AI (Artificial Intelligence) In Simulation Market Size, Share, Opportunities, And Trends By Technology (Simulation Modeling, Predictive & Prescriptive Analytics, Platform as a Service (PaaS), Others), By Deployment (Cloud, On-Premise), By End-User (Automotive, Infrastructure, Manufacturing, Education, Others), And By Geography - Forecasts From 2024 To 2029

AI (Artificial Intelligence) in the Simulation market is estimated to grow at a CAGR of 15.57%, attaining US$44.937 billion by 2029 from US$21.793 billion in 2024.

Artificial intelligence in simulation is a type of simulation model used to mimic the characteristics of the real world, using the cognitive learning of human intelligence. Artificial intelligence is the technology that replicates human intelligence using machine learning processes. A simulation is a type of virtual depiction of the real world that is formed using computer-based technologies. The simulations commonly offer key applications across multiple industries, like aerospace, automotive, construction, and telecommunication, among others, for the development of products and solutions.

Multiple types of simulation models are available across the industry, including the agent-based model, Monte Carlo model, and system dynamic model, among others. Agent-based models concentrate on individual "agents" within a system and simulate intricate interactions like shopkeepers and customers. Monte Carlo models conduct multiple simulations to statistically evaluate potential outcomes. System dynamics models depict complex systems with interconnected elements and analyze how alterations in one part can impact others.

A major factor that is forecasted to boost the global AI in the simulation market can be attributed to the advancements in simulation technology, demand for predictive analysis, enhanced efficiency, and reduced cost.

The global AI ecosystem has witnessed massive growth in developing new technologies, which can be credited to the advancement in the technological landscape worldwide. AI in the simulation model also offers multiple advantages, which include boosting the efficiency in the production development phase of the industries and understanding the features and issues through real-world simulation tests, reducing the overall manufacturing cost of the industries.

What are AI (Artificial Intelligence) in simulation market drivers?

• Advancements in simulation technology.

The application of simulation technology has increased significantly, mainly to enhance the manufacturing processes of multiple industries, including improving the designs of the products, which further helps reduce manufacturing expenses. The simulations aid in forecasting product performance, pinpointing manufacturing challenges, and providing a safe training environment for workers. The increasing emphasis on product optimization and industrial automation also resulted in advancements in simulation technologies.

Many companies and organizations have introduced new technologies that boost the capability of simulation technologies. For instance, Ansys, a global leader in simulation technology, introduced its latest technology to boost simulation technology advancements. The Ansys Discovery software is a simulation-driven 3D design tool that can be used to create and analyze 3D models within a virtual setting. Similarly, Toyota also integrated additional technological advancements in its THUMS (Total Human Model for Safety) software system, designed to simulate the human body's response in automobile accidents and enhance the vehicle's safety features.

• Boosting efficiency and cutting down costs in the manufacturing sector.

Businesses are always searching for methods to optimize operations and decrease costs. AI-powered simulations assist in analyzing procedures to identify inefficiencies, predict potential problems, and reduce the need for costly physical prototypes. Consequently, this leads to enhanced efficiency and reduced expenses. The growing AI and simulation in the manufacturing industry can be attributed to the continuous efforts to improve production processes coupled with proactive measures to promote industrial automation.

For instance, in July 2023, Mercedes-Benz AG started conducting trials with ChatGPT in live operations, expediting the integration of smart tools within the MO360 digital production ecosystem, which was initially launched in 2020. In order to enhance the processing of production data, such as those related to quality control, ChatGPT will serve as a versatile, voice-activated interface for production staff.

Major challenges hindering AI (Artificial Intelligence) in the simulation market

• Data bias can restrain AI simulation market growth.

AI simulations are capable of acquiring knowledge from data. In cases where the data contains concealed biases, such as making judgments based on race rather than merit, the simulation could unintentionally adopt these biases and consequently make unjust decisions. As a result, incorrect or detrimental consequences may arise.

Geographical outlook of AI (Artificial Intelligence) in the simulation market

• North America is forecasted to hold a major market share

North America is anticipated to account for a significant share of the AI simulation market as major technology companies in the region are leading the way in AI research and development. This growth is establishing a strong presence in the AI simulation market and prioritizes the cultivation of innovation.

In October 2023, the Defence Research Advanced Research Project Agency (DARPA) developed an innovative method of modeling and simulation to enhance the autonomy of different platforms, including drones and uncrewed vehicles. This fresh approach aims to overcome the constraints of conventional high-fidelity simulations utilized in training autonomous systems. In May 2023, a research collaboration at Ontario Tech University aimed to develop simulated medical training technology specifically designed for physicians in remote areas.

