Simulation Software Market Size to Reach USD 39.20 Billion in 2028
Simulation Software Market Size to Reach USD 39.20 Billion in 2028 | Increasing Need to Reduce Product Manufacturing Time and Cost is a Key Factor Driving Industry Demand, According to Emergen Research
The global simulation software market size reached USD 11.08 Billion in 2020 and is expected to register a significantly rapid revenue CAGR during the forecast period, according to latest analysis by Emergen Research. Increasing demand for simulation software in gaming industry is one of the major factors expected to continue to drive market revenue growth.
Simulation software provides many advantages as compared to manual calculations. The software is used in almost every engineering field such as mechanical, electronics, architectural, and others. Simulation software helps to analyze the behavior of the system without building and testing the actual product. The main objective of simulation software is to detect problems at various levels of production, which helps in faster and more effective problem solving. Simulation software is used to save manufacturing time as it reduces the design iterations, and as a result, product design cycle time is reduced significantly. For example, mold-flow analysis helps to reduce the injection molding cycle time, resulting in better productivity and cost savings.
However, high initial cost is one of the major factors expected to hamper revenue growth to some extent. Simulation software requires high-end hardware to run in order to detect flaws in the prototype before the final product is manufactured. However, installation of hardware is very expensive. In addition, Simulation software requires specific software licenses to run, which are also expensive, and may be out of reach for some small businesses is certain countries.
The global simulation software market is expected to register a CAGR of 17.5% over the forecast period and revenue is projected to increase from USD 11.08 Billion in 2020 to USD 39.20 Billion in 2028. Increasing need to reduce product manufacturing time is one of the major factors propelling revenue growth of the market.
COVID-19 Impact Analysis:
COVID-19 pandemic has affected every segment of society, including industry, sectors, individuals and businesses. Implementation of stringent lockdowns in various countries has forced businesses to adopt online platforms. Simulation software is used to analyze the spread of the virus and the effectiveness of social distancing. Healthcare providers are using simulation software to evaluate and react to the COVID-19 situation. In addition, organizations focus on protecting employees, addressing critical challenges, and detecting problems early to minimize losses, which is also expected to boost simulation software market revenue growth going ahead.
Current Trends and Innovations:
Simulation software is currently widely used in teaching, testing, research, development, and gaming, among other applications. The main purpose of its use is to imitate a realistic event. Simulation software is used in the gaming industry to test animation aspects, sound quality, graphics, storyline, and overall user experience before the actual launch. Engineers also create gaming simulation software to allow users to make different decisions in real-time. For example, LittoSIM is a gaming simulation tool that is used by technicians and decision-makers in coastal areas to help them develop new solutions for managing coastal flooding risks. In addition, simulation software enables designers to help with experiential learning in order to avoid any unfavorable outcomes following launch of a product.
Europe is expected to register a significantly robust revenue growth rate over the forecast period due to rapid growth of automotive, gaming, and manufacturing industries in countries in the region.
Some major companies included in the global market report are Siemens AG (OTC:), Rockwell Automation (NYSE:), Inc., Dassault Systemes SE, Autodesk (NASDAQ:), Inc., Ansys (NASDAQ:), Inc., Bentley Systems, Incorporated, Spirent Communications PLC, Altair Engineering, Inc., PTV AG, and Simul8 Corporation.
- In November 2019, Altair Engineering, Inc. launched Inspire Print3D, which is a new manufacturing simulation solution for additives manufacturing. The software provides a quick and accurate toolkit for designing and simulating the production process for Selective Laser Melting (SLM (NASDAQ:)). The major goal of the launch is to enhance capabilities and add new possibilities in order to handle any future problems.
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