2025 Building Energy Simulation Software Industry Trends Report: Long-Term Outlook Through 2034

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How Large Will the Building Energy Simulation Software Market Size By 2025?
The market size for building energy simulation software has seen a swift expansion in the past few years. This market is projected to rise from $5.85 billion in 2024 to $6.67 billion in 2025, experiencing a compound annual growth rate (CAGR) of 14.0%. The development during the historic period is seen as a result of the increasing number of smart city initiatives, a call for sustainable methods in construction, enhanced demand for energy-efficient and sustainable solutions, a surge in the uptake of IoT and smart building technologies, and the renovation of existing buildings.

How Big Is the Building Energy Simulation Software Market Size Expected to Grow by 2029?
There is a projected swift expansion in the building energy simulation software market in the coming years, with an expected value of $11.14 billion by 2029 and a compound annual growth rate (CAGR) of 13.7%. The projected growth within this period can be linked to various factors such as government regulations on energy efficiency, advancements in building information modeling (BIM) and simulation technologies, the rise of net-zero energy buildings, and increasing environmental awareness and measures for carbon emission reduction. Major anticipated trends within this period will involve the integration of artificial intelligence (AI) and machine learning (ML), unification with Building Information Modeling tools, association with augmented and virtual reality, integration with Internet of Things (IoT), and integration with Building Information Modeling (BIM) and the Internet of Things (IoT).

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Which Key Market Drivers Powering Building Energy Simulation Software Market Expansion and Growth?
The anticipated surge in energy requirements is predicted to drive the expansion of the building energy simulation software market. As more urban areas evolve into centers for electricity-reliant operations including transportation, heating, cooling, and digital device usage, the demand for energy rises. Building energy simulation software plays a crucial role in enhancing energy utilization and grid effectiveness by offering critical insights into consumption tendencies and enabling better decision-making processes. For example, the Energy Information Administration, a government agency in the United States, reported that in 2022, the primary energy consumption in the US was 100.4 quadrillion British thermal units (quads), marking a 3% rise from the previous year. Thus, the burgeoning demand for energy is a significant factor propelling the growth of the building energy simulation software market.

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Which Fast-Growing Trends Are Poised to Disrupt the Building Energy Simulation Software Market?
Big players in the building energy simulation software marketplace are pioneering technologies like hybrid compilers (HyCo) with the aim of increasing the precision and efficiency of energy modeling, refining building designs for better energy efficiency, and facilitating real-time examination of energy usage patterns. The hybrid compiler (HyCo) is an innovation that blends various modeling methods to enhance the effectiveness and precision of energy simulations in building design. Renesas Electronics, a globally recognized semiconductor manufacturing organization from Japan, launched the AI Workbench in December 2023. The AI Workbench is engineered to support automotive AI engineers by offering them a consolidated virtual space where they can design, simulate, and optimize their software directly in the cloud. This platform uses Microsoft Azure services, which allows engineers to utilize powerful tools without the necessity for local installations or physical evaluation boards.

What Are the Emerging Segments in the Building Energy Simulation Software Market?
The building energy simulation software market covered in this report is segmented -

1) By Component: Software, Services
2) By Deployment Model: On-Premise, Cloud-Based
3) By Organization Size: Small And Medium Enterprises (SMEs), Large Enterprises
4) By End-User Industry: Architecture And Construction, Government And Defense, Automotive And Transportation, Manufacturing And Engineering, Other End Users

Subsegments:
1) By Software: Building Energy Modeling Software, Hvac Simulation Software, Lighting Simulation Software, Renewable Energy Simulation Software, Energy Efficiency Software, Building Performance Simulation Software
2) By Services: Installation And Integration Services, Consulting And Advisory Services, Training And Support Services, Maintenance And Upgrades Services, Customization Services

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Who Are the Global Leaders in the Building Energy Simulation Software Market?
Major companies operating in the building energy simulation software market are Siemens AG, Dassault Systèmes, Honeywell International Inc., GE Vernova Inc., Schneider Electric, Johnson Controls International plc, Carrier Corporation, Trane Technologies plc, Harbinger Group Inc., Autodesk Inc., Trimble Inc., UL Solutions, Integrated Environmental Solutions (IES) Ltd., ANSYS Inc., Bentley Systems Incorporated, Aurora Solar Technologies Inc., WeaveGrid Inc., EnergyCAP LLC., GARD Analytics, DesignBuilder Software Ltd., EnergyPlus, EnergySoft LLC, Batia Construction Company, Carmel Software Corporation., Equest Software Inc.

Which are the Top Profitable Regional Markets for the Building Energy Simulation Software Industry?
North America was the largest region in the Building Energy Simulation Software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the building energy simulation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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