Major players and products in AI (Artificial Intelligence) in the simulation market

• Altair OptiStruct: Altair OptiStruct, an integral part of the Altair HyperWorks suite, is a robust structural analysis and optimization software. It is extensively utilized by engineers to examine the performance of structures under different loads and conditions and enhance designs in terms of weight, strength, and other essential performance criteria.
• Hexagon: Hexagon (HxGN), previously known as MSC, offers Smart Build Insight, which is a cutting-edge solution developed by Hexagon to enhance building design and construction by connecting the office and the field. It achieves this by harnessing digitalization across the entire construction process.

Key developments in AI (Artificial Intelligence) in the simulation market

• In October 2023, Altair launched Altair HyperWorks 2023, the ultimate Computer Aided Engineering (CAE) platform, offering engineers an extensive array of design and simulation products tailored for various industries such as automotive, aerospace, electronics, and beyond. This platform empowers engineers of all proficiency levels With unparalleled comprehensiveness, power, versatility, and openness.
• In October 2023, Foxconn partnered with NVIDIA to integrate the latter’s technology and aimed at facilitating diverse applications, including the digitalization of manufacturing and inspection procedures, the progression of AI-powered electric vehicle and robotics systems, and the expansion of language-based generative AI services.
• In February 2023, AVEVA, a well-known international leader in industrial software, launched its latest software, AVEVA Predictive Analytics. This state-of-the-art software is specifically developed to meet the predictive monitoring requirements of diverse industrial sectors, such as oil and gas, power, chemicals, mining and minerals, and manufacturing.

AI (Artificial Intelligence) In Simulation Market Scope:

Report Metric	Details
AI In Simulation Market Size in 2024	US$21.793 billion
AI In Simulation Market Size in 2029	US$44.937 billion
Growth Rate	CAGR of 15.57%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Technology Deployment End-User Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in AI In Simulation Market	AnyLogic IBM Altair Sky Engine AI Hadean
Customization Scope	Free report customization with purchase

 

The AI (Artificial Intelligence) In Simulation Market is analyzed into the following segments:

• By Technology
  • Simulation Modeling
  • Predictive & Prescriptive Analytics
  • Platform as a Service (PaaS)
  • Others
• By Deployment
  • Cloud
  • On-Premise
• By End-User
  • Automotive
  • Infrastructure
  • Manufacturing
  • Education
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AI (ARTIFICIAL INTELLIGENCE) IN THE SIMULATION MARKET BY TECHNOLOGY

5.1. Introduction

5.2. Simulation Modeling

5.3. Predictive & Prescriptive Analytics

5.4. Platform as a Service (PaaS)

5.5. Others

6. AI (ARTIFICIAL INTELLIGENCE) IN THE SIMULATION MARKET BY DEPLOYMENT

6.1. Introduction

6.2. Cloud

6.3. On-premise

7. AI (ARTIFICIAL INTELLIGENCE) IN THE SIMULATION MARKET BY END-USER

7.1. Introduction

7.2. Automotive

7.3. Infrastructure

7.4. Manufacturing

7.5. Education

7.6. Others

8. AI (ARTIFICIAL INTELLIGENCE) IN THE SIMULATION MARKET BY GEOGRAPHY

8.1. Introduction

8.1. North America

8.1.1. By Technology

8.1.2. By Deployment

8.1.3. By End-User

8.1.4. By Country

8.1.4.1. United States

8.1.4.2. Canada

8.1.4.3. Others

8.2. South America

8.2.1. By Technology

8.2.2. By Deployment

8.2.3. By End-User

8.2.4. By Country

8.2.4.1. Brazil

8.2.4.2. Argentina

8.2.4.3. Others

8.3. Europe

8.3.1. By Technology

8.3.2. By Deployment

8.3.3. By End-User

8.3.4. By Country

8.3.4.1. Germany

8.3.4.2. France

8.3.4.3. United Kingdom

8.3.4.4. Spain

8.3.4.5. Others

8.4. Middle East and Africa

8.4.1. By Technology

8.4.2. By Deployment

8.4.3. By End-User

8.4.4. By Country

8.4.4.1. Saudi Arabia

8.4.4.2. UAE

8.4.4.3. Israel

8.4.4.4. Others

8.5. Asia Pacific

8.5.1. By Technology

8.5.2. By Deployment

8.5.3. By End-User

8.5.4. By Country

8.5.4.1. China

8.5.4.2. Japan

8.5.4.3. India

8.5.4.4. South Korea

8.5.4.5. Indonesia

8.5.4.6. Taiwan

8.5.4.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. AnyLogic

10.2. IBM

10.3. Altair

10.4. Sky Engine AI

10.5. Hadean

10.6. MSC (Hexagon)

10.7. CosmoTech

10.8. Simulation Labs

10.9. ANSYS, Inc

10.10. Cognata

10.11. Zenarate

10.12. Collimator 

AnyLogic 

IBM 

Altair 

Sky Engine AI 

Hadean 

MSC  (Hexagon)

CosmoTech 

Simulation Labs 

ANSYS, Inc 

Cognata 

Zenarate 

Collimator