Automotive System Simulation Software Market Scenario with Major Drivers & Trends by 2028
  • Published On: 28-02-2022

Automotive System Simulation Software Market Scenario with Major Drivers & Trends by 2028

According to our latest market study on “Automotive System Simulation Software Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Vehicle Type, and Propulsion Type,” the market is projected to reach US$ 2,616.37 million by 2028 US$ from 1,142.52 million in 2021; it is expected to grow at a CAGR of 12.6% from 2021 to 2028.

Upgrading of Vehicle Functions and Increase in Number of E/E Components Drives Market Growth

The automotive sector is continuously working on offering enhanced functionalities in vehicles, with a major focus on ​​automated driving, advanced infotainment, safety technologies, etc. Incorporating electronic components related to these functionalities is catalyzing the evolution of the topology of systems, hardware, and software, thereby creating a dynamic electrical/electronic vehicle system architecture (E/E architecture). For example, Continental introduced the body high-performance computer (HPC), a central hub between a vehicle and the digital world, to create an effective service-oriented vehicle system architecture. Furthermore, a shift from primary vehicle domain architectures toward E/E architectures high-performance servers and zone system simulation software is creating a high demand for automobile system simulation software to ensure the efficiency of the architecture during the design and development stage. These software products enable new, cost-effective vehicle testing compared to conventional testing methods.

Get Sample PDF Brochure at


The COVID-19 crisis had a cascading impact on the global automotive industry since its inception in China, where sales dropped down by 71% in February 2020; and subsequently, by April, sales declined by 47% in the US and crashed by a staggering 80% in Europe. This lowered the market demand as requirement from major automotive manufacturers has declined. However, as the supply chain started regaining some strength from the third quarter of 2020 through the second quarter of 2021, automakers have witnessed a steady rise in the production levels. Furthermore, the crisis has brought rapid transformation across the mobility value chain and accelerated the digitization process occurring prior to it. Although the pandemic-related restrictions had led to prolonged or periodic shutdowns of production lines, non-manufacturing processes have continued to be attended by employees with secure connections through work-from-home or remote work model. The use of automotive system simulation solutions has greatly assisted the production and research of automakers during the crisis since product development process could be continued with limited or no access to laboratories and other physical validation equipment.

As governments across the world are imposing stringent regulations and policies to limit the environmental impact of automobile emissions and boost the adoption of electric vehicles, there is a sudden spike in the sales of electric and hybrid vehicles. Consequently, automotive giants are rigorously engaging in the research and development, and production of electric vehicles. Testing vehicle performances through automotive system simulation software forms a major part of these activities.

System simulation or modeling enables users to solve real-world problems safely and efficiently. Simulation is used across multiple industries and disciplines to provide clear insights into complex systems. With the rapid increase in the production of new vehicles, OEMs are shifting their conventional prototyping methods toward automotive system simulation to develop new models and improve existing ones, which is driving the automotive system simulation software market. Furthermore, advancements in simulation technologies have enabled automobile manufacturers to use a digital twin approach to accelerate the prototyping processes and make them cost-efficient. Automotive system simulation software plays a crucial role in the research and development process of all types of automobiles, including trucks, cars, buses, and two-wheelers. The software remarkably helps in cutting vehicle emissions and improving fuel efficiency. For instance, Daimler AG, a German automaker, announced the allocation of ~US$ 78.75 billion for its 2021–25 business plan focused on electrification and digitization. The investment will help it accelerate its goal of transitioning toward zero-emission products. Similar trends are expected in the automotive system simulation software market in the near future, as developers focus on R&D and product innovation. As a result, simulation technologies for the automotive sector, which have grown tremendously over time, will become even more advanced and powerful.

Strategic Insights:

Players operating in the automotive system simulation software market are mainly focused on the development of advanced and efficient products.

  • In January 2022, EasyMile, an all-electric autonomous technology supplier headquartered in Toulouse, France, procured Ansys software for a single-source, turnkey solution to demonstrate the safety of their driverless vehicles.
  • In April 2021, Simul8 won a Silver Award for Most Valuable Corporate Response at the Stevie Awards for Women in Business.

About Us:

The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

Contact Us:

If you have any queries about this report or if you would like further information, please

Contact Person: Sameer Joshi

Phone: +1-646-491-9876