ANSYS, Inc. (ANSS): PESTLE Analysis [Nov-2025 Updated]

You know ANSYS, Inc. (ANSS) is navigating a complex landscape, and frankly, the external forces are more volatile than ever. The core story isn't just about simulation; it's about integrating a $35 billion acquisition by Synopsys while fundamentally shifting the product line with AI-powered tools like Engineering Copilot. With deferred revenue sitting at a strong $1,627.7 million as of March 31, 2025, the foundation is solid, but geopolitical risks and the push for cloud-based High-Performance Computing (HPC) demand a clear, actionable PESTLE breakdown right now.

The political environment is a major headwind for ANSYS, Inc., primarily due to the ongoing US/China trade tensions that directly complicate high-tech export controls like the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). This isn't just paperwork; it restricts who can buy their most advanced simulation software, especially for aerospace and defense applications.

The most immediate political hurdle in 2025 was securing regulatory approval for the massive Synopsys merger. Regulators are scrutinizing the combined entity's market power, which is a defintely complex process. Still, the global push for domestic semiconductor and defense supply chains is a tailwind, driving government-backed demand for ANSYS's simulation tools to design chips and complex systems locally. Governments want sovereign capability, and that means buying simulation tools.

Increased government scrutiny on dual-use software-products that can be used for both civilian and military purposes-is a persistent risk that requires constant compliance monitoring.

Action: Monitor U.S. export control changes weekly.

ANSYS's financial health remains robust, giving them a strong buffer against broader economic slowdowns. For Q1 2025, the company reported revenue of $504.9 million, representing a solid 8% year-over-year increase. Here's the quick math: that 8% growth rate, plus the expectation of double-digit Annual Contract Value (ACV) growth for the full fiscal year 2025, signals sustained demand for their core products.

The global simulation software market is projected to be worth over $15 billion in 2025, providing a massive and growing addressable market. What this estimate hides, however, is the competitive pressure from rivals and the need to continually invest in R&D to capture that growth.

A key indicator of future stability is the high deferred revenue, which stood at $1,627.7 million on March 31, 2025. This represents cash received for services not yet rendered, essentially a guaranteed revenue stream that smooths out cyclical volatility. That's a powerful balance sheet asset.

Action: Factor the $1,627.7 million deferred revenue into your long-term valuation model.

The human element is a quiet but critical constraint. There is a growing need for high-skill engineers capable of effectively using advanced, AI-driven simulation tools. If the talent pool can't keep up with the software's complexity, adoption slows down. ANSYS has a strong brand perception, linked to the predictive accuracy of its tools and its corporate responsibility initiatives, which helps with recruiting and customer trust.

The Synopsys merger is not just a financial transaction; it creates a combined entity with a vast, integrated talent pool, which is a significant strategic advantage in the war for top engineering and software development expertise. Plus, the focus on simulation accessibility via cloud platforms and the new AI-Copilot widens the user base beyond just Ph.D.-level specialists. This democratization of simulation is a major growth driver.

Action: Prioritize training programs on AI-Copilot integration to lower the user skill floor.

Technology is the engine of ANSYS's growth, and the shift is happening fast. The Ansys 2025 R2 release introduced critical AI-powered tools like Engineering Copilot and Ansys SimAI, which automate and accelerate complex design iterations. This is the new standard; simulation must be faster and smarter.

There is a massive, ongoing shift to cloud-based High-Performance Computing (HPC) and GPU-optimized solvers. This transition allows customers to run simulations faster and cheaper without buying expensive, on-premise hardware. ANSYS is also maintaining leadership in Model-Based Systems Engineering (MBSE)-a methodology for designing complex systems-and autonomous vehicle simulation via its AVxcelerate suite.

Also, expanded Python compatibility through PyAnsys is crucial. It enables custom workflow automation and integrates their tools seamlessly into broader enterprise software stacks, making the product stickier.

Action: Use the Ansys 2025 R2 AI tools as the primary competitive differentiator in sales pitches.

The legal landscape is dominated by the final steps of the $35 billion Synopsys acquisition. This involves finalizing regulatory conditions, which may include specific divestitures (selling off certain business units) to satisfy antitrust concerns. This process adds complexity and execution risk.

