Electric Vehicle Simulation Testing and Design Software Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 8.44 Billion
CAGR (2026-2031)	10.67%
Fastest Growing Segment	Simulation Software
Largest Market	North America
Market Size (2031)	USD 15.51 Billion

Market Overview

The Global Electric Vehicle Simulation Testing and Design Software Market will grow from USD 8.44 Billion in 2025 to USD 15.51 Billion by 2031 at a 10.67% CAGR. Global Electric Vehicle Simulation Testing and Design Software encompasses specialized virtual engineering tools designed to model, analyze, and validate the performance of electric vehicle components, such as batteries and powertrains, prior to physical prototyping. The market is primarily driven by the imperative to accelerate development cycles and reduce the substantial expenditures associated with physical crash tests and field validation. Furthermore, stringent global emission regulations and safety standards compel manufacturers to adopt these virtual solutions to ensure compliance efficiently, thereby supporting widespread industry adoption.

However, market expansion is frequently impeded by the high cost of software implementation and the technical complexity involved in integrating these advanced tools with legacy engineering systems. This financial barrier often restricts adoption among smaller automotive startups. Illustrating the scale of the sector driving this demand for efficient design methodologies, according to the International Energy Agency, in 2024, global electric car sales were projected to reach approximately 17 million units. This substantial volume underscores the critical reliance on digital testing to manage the intensifying production and design throughput required by the industry.

Key Market Drivers

The rapid expansion of the global electric vehicle market necessitates advanced simulation tools to manage the increasing scale of production and design validation. As manufacturers ramp up output to meet consumer demand, reliance on physical testing becomes a logistical bottleneck, forcing a shift toward virtual environments for analyzing battery thermal runaway and powertrain efficiency. This surge in production volume directly correlates with the adoption of digital validation software to maintain throughput. Demonstrating this manufacturing scale, according to the China Association of Automobile Manufacturers, July 2024, in the 'June 2024 Automobile Industry Production and Sales Situation' release, the production of New Energy Vehicles reached 4.929 million units in the first half of 2024. Such high volumes require digital platforms to ensure quality control without the delays inherent in physical prototyping.

Simultaneously, the imperative for cost reduction through virtual prototyping is reshaping investment strategies within the automotive sector. Developing electric powertrains involves immense capital expenditure, motivating OEMs to utilize simulation to identify design flaws early and minimize expensive hardware rectifications. The financial commitment to this digital transformation is substantial. According to Honda Global, May 2024, in the '2024 Business Briefing', the company announced plans to invest approximately 10 trillion yen through fiscal year 2031, primarily toward software-defined mobility to enhance development efficiency. These investments highlight the role of software in optimizing resource allocation. Illustrating the regional trends necessitating these tools, according to the European Automobile Manufacturers’ Association, in 2024, electrically chargeable cars accounted for 21% of all new car registrations in the EU during the first half of the year.

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Key Market Challenges

The Global Electric Vehicle Simulation Testing and Design Software Market is significantly restricted by the high cost of software implementation and the technical complexity involved in integrating these tools with legacy engineering systems. Advanced simulation platforms require substantial capital investment for licensing and high-performance computing infrastructure, creating a financial barrier that limits accessibility. Furthermore, the integration process is technically intricate, often necessitating specialized personnel and resulting in extended deployment timelines. This complexity disrupts engineering workflows and increases the total cost of ownership, causing hesitation among potential buyers who must carefully manage their operational budgets against the immediate financial outlay.

These barriers disproportionately affect smaller automotive startups and niche manufacturers, effectively excluding a vital segment of the industry from adopting industry-standard verification tools. As these emerging companies often lack the vast resources of established manufacturers, the inability to afford essential testing software stifles their competitiveness and slows the market's overall adoption rate. Illustrating the capital-intensive nature of the industry, according to the European Automobile Manufacturers' Association, in 2024, the automotive sector in Europe invested €73 billion in research and development. This substantial expenditure highlights the immense financial pressure companies face, reinforcing why high software costs remain a critical impediment to market expansion.

Key Market Trends

The validation of Software-Defined Vehicle (SDV) architectures is fundamentally altering the simulation landscape, shifting the primary focus from mechanical stress testing to the verification of complex electronic control units and centralized operating systems. As vehicles evolve into connected platforms, engineers must increasingly utilize virtual environments to validate millions of lines of code and Over-the-Air (OTA) update protocols before physical hardware is manufactured. This necessitates simulation software capable of virtualizing entire electronic architectures to ensure functional safety and cybersecurity compliance without relying on hardware-in-the-loop dependencies. Highlighting the immense capital directed toward this technological transition, according to Hyundai Motor Company, August 2024, in the '2024 CEO Investor Day' presentation, the automaker announced a strategic investment of KRW 22.1 trillion specifically dedicated to advancing software and electrical/electronic (E/E) architectures.

