Automotive Simulation Market worth $2.9 Bn by 2025
Tuesday 27 November 2018, Amsterdam
The automotive simulation market is projected to grow at a CAGR of 11.1% during the forecast period, to reach USD 2.9 billion by 2025 from an estimated USD 1.4 billion in 2018.
The demand for enhanced safety, convenience, and comfort features in automobiles is growing steadily. These rapid changes compel manufacturers to alter their designs repetitively. These continuous changes in powertrain, HEV/EV, chassis, advanced driver assistance, and infotainment systems are expected to drive the growth of the automotive simulation market.
On-premises segment, by deployment, is estimated to hold the largest market share during the forecast period.
The on-premises segment of the automotive simulation market is estimated to be the largest during the forecast period. The on-premises segment holds the largest market share owing to their wide range of functionalities such as high-end security, easy deployment, and complete access to network solutions. Moreover, the on-premises deployment mode helps in upgrading the in-house capabilities of the simulation and analysis technology.
Services segment of the automotive simulation market is estimated to be the fastest growing segment, by component, from 2018 to 2025
The services segment of the automotive simulation market is estimated to be the fastest growing segment. The demand for services is also likely to increase, specifically for design and consulting. The market share of this segment is increasing due to an increase in the demand for software as a service such as pay per use and pay per hour services.
Asia Pacific to be the largest market for automotive simulation software in 2025
Asia Pacific is projected to be the largest market for automotive simulation software from 2018 to 2025. The market growth in this region can be attributed to the increasing vehicle production, changing in-vehicle electronic architecture, increasing in-vehicle services connected to the external cloud, and expansion of leading OEMs and automotive component suppliers. The market growth in the region can also be attributed to the increasing sales of connected vehicles and government initiatives regarding the use of environment-friendly electric vehicles.
The automotive simulation market is dominated by globally established players such as Ansys (US), Altair (US), Siemens PLM (US), PTC (US), and Dassault Systèmes (France). Also, Design Simulation Technologies (DST) (US), SimScale (Germany), and AnyLogic (US) provide automotive simulation solutions.