Automotive Simulation Software Market To Reach $13.89 Billion By 2030

Automotive Simulation Software Market Growth & Trends

The global automotive simulation software market is anticipated to reach USD 13.89 billion by 2030 and is projected to grow at a CAGR of 14.9% from 2024 to 2030, according to a new report by Grand View Research, Inc. The automotive industry relies heavily on simulation software to create virtual environments for assessing products and processes efficiently. The market is growing rapidly, driven by factors such as the increasing adoption of electric vehicles (EVs), technological advancements in autonomous vehicles, and the role of simulation software in meeting regulatory standards and offering reduced time for production. In addition to the surge in electric vehicle adoption, the anticipated market growth is propelled by continuous advancements in autonomous vehicles. The increasing complexity of autonomous systems necessitates advanced simulation tools for rigorous testing and validation, contributing to the overall expansion of the market. Furthermore, simulation software plays a significant role in reducing the time required for production processes in the automotive sector, enabling manufacturers to streamline development cycles and bring innovative vehicles to market more efficiently. Simulation tools also enable manufacturers to identify and refine vehicle prototypes, reducing CO2 emissions and enhancing product development efficiency.

Traditionally, automotive manufacturers faced high costs and risks associated with prototyping and testing. Simulation software minimizes these challenges by reducing the need for extensive manual testing, thus lowering pre and post-production costs. The adoption of virtual testing methods, coupled with investments in AI-related technologies, enhances product development processes' efficiency and reduces associated costs. The market is experiencing robust growth due to the proliferation of autonomous and electric vehicles, with simulation tools playing a crucial role in testing their efficiency and adherence to industry standards.

Simulation software facilitates vehicle dynamics simulation, powertrain simulation, crash testing, autonomous vehicle simulation, and durability testing. Its cost and time efficiency drive adoption, enabling manufacturers to save costs and accelerate product development cycles. Continuous advancements in simulation technologies, coupled with the globalization of the automotive industry, contribute to the market's growth. The market is expected to grow significantly, driven by its diverse applications and the evolving needs of the automotive industry.

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Automotive Simulation Software Market Report Highlights

• Based on solution, the software segment held the market with the largest revenue share of 66.13% in 2023. It dominated the global market due to its essential role in creating virtual environments, conducting complex simulations, and adapting to evolving industry needs through software updates and customization options, driven by the increasing demand for virtual testing and prototyping to reduce development costs and time in the automotive industry

• Based on deployment, the cloud-based segment is expected to grow at the fastest CAGR of over 17% during the forecast period, driven by the automotive industry's increasing preference for cloud solutions that offer enhanced flexibility, scalability, real-time access, seamless collaboration, and cost-effectiveness in simulation processes

• Based on application, the designing & development segment held the market with the largest revenue share of 41.3% in 2023, driven by the intricate processes involved in creating new vehicles and the valuable role of simulation software in optimizing design aspects before manufacturing. The segment's growth is further fueled by the demand for comprehensive virtual prototyping, enabling manufacturers to enhance vehicle performance, safety, and functionality while significantly reducing time-to-market through iterative testing and refinement before the physical prototyping phase

• Based on end-user, the OEMs segment led the market with the largest revenue share of 51.4% in 2023, driven by increased adoption of simulation software for optimizing vehicle design and performance. Recognizing the importance of simulation tools in innovation, efficiency, and meeting regulatory standards, automotive manufacturers extensively utilize them for virtual testing, reducing development time and costs

• North America, led by the U.S., dominated the market in 2023, driven by its concentration of automotive manufacturers, advanced infrastructure, stringent regulations, strong economy, and collaborative efforts between automotive and software companies fostering technological advancements

• In February 2024, ANSYS, Inc. announced the launch of Fluent Web UI, a web-based technology that enables users to remotely access large-scale parallelized computational fluid dynamics (CFD) simulations. The interface, which taps into multi-GPU and cloud computing capabilities, allows users to run, control, and monitor simulations for various CFD applications, including automotive under-hood heat transfer and gas turbine simulations, providing faster insights and facilitating seamless connectivity for real-time monitoring from any device

Automotive Simulation Software Market Segmentation

Grand View Research has segmented the automotive simulation software market report based on component, product, type, application, and region:

Automotive Simulation Software Solution Outlook (Revenue, USD Million, 2017 - 2030)

• Software

  • Computer Aided Engineering Simulation Software

  • Electromagnetic Simulation Software

  • Training/Human-in-the-Loop (HITL) Simulation Software

  • ADAS Simulation Software

  • Others

• Services

  • Simulation Development Services

  • Training and Support & Maintenance

Automotive Simulation Software Deployment Outlook (Revenue, USD Million, 2017 - 2030)

• On-Premise

• Cloud

Automotive Simulation Software Application Outlook (Revenue, USD Million, 2017 - 2030)

• Designing & Development

• Testing & Validation

• Supply Chain Simulation

• Others

Automotive Simulation Software End-user Outlook (Revenue, USD Million, 2017 - 2030)

• OEM

• Automotive component manufacturers

• Others

Automotive Simulation Software Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • U.K.

  • Germany

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

• Latin America

  • Brazil

  • Mexico

• Middle East and Africa (MEA)

  • KSA

  • UAE

  • South Africa

List of Key Players in the Automotive Simulation Software Market

• Altair Engineering, Inc.

• Autodesk Inc.

• ANSYS, Inc.

• PTC

• Dassault Systèmes

• The MathWorks, Inc.

• Rockwell Automation

• Simulations Plus

• ESI Group

• GSE Solutions

• Applied Intuition, Inc.