Beyond the merger, strict compliance is required for U.S. export control classifications (ECCN) on dual-use software, which ties back to the political risks. Intellectual property (IP) protection is defintely critical, not just against global software piracy but also against competitors trying to reverse-engineer or copy their proprietary algorithms.

Finally, customers in highly regulated industries like aerospace and automotive demand increased need for cybersecurity and safety certification compliance, such as DO-178C for airborne software and ISO 26262 for road vehicles. Meeting these standards is a barrier to entry for smaller competitors.

Action: Legal team must finalize all Synopsys divestiture requirements by the end of Q4 2025.

Environmental, Social, and Governance (ESG) factors are becoming a tangible business driver, not just a compliance checkbox. ANSYS's simulation tools are actively marketed for efficiency and sustainable product design. By modeling and testing products virtually, companies can optimize material use and significantly reduce physical prototyping waste, which saves money and helps meet sustainability goals.

There is growing customer demand for simulation in green technologies, particularly for designing and validating batteries and electric vehicles (EVs). This is a high-growth sector where ANSYS has a strong position. The company's inclusion in the America's Most Responsible Companies 2024 list also enhances its reputation with ESG-focused investors and customers.

Action: Quantify the material and waste reduction savings for three major EV customers by year-end.

ANSYS, Inc. (ANSS) - PESTLE Analysis: Political factors

The political landscape for ANSYS, Inc. in 2025 was dominated by two massive, interconnected forces: the regulatory gauntlet of the Synopsys merger and the ongoing, volatile US-China trade war over high-tech exports. You can't look at ANSYS's business without first acknowledging that the company, as an independent entity, concluded its journey in mid-2025, but the political risks it navigated-and the combined entity now inherits-are very real.

US/China trade tensions complicate high-tech export controls (ITAR, EAR)

The core political risk for ANSYS, and now for the combined Synopsys entity, is the US-China 'chips war' and the resulting export controls. Simulation software is inherently dual-use, meaning it has both commercial and military applications, which puts it squarely in the crosshairs of US policy aimed at restricting China's technological advancement.

In 2025, we saw a clear demonstration of this risk. In late May, the US imposed export curbs on chip design software that, for a short period, essentially cut off a market responsible for over 10 per cent of revenue for major industry players like ANSYS. While the US later rolled back some of these restrictions around July 3, 2025, in a partial trade truce, the threat remains. The US government remains deeply concerned about the use of American intellectual property (IP) to strengthen Beijing's military, so the specter of the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR) is defintely a constant factor for any software used in advanced design.

Here's the quick math: A significant portion of the combined company's revenue is perpetually at risk of a sudden policy shift. You must model scenarios where China revenue is curtailed by 10% or more.

Regulatory approval process for the Synopsys merger was a major 2025 hurdle

The single biggest political event for ANSYS in 2025 was securing the final regulatory approvals for its acquisition by Synopsys. This was a massive undertaking, with an enterprise value of approximately $35 billion, and it required clearance from multiple global antitrust and regulatory bodies. It was a near-term political risk that had to be resolved to close the deal.

The transaction was expected to close on or about July 17, 2025, but only after significant political and regulatory concessions. The US Federal Trade Commission (FTC) required mandatory divestitures to preserve competition, and China's State Administration for Market Regulation (SAMR) imposed conditional approval.

Global push for domestic semiconductor and defense supply chains drives demand

While export controls create risk, the political push for secure, domestic supply chains is a significant tailwind for the business. Government-led initiatives, such as the US CHIPS and Science Act, are pouring billions into semiconductor manufacturing and design. Since ANSYS's simulation software is mission-critical for advanced semiconductor, aerospace, and defense applications, this political priority translates directly into increased demand.

This political environment makes the software a strategic national asset. The simulation and analysis portfolio is essential for the next great leaps in human advancement, from advanced semiconductors to satellite systems, as the company itself notes. This is why the business reported Q1 2025 revenue of $504.9 million, an increase of 8% year-over-year, despite the merger uncertainty-the underlying political demand is strong.

