Power Electronics Software Market By Deployment Type (On-Premise, Cloud-Based); By Application (Simulation & Modeling, Thermal Analysis, Power Flow Analysis, Design Automation, Control Algorithm Development); By End User (Automotive & Transportation, Industrial Automation, Renewable Energy, Aerospace & Defense, Consumer Electronics, Utilities); By Geography, Segment Revenue Estimation, Forecast, 2024–2030.

Introduction And Strategic Context

The Global Power Electronics Software Market will witness a robust CAGR of 11.2% , valued at $1.37 billion in 2024 , expected to appreciate and reach $2.59 billion by 2030 , confirms Strategic Market Research.

 

Power electronics software refers to specialized digital tools used in the design, simulation, control, and monitoring of electronic systems that manage power conversion and energy flow. These software solutions are critical in accelerating the time-to-market for hardware design and optimizing performance for applications ranging from electric vehicles (EVs) to renewable energy systems and industrial automation.

 

The strategic relevance of power electronics software is growing exponentially as industries across transportation, energy, and manufacturing shift toward decarbonization and electrification. In 2024, digital twin technology, AI-driven design optimization, and integrated thermal-electromagnetic simulations are key macro forces pushing the market forward. Increasing investments in electric vehicle infrastructure, smart grid upgrades, and digital factory ecosystems further amplify the demand for sophisticated power simulation and modeling tools.

 

Multiple stakeholders are actively shaping the market. Original Equipment Manufacturers (OEMs) depend on software to validate circuit design before prototyping. Energy providers are adopting real-time monitoring tools to manage distributed energy resources (DERs). Governments and regulatory bodies are influencing demand through mandates for energy efficiency and emissions reduction. Meanwhile, venture capital investors and technology providers are infusing capital into innovative startups focused on digital power systems.

 

Experts highlight the shifting paradigm from hardware-first to software-defined power engineering, noting that development environments enabling real-time optimization will define competitive edge in the near term.

 

Market Segmentation And Forecast Scope

The power electronics software market is strategically segmented to reflect the diversity of user needs, application domains, and evolving deployment models. For the forecast period of 2024–2030, the segmentation framework is structured across four primary dimensions:

By Deployment Type

• On-Premise

• Cloud-Based

Cloud-based solutions are projected to be the fastest-growing segment , registering a CAGR above 13% from 2024 to 2030. These platforms offer scalability, remote collaboration, and easy integration with AI/ML algorithms, appealing strongly to engineering teams engaged in distributed R&D environments.

 

By Application

• Simulation & Modeling

• Thermal Analysis

• Power Flow Analysis

• Design Automation

• Control Algorithm Development

Simulation & Modeling dominated the market with over 31% share in 2024 , owing to its critical role in validating switching behavior , thermal stress, and energy loss across components like inverters and converters. However, control algorithm development is witnessing increasing adoption due to the rise in programmable power systems and the demand for real-time dynamic optimization .

 

By End User

• Automotive & Transportation

• Industrial Automation

• Renewable Energy

• Aerospace & Defense

• Consumer Electronics

• Utilities

The automotive and transportation sector remains the largest consumer of power electronics software, driven by EV proliferation, powertrain digitization, and battery management system (BMS) complexity. Automakers are deploying software solutions to simulate inverter switching frequencies, optimize thermal load, and integrate wide bandgap semiconductors like SiC and GaN .

 

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa (MEA)

Asia Pacific holds a commanding position in terms of volume and value, supported by the region’s leadership in electronics manufacturing, aggressive EV targets in China and India, and expanding grid modernization projects.

This segmentation enables a comprehensive understanding of where demand originates, how it evolves, and what technologies and user groups are driving it. It also informs stakeholders on where to position product innovation and channel investment for optimal returns.

 

Market Trends And Innovation Landscape

The power electronics software market is undergoing a profound transformation driven by rapid digitization, advanced material use, and convergence with AI and cloud platforms. These innovations are not only reshaping product capabilities but are also redefining how power systems are modeled , validated, and deployed.

1. AI-Enhanced Design and Simulation

Artificial intelligence is revolutionizing how engineers approach power system optimization. Modern platforms are integrating machine learning algorithms to suggest design iterations, detect anomalies in simulation behavior , and accelerate convergence times.

An industry analyst noted that “AI-infused power design tools are drastically reducing time-to-market by predicting failure points and recommending component-level improvements during early simulation stages.”

