Simulation Software Market Size, Share & Trends Analysis Report By Component (Software, Service), By Deployment, By Application, By End-use (Conventional Automotive, Healthcare, Aerospace & Defense), By Region, And Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the simulation software market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for simulation software market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of simulation software market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Simulation Software Market Categorization:

The simulation software market was categorized into five segments, namely component (Software, Services), deployment (On-Premise, Cloud), application (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, Cyber Simulation), end-use (Automotive, Aerospace & Defense, Industrial, Electronics & Semiconductor, Transportation & Logistics, Healthcare), regions (North America, Europe, Asia Pacific, Latin America, Middle East & Africa).

Segment Market Methodology:

The simulation software market was segmented into component, deployment, application, end-use, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The simulation software market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into ten countries, namely, the U.S.; Canada; the UK; Germany; France; China; Japan; India; Brazil; Mexico.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Simulation software market companies & financials:

The simulation software market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Siemens - Siemens is a technology conglomerate that specializes in electrification, digitalization, and automation businesses. The company is engaged in industrial manufacturing and operates numerous production facilities, sales offices, distribution centers, and research and development centers worldwide. Siemens functions through a variety of divisions, including gas & power, energy management, wind power & renewable, mobility, digital factory, process industries, building technology, power generation services, healthcare, and financial services. The company provides CAE software under the Siemens product lifecycle management software segment, a subdivision of the digital factory business division. Siemens’ CAE software portfolio includes Simcenter 3D, NX Nastran, STAR-CCM+, LMS Virtual Lab, LMS Samtech, HEEDS, Femap, and Solid Edge Simulation. Siemens has an extensive geographic footprint that spans the Americas, Asia Pacific, Europe, and the Middle East & Africa.

• ANSYS, Inc. - ANSYS, Inc. is a company that specializes in the creation and distribution of engineering simulation software. They utilize a platform known as Workbench to construct their simulation technologies. Their product portfolio encompasses 3D design software, electromagnetic field simulation, computational fluid dynamics, optical simulation, semiconductors, structural analysis, and systems modeling, simulation, and validation. The company caters to a wide range of industries and industry verticals, such as automotive, industrial equipment and rotating machinery, materials & chemical processing, aerospace & defense, construction, consumer goods, and healthcare. In addition to their product offerings, ANSYS, Inc. also provides consulting and training services. ANSYS, Inc. is a publicly listed company on the NASDAQ stock exchange under the ticker symbol NASDAQ: ANSS. They have an extensive geographic footprint that covers North America, Europe, Asia Pacific, and MEA. The company has consistently invested in research & development activities, with investments of USD 233.8 million in 2018, USD 298.2 million in 2019, and USD 355.4 million in 2020.

• Altair Engineering, Inc. - Altair Engineering, Inc. is a provider of high-quality engineering software. Their products are marketed under the brands HyperWorks, solidThinking, PBS Works, and SmartWorks. The company’s services encompass product engineering, industrial designs, and custom solutions. They also provide cloud solutions for businesses. Altair Engineering, Inc. serves a diverse range of industries and industry verticals, including aerospace, automotive & transportation, electronics, energy, heavy industry, architecture, engineering & construction, consumer products, life sciences, and marine & shipbuilding. The company has an extensive geographic presence that spans North America, Europe, Asia Pacific, Oceania, South America, and Middle East & Africa. They have several channel partners who resell their suite of software solutions, including A R Technologies of India, and AIREX Industries Corp. of Taiwan, among others. Their technology partners include AMD of the U.S., IBM of the U.S., and Dell of the U.S., among others. The company has made significant investments in research & development activities, with investments of USD 117.5 million in 2019, and USD 126.1 million in 2020.

• Autodesk, Inc. - Autodesk, Inc. is a company that specializes in providing design software and services. It caters to a wide range of industries such as engineering, architecture, manufacturing, construction, and media & entertainment. Most of the company’s revenue comes from the Americas, particularly the U.S., with Europe, Middle East, and Africa (EMEA) following closely. The company’s AEC segment provides a variety of products including Autodesk building design suite, Autodesk Revit, Autodesk infrastructure design suites, AutoCAD civil 3D, and AutoCAD map 3D. In the manufacturing business segment, Autodesk offers product design suites, Autodesk Inventor, AutoCAD Mechanical, and Autodesk Moldflow. Autodesk faces competition from several small and large companies, including AVEVA Group plc, Dassault Systèmes S.A., Bentley Systems, Inc., Adobe Systems Incorporated, MSC Software Corporation, Oracle Corporation, Siemens PLM, and 3D Systems Corporation, among others. Autodesk has a broad geographic footprint, covering the Americas, Europe, Asia Pacific, and Middle East & Africa. To broaden its customer base, the company provides flexible product licenses. Autodesk has made significant investments in research & development, with USD 725 million in F.Y. 2019, USD 851.1 million in F.Y. 2020, and USD 932.5 million in F.Y. 2021. Autodesk is a publicly listed company on the NASDAQ stock exchange under the ticker symbol ADSK.

