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 was valued at US$ 1,142.52 million in 2021 and is expected to grow at a CAGR of 12.6% during the forecast period of 2021 to 2028 to reach US$ 2,616.37 million by 2028.

Popularity of Autonomous Vehicles Boosts Automotive System Simulation Software Market Growth

Automakers are constantly innovating to introduce advanced features and technologies in their passenger and commercial vehicles, which have gained significant popularity among customers. For instance, in 2021, Volkswagen demonstrated remarkable performance in electromobility and augmented reality-based head-up displays, while Daimler made great strides in autonomous driving and operating systems. With the increasing demand for smart and autonomous cars, the automotive system simulation software market has become an essential component of R&D activities in the industry. The growth of fully autonomous cars depends on factors such as advancements in technology, consumer preference, pricing, and safety concerns. To address these issues, major automakers focus on integrating robust technologies in vehicles using real-environment-based virtual test scenarios. One such platform is rFpro, which offers dedicated simulation software and digital-twin models for the validation of autonomous driving, ADAS, and vehicle dynamics. These trends are expected to boost the adoption of simulators to produce advanced vehicles, optimizing safety and performance, and shaping the future of the automotive system simulation software market.

The automotive industry in North America faced significant disruption due to the COVID-19 pandemic, with most manufacturing plants shutting down in 2020 as a result of strict restrictions and lockdowns. As North America, particularly the US, holds a significant share of the global automotive system simulation software market, the decline in vehicle sales has negatively impacted demand for simulation software. However, this impact is expected to be short-term, with the market gradually recovering as vaccination efforts continue to be successful. Additionally, the region is experiencing a shift in consumer preference towards electric vehicles (EVs), which presents a lucrative growth opportunity for the automotive system simulation software market due to the important role these solutions play in the design and engineering of EVs. For instance, the US has witnessed a remarkable surge in EV sales during the second half of 2020 and throughout 2021, with EV sales rising by around 200% from Q2 2020 to Q2 2021, resulting in a post-pandemic domestic penetration rate of 3.6%.

Key Findings of Study:

Based on type, the global automotive system simulation software market has been classified into transmission, engine, electric propulsion, fuel cell, driveline, chassis, and others. The engine segment dominates the automotive system simulation software industry as there is a major demand for engine system simulation software to develop fuel-efficient engines. Based on vehicle type, the global market has been bifurcated into commercial vehicles and passenger cars. The passenger cars segment dominates the market due to continuous developments in vehicle dynamics, engines, and power systems. Based on propulsion type, the global automotive system simulation software market has been segmented into ICE and electric. The ICE propulsion type segment dominates the market as simulation software is widely used for engine system applications. However, the rising demand for electric propulsion would propel the market for the electric segment at a higher CAGR during the forecast period. By geography, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). Asia Pacific dominated the automotive system simulation software market in 2020.

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