Simultaneously, the proliferation of full-lifecycle digital twins is extending the application of simulation beyond the design studio into manufacturing and operational optimization. Automakers are integrating AI-driven digital replicas of production facilities and battery systems to predict performance degradation and refine assembly processes under simulated real-world conditions. This holistic approach allows manufacturers to optimize battery chemistries and production workflows virtually, thereby significantly lowering overheads and accelerating the path to price parity with internal combustion engines. Illustrating the direct economic influence of these advanced digital development strategies, according to Manufacturing Digital, August 2024, in the 'Mercedes-Benz: The Factory of the Future' report, Mercedes-Benz leverages these technologies with the specific goal of reducing battery costs by more than 30% in the coming years.

Segmental Insights

The simulation software segment is positioned as the fastest-growing category within the global electric vehicle simulation testing and design software market. This expansion is primarily driven by the increasing necessity for manufacturers to minimize physical prototyping costs and accelerate development timelines. As electric vehicle architectures involving high-voltage batteries and thermal management systems require precise validation, virtual environments enable engineers to identify potential failures early in the design cycle. Furthermore, compliance with stringent safety standards established by the International Organization for Standardization mandates extensive virtual verification, thereby reinforcing the essential role of simulation tools in ensuring vehicle reliability.

Regional Insights

North America holds the leading position in the Global Electric Vehicle Simulation Testing and Design Software Market, primarily due to the extensive presence of major automotive manufacturers and technology firms. This dominance is supported by rigorous safety and performance regulations enforced by the National Highway Traffic Safety Administration, which compel companies to utilize simulation tools for validation and compliance. Furthermore, substantial investment in electric mobility research and infrastructure drives the continuous demand for specialized design software. These factors collectively enable the region to maintain its market standing by reducing development timelines and physical testing costs.

Recent Developments

In November 2024, AVL released the 2024 R2 version of its simulation software suite, introducing specialized features for the electric vehicle sector to enhance virtual testing capabilities. The update focused on battery lifetime prediction for fleet operations and provided advanced tools for the dynamic calibration of electric drives and e-axles. Additionally, the software enhanced capabilities for optimizing fuel cell operating strategies and streamlined virtual calibration workflows. This release was designed to address complex engineering challenges by integrating improved data management and virtualization solutions, ultimately supporting the development of efficient electrified powertrains and significantly reducing the time required for validation in mobility projects.
In July 2024, Altair announced the launch of Altair HyperWorks 2024, a comprehensive design and simulation platform integrating artificial intelligence to accelerate engineering workflows. This release featured AI-embedded capabilities for generative design and physics predictions, which are essential for optimizing critical electric vehicle components such as battery packs and electronic systems. The software offered a unified user experience across various geometries and physics, enabling engineers to perform faster design iterations and make data-driven decisions. The update focused on streamlining mechanical and electronic system design, helping automotive manufacturers meet the rigorous demands of rapid product development cycles in the electric mobility sector.
In June 2024, Ansys introduced Ansys ConceptEV, a cloud-native software-as-a-service solution designed to optimize the conceptual design phase of electric vehicle powertrains. This offering enabled engineers to collaborate effectively on modeling core functional components like batteries, inverters, and motors, facilitating early design decisions that improve driving range and reduce battery charging times. By providing a unified model-based approach, the software allowed for the rapid evaluation of trade-offs in powertrain configurations. The launch addressed the industry's critical need for faster time-to-market and lower development costs by enhancing the efficiency and accuracy of the initial design stages for electrified vehicles.
In February 2024, Siemens Digital Industries Software launched Simcenter E-Machine Design, a specialized solution tailored for predicting electric machine performance within the automotive industry. The software integrated electromagnetic and thermal simulation capabilities to assist manufacturers in designing next-generation electric vehicle motors, including complex axial flux variants. By combining these multi-disciplinary physics into a single environment, the tool reduced the reliance on physical prototyping and enabled engineers to address thermal efficiency challenges earlier in the development process. This innovation aimed to accelerate the creation of compact, reliable, and high-performance electric drive units for the evolving global market.

