Automotive Simulation Market to More Than Double by 2031 as Virtual Development Becomes the Standard

[Detroit, MI/Palo Alto, CA, April 22^nd, 2025] – The Global Automotive Simulation Market is projected to grow from USD 2.8 billion in 2023 to USD 6.3 billion by 2031, according to ClearView Market Insights. The 10.7% CAGR indicates a fundamental shift in the industry toward virtual development processes across all vehicle systems.

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Key Market Drivers

Development Cost Reduction

·       Virtual prototypes saving up to $500k per vehicle program

·       70% reduction in physical crash tests

·       Faster iteration cycles enabling quicker time-to-market

Increasing System Complexity

·       Autonomous systems requiring billions of test miles

·       EV thermal management challenges

·       Software-defined vehicle architectures

Regulatory Pressures

·       NCAP safety requirements demanding more scenarios

·       Battery safety certification processes

·       Cybersecurity validation needs

Technology Breakthroughs

·       Digital Twins: BMW's complete vehicle simulations

·       AI Simulation: Tesla's synthetic training environments

·       Cloud Scaling: 1000-core simultaneous simulations

Regional Adoption

·       North America: 35% share, led by AV development

·       Europe: 30%, strong in luxury vehicle dynamics

·       Asia-Pacific: 30%, Chinese EV makers rapidly adopting

·       Rest of World: 5%, emerging market growth

Executive Perspective
"Simulation has moved from being a support tool to the foundation of vehicle development," said Dr. Prith Banerjee, CTO at Ansys. "Our customers are now running more simulations in a week than they did in a year five years ago."

Market Outlook

·       2025: 50% of validation done virtually

·       2027: Digital twins standard for all new programs

·       2030: AI-generated simulation scenarios dominate

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About ClearView Market Insights
We provide specialized analysis of digital engineering technologies transforming the automotive industry.

Media contact:

Bhavani K
Marketing and Sales Head
ClearView Market Insights
Mail: sales@clearviewmarketinsights.com
Phone: +1 917-993-7369