high adoption of simulation software owing to their offered benefits such as a flexibility, cost effectiveness, easy testing of complex system, time compression, and test for complications is a key factor driving the growth of the simulation software market. The upcoming trend of designing toolset with ML capabilities is making considerable contribution to the growth of the market. In 2019, significant investments were made in simulation technology to empower designers to reduce the number of errors to saving considerable time; which in turn is further contributing to the market growth. Complexities in integrating software and increasing data security concern are likely to hinder the growth of the global software simulation market. The growing spending on adoption of advanced technologies in healthcare, automotive, and aerospace & defense sector is anticipated to offer lucrative opportunity to the growth of the global simulation software market. 

Impact of COVID-19 Pandemic on Simulation Software Market

COVID-19 pandemic has increased dependency over the online businesses owing to frequent lockdowns in major countries. Simulation software is being utilized by several companies to analyze the spread of the COVID-19 pandemic and the effectiveness of social distancing and to provide vaccines to the needed one. In July 2021, with the use of innovative planning tool from Simul8, the Saint Anthony Hospital in Chicago has doubled its vaccination capacity under community outreach program. 

Segmental Outlook 

The report on global simulation software market covers segments including deployment type, and end-user industry. Based on deployment type, the market is segmented into on-premise and cloud. On-Premise held major market share in 2020. The high adoption of on-premise software owing to their benefits such as data confidentiality and security is a key factor contributing to the high share of this market segment. Based on end-user industry, the market is segmented into automotive, healthcare, aerospace & defense, electrical & electronics, and other (IT & telecom, education & research).

Global Simulation Software Market Share by End-User Industry, 2020 (%)

Automotive held the significant share in the Market

Manufacturing of critical and high application automotive parts is a key application area of simulation software. Rising focus of automotive companies towards development of autonomous and electric cars is further anticipated to create demand for such software to enhance the production process of this models; which in turn will drive the growth of this market segment. Aerospace & defense segment is anticipated to exhibit considerable growth in simulation software market during the forecast period.   

Regional Outlooks

The global simulation software market is further segmented based on geography including North America, Europe, Asia-Pacific, and the Rest of the World. North America held considerable share in the simulation software market in 2020. According to the Stockholm International Peace Research Institute, in 2020 US military expenditure reached an estimated $778 billion, representing an increase of 4.4% over 2019.  Rising military expenditure, adoption of advanced technologies in aerospace & defense sector, and considerable presence of key software vendors in the US are some prominent factors contributing towards the high share of the regional market. The growing adoption of simulation software in the different industries such as healthcare and automotive owing to their offered advantage is further contributing to the high share of the regional market.

Global Simulation software Market Growth, by Region 2021-2027

Asia-Pacific is projected to have considerable share in the global simulation software market

Asia-Pacific is anticipated to exhibit considerable growth in the global simulation software market. Rising penetration of multi-national IT companies in the emerging economies of the region such as India and China along with rapid adoption of advanced technologies such as simulation in different industrial verticals are key factors driving the growth of the regional market. Burgeoning manufacturing sector of India & China owing to the presence of initiatives such as “Make in India” and “Made in China” is likely offer lucrative opportunities to the growth of the Asia-Pacific simulation software market.  

Market Players Outlook

The key players that are contributing significantly to the growth of the global simulation software market include Dassault Syste?mes SE, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, SolidWorks Corp., Synopsys Inc. among others. These players are adopting different growth strategies such as investment in software up gradation, mergers and acquisition, partnership, and collaboration, among others to expand their footprints in the global marketplace. Additionally, many project startups of simulation software platform are raising funding for the development of this technology. For instance, in July 2021, looking towards the demand for simulation and AI to best manage the extreme complexity technology advancement the emerging New York investment firm Parkway Venture Capital is raising up to $60 million for its second fund aimed at startups pioneering AI and simulation developments to drive digital transformation in all sectors.

Recent Development

• In October 2020, Ansys Inc. has entered into a definitive agreement to acquire Analytical Graphics, Inc. (AGI), a premier provider of mission-driven simulation, modeling, testing and analysis software for aerospace, defense and intelligence applications. This acquisition will expand the scope of Ansys' solution offering, empowering users to solve challenges by simulating from the chip now all the way to a customers' entire mission that includes tracking an orbiting satellite and its periodic connection to ground stations. 

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global simulation software market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.