 

2. Digital Twin Integration

Digital twin technology is becoming a cornerstone of power electronics software. By creating virtual replicas of converters, inverters, or entire EV drive systems, engineers can run stress simulations and predict energy losses without physical trials. This is especially relevant in industrial automation and aerospace, where precision and reliability are paramount.

 

3. SiC and GaN Semiconductor Simulation

With the rise of wide-bandgap semiconductors like silicon carbide ( SiC ) and gallium nitride ( GaN ), there is a growing need for simulation engines that can accurately model their high-frequency switching behavior and thermal dynamics. Software tools are being upgraded with specialized modules to handle nonlinearities and compact modeling challenges associated with these materials.

 

4. Cloud-Native and SaaS Architectures

Traditional licensed tools are being replaced or supplemented by cloud-native solutions , enabling multi-user access, version control, and continuous integration across global engineering teams. This also aligns with the broader trend of Engineering-as-a-Service (EaaS), where simulation is offered on-demand.

 

5. Strategic Collaborations and Open Standards

Technology partnerships are flourishing. Companies are aligning with academic institutions, semiconductor fabs, and industrial control system vendors to standardize simulation workflows and boost software-hardware co-optimization. There’s a shift toward open-source simulation engines augmented by proprietary extensions, promoting modularity and extensibility.

 

Noteworthy Industry Movements (2022–2024)

• Emergence of cloud-based power simulation suites tailored for electric vehicle OEMs and battery startups .

• Introduction of thermal-electrical co-simulation platforms by mid-tier players seeking differentiation.

• Launch of low-code development environments for control loop modeling in smart inverters.

Experts agree that the future of power electronics software lies in the convergence of intuitive UI, predictive analytics, and seamless integration with hardware development cycles.

 

Competitive Intelligence And Benchmarking

The power electronics software market is moderately consolidated, with a mix of global software giants, niche simulation tool providers, and domain-specific engineering software vendors. Competition is defined not just by technical features but also by the ability to provide scalable, hardware-compatible, and AI-enabled design environments.

Below is a strategic profile of key players operating in this landscape:

1. Synopsys

Synopsys maintains a strong foothold through its simulation and modeling solutions that cater to both analog and digital power systems. It leverages its semiconductor expertise to deliver SPICE-level accuracy , and its acquisitions in the AI simulation domain have expanded its offering for electric vehicle and renewable energy sectors.

Strategically, Synopsys is focusing on enhancing interoperability with hardware-in-the-loop (HIL) platforms to support real-time validation.

 

2. Ansys

Ansys leads in high-fidelity simulation and multi-physics modeling . Its strength lies in thermal-electrical co-simulation , critical for power converters and wide-bandgap devices. Ansys also integrates with cloud-based platforms, enabling faster, distributed computing.

Ansys’s investment in digital twin technology, especially for EV inverters and aerospace power units, is positioning it at the innovation frontier.

 

3. MathWorks

MathWorks , with MATLAB and Simulink, dominates the model-based design landscape. It offers deep integration with control system development, enabling a closed-loop simulation environment ideal for BMS, motor drives, and control algorithms in power electronics.

Its widespread use in academia and OEM labs alike makes it a strategic enabler of long-term talent and adoption pipelines.

 

4. Altair Engineering

Altair is gaining traction with its cloud-optimized power electronics suite. Known for democratizing simulation through low-code interfaces , Altair targets smaller engineering teams and startups that seek agility without compromising precision.

Altair’s push into SaaS-based licensing models has enhanced accessibility for emerging markets and mid-size design houses.

 

5. Cadence Design Systems

Cadence is expanding its reach beyond IC design into power systems by introducing system-level design tools that support analog -digital co-simulation and signal integrity analysis. Its tools are increasingly used in mixed-signal control loop simulation for smart grids and electrified transportation systems.

 

6. PLECS (by Plexim )

Plexim provides dedicated power electronics simulation tools under the PLECS suite. It is highly regarded in academia and research labs for its fast, modular approach. While not as enterprise-scalable as larger competitors, PLECS excels in ease-of-use and real-time simulation for converters and inverters.

 

7. Siemens Digital Industries Software

Siemens is integrating power electronics simulation into its digital thread offering via the Xcelerator platform. With strong synergies in industrial automation, Siemens targets end-to-end workflows from circuit design to deployment, particularly for factory electrification and robotics .

Each competitor is aligning its strategy around emerging needs such as real-time simulation , wide-bandgap device modeling , and cloud accessibility . The market is also seeing a growing trend of strategic integrations between software platforms and semiconductor manufacturers to offer vertically optimized toolchains.

