Automotive Simulation Software Market Research, Trends and Forecast by 2034

Automotive Simulation Software Market Size, Share and Emerging Opportunities

The automotive simulation software market is forecasted to expand from USD 6.69 billion in 2025 to USD 18.47 billion by 2034, growing at a CAGR of 11.94% from 2025 to 2034.

Introduction

The automotive simulation software market is a prominent sector of the automotive industry. This industry deals in developing advanced simulation software for automotive sector. There are several applications of these software including vehicle dynamics, powertrain, ADAS and safety, virtual prototyping, virtual testing and some others. These software are deployed in various modes consisting of cloud-based software and on-premises software. This industry is engaged in numerous types of software comprising of computer aided engineering simulation software, electromagnetic simulation software, training/ human-in-the-loop simulation software, ADAS simulation software and some others. The growing application of simulation software for developing passenger cars in different parts of the world has boosted the industrial expansion. This market is projected to rise significantly with the growth of the software industry in different parts of the world.

• According to the OICA, around 629923 passenger vehicles were sold in Russia in 2022 that increased to 1049917 in 2023.

Highlights of the Automotive Simulation Software Market

• North America held the largest share of the automotive simulation software market due to the presence of numerous software companies in this region.
• Asia Pacific is expected to grow with a significant CAGR due to the rising sales and production of automotives in this region.
• The software segment held the largest share of the market due to the rapid integration of ADAS in automotives.
• The designing & development segment led the industry due to the increasing demand for vehicle customization around the world.

Key Metrics and Overview

Automotive Simulation Software: Trends in the Industry

• Several automotive brands are integrating simulation software in their production facilities to enhance testing capabilities. For instance, in March 2025, dSPACE launched XSG Power Electronics Systems software. This software is designed for testing thermal activities in automotives 
• Numerous software companies are constantly engaged in designing software for developing electric vehicles. For instance, In June 2024, Ansys launched ConceptEV. ConceptEV is an advanced software developed for designing of EVs.
• The ADAS developers have increased the demand for simulation software to check the efficacy of autonomous driving. For instance, in February 2025, Hexagon launched a cloud-native software. This software is designed for testing the capabilities of ADAS in vehicles.
• Various software developers are integrating AI in their simulation platforms to enhance the process of automotive designing. For instance, in September 2024, Simscale GMBH launched an AI-based simulation platform. This platform is developed for automotive companies to help in designing of vehicles.

Industry Leader Announcement

In December 2024, Alexander Frings, the Director Product Management at IPG Automotive made an announcement stating that, “With CarMaker 14.0, we want to integrate simulation even better into the development process for all types of vehicles to make the process as efficient, cost-effective and safe as possible. The reliability of our software has recently been certified by ISO 26262. We are looking forward to presenting the latest features as well as their applications at our Open House Germany on March 25, 2025.”

Geographical Insights

North America held the largest share of the automotive simulation software market. The growing investment in automotive engineering sector along with technological advancements in automotive industry has boosted the market growth. Also, the presence of several automotive brands such as Tesla, Rivian, Ford and some others is playing a vital role in driving the industry. Moreover, rise in number of software companies that are constantly developing advanced software for the automotive sector has driven the market expansion in this region.  

Competitive Landscape

The automotive simulation software market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Altair Engineering, Inc., Dassault Systems, The MathWorks, Inc., Rockwell Automation, Simulations Plus, ESI Group, GSE Solutions, Autodesk Inc., ANSYS, Inc., PTC and some others. These companies are constantly engaged in developing simulation software for automotives and adopting numerous strategies to maintain their dominance in this industry.

• According to the annual report of Altair Engineering, the revenue of the company in 2022 was US$ 572221 thousand that increased to US$ 612701 thousand in 2023.

Market Segmentations

By Solution

• Software
  • Computer Aided Engineering Simulation Software
  • Electromagnetic Simulation Software
  • Training/Human-in-the-Loop (HITL) Simulation Software
  • ADAS Simulation Software
  • Others
• Services
  • Simulation Development Services
  • Training and Support & Maintenance

By Deployment

• On-Premise
• Cloud-based-based

By Application

• Designing & Development
• Testing & Validation
• Supply Chain Simulation
• Others

By End-user

• OEM
• Automotive component manufacturers
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa