Simulation Software Market Growth & Trends
The global simulation software market size is expected to reach USD 33.9 billion by 2028, according to a new study by Grand View Research, Inc. The market is expected to expand at a CAGR of 17.1% from 2021 to 2028. 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 the production cost 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 research and development 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 research and development. 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 cost to a company.
Simulation Software Market Report Highlights
- The market is being driven by reduced training costs for personnel in various industries and sectors such as automotive, defense, healthcare, and electrical
- The service segment is expected to register a CAGR of more than 17.0% owing to the growing demand for customized simulation solutions such as design and consulting
- The cloud segment is expected to register the highest CAGR of approximately 18.0% over the forecast period owing to benefits such as reduced cost of implementation and ease of implementation
- The automotive segment dominated the market in 2020 and is expected to hold a major share by 2028 owing to the early adoption of virtual testing tools in the automotive industry
- North America is expected to account for the highest share, followed by Asia Pacific, by 2028 owing to the growing investments in R&D and defense in countries such as the U.S.