Increased government scrutiny on dual-use software (simulation/military)

The final political factor is the intensified scrutiny over dual-use technology (software that can be used for both civilian and military purposes). The Synopsys merger approval conditions from China, which included restrictions on sensitive technology transfer, highlight this global concern. Any software that helps design advanced chips, jet engines, or missile systems-all areas where ANSYS's simulation tools are used-is under a magnifying glass.

This scrutiny mandates a robust internal compliance program for the combined company, especially concerning:

• Monitoring end-users for potential military applications.
• Adhering to evolving US Commerce Department Entity Lists.
• Maintaining strict separation of technology transfer, as required by foreign regulators.

The political risk isn't just lost sales; it's the potential for fines, sanctions, or being cut off from key markets entirely if compliance is breached. It's a cost of doing business in a high-stakes geopolitical environment.

ANSYS, Inc. (ANSS) - PESTLE Analysis: Economic factors

The economic landscape for ANSYS, Inc. (ANSS) in 2025 is defined by a robust, high-growth core market and strong forward-looking financial indicators, even as the pending acquisition by Synopsys, Inc. introduces a layer of corporate event risk.

You need to understand that ANSYS operates in a sector with structural tailwinds, meaning the demand for engineering simulation software (Computer-Aided Engineering, or CAE) is less cyclical than other software segments. This is because simulation is a cost-saving and efficiency-driving tool for R&D budgets globally, making it a priority even in tighter economic periods. That's a powerful economic insulator.

Q1 2025 revenue reached $504.9 million, up 8% year-over-year.

ANSYS delivered a strong start to the fiscal year, reporting Q1 2025 revenue of $504.9 million. This represents an 8% increase in reported currency compared to Q1 2024, or a more impressive 10% growth in constant currency, which strips out the adverse effects of foreign exchange rate fluctuations. The business model shows resilience, with the majority of revenue coming from highly predictable maintenance and subscription streams.

Here's the quick math on where that revenue came from:

• Maintenance revenue: $324.4 million, showing 12.1% growth year-over-year.
• Subscription Lease revenue: $96.9 million, up 2.2% year-over-year.
• Software Licenses revenue: $63.0 million, a slight decrease of 3.8% year-over-year.

This mix-where maintenance and subscription account for over 83% of total revenue-is defintely a marker of a stable, recurring revenue base, which is what investors value in a software company.

Global simulation software market is projected to be worth over $15 billion in 2025.

The total addressable market (TAM) for ANSYS is expanding rapidly, driven by the proliferation of digital twin technology and the increasing complexity of product design across all industries. The global simulation software market is projected to be worth at least $15.00 billion in 2025, with some forecasts placing it closer to $20.06 billion.

What this estimate hides is the compound annual growth rate (CAGR), which is projected to be around 11.7% to 12.2% through 2032, showing this isn't just a large market, but a fast-growing one. The key growth drivers are clear:

• Automotive (especially autonomous vehicles) and Aerospace & Defense sectors.
• Growing adoption of simulation tools in R&D activities for cost efficiency.
• Demand for cloud-based simulation software, which lowers deployment barriers.

Expecting double-digit FY 2025 Annual Contract Value (ACV) growth.

Despite the pending acquisition by Synopsys, Inc., which has led ANSYS to suspend formal quarterly and annual guidance, management continues to expect double-digit FY 2025 Annual Contract Value (ACV) growth. ACV, which is a critical metric for a subscription-based software business, was $410.1 million in Q1 2025.

While the Q1 ACV growth was modest at 1% (reported currency), the full-year expectation signals confidence in closing larger deals and maintaining strong renewal rates in the coming quarters. This forward-looking metric is a better gauge of the company's long-term economic health than a single quarter's revenue.

High deferred revenue of $1,627.7 million on March 31, 2025, signals strong future stability.

The company's deferred revenue and backlog stood at a substantial $1,627.7 million as of March 31, 2025. This is a crucial economic indicator, representing cash collected for services or licenses yet to be delivered or recognized as revenue. It's essentially a large, guaranteed revenue pipeline.

This high deferred revenue provides a significant cushion against any near-term economic volatility, ensuring revenue stability and predictability. It's a powerful financial asset, giving the company flexibility in its operational spending and R&D investment, which totaled $137.3 million in Q1 2025.

