The Simulation & Analysis market grew by 13.1% to nearly $6.5 billion in 2018.
ANN ARBOR, Michigan, 25 June 2019—CIMdata, Inc., the leading global PLM strategic management consulting and research firm, announces the release of the CIMdata Simulation and Analysis (S&A) Market Analysis Report. This report deepens the S&A market analysis conducted as part of the CIMdata 2019 PLM Market Analysis Report Series. The well-known PLM MAR Series provides detailed information and in-depth analysis on the worldwide PLM market during calendar year 2018. It contains analyses of major trends and issues; revenues of leading PLM providers; and revenue analyses for geographical regions, industry sectors, and historical and projected data on market growth. The 2019 S&A MAR is a 100+-page report containing 40 tables and charts of data detailing the worldwide S&A market along a number of dimensions. It also includes an update on CIMdata’s S&A segmentation, a discussion of trends in the S&A industry, and updates on the top S&A solution providers.
According to Mr. Don Tolle, CIMdata’s Practice Manager for Simulation-Driven Systems Development, “While detailed 3D modeling, simulation, and analysis for virtual prototyping and verification/validation still makes up the majority of the S&A market segment, systems-level behavior modeling, simulation, and analysis are increasingly recognized as must-have core competencies to enable the digitalization of product development, manufacturing, and in-service lifecycle operations by leveraging physics-based Digital Twins. Products are increasingly complex due to the high degree of electronics and software content in today’s cyber-physical systems. New capabilities, such as 3D printing or additive manufacturing, are also having a major impact on product design and manufacturing by enabling innovative new processes such as generative design. The emergence of physics-based digital twins and real-time data analytics from IoT-enabled smart systems promise to provide unprecedented product performance knowledge to end users of today’s products as well as to the design engineers who must build innovative new products to meet ever more demanding customer and regulatory requirements.
“To meet these industry challenges, there is a strong industry focus on creating collaborative product innovation platforms that enable cross-domain ‘digital process threads’ (including mechanical, electronics, software, controls, chemistry, materials, and other physics) that can be shared, continuously improved, and managed throughout the product development lifecycle. The major software and services solution providers are investing heavily in R&D to create new model-driven, integrated MBSE, PLM, and S&A capabilities as well as adding new leading-edge technologies by acquiring or partnering with smaller, innovative solutions providers.
“Looking forward, democratization of collaborative model-based engineering approaches based on open platforms, role-specific user interfaces, and data interoperability standards will allow a true systems engineering approach from product ideation through detailed development, verification and validation, manufacturing, in-service operations, and ultimately support for reuse, recycling, and end of life. Technologies in the area of ‘augmented intelligence’ (leveraging Artificial Intelligence/Machine Learning/Deep Learning) will become increasingly relevant in enabling simulation engineers as well as all engineers to make better design trade-off decisions with the most relevant product performance information available—the right data presented in the context of the user’s specific role at the right time. In that respect, CIMdata believes that while great progress is being made today by industry and the PLM solution providers, we are still relatively early in the journey towards achieving the widely forecasted business benefits of digitalization in the product development domain.”
As shown in the following chart, in 2018 S&A revenues grew to nearly $6.5 billion, an increase of 13.1% over the $5.7 billion in 2017. According to Mr. Stan Przybylinski, CIMdata’s VP of Research, “While the S&A segment has been the star of PLM in terms of growth since 2010, 2018 was an outstanding year for the segment. CIMdata believes S&A is continuing to move ‘up front’ in the product development process (i.e., to the ‘left’ side of the Systems Engineering Vee), helping companies evaluate multiple design concepts and optimize performance before committing to the final hardware and software design. Growth was broad-based and the public S&A solution providers expect another strong year in 2019 based on their revenue guidance to Wall Street. CIMdata expects that S&A will continue to be one of the more rapidly growing segments within the tools sector of PLM over the next five years, and forecasts that this market sector will reach nearly $11 billion in 2023, with an 11.1% CAGR. For 2019, CIMdata forecasts that the S&A sub-sector will grow 11.6% overall and have revenues of just over $7.2 billion.”
S&A Market History and CIMdata Growth Estimates
The 2019 CIMdata S&A Market Analysis Report is available for purchase at: http://www.cimdata.com/en/research/plm-market-analysis-report-series.