• Bentley Systems, Inc. - Bentley Systems, Inc. is a company that specializes in the development, licensing, and sale of computer software, as well as providing services for the design, construction, and operation of infrastructure. Its main software products are ProjectWise, MicroStation, and AssetWise. The company offers a wide range of products and services, including asset lifecycle information management, bridge analysis, asset reliability, building design, hydraulics & hydrology, modeling & visualization, mine design, operational analytics, plant design, reality modeling, and project delivery, among others. Bentley Systems, Inc. markets its products under various brand names, such as AECOsim, ConstructSim, AssetWise, AutoPIPE, AutoPLANT, AXSYS, Communications, and LEAP, to name a few. The company’s services include managed services and professional services. Bentley Systems, Inc. has a significant presence across various regions, including North America, South America, Europe, Asia Pacific, and MEA. The company has made substantial investments in research & development, with USD 175 million in 2018, USD 183.6 million in 2019, and USD 185.5 million in 2020.

• Dassault Systemes - Dassault Systemes is a company that specializes in the development of 3D designs, product lifecycle management software, and 3D digital mock-ups. The company’s product portfolio includes ENOVIA, CATIA, 3DEXCITE, SOLIDWORKS, DELMIA, GEOVIA, BIOVIA, SIMULIA, 3DVIA, EXALEAD, and NETVIBES. The company serves a variety of industries and industry verticals, such as aerospace & defense, industrial equipment, energy, process & utilities, consumer goods, retail, life sciences, marine & offshore, and transportation & mobility. In addition to its products, Dassault Systemes also provides training services, which include classes & course catalogs, certification programs, e-learning, and customized services. Dassault Systemes is a subsidiary of the Dassault Group and is publicly traded on the Euronext stock exchange under the ticker symbol DSY. The company has a wide geographic reach, with a presence in North America, Europe, Asia Pacific, South America, and the Middle East & Africa. Dassault Systemes has made significant investments in research and development, with USD 721.85 million in 2018, USD 826.35 million in 2019, and USD 1,047.52 million in 2020.

• ESI Group - ESI Group is a company that specializes in providing virtual prototyping software. It offers solutions for a variety of applications, including virtual manufacturing, virtual reality, virtual performance, composites, fluid dynamics, sheet metal forming, system simulation, welding & assembly, and system modeling. The company operates two main business activities: licensing and services. In the licensing activity, ESI Group markets software packages in the form of licenses, which are available for use based on an annual fee. Under the services activity, the company provides consulting services related to virtual prototyping. ESI Group’s solutions cater to a wide range of industries and industry verticals, such as aerospace & defense, energy & power, ground transportation, heavy industry & machinery, marine, and electronics & consumer goods. The company has a broad geographic footprint, covering the Americas, Europe, Asia Pacific, and Oceania. ESI Group has made significant investments in research and development, with USD 33.4 million in 2019 and USD 37.9 million in 2020.

• Simulations Plus - Simulations Plus is a company that specializes in providing modeling and simulation software, as well as consulting services that aid in drug discovery, regulatory submissions, and development research. The company operates through three subsidiaries: Cognigen Corporation, DILIsym Services, and Lixoft. Through these subsidiaries, Simulations Plus offers solutions that connect quantitative systems, pharmacology/toxicology, machine learning, population PK/PD modeling, and physiologically based biopharmaceutics/pharmacokinetics approaches. In addition to this, Simulations Plus designs and develops pharmaceutical simulation software that is used by pharmaceutical researchers and medical students, among others. The company’s software and consulting services are utilized by a variety of pharmaceutical, biotechnology, chemical, and consumer goods companies, as well as regulatory agencies worldwide. Simulations Plus has a global presence, with operations in various countries across North America, South America, Europe, and Asia.

• GSE Systems, Inc. - GSE Systems, Inc. is a company that specializes in providing engineering services and technology. It offers staffing solutions and simulation software to industries involved in power generation and processing. The company also offers a range of professional services, including procedure writing, engineering, planning, Senior Reactor Operator (SRO) training schedules, and personnel training. These services are focused on achieving certification in the nuclear power industry and ensuring regulatory compliance. The company operates through two main segments: Nuclear Industry Training and Consulting, and Performance Improvement Solutions. The Performance Improvement Solutions segment encompasses various operation training systems, simulation products, and engineering services. As part of its simulation products, the company offers software and services for the nuclear power industry, fossil power industry, and process industries. The Nuclear Industry Training and Consulting segment provides procedure writers, technical engineers, nuclear operations instructors, and other consultants to players in the nuclear power industry. GSE Systems, Inc. is a publicly traded company, listed on the NASDAQ Stock Exchange under the ticker symbol GVP. The company has a significant presence in the U.S. and China.

• ROCKWELL AUTOMATION, INC - Rockwell Automation, Inc. is a company that specializes in industrial automation and information services. Its operations are divided into two main categories: architecture & software and control products & solutions. The company’s major brands include Allen-Bradley, Rockwell Software, and Rockwell Automation. The company caters to several markets, including the transportation sector (which includes automotive & tires), consumer industries (which include home & personal care, food & beverages, and life sciences), and heavy industries (which include mining, oil & gas, chemicals, and metals). Rockwell Automation, Inc. operates in over 80 countries worldwide. It faces competition from major companies such as Siemens, ABB Ltd., Emerson Electric Co., Honeywell International Inc., Schneider Electric SA, and Mitsubishi Electric Corp, among others. The company’s distribution network primarily consists of distributors, who contribute to approximately 75% of the company’s global sales. Rockwell Automation, Inc. has made substantial investments in research & development, with approximately USD 371.8 million in 2018, USD 378.9 million in 2019, and USD 371.5 million in 2020.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Simulation Software Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2017 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Simulation Software Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.