To put the Q1 2025 performance into perspective, here are the key economic metrics:

ANSYS, Inc. (ANSS) - PESTLE Analysis: Social factors

Growing need for high-skill engineers capable of using advanced AI-driven simulation.

The social demand for engineers who can master advanced simulation is skyrocketing, but the market is tight. The complexity of modern product design, especially in areas like autonomous vehicles and AI hardware, means traditional Computer-Aided Engineering (CAE) skills are no longer enough.

ANSYS, now part of Synopsys, is addressing this skills gap by integrating Artificial Intelligence (AI) directly into the workflow to augment, not replace, the engineer. The 2025 R2 release introduced the Ansys Engineering Copilot, a virtual assistant that gives users one-click access to over 50 years of simulation expertise and knowledge. This tool helps democratize simulation, but it also means the new high-skill requirement is AI-literacy, not just physics mastery. You're seeing a shift from needing a simulation expert to needing an AI-augmented simulation strategist.

Strong brand perception linked to predictive accuracy and corporate responsibility.

ANSYS's brand equity is defintely a core social asset, built on a reputation for predictive accuracy that spans more than five decades. Customers trust the software to close the gap between design and physical reality, which is critical for high-stakes industries like aerospace and medical devices.

Beyond product quality, the company's Corporate Responsibility (CR) efforts reinforce its image as a responsible corporate citizen. The focus on sustainability through simulation is a strong selling point to environmentally conscious customers and talent. For example, ANSYS has already exceeded its 2027 goal to reduce its Scope 1 and Scope 2 market-based greenhouse gas (GHG) emissions, achieving a 42% reduction against its 2019 baseline. That's a powerful number that resonates with stakeholders.

The Synopsys merger creates a combined entity with a vast, integrated talent pool.

The acquisition of ANSYS by Synopsys, which closed on July 17, 2025, created a new industry behemoth in the 'silicon to systems' design space. This merger instantly combined two of the most specialized engineering talent pools in the world. Based on the latest 2024 figures, the combined entity started with an estimated workforce of approximately 26,500 employees (Synopsys at 20,000 and ANSYS at 6,500), creating a vast, integrated resource of Electronic Design Automation (EDA) and multiphysics expertise.

But to be fair, the integration process introduces significant social risk. Synopsys announced a restructuring plan that includes cutting approximately 10% of its global workforce, or around 2,000 jobs, to eliminate overlapping functions and drive efficiencies. The pre-tax charge for this restructuring is estimated to be between $300 million and $350 million, which shows the immediate human cost of achieving those long-term synergies.

Focus on simulation accessibility via cloud and AI-Copilot widens the user base.

The future of simulation is about accessibility, which is a major social trend. The company's strategy is to broaden its user base beyond the core simulation specialist to include design engineers and even non-experts. They are making simulation less of a niche tool and more of a standard design check.

This is driven by cloud and AI initiatives that lower the technical and financial barriers to entry. Here's the quick math on how they are expanding the user base:

• Speed and Efficiency: The 2025 R1 release showed up to 6x faster performance in GPU-accelerated structural analysis, meaning more engineers can run complex jobs faster.
• Cloud Access: Tools like Ansys Cloud Burst Compute provide on-demand High-Performance Computing (HPC) capacity, so smaller teams don't need massive, expensive on-premise hardware.
• Licensing Model: The new CFD HPC Ultimate product offers enterprise-level Computational Fluid Dynamics (CFD) for one job on multiple CPUs or GPUs without needing additional HPC licenses, making advanced fluid dynamics more financially accessible to a wider range of companies.

The goal is simple: make simulation pervasive. The AI-Copilot, which offers access to over 800 innovation courses, is essentially a built-in training program for the next generation of users.

ANSYS, Inc. (ANSS) - PESTLE Analysis: Technological factors

Ansys 2025 R2 introduced AI-powered tools like Engineering Copilot and Ansys SimAI

The biggest technological shift for ANSYS in 2025 is the deep integration of Artificial Intelligence (AI) into its core simulation products. This isn't just a buzzword; it's a move to fundamentally change how engineers use the software, making simulation faster and more accessible. For the latest twelve months ending March 31, 2025, ANSYS reported R&D expenses of \$495.9 million, a clear indicator of this investment focus.