 

Regional Landscape And Adoption Outlook

The power electronics software market exhibits diverse regional adoption patterns shaped by local industrial priorities, infrastructure readiness, government policies, and the maturity of semiconductor ecosystems. Each geography brings unique catalysts and constraints to the market’s growth trajectory from 2024 to 2030.

North America

North America, led by the United States , continues to be a hub of innovation in power electronics design and software development. The presence of automotive OEMs transitioning to EV production, combined with strong federal funding for clean energy research, fuels demand for advanced simulation and control platforms.

Key factors:

• Widespread adoption of digital twin and model-based design among defense contractors and industrial OEMs.

• Robust academic-industrial linkages that promote tool standardization, especially around MATLAB/Simulink environments.

• Emerging white space: Canadian SMEs lag in tool adoption due to capital constraints, indicating an underserved opportunity for SaaS-based solutions.

 

Europe

Europe remains highly proactive in electrification and energy transition strategies, particularly in countries like Germany, France, and the Netherlands . The region’s strong focus on wide-bandgap semiconductor research (especially SiC and GaN ) is driving demand for simulation software tailored to new material behavior .

Key trends:

• EU-funded programs like Horizon Europe are pushing for open-source co-simulation ecosystems .

• Automotive OEMs in Germany and France are aggressively adopting software tools for EV drivetrain modeling .

• A growing push for energy independence post-2022 is driving simulation use in distributed energy resources and smart inverter development.

 

Asia Pacific

Asia Pacific is the largest and fastest-growing region in the power electronics software market, with China, Japan, South Korea, and India as primary growth engines.

Market dynamics:

• China leads in volume due to its dominance in electronics manufacturing and EV production. The state’s support for silicon carbide fabs and BMS development creates pull-through demand for software.

• India is emerging as a strong consumer market, driven by smart grid initiatives and government-backed R&D projects in electric mobility.

• Japan and South Korea focus on high-performance embedded control for industrial automation and robotics, requiring precision modeling platforms.

Despite high demand, some local companies continue to rely on legacy or in-house tools, revealing latent potential for modern cloud-based platforms.

 

Latin America

Adoption is nascent but growing , particularly in Brazil and Mexico , where investments in solar energy and electric public transportation are creating new needs for simulation tools.

Barriers:

• High software licensing costs and limited skilled personnel restrict broader deployment.

• Increasing penetration of open-source and SaaS tools is expected to bridge this gap.

 

Middle East & Africa (MEA)

In MEA, growth is primarily project-driven. Countries like UAE, Saudi Arabia, and South Africa are investing in renewable megaprojects and electric infrastructure, thus generating niche demand for power electronics design tools.

Opportunities:

• Smart city initiatives in Dubai and Riyadh are experimenting with real-time monitoring and embedded control systems for power networks.

• Educational partnerships and government-backed engineering hubs may stimulate future demand for academic-use licenses and enterprise-grade tools.

Overall, while mature economies lead in high-fidelity simulation and integrated workflows, emerging markets are fertile grounds for agile, cost-effective, and cloud-native power electronics software . Regional customization, pricing models, and training support will be crucial in expanding reach across underpenetrated geographies.

 

End-User Dynamics And Use Case

The adoption of power electronics software varies significantly across end-user segments, each with unique operational challenges, digital maturity, and integration priorities. As industries electrify and automate, the demand for robust, real-time, and model-based software solutions is expanding beyond traditional R&D centers into production and operational environments.

1. Automotive & Transportation

This is the largest and most dynamic end-user category. The rapid electrification of vehicles has made simulation tools essential for powertrain design, battery management systems (BMS), and inverter control.

• OEMs and Tier 1 suppliers use advanced simulation suites for SiC inverter modeling , thermal runaway analysis , and vehicle-level energy optimization .

• EV startups prioritize cost-effective, cloud-native solutions that offer quick iteration and prototyping cycles.

Expert insight: “Simulation software has become the backbone of EV innovation—it enables OEMs to explore hundreds of control strategies and hardware configurations before building a single prototype.”

 

2. Industrial Automation

Power electronics software is used extensively for motor drive control , robotic actuators , and programmable power supplies . Manufacturers use it to simulate real-time switching behavior and develop closed-loop systems.

• Deployment is typically on-premise and integrated with PLC environments.

• Demand is growing for co-simulation capabilities that integrate mechanical and electrical domains for better system-level optimization.

