ANN ARBOR, MI, USA, Jul 7, 2026 — CIMdata, Inc., the leading global research, consulting, and education firm specializing in Product Lifecycle Management (PLM) and the digital transformation it enables, announces the release of the CIMdata Simulation and Analysis (S&A) Market Analysis Report.
This report expands on the S&A market analysis conducted as part of the CIMdata 2026 PLM Market Analysis Report (MAR) Series. The well-known PLM MAR Series provides detailed information and in-depth analysis on the worldwide PLM market during calendar year 2025. The 2026 S&A MAR contains updated and extensive analyses of major trends and issues; revenues of leading S&A providers; and S&A revenue analyses for geographical regions, industry sectors, and historical and projected data on market growth. The 2026 S&A MAR is a 108-page report containing over 50 tables and charts detailing the worldwide S&A market across several dimensions. It also includes an update on CIMdata’s S&A segmentation, a discussion of trends in the S&A industry, and updates on the many S&A solution providers.
2025 was defined by three key trends that are fundamentally reshaping the industry:
- Continuing EDA-S&A consolidation: Electronics and semiconductor systems are no longer restricted to a certain industry domain or application but are now a central part of new product and process developments. Driven by this core industrial need, EDA solution providers are moving rapidly to realize the “silicon to systems” product development vision. Physics-based simulation technology is becoming a core part of their offerings.
- The rise of AI and ML: AI and machine learning capabilities continue to play an increased role in S&A, more frequently being embedded in simulation workflows. Advancements in GPU computing and growing interest in AI support for product development, new startups, and established solution providers are reimagining simulation workflows. This includes companies developing models using historical simulation and test data (i.e., core machine learning), the use of physics-informed AI training methods to improve data quality, and the use of deep learning as a fundamental building block. Numerous companies are attempting to develop “foundation models,” thereby moving simulation to inferencing using a fully trained and validated model.
- Maturing support for digital twins: Simulation and Analysis is a foundation element of digital twins, providing the physics-based modeling required for predictive insights. Companies leverage digital twins for applications like predictive maintenance and virtual commissioning, creating a closed-loop system between product simulation, operation, and design.
As shown in the chart below, S&A revenues grew to $11.67 billion in 2025, an 8.5% increase over 2024 revenues.
CIMdata expects the PLM market overall to continue its strong growth, but at different rates across segments. For 2026, CIMdata forecasts that the S&A sub-sector will grow 9.4% overall and have revenues of just over $12.78 billion.
The 2026 CIMdata S&A Market Analysis Report is available for purchase at: https://www.cimdata.com/en/research/plm-market-analysis-report-series.
About CIMdata
CIMdata, a global strategic management consulting firm, provides services designed to maximize an enterprise’s ability to design, deliver, and support innovative products and services. For more than forty years, CIMdata has provided industrial organizations, providers of digital technologies and services, and investment firms with world-class insight, expertise, and best-practice methods on a broad set of product lifecycle management (PLM) topics and the digital transformation they enable. CIMdata also offers research, subscription services, publications, and education through certificate programs and international conferences. To learn more, visit www.CIMdata.com or email info@CIMdata.com.