The Ansys 2025 R2 release introduced two key AI-powered tools. The first, Ansys Engineering Copilot, acts as a virtual assistant, giving users one-click access to decades of simulation expertise, documentation, and support directly within products like Ansys Mechanical and Ansys Fluent. This tool is powered by AnsysGPT, which integrates Microsoft Azure AI Foundry and OpenAI models. The second tool, Ansys SimAI, accelerates the prediction process. It lets engineers train AI algorithms using existing simulation data from any source, allowing them to predict the performance of new designs in minutes instead of hours.

• Engineering Copilot: AI assistant for in-tool support and knowledge access.
• Ansys SimAI: Accelerates predictions using trained simulation data.
• AI+ Functionality: Seven Ansys products now feature built-in AI for easier, faster simulation.

Massive shift to cloud-based High-Performance Computing (HPC) and GPU-optimized solvers

The demand for solving larger, more complex models is driving a massive industry shift toward cloud-based High-Performance Computing (HPC) and leveraging Graphics Processing Units (GPUs). ANSYS is defintely capitalizing here. The goal is simple: scale your compute power on-demand, which significantly cuts down on solve times for complex physics.

The performance gains are substantial. For example, the Ansys Mechanical GPU-accelerated direct structural finite element analysis solver is up to 6x faster than alternative solutions. For high-frequency electromagnetics, the HFSS solver in 2025 R2 delivers up to 17x faster results for radiation pattern calculations. Using Ansys Cloud Burst Compute with Ansys Discovery, designers can solve 1,000 design variations in just 10 minutes, accelerating parametric studies by 100x or more. This on-demand, elastic capacity for Ansys Mechanical, Fluent, and HFSS is a huge competitive advantage.

Leadership in Model-Based Systems Engineering (MBSE) and autonomous vehicle simulation (AVxcelerate)

As products become systems-of-systems-think electric vehicles or satellites-Model-Based Systems Engineering (MBSE) becomes crucial for managing complexity. ANSYS is leading this charge by providing a unified data source for collaboration across disciplines. The global MBSE market was valued at \$14,315.11 million in 2024 and is projected to grow significantly. ANSYS's ModelCenter and System Architecture Modeler (SAM) Enterprise now support the new SysML v2 standard, which enhances extensibility and modularity for complex system design.

In the automotive sector, the AVxcelerate suite is a key differentiator. The 2025 R2 release enhanced this solution with next-generation camera and radar sensors that offer superior signal-level accuracy. This is vital for developing and validating Advanced Driver-Assistance Systems (ADAS) and Autonomous Vehicles (AVs). Streamlined tools now support the rapid creation and scheduling of large, scenario-based exploration jobs, which is how car manufacturers prove safety and robustness at scale.

Expanded Python compatibility (PyAnsys) enables custom workflow automation

The open-source community is a major force in engineering, and ANSYS's commitment to Python compatibility is a strategic move to capture this ecosystem. PyAnsys provides a set of Python libraries that give engineers direct, programmatic access to ANSYS simulation tools like Mechanical APDL (PyMAPDL) and Fluent (PyFluent).

This open ecosystem is critical for custom workflow automation, integration, and scalability in a way that traditional graphical user interfaces (GUIs) cannot match. PyAnsys now includes over 40 Python libraries, enabling engineers to automate repetitive parameter studies, manage large data sets, and integrate ANSYS tools seamlessly with the broader Python ecosystem (NumPy, Pandas, Matplotlib). This flexibility helps major customers, like Danfoss Drives, to accelerate their end-to-end workflows and reduce development costs.

ANSYS, Inc. (ANSS) - PESTLE Analysis: Legal factors

Finalizing regulatory conditions for the $35 billion Synopsys acquisition, including divestitures

The biggest legal hurdle for ANSYS in 2025 was the completion of its acquisition by Synopsys, a deal valued at approximately $35 billion in cash and stock. This transaction, which closed on July 17, 2025, required extensive regulatory review across multiple global jurisdictions to address antitrust concerns.

