The S&A market grew by 11.3% to $8.3 billion in 2021
ANN ARBOR, Michigan, 30 June 2022—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 expands on the S&A market analysis conducted as part of the CIMdata 2022 PLM Market Analysis Report Series. The well-known PLM MAR Series provides detailed information and in-depth analysis of the worldwide PLM market during the calendar year 2021. 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 2022 S&A MAR is a 120+-page report containing over 50 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, “Detailed 3D geometric modeling, simulation, and analysis for virtual prototyping and verification/validation (i.e., working along the right side of the systems engineering Vee) still accounts for the majority of the S&A market segment revenues. But to support the development and lifecycle support for smart, connected products, systems-level behavior modeling, simulation, and analysis are increasingly recognized as must-have core competencies to enable digital engineering throughout the lifecycle and across engineering domains. The emergence of physics-based digital twins and real-time data analytics from IoT-enabled smart systems enhanced by new artificial intelligence/machine learning capabilities offer access to unprecedented product performance knowledge about today’s complex products as deployed and used. Both end-users and design engineers can benefit from this augmented product performance knowledge—the end-users in how best to optimize their product use and effectiveness in service and the 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 standards-based, 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 spanning the mechanical and electronics domains 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 S&A solution providers. The convergence of physics-based S&A capabilities across the mechanical and electronics domains is a topic that is highlighted in this year’s report.”
As shown in the following chart, in 2021 S&A revenues grew to just over $8.3 billion, an increase of 11.3% over the $7.5 billion in 2019. According to Mr. Stan Przybylinski, CIMdata’s Vice President, “S&A continues to move ‘up front’ in the product development process, helping companies evaluate multiple design concepts and optimize performance before committing to the final hardware and software design. CIMdata sees more interest in model-based approaches in a wide range of industries, helping them meet the challenges of developing, testing, and deploying smart, connected products. In addition, mergers and acquisitions (M&A) to expand their solution set continue, providing significant cross-selling opportunities. This should help drive increased S&A investment.”
S&A Market History and CIMdata Growth Estimates
CIMdata expects the PLM market overall to continue its strong growth but at different rates for the different segments. For 2022, CIMdata forecasts that the S&A sub-sector will grow 9.4% overall and have revenues of just over $9.1 billion. CIMdata expects that S&A will be one of the fastest-growing segments within the tools sector of PLM over the next five years, reaching $13.5 billion in 2026, with a 10.2% CAGR.”
The 2022 CIMdata S&A Market Analysis Report is available for purchase at: https://www.cimdata.com/en/research/plm-market-analysis-report-series.
