Automotive simulation software market seen topping $9 billion by 2030

The Business Research Company says the automotive simulation software market is on track to exceed $9 billion by 2030 as automakers lean harder on virtual testing for electric and autonomous vehicles. North America is expected to lead the market, with the U.S. as the largest country market.

Why it matters: - Automotive simulation software is becoming a core engineering tool as automakers push electric vehicles, autonomous driving and faster product cycles. - The market’s growth signals more spending on digital design, virtual testing and simulation-driven development across the automotive supply chain. - The report says the market will remain a specialized slice of the wider transport sector, but one with outsized importance for vehicle innovation.

What happened: - The Business Research Company published its Automotive Simulation Software Global Market Report 2026, covering market size, trends and a 2026-2035 forecast. - The report projects the market will exceed $9 billion by 2030 and grow at a 12% compound annual growth rate through 2030. - North America is forecast to be the largest regional market in 2030 at $3.0 billion, up from $1.7 billion in 2025. - The U.S. is projected to be the biggest national market in 2030 at $2.6 billion, rising from $1.5 billion in 2025.

The details: - The report estimates the automotive simulation software market will make up about 0.1% of the broader transport market, which is projected to reach $9,400 billion by 2030. - Software is expected to be the largest component, reaching 74% of the market, or about $6 billion, by 2030. - Market segments include design simulation, performance simulation, crash simulation, multibody dynamics simulation and thermal simulation software. - Deployment options include on-premises and cloud-based software. - Applications include vehicle dynamics, powertrain simulation, fuel efficiency simulation, noise, vibration and harshness simulation, and electronics simulation. - End users include original equipment manufacturers, automotive suppliers, academic institutions and research organizations. - The report says ADAS and autonomous vehicle development is a major growth driver because those systems need extensive virtual testing across many driving scenarios. - Electrification is another key driver as manufacturers use simulation to model batteries, thermal systems, power electronics and powertrains before building physical prototypes. - Pressure to cut development costs and reduce time-to-market is also increasing demand for virtual prototyping and digital engineering workflows. - Software and services together are expected to generate more than $4 billion in market value by 2030. - The software segment is projected to add $3 billion between 2025 and 2030, while services are expected to add $1 billion.

Between the lines: - The market remains moderately fragmented, with the top 10 companies holding 21% of revenue in 2025. - Siemens AG led global automotive simulation software sales in 2025 with a 4% market share. - Major companies in the market include Dassault Systèmes SE, The MathWorks Inc., Synopsys Inc., NVIDIA Corporation, PTC Inc., Hexagon AB, dSPACE GmbH, ETAS GmbH and IPG Automotive GmbH. - The report points to a shift toward AI-powered simulation platforms, digital twin tools and physics-based modeling as the next competitive battleground. - In February 2025, Altair Engineering launched Altair HyperWorks 2025, an AI-driven simulation suite for automotive design and engineering. - The suite uses machine learning-based predictive modeling, automated design exploration and cloud scalability to speed virtual prototyping for OEMs and suppliers.

What's next: - Companies are expected to keep investing in vehicle digital twins, AI simulation tools, hardware-in-the-loop testing and higher-fidelity physics models. - The report suggests these capabilities will matter more as automakers seek faster validation, better accuracy and lower development costs. - North American growth is likely to stay tied to autonomous mobility, connected vehicle development and electric vehicle optimization. - The U.S. market is expected to keep benefiting from investments in advanced vehicle programs, OEM density and technology partnerships.

The bottom line: - Automotive simulation software is moving from a niche engineering tool to a mainstream requirement for next-generation vehicle development.