Key Market Players

Siemens Digital Industries Software
Ansys, Inc.
Altair Engineering, Inc.
Dassault Systèmes
The MathWorks, Inc.
PTC, Inc.
Autodesk, Inc.
dSPACE GmbH
Applied Intuition, Inc.
ESI Group

By Type	By Simulation Software	By Testing Software	By Design Software	By Deployment	By Application	By Region
Simulation Software Testing Software Design Software	Powertrain Simulation ADAS Simulation Vehicle Dynamics Simulation Others	Test I/O Hardware Test Processor & Storage Others	Computer Aided Design Computer Aided Manufacturing Product Design Management ECU Design Software Others	On Premise and Cloud	Product Engineering Research and Development Gamification & Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Electric Vehicle Simulation Testing and Design Software Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Electric Vehicle Simulation Testing and Design Software Market, By Type:

Simulation Software
Testing Software
Design Software

Electric Vehicle Simulation Testing and Design Software Market, By Simulation Software:

Powertrain Simulation
ADAS Simulation
Vehicle Dynamics Simulation
Others

Electric Vehicle Simulation Testing and Design Software Market, By Testing Software:

Test I/O Hardware
Test Processor & Storage
Others

Electric Vehicle Simulation Testing and Design Software Market, By Design Software:

Computer Aided Design
Computer Aided Manufacturing
Product Design Management
ECU Design Software
Others

Electric Vehicle Simulation Testing and Design Software Market, By Deployment:

On Premise and Cloud

Electric Vehicle Simulation Testing and Design Software Market, By Application:

Product Engineering
Research and Development
Gamification & Others

Electric Vehicle Simulation Testing and Design Software Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Electric Vehicle Simulation Testing and Design Software Market.

Available Customizations:

Global Electric Vehicle Simulation Testing and Design Software Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Electric Vehicle Simulation Testing and Design Software Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Electric Vehicle Simulation Testing and Design Software Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (Simulation Software, Testing Software, Design Software)

5.2.2. By Simulation Software (Powertrain Simulation, ADAS Simulation, Vehicle Dynamics Simulation, Others)

5.2.3. By Testing Software (Test I/O Hardware, Test Processor & Storage, Others)

5.2.4. By Design Software (Computer Aided Design, Computer Aided Manufacturing, Product Design Management, ECU Design Software, Others)

5.2.5. By Deployment (On Premise and Cloud)

5.2.6. By Application (Product Engineering, Research and Development, Gamification & Others)

5.2.7. By Region

5.2.8. By Company (2025)

5.3. Market Map

6. North America Electric Vehicle Simulation Testing and Design Software Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By Simulation Software

6.2.3. By Testing Software

6.2.4. By Design Software

6.2.5. By Deployment

6.2.6. By Application

6.2.7. By Country

6.3. North America: Country Analysis

6.3.1. United States Electric Vehicle Simulation Testing and Design Software Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By Simulation Software

6.3.1.2.3. By Testing Software

6.3.1.2.4. By Design Software

6.3.1.2.5. By Deployment

6.3.1.2.6. By Application

6.3.2. Canada Electric Vehicle Simulation Testing and Design Software Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By Simulation Software

6.3.2.2.3. By Testing Software

6.3.2.2.4. By Design Software

6.3.2.2.5. By Deployment

6.3.2.2.6. By Application

6.3.3. Mexico Electric Vehicle Simulation Testing and Design Software Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By Simulation Software

6.3.3.2.3. By Testing Software

6.3.3.2.4. By Design Software

6.3.3.2.5. By Deployment

6.3.3.2.6. By Application

7. Europe Electric Vehicle Simulation Testing and Design Software Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By Simulation Software

7.2.3. By Testing Software

7.2.4. By Design Software

7.2.5. By Deployment

7.2.6. By Application

7.2.7. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Electric Vehicle Simulation Testing and Design Software Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By Simulation Software

7.3.1.2.3. By Testing Software

7.3.1.2.4. By Design Software

7.3.1.2.5. By Deployment

7.3.1.2.6. By Application

7.3.2. France Electric Vehicle Simulation Testing and Design Software Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By Simulation Software

7.3.2.2.3. By Testing Software

7.3.2.2.4. By Design Software

7.3.2.2.5. By Deployment

7.3.2.2.6. By Application

7.3.3. United Kingdom Electric Vehicle Simulation Testing and Design Software Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By Simulation Software

