Simulation Software Market To Reach $51.11 Billion By 2030

May 2025 | Report Format: Electronic (PDF)

Simulation Software Market Growth & Trends

The global simulation software market size is estimated to reach USD 51.11 billion in 2030 and is projected to grow at a CAGR of 14.0% from 2025 to 2030, according to a new report 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.

The need for developing prototypes and the chances of product failure are considerably reduced through the use of simulators, as the product is virtually tested for all possible glitches before the commencement of production. Furthermore, simulation-based tools help product developers reduce the time spent on R&D processes as it enables them to obtain a realistic view of a product or process under study or review. Organizations across the globe are increasingly implementing the program and analyzing tools to enhance the entire product development cycle, reduce time to production, ensure delivery of high-quality products in minimal time, and reduce the overall cost to the company with respect to R&D.

It requires a skilled workforce or personnel with the required knowledge and understanding. This is leading to several manufacturers being reluctant to adopt this technology as the need for a skilled workforce incurs additional costs. The COVID-19 pandemic had an adverse impact on the global market. The closure of national and international borders in major countries, such as China, Japan, and India, has caused severe supply chain disruptions. In addition, the temporary shutdown of manufacturing operations has led manufacturing companies to face severe budgetary issues, resulting in delayed subscription renewal payments during the pandemic’s initial phase. However, recovering economies and opening businesses are expected to help the market grow at a rapid pace over the forecast period.

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Simulation Software Market Report Highlights

The software segment accounted for the largest share of 68.5% in 2024. The segment is expected to remain dominant throughout the forecast period
The on-premise segment held the largest market share in 2024. The high share of this segment was attributed to the early adoption of the software
The cyber simulation segment is expected to register a notable CAGR during the forecast period. Cyber threats have always been a concern for several industries, such as military & defense, enterprise, and others.
The automotive segment dominated the simulation software industry in 2024. The segment’s growth is owing to the early adoption of virtual tools for product development
The North America simulation software industry was identified as a lucrative region in 2024. The region is expected to continue its dominance over the forecast period on account of the presence of major players in the U.S. and Canada