The S&A market grew by 11% to nearly $7.2 billion in 2019.
ANN ARBOR, Michigan, USA 25 June 2020—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 2020 PLM Market Analysis Report Series. The well-known PLM MAR Series provides detailed information and in-depth analysis on the worldwide PLM market during the calendar year 2019. 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 2020 S&A MAR is a 120+-page report containing over 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, “Today detailed geometric modeling, simulation, and analysis for virtual prototyping and verification/validation still makes up the majority of the S&A market segment. But to support the development of and lifecycle support for smart, connected products, 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. The emergence of physics-based digital twins and real-time data analytics from IoT-enabled smart systems offer access to unprecedented product performance knowledge from today’s products. Both end-users and design engineers can benefit from this knowledge. End-users, in how best to optimize their product use and effectiveness. And design engineers who can leverage this knowledge to create 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.”
As shown in the following chart, in 2019, S&A revenues grew to nearly $7.2 billion, an increase of 11% over the $6.4 billion in 2018. According to Mr. Stan Przybylinski, CIMdata’s Vice President, “The S&A segment had another solid year, just below our forecast. CIMdata continues to see S&A move ‘upfront’ 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. For the first time this year, CIMdata is including a chart detailing our estimate of the S&A market revenue breakdown by application segment. This initial estimate was developed, in part, through our consulting work with the financial and PLM communities over the last decade. We include it in the S&A MAR this year, and we welcome feedback from the S&A solution community to help refine it.”
S&A Market History and CIMdata Growth Estimates
The COVID-19 pandemic will cause all of the PLM segments CIMdata measures to take a pause, with S&A one of only two segments CIMdata estimates will have growth in 2020. For 2020, CIMdata forecasts that the S&A sub-sector will grow only 0.6% overall and have revenues of just under $7.2 billion. 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 $10.3 billion in 2024, with a 7.6% CAGR.”
The 2020 CIMdata S&A Market Analysis Report is available for purchase at http://www.cimdata.com/en/research/plm-market-analysis-report-series.
