Building Energy Simulation Software Market Size and Trends

The global building energy simulation software market size was valued at US$ 4.80 billion in 2023 and is expected to reach US$ 10.7 billion by 2030, growing at a compound annual growth rate (CAGR) of 12.1% from 2023 to 2030.

Building energy simulation software helps in predicting and analyzing energy consumption of a building during its early design stage. It is used by architects, engineers, and contractors to design energy-efficient buildings as per mandated regulations and green building standards. The growth of the market is driven by government regulations for energy-efficient buildings and the increasing adoption of green buildings globally.

The building energy simulation software market is segmented based on component, application, end-use industry, deployment model, organization size, and region. By component, the software segment accounted for the largest share of the building energy simulation software market in 2022. Software helps in creating a virtual model of a building and simulates aspects like lighting, heating, ventilation, and air conditioning (HVAC), and system controls, among others to analyze the energy performance. The increasing need to comply with stringent regulations is driving the demand for building energy simulation software.

Figure 1. Global Building Energy Simulation Software Market Share (%), by Region, 2022

Building Energy Simulation Software Market Trends:

Integration with AR and VR: Augmented reality (AR) and virtual reality 9VR) are being increasingly integrated with building energy simulation software solutions. AR allows architects and designers to visualize a simulated model in the actual site environment, enabling real-time collaboration and decision making. VR enables immersive walkthroughs of digital prototypes. For instance, Autodesk now offers Revit Live that leverages VR technology to create interactive 3D views. The integration of such technologies greatly enhances the design process.
AI and generative design: Artificial intelligence and generative design are disrupting building energy simulation software offerings. Vendors are integrating AI algorithms into simulation tools for intuitive modeling, improved interoperability, and rapid analysis of massive design permutations. Autodesk and Siemens is a multinational conglomerate known for its diverse range of products and services, particularly in the fields of electrification, automation, and digitalization now provide generative design capabilities that leverage AI to automatically generate and test design options to identify the most energy-efficient alternative. For Instance, in November 2021, PassiveLogic is an innovative company specializing in autonomous building systems unveiled a generative AI platform for self-managing buildings.
Connectivity with IoT sensors: Building energy simulation software integrated with IoT sensors enables real-time data collection and simulation of actual building performance during the operation phase. IoT allows remote monitoring and control to continuously maintain efficiency. For instance, Schneider Electric provides EcoStruxure solution that leverages IoT-enabled building simulation for data-driven decision making and predictive maintenance. The fusion of simulation and IoT unlocks major opportunities for energy savings.
Cloud computing for performance optimization: Cloud computing enables building energy simulation software to utilize scalable computing power for running multiple iterative, complex simulations in parallel. This provides rapid computational fluid dynamics capabilities for modeling intricate systems like natural ventilation and renewable systems. Cloud offers the benefit of accelerated optimization of building performance for efficiency. Vendors like Autodesk Inc. now offer cloud-based simulation solutions.