by The Building Energy Simulation Software Market comprises computer-based programs that enable building architects, engineers and researchers to model and evaluate the energy performance of buildings. These simulation tools provide a dynamic and interactive way to model heating, ventilation, cooling and lighting systems in virtual building designs through digital test environments that mimic real-world conditions. By virtually testing building performance before actual construction, these programs help identify design flaws and optimize building designs for maximum energy efficiency.
The Global Building Energy Simulation Software Market is estimated to be valued at US$ 5.65 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the building energy simulation software are Alchemie Ltd., Asahi Kasei Corporation, BASF SE, BUFA GmbH & Co. KG, Celanese Corporation, Covestro AG, Daicel Corporation, DSM, Eastman Chemical Company, INEOS, Kanoria Chembond Pvt. Ltd, Lanxess AG, LG Chem, Mitsubishi Engineering-Plastics Corporation, Nihon Gosei Kako Co. Ltd, Polynt SpA, Satyen Polymers Pvt. Ltd, Showa Denko KK, Solvay, Sumitomo Bakelite Co. Ltd, and U-PICA Company Ltd.
The growing demand for energy-efficient and sustainable building designs is driving increased adoption of simulation tools.
Stringent government regulations pertaining to building energy codes across major markets are further fueling demand. Leading software providers are expanding their geographic footprint through partnerships and acquisitions to tap growth opportunities in emerging nations.
Market key trends
One of the primary Building Energy Simulation Software Market Demand trends is the shift towards sustainable infrastructure development to reduce the carbon footprint of the built environment. Building energy simulation programs play a pivotal role in enabling architects to design net-zero energy and emissions structures from the conceptual planning stage itself. Moreover, the capabilities of these solutions are continuously enhancing through integration of artificial intelligence and machine learning algorithms for more realistic modeling of dynamic building performance parameters.
Porter’s Analysis
Threat of new entrants: The building energy simulation software market has moderate threat of new entrants due to well established players and high initial capital requirement.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and not much differentiation between products of various vendors.
Bargaining power of suppliers: Software developers have low bargaining power as there are many substitutes available in the market.
Threat of new substitutes: Threat of substitution is low as building energy simulation software has no close substitute.
Competitive rivalry: The market has high competitive rivalry due to presence of many global and regional players offering similar products.
Geographical Regions
North America accounts for the largest share of the building energy simulation software market in terms of value owing to stringent government norms and standards regarding energy efficiency.
Asia Pacific region is expected to be the fastest growing geographical region during the forecast period attributed to increasing construction spending, rising awareness about energy efficiency, and government initiatives in countries like China and India.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