 

3. Renewable Energy

With the rise of distributed energy systems and microgrids, solar and wind developers are adopting power simulation tools for inverter design , MPPT algorithms , and grid synchronization .

• Real-time modeling of power flow and harmonics is vital to comply with regulatory grid codes.

• Demand is high in regions like India, Germany, and Australia where renewables exceed 25% of energy mix.

 

4. Utilities and Smart Grids

Utilities are leveraging power electronics software for grid-level simulations , especially when deploying solid-state transformers and HVDC systems . Control algorithm development and hardware testing are essential for managing decentralized power generation.

• Investment is often tied to government grants or public-private innovation programs.

• There is a rising need for cyber-physical system modeling to integrate IT/OT layers.

 

5. Aerospace & Defense

Though a niche segment, aerospace players use these tools for more-electric aircraft and military-grade UAVs . High-power-density converters and advanced thermal management require detailed simulation.

• Preference is for platforms with certification-ready models and embedded system integration.

 

6. Academia and Research Institutes

Universities and technical institutes are major users, particularly for control system research, motor design, and renewable energy labs.

• Open-source and student editions dominate.

• Usage often feeds directly into enterprise adoption by training the next generation of engineers on a specific platform.

 

Real-World Use Case

A tertiary engineering institute in South Korea partnered with a domestic EV startup to develop a high-frequency GaN -based DC-DC converter for electric scooters. Using a cloud-based simulation suite, the team ran thermal and switching simulations to reduce energy loss by 17%. The startup later integrated these validated models into its embedded controller firmware, reducing time-to-market by four months.

This scenario illustrates how simulation tools bridge academic research and commercial execution, particularly in fast-growing product categories like electric micro-mobility.

 

Recent Developments + Opportunities & Restraints

Recent Developments (2022–2024)

• Ansys and Keysight Partnership (2023) Ansys collaborated with Keysight Technologies to streamline high-speed power simulation for EV drivetrains, integrating electromagnetic and thermal analysis to boost converter reliability.

• MathWorks Launches AI-Powered Control Design Toolkit (2024) MATLAB introduced a toolset enabling AI-assisted controller tuning and real-time simulation for embedded power electronics applications, particularly in battery and motor control systems.

• Altair Releases Cloud-Based Simulation Suite for Startups (2023) Altair launched a SaaS-based power simulation platform tailored to budget-conscious engineering teams. This suite includes access to co-simulation engines and real-time collaborative tools

• PLECS Introduces Real-Time FPGA Integration (2024) Plexim enhanced its PLECS RT Box for seamless integration with FPGA boards, enabling high-speed HIL testing for academic and commercial users.

• Siemens Expands Digital Twin Capabilities for Power Modules (2022) Siemens Digital Industries Software unveiled upgrades to its Xcelerator platform, enhancing digital twin fidelity for wide-bandgap semiconductors.

 

Opportunities

1. Surge in Electrification Across Sectors The electrification of vehicles, homes, and factories is accelerating global demand for accurate simulation and power management tools. This creates ripe ground for software providers to expand horizontally across industry verticals.

2. Growth of Edge-Based Control Systems There is an increasing need for lightweight, embedded power management platforms compatible with edge processors. Software that supports real-time control development and hardware co-simulation will gain preference.

3. Expansion in Emerging Economies Markets like India, Southeast Asia, and Latin America offer strong growth potential due to government-driven electrification programs and a rising base of power electronics startups seeking affordable SaaS alternatives .

 

Restraints

1. High Learning Curve and Talent Gap The complexity of modern power electronics design tools limits adoption among smaller firms and in less digitally mature markets. A shortage of simulation-trained engineers also hampers market expansion.

2. Licensing Costs and Infrastructure Barriers Enterprise-grade platforms require significant upfront investment, and many emerging-market firms lack cloud infrastructure or capital to onboard these solutions at scale.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 1.37 Billion
Revenue Forecast in 2030	USD 2.59 Billion
Overall Growth Rate	CAGR of 11.2% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Deployment Type, By Application, By End User, By Geography
By Deployment Type	On-Premise, Cloud-Based
By Application	Simulation & Modeling, Thermal Analysis, Power Flow Analysis, Design Automation, Control Algorithm Development
By End User	Automotive & Transportation, Industrial Automation, Renewable Energy, Aerospace & Defense, Consumer Electronics, Utilities
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, etc.
Market Drivers	• Surge in Electrification • AI and Digital Twin Integration • Edge-Based Control Demand
Customization Option	Available upon request