7.3.3.2.3. By Testing Software

7.3.3.2.4. By Design Software

7.3.3.2.5. By Deployment

7.3.3.2.6. By Application

7.3.4. Italy Electric Vehicle Simulation Testing and Design Software Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By Simulation Software

7.3.4.2.3. By Testing Software

7.3.4.2.4. By Design Software

7.3.4.2.5. By Deployment

7.3.4.2.6. By Application

7.3.5. Spain Electric Vehicle Simulation Testing and Design Software Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By Simulation Software

7.3.5.2.3. By Testing Software

7.3.5.2.4. By Design Software

7.3.5.2.5. By Deployment

7.3.5.2.6. By Application

8. Asia Pacific Electric Vehicle Simulation Testing and Design Software Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By Simulation Software

8.2.3. By Testing Software

8.2.4. By Design Software

8.2.5. By Deployment

8.2.6. By Application

8.2.7. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Electric Vehicle Simulation Testing and Design Software Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By Simulation Software

8.3.1.2.3. By Testing Software

8.3.1.2.4. By Design Software

8.3.1.2.5. By Deployment

8.3.1.2.6. By Application

8.3.2. India Electric Vehicle Simulation Testing and Design Software Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By Simulation Software

8.3.2.2.3. By Testing Software

8.3.2.2.4. By Design Software

8.3.2.2.5. By Deployment

8.3.2.2.6. By Application

8.3.3. Japan Electric Vehicle Simulation Testing and Design Software Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By Simulation Software

8.3.3.2.3. By Testing Software

8.3.3.2.4. By Design Software

8.3.3.2.5. By Deployment

8.3.3.2.6. By Application

8.3.4. South Korea Electric Vehicle Simulation Testing and Design Software Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By Simulation Software

8.3.4.2.3. By Testing Software

8.3.4.2.4. By Design Software

8.3.4.2.5. By Deployment

8.3.4.2.6. By Application

8.3.5. Australia Electric Vehicle Simulation Testing and Design Software Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By Simulation Software

8.3.5.2.3. By Testing Software

8.3.5.2.4. By Design Software

8.3.5.2.5. By Deployment

8.3.5.2.6. By Application

9. Middle East & Africa Electric Vehicle Simulation Testing and Design Software Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By Simulation Software

9.2.3. By Testing Software

9.2.4. By Design Software

9.2.5. By Deployment

9.2.6. By Application

9.2.7. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Electric Vehicle Simulation Testing and Design Software Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By Simulation Software

9.3.1.2.3. By Testing Software

9.3.1.2.4. By Design Software

9.3.1.2.5. By Deployment

9.3.1.2.6. By Application

9.3.2. UAE Electric Vehicle Simulation Testing and Design Software Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By Simulation Software

9.3.2.2.3. By Testing Software

9.3.2.2.4. By Design Software

9.3.2.2.5. By Deployment

9.3.2.2.6. By Application

9.3.3. South Africa Electric Vehicle Simulation Testing and Design Software Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By Simulation Software

9.3.3.2.3. By Testing Software

9.3.3.2.4. By Design Software

9.3.3.2.5. By Deployment

9.3.3.2.6. By Application

10. South America Electric Vehicle Simulation Testing and Design Software Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By Simulation Software

10.2.3. By Testing Software

10.2.4. By Design Software

10.2.5. By Deployment

10.2.6. By Application

10.2.7. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Electric Vehicle Simulation Testing and Design Software Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By Simulation Software

10.3.1.2.3. By Testing Software

10.3.1.2.4. By Design Software

10.3.1.2.5. By Deployment

10.3.1.2.6. By Application

10.3.2. Colombia Electric Vehicle Simulation Testing and Design Software Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By Simulation Software

10.3.2.2.3. By Testing Software

10.3.2.2.4. By Design Software

10.3.2.2.5. By Deployment

10.3.2.2.6. By Application

10.3.3. Argentina Electric Vehicle Simulation Testing and Design Software Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By Simulation Software

10.3.3.2.3. By Testing Software

10.3.3.2.4. By Design Software

10.3.3.2.5. By Deployment

10.3.3.2.6. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Electric Vehicle Simulation Testing and Design Software Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Siemens Digital Industries Software

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Ansys, Inc.

15.3. Altair Engineering, Inc.

15.4. Dassault Systèmes

15.5. The MathWorks, Inc.

15.6. PTC, Inc.

15.7. Autodesk, Inc.

15.8. dSPACE GmbH

15.9. Applied Intuition, Inc.

15.10. ESI Group

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

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