According to a recent report published by Allied Market Research, titled,"Simulation Software Market by Component, Deployment Mode, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2018 - 2025," the global simulation software market was valued at $5,135 million in 2017 and is projected to reach $10,029 million by 2025, growing at a CAGR of 8.90% from 2018 to 2025.
Rise in demand for eco-friendly work environment, need for creating and simulating models that are less expensive than producing and testing hardware prototypes, and increase in the use of simulation software in automotive industry drive the growth of the global simulation software market. In addition, increase in focus on R&D activities and significant adoption of simulation among aerospace & defense are expected to provide lucrative opportunities for the growth of the market. However, risks associated with data security of simulation software are anticipated to hamper the market growth during the forecast period. Emerging trends such as digital twins in the industry 4.0 and use of simulation software to develop IoT supporting devices are expected to provide lucrative opportunities for the global simulation software market during the forecast period.
Based on deployment mode, the on-premise segment led the simulation software market in 2017. However, the cloud segment is expected to witness the highest growth, as product complexity, need for agility and collaboration drive the cloud-based simulation software market adoption.
The global simulation software market was led by the electronics and electrical sector in 2017 and is projected to maintain its dominance during the forecast period. However, the aerospace & defense sector is anticipated to witness the fastest growth, registering a CAGR of 13.30% during the forecast period.
Key Findings of the Simulation Software Market:
- The software segment is expected to exhibit significant increase in terms of revenue during the forecast period.
- In 2017, the on-premise segment accounted for the highest revenue according to organization size segment.
- The electronics and electrical industry vertical generated the highest revenue in 2017.
- Asia-Pacific is projected to exhibit substantial growth during the forecast period.
Some of the key players operating in the simulation software market include Altair Engineering, Inc., ANSYS, Inc., Autodesk, Inc., Bentley Systems, Dassault Systmes, Hexagon (MSC Software Corporation), The MathWorks, Inc., PTC, Inc., Siemens PLM Software, and The AnyLogic Company.