Market Size
Global AI-Powered Simulation Market reached US$ 21.63 billion in 2024 and is expected to reach US$ 69.36 billion by 2032, growing with a CAGR of 15.68% during the forecast period 2025-2032.
The global AI ecosystem has grown significantly in terms of new technology development, which can be attributed to global technical innovation. AI in the simulation model also offers many advantages, which include increasing the efficiency in the production development phase of the industries and comprehending the features and difficulties through real-world simulation tests, reducing the overall manufacturing cost of the industries.
Several companies and organizations have developed new technologies to improve the capability of simulation technology. For example, Ansys, a global pioneer in simulation technology, recently developed new technology to accelerate simulation breakthroughs. The Ansys Discovery software is a simulation-driven 3D design tool that allows you to develop and analyze 3D models in a virtual environment. Toyota has included more technology breakthroughs into its THUMS (Total Human Model for Safety) software system, designed to imitate the human body's response in automobile accidents and increase the vehicle's safety measures.
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Market Scope
| Metrics | Details | |
| By Deployment Type | On-Premise, Cloud-based | |
| By Technology | Simulation Modeling, Predictive & Prescriptive Analytics, Platform as a Service (PaaS), Others | |
| By End-User | Automotive, Infrastructure, Manufacturing, Education, Others | |
| By Region | North America, South America, Europe, Asia-Pacific, Middle East and Africa | |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth |
Makret Dynamics
Rising focus on improving efficiency and cutting down costs in the manufacturing sector
The growth of AI and simulation in the manufacturing business can be ascribed to ongoing efforts to optimize production processes, as well as proactive actions to boost industrial automation. For example, in July 2023, Mercedes-Benz AG began live testing with ChatGPT, accelerating the integration of smart tools into the MO360 digital production environment, which was first launched in 2020. ChatGPT will be used as a versatile, voice-activated interface for production staff to improve the processing of production data, such as quality control data.
Data biasness
AI simulations are capable of learning from data. In circumstances where the data contains hidden biases, like making judgments based on race rather than merit, the simulation can mistakenly take on these presumptions, resulting in unjust outcomes. As a result, unintended or negative effects may develop.
Market Segment Analysis
The global AI-powered simulation market is segmented based on deployment type, technology, end-user and region.
Cloud-based solution is expected to drive the market.
Cloud-based solutions have become a crucial component of today's digital world, with the growing trend of multi-cloud operations and the growing need for cloud-based intelligence services propelling AI market growth. According to IBM's 2022 research, 25% of respondents reported using multi-cloud to utilize various application services such as AI/ML, big data analytics, business intelligence and IoT.
In addition, in March 2024, Microsoft and NVIDIA established a collaboration to advance AI in the healthcare and life sciences industries. This relationship uses both organizations' strengths: Microsoft Azure's cloud infrastructure and advanced computing capabilities, together with NVIDIA's DGX Cloud and Clara suite.
Market Geographical Share
Presence of Major Technology Companies in North America.
North America is expected to account for a sizable portion of the AI simulation market, as major technological businesses in the region lead the way in AI research and development. This expansion establishes a strong position in the AI simulation sector and prioritizes the nurturing of innovation.
In October 2023, the Defense Research Advanced Research Project Agency (DARPA) created a unique modeling and simulation technology to improve the autonomy of various platforms, including drones and unmanned vehicles. This novel approach seeks to overcome the limitations of traditional high-fidelity simulations used to train autonomous systems. In May 2023, a research cooperation at Ontario Tech University sought to produce simulated medical training technology specially designed for physicians in rural places.
Sustainability and Green Technology Analysis
As enterprises use AI-powered simulations to optimize processes, environmental issues about energy usage, carbon emissions and electrical waste grow more pressing. However, AI-powered simulations help to promote green technology adoption by increasing energy efficiency, minimizing material waste and enabling sustainable product creation. AI-powered simulations assist industries in optimizing energy use by minimizing the need for physical prototypes and real-world testing, resulting in decreased carbon emissions.
Cloud-based AI simulation tools enable businesses to execute complicated simulations remotely, hence decreasing infrastructure energy consumption. NVIDIA and IBM are implementing energy-efficient AI processors and algorithms to minimize power utilization during simulations.
Major Global Players
The major global players in the market include AnyLogic, IBM, Altair, Sky Engine AI, Hadean, MSC (Hexagon), CosmoTech, Simulation Labs, ANSYS, Inc and Cognata.
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Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
