Research Expert: Sarah Overall
  • Published: Jul 2025
  • Pages: 150
  • SKU: IRTNTR80706

  • Latest News- AI In Simulation Market: Simulation modeling is expected to lead the Technology segment during 2025-2029

    The AI In Simulation Market is being driven by Imperative of digital transformation and rise of intelligent digital twins

    The AI In Simulation Market is expected to grow at a CAGR of 21.1% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 32492.2 million. The global AI in simulation market is experiencing a significant transformation due to the integration of advanced generative AI technologies. This trend transcends the use of AI for basic predictive tasks, instead, it harnesses the power of large language models (LLMs) and diffusion models to generate innovative content. This trend encompasses two primary dimensions: design exploration and democratization. In the realm of design exploration, generative AI empowers engineers to go beyond optimizing existing designs to creating entirely new ones. By defining functional requirements, performance targets, and material constraints, engineers can generate numerous unique and often non-intuitive design concepts that meet these specifications. This revolutionary approach to simulation design holds immense potential for driving innovation and efficiency in various industries. 

    Get more information on AI In Simulation Market by requesting a sample report

    Which Factors Are Causing a Surge in Market Growth?

    The market is segmented based on

    • Technology
      • Simulation modeling
      • Predictive and prescriptive analytics
      • PaaS
      • Others
    • Deployment
      • Cloud
      • On premise
    • End-user
      • Automotive
      • Manufacturing
      • Infrastructure
      • Education
      • Others
    • Geography
      • North America
        • Canada
        • US
      • APAC
        • China
        • India
        • Japan
        • South Korea
      • Europe
        • Germany
        • UK
        • France
      • South America
        • Brazil
      • Middle East and Africa

      According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

      • Imperative of digital transformation and rise of intelligent digital twins
      • Accelerating product complexity and reducing development cycles
      • Democratization of advanced simulation through AI and cloud computing

      However, the market also witnesses some limitations, which are as follows:

      • Data scarcity, quality, and computational cost
      • Black Box problem and need for explainable AI (XAI)
      • High implementation costs and specialized talent gap

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      Market Scope in AI In Simulation Market Research Report

      Market Scope

      Report Coverage

      Details

      Page number

      247

      Base year

      2024

      Historic period

      2019-2023

      Forecast period

      2025-2029

      Growth momentum & CAGR

      Accelerate at a CAGR of 21.1%

      Market growth 2025-2029

      USD 32492.2 million

      Market structure

      fragmentation

      YoY growth 2024-2025(%)

      18.4

      Key countries

      US, China, Germany, India, Japan, UK, South Korea, Canada, France, and Brazil

      Competitive landscape

      Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

      Find out which segment is leading the market by accessing the free PDF report

      Research Analysis Overview

      The AI simulation market encompasses various applications, including model fidelity and simulation accuracy, simulation speed, data integration, scenario planning, and what-if analysis. It offers decision support systems through virtual, augmented, and mixed reality, interactive and immersive simulations for training and testing. Design of experiments, parameter estimation, model reduction, and code verification are integral parts. Error propagation, time series analysis, causal inference, data mining, big data analytics, predictive modeling, prescriptive analytics, simulation debugging, model governance, and simulation lifecycle management ensure simulation interoperability and effective use.

      Market Research Overview

      The global IT software market encompasses businesses specializing in the development and production of application, system, and software solutions, excluding those classified in the interactive home entertainment and systems software sub-industries focusing on database management. Technavio's market analysis covers the consolidated revenue of companies providing various IT software offerings, including agent-based modeling, discrete event simulation, system dynamics modeling, and monte carlo simulation, within the application software segment.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.


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      Jesse Maida
      Media & Marketing Executive
      US: +1 844 364 1100
      UK: +44 203 893 3200
      Email: media@technavio.com
      Website: www.technavio.com/

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