Simulation software is a
program that enables companies to build dummy processes by duplicating
real-world scenarios. This software is known to improve decisions related to
design, operations, and the flow of a process. Furthermore, integrating
simulation software in projects aids in reducing the cost for R&D of products.
The global simulation software market size settled at $6.85 billion in 2018.
Foreseeing the wide applications of simulation software, the market will grow
at a CAGR of 15.92% through the forecast period 2019-2025. North America was
the most lucrative region for the simulation software market, and the region
was accounted as 35.72% of the total market share in 2018. The early adoption
of advanced computing techniques and presence of major enterprises offering simulation
software are main reasons for high regional share. In terms of application, the
education and research verticals are evaluated as the major applicant segment
in the global simulation software market. Furthermore, the demands in the
education and research application are estimated to rise at a CAGR of 19.84%,
during the forecast period.
Innovation and constant upgrade are norms in the automotive industry. The dire need to achieve maximum efficiency in terms of performance and energy usage is provoking considerate research activities in the field. These cyclic innovation profits are simultaneously increasing the production program cost in the industry. To save this expenditure, the automotive industry is deploying simulation software rampantly in their system. Application of simulation software supports constant improvement, reduces costs, saves raw materials, and correspond with the changing consumer demands. The growth in the automotive industry is imperative. According to the International Organization of Motor Vehicle Manufacturers (OICA), the production of a motorized vehicle surpassed 95 million units in 2018, and demands and production are still on a rise. Additionally, the emerging autonomous vehicle (AV) and electric vehicle (EV) segments are some major growth drivers of the global simulation market. Simulation software has multiple applications in the automotive sector. It is used as a tool for training race drivers, mainly Formula 1 driver. Also, the software is ideal for mimicking the behavior of car manufacturing and assembly system in the supply chain. With such significance in the automotive industry, the global simulation software market is estimated to generate substantial revenues.
The training activities in the aerospace industry relies completely on simulation software. Simulators are being used for training aircraft and space pilots for a long time now. As per the Federal Aviation Administration (FAA), the pilot pool of hirable pilots is depleting at the rate of 33 pilots per day in the U.S. The same source suggested that around 320,000 active pilots including airline transport pilots, commercial, and private pilots are flying the complete fleet of the U.S. aviation industry in 2017. According to FAA, supply and demand of pilots are not balanced, the number of pilots retiring is far more than the enrollment number of certified and skilled pilots. Thus, there is an essential need for simulation software in the aviation industry. And, with the integration of emerging technologies such as AR and VR, practices and operations in the aerospace sector are optimizing radically. AR and VR create a real-life simulative environment to train pilots for complex airborne activities such as mid-air refueling and aircraft formations. Deliberate increase of air passengers in both the developing and developed nation are amplifying demands in the global simulation software market.
The defense sector is one of the most important industry verticals. Defense and military tasks are lethal and contain a great deal of risk of life and properties. Considering the sensitivity involved in the defense industry, it is mandatory to regulate the operations at a simulation level such that it can save time, resource, and risks related to the task. Some of the most prominent usage of simulation software in the defense industry are planning maintenance, repair, and overhaul (MRO) operations, supply chain logistics, and emergency preparedness. Some innovations in the industry require dummy replica to experience innovations. According to the Stockholm International Peace Research Institute (SIPRI), the global military expenditure reached $1,739 billion in 2017, reflecting a 1.1% increase since the preceding year. The U.S. remained at the top of the spending list, with annual expenditure worth $610 billion. The director of the SIPRI AMEX program, Dr. Fleurant stated, “The downward trend in the U.S. military spending that started in 2010 has come to an end, and the U.S. military spending in 2018 is set to rise significantly to support increase in military personnel and modernization of conventional and nuclear weapons.” Thus, the engagement of simulation software in the U.S. will stroke the demands in the global simulation software market. Military budgets for countries in Asia and the Middle East resonates substantial growth. For instance, military expenditure by Saudi Arabia increased by 9.2% in 2017. Saudi Arabia was placed third after China in the yearly military spending. China and India increased its military spending by 5.6% and 5.5%, reaching $228 billion and $63.9 billion in 2017 respectively. Rampant adoption of simulation software in numerous military activities will certainly harness high revenues for vendors of the simulation software market.
Simulation software is used in the construction industry for preparing timeline and asset management of the project. The Consolidated Contractors Company (CCC) is one of the biggest construction companies that offers its services in the form of airports, seaports, skyscrapers, reservoirs, dams, oil & gas plants, refineries, power plants, and other heavy civil works. CCC uses software services from the software company AnyLogic and CCT International. CCT International is one of the leading providers of 3D construction control solutions and management simulations. AnyLogic developed a construction simulation model for CCC that provides basic construction enhancement. This simulator is fed with relevant parameter inputs such as trucks information, projected schedule, labor requirement, and costs involved. Applying this method has significantly reduced the time and resources required for building heavy civil infrastructures, as it provides an efficient solution to plan construction. The construction industry is poised as one of the fastest growing industries in the world. According to the Institution of Civil Engineers, the global construction market is estimated to reach $8 trillion by 2030. Evidently, the simulation software will be extensively deployed for efficient and programmed development of the upcoming infrastructures, which will harness considerate profits for major simulation software companies.
Simulation Software Market: Competitive Landscape
Technical innovation is the key competition in this market. Hence, majority of the key players are investing huge capitals to thrive in R&D of the simulation software technology. Some of the major companies influencing the global simulation software market are Ansys, Altair, Hexagon, PTC, Siemens, Dassault Systemes, Autodesk, Mathworks, SimScale, ESI Group, Synopsys, Cybernet Systems, and Design Simulation Technologies.
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