Automotive simulation is the usage of simulation software for model testing and prototyping of an automobile to ensure the complete functionality of the vehicle. In recent years, automakers have been increasingly using this software for vehicle testing because they are working on several models based on varying parameters, which need model testing before they are validated and finalized. In the coming years, advanced simulation software and related technologies will be largely used for autonomous cars, smart driving truck platooning, and fleet management. 

The surging integration of simulation features in vehicles can be credited to the growing awareness about vehicle and passenger safety. Owing to this reason, the automotive simulation market will register considerable growth during 2020–2030. At present, simulation software developers and automotive original equipment manufacturers (OEMs) are actively focusing on research and development (R&D) activities to introduce advanced systems. To offer advanced solutions, OEMs are increasingly using the internet of things (IoT) technology in their safety systems.

In recent years, automation simulation software providers, such as dSPACE GmbH, The MathWorks Inc., Synopsys Inc., Dassault Systmès SE, ANSYS Inc., Siemens AG, PTC Inc., SIMUL8 Corp., and Altair Engineering Inc. have been emphasizing on partnerships and mergers and acquisitions to develop innovative technologies and improve their product performance. The technologies offered by such companies aim at enhancing safety features and offering assistance to the drivers. Moreover, with the ongoing developments in autonomous technology, simulation software will be required in abundance in the forthcoming futures.

With the increasing number of vehicles and electric vehicles (EVs), the requirement for simulation services and software offered by the aforementioned companies will amplify at a significant rate in the coming years. According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2020, 77.9 million vehicles were sold across the world. As per OICA, 53.5 million passenger cars and 24.3 million commercial vehicles were sold in 2020. Moreover, the International Energy Agency (IEA) projects that 79.9 million battery electric vehicles (BEVs) and 44.3 million plug-in electric vehicles (PHEVs) will be sold by 2030.

Between the automotive simulation software and service, the demand for the latter is predicted to surge sharply in the upcoming years. This will be a result of the fact that many automakers all over the world are increasingly adopting consulting and design services in order to cater to the burgeoning requirement for process enhancement and product designs. This is subsequently fueling the advancement of the automotive simulation market across the world.