The global electromagnetic simulation software market is estimated to grow at a CAGR of 9% over the forecast period 2020-2025. Rising demand for consumer durables, electronics goods, and high-end technology products due to technological advancement and increased dependency on automation. Increasing penetration of the internet across the world has encouraged vendors to improve the speed and connectivity and has led to the development of 5G.

  • The demand for low-cost, accurate, electromagnetic simulation software has grown rapidly during the last decade, in industrial, automotive, commercial, and communications systems. Increasing demand to upgrade the power infrastructure in developed countries to reduce the heat generated through thermal dissipation with the usage of electromagnetic transients’ simulation is expected to drive the market. In 2020, Ameren, one of the largest utility companies in the United States, would spend USD 7.6 billion on a five-year grid modernization plan.
  • The updated power infrastructure utilizes a smart grid that uses computer technology to improve the communication, automation, and connectivity of the various components of the power network. The smart grids work on advanced technologies to modernize electricity networks, extending from the end-user to distribution and transmission. They use smart meters at the homes which are capable of two-way communication and provide information on supply and demand between producers and consumers. Electromagnetic simulation software is used to analyze the interference of the power-frequency magnetic field from the key parts of the smart meter and is expected to boost the market in the future. According to the IEA report, smart meter deployed has advanced considerably in recent years, as China is in the midst of the full deployment, and Japan, Spain, and France are poised to achieve full rollouts in the next few years.
  • Mobile devices are becoming thinner, smaller, and more complex with every generation with better performance and more frequency bands to meet the high demand of consumers. The market players are expanding their manufacturing capacity to meet the demand with adequate supply. For instance, in 2020, Samsung has invested USD 500 million to intensify operations in India. The company would set up a manufacturing plant on the outskirts of New Delhi to produce displays for smartphones as well as a wide range of other electronic devices. Electromagnetic simulation software is employed to measure the antenna efficiency and return loss of a smartphone, and the demand for smartphones is expected to drive the market.



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Key Market Trends

Telecommunication Sector Will Experience Significant Growth

  • The ongoing deployment of LTE and advancements in the field of wireless connectivity technologies such as general packet radio service (GPRS), Wi-Fi, and worldwide interoperability for microwave access (WiMax) in various fields have boosted the number of connected devices and has led to the growth of electromagnetic simulation software as they are used to conduct high-fidelity 3-D EM simulations, analyze geometric-scale variations, perform thermomechanical stress analysis and optimize antenna design.
  • The majority of mobile network operators in mature markets are planning to upgrade into 5G in the next few years due to spectrum availability and the sheer time and costs involved in rolling out the next generation of mobile networks. So major players are partnering with the technology provider to speed up the process and to be competitive in the telecom market.
  • For instance, in February 2020, Samsung Electronics Co., Ltd. has collaborated with U.S. Cellular for 5G and 4G LTE network solutions. Through the agreement U.S Cellular, a key provider of mobile services to millions of customers across the U.S, can purchase Samsung’s commercially-proven network solutions, including 5G New Radio (NR) technology, and will extend groundbreaking 4G LTE and 5G technology to its customers base, expanding in consumer and business applications.
  • Moreover, electronic companies are focusing on new product development such as 5G MIMO microstrip antenna to consider a wide variety of structures to meet the often-conflicting needs for different applications. For instance, in February 2020, Fractus Antennas has launched a new multi-band 5G and cellular IoT antenna booster as tiny as a grain of rice. It provides global connectivity and solves the usual challenge of size as it is of only 7.0 mm x 3.0 mm x 1.0 mm in size. A single antenna can cover 2G, 3G, 4G, and 5G frequency bands within the range from 824 MHz to 5 GHz. More advancement in the antenna design will propel the simulation software market significantly.



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North America to Hold a Significant Market Share

  • The autonomous vehicles industry in North America is experiencing tremendous growth as the number of players is investing billions of dollars on research and development of technology, and many states are supporting autonomous-vehicle testing. The United States 41 states currently supports the on-road autonomous vehicle testing; some of them are California, Arizona, and Florida.
  • Also, automotive sector giants like General Motors plans to release autonomous (driverless car) car in 2021, and Tesla has acquired Deepscale, computer vision start-up that would help to develop fully driverless vehicles. The automotive radar sensor is a critical sensor in autonomous driving assistance systems that provides valuable data to the system and is expected to experience a huge demand in the future.
  • Most of the medical imaging, testing devices and medical devices such as radiography, magnetic resonance imaging, electrocardiogram, cardio pumps, pacemakers, biosensors works on electric, magnetic, or electromagnetic field and energy principles and so humans are exposed to it. Thus, they are the cause of concern and regulated by government agencies. Hence, electromagnetic simulation tools and software have become indispensable and crucial for the biomedical and medical technology engineer to design medical equipment and study the effect of EMF exposure on human health.
  • According to the WHO medical device report, the United States accounts for 41% of the global medical device sales and thus has a huge market for medical devices. Due to the increase in chronic condition patient’s population, including chronic heart failure and osteoarthritis, has fueled the demand for implants, which will increase the demand for electromagnetic simulation software.
  • COVID-19 has drastically affected the United States and infected 1.2 million people and resulted in more than 70,000 fatalities. It has led to the closure of most of the manufacturing units and disputed domestic as well as an international supply chain that has to decrease the demand of the simulation software in most of the sectors but boosted the demand in the medical sector due to surging number of COVID infected people with multiple diseases. The government has set up many temporary hospital facilities and has employed robots to fight the pandemic that is expected to fuel the demand of the market in North America.



Competitive Landscape

The global electromagnetic simulation software market is concentrated and dominated by a few major players like Remcom Inc., Altair Engineering Inc., Mician GmbH, Sonnet Software, Inc., and ElectroMagneticWorks, Inc.? These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

  • March 2020 - Remcom has released the XFdtd 3D EM simulation software, superposition simulation, and array optimization. The company expanded its software capabilities for high-frequency 5G device design and beam steering analysis. XFdtd enables users to leverage the electromagnetic principle of superposition to reveal these combinations with a single simulation. By combining steady-state results from the simulation, it efficiently determines the port phases that maximize the far zone coverage in each direction.
  • January 2020 - Altair has acquired newFASANT, leading technology in computational and high-frequency electromagnetics. newFASANT’s solutions address a wide range of electromagnetic problems in areas like antenna design and placement, radar cross-section (RCS) analysis, automotive V2V/ADAS, and infrared/thermal signatures. Altair is expected to expand its high-frequency electromagnetics portfolio through the acquisition.



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