Views and Ideas

Simulation Enhances Product Cycles

22/06/2020

This document is directed at investment professionals and qualified investors (as defined by MiFID/FCA regulations).

How are manufacturers able to deliver high quality products on rapid timelines, even as products become increasingly complex and the world experiences an unprecedented pandemic? One way is through the adoption of software simulation.

  • Software simulation is the process of imitating real-world phenomena based on computer algorithms. The simulation market is expected to grow 12% - 15% annually through 2026. Manufacturing companies are increasingly using sophisticated simulation software to reduce time-tomarket, improve the quality of products and lower costs. Not only are companies using software simulation in product design, but also in ideation and manufacturing.
  • The increasing complexity of products is the key driver of growth in simulation. To reduce the disastrous consequences of improperly functioning products, higher levels of simulation are needed to ensure products work safely, reliably and as intended.
  • During the Covid-19 pandemic, research and development budgets are likely to be constrained and simulation will allow manufacturers to get more impact from tighter budgets. Simulation can give engineers the ability to evaluate multiple design options in parallel, making it more cost efficient. Additionally, simulation often eliminates the need for expensive physical testing.
  • Consumers will benefit from enhanced, more elaborate products and faster product lifecycles. Investors can consider opportunities among the companies providing this novel technology.

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