To secure approval from the U.S. Federal Trade Commission (FTC) and other international regulators, the combined entity had to agree to significant divestitures. The FTC finalized a consent order on October 17, 2025, preserving competition in critical software tool markets for semiconductor and light simulation devices.

This is a clear action item: managing the divestiture process smoothly is crucial to avoiding post-merger legal complications. The quick math here is that you're trading a small part of the portfolio to secure the massive value of the combined entity.

Strict compliance required for U.S. export control classifications (ECCN) on dual-use software

Because ANSYS's simulation software is often used for designing everything from consumer electronics to military-grade systems, it falls under the classification of dual-use technology. This means strict compliance with U.S. Export Administration Regulations (EAR) is defintely required, especially concerning the Export Control Classification Number (ECCN).

The legal risk here is high, particularly with the U.S. government's expanded controls on advanced computing and Artificial Intelligence (AI) model weights, with new rules taking effect and requiring compliance by May 15, 2025. The company must meticulously track the end-use, end-user, and destination of its products to avoid massive fines or losing export privileges.

Many of ANSYS's core products are classified as follows:

• Most ANSYS products are classified as EAR99 (requiring no license for most destinations).
• Products containing advanced features, such as HFSS, RedHawk, and SIwave, carry the more restrictive ECCN 3D991.
• Certain aerospace and defense-related products, like the STK Missile Tool Kit and USA (Underwater Shock Analysis), are subject to the highly stringent International Traffic in Arms Regulations (ITAR).

Intellectual property (IP) protection is critical against global software piracy and competitors

ANSYS has a zero-tolerance policy for intellectual property infringement, which is a significant legal factor given the high value of its proprietary simulation algorithms. They are relentlessly aggressive in pursuing software piracy, often using their proprietary detection system (PDRSS) to identify unauthorized use via IP addresses.

This isn't just a cost recovery exercise; it's about protecting the investment in R&D. For example, a mass copyright infringement lawsuit filed in California in July 2025 and a major Texas lawsuit against 359 John Doe Defendants that is moving forward in April 2025 show this ongoing legal strategy.

Settlement demands for corporate infringement can be substantial, often ranging from $200,000 to $500,000+ per case, which acts as a strong deterrent for businesses considering unlicensed use.

Increased need for cybersecurity and safety certification compliance (e.g., DO-178C, ISO 26262)

In safety-critical industries like automotive and aerospace, ANSYS's software is used to design components where failure is not an option. This makes the compliance of their tools with functional safety and cybersecurity standards a crucial legal requirement for their customers, and thus for ANSYS itself.

The year 2025 is a pivotal time for advancing these standards, especially in the automotive sector, with a focus on integrating cybersecurity and functional safety for autonomous driving systems.

For internal operations, ANSYS's Cybersecurity Management System (CSMS) for its cloud services (like Ansys Cloud Direct) is certified to the international standard ISO/IEC 27001:2022, with a recertification date of February 20, 2025. This demonstrates a commitment to preserving data privacy and the Confidentiality, Integrity, and Availability (CIA) of information assets.

The company's software, like Ansys Medini Analyse and the SCADE product suite, is designed to help customers meet these stringent industry-specific standards:

• ISO 26262: The international standard for functional safety in automotive electronic and electrical systems.
• DO-178C: The reference standard for the development of safety-critical software in commercial aircraft (avionics).
• ISO 21434: The standard for cybersecurity engineering in the automotive sector.

ANSYS, Inc. (ANSS) - PESTLE Analysis: Environmental factors

Simulation tools are actively marketed for efficiency and sustainable product design.

You need to see Ansys, Inc.'s environmental factor not just as a compliance risk, but as a core product opportunity. The company has skillfully positioned its simulation tools-specifically the predictive power of its software-as a direct enabler of customer sustainability goals, which is a massive market driver in 2025. They market this as a way to reduce resource use and increase efficiency, which is a simple, powerful value proposition for any client's CFO.

This is a critical strategic move because it shifts the conversation from a discretionary IT spend to a necessary capital investment for Environmental, Social, and Governance (ESG) performance. Ansys's methodology, which includes research support from McKinsey & Co., helps customers quantify the return on investment (ROI) for these initiatives, a key factor for decision-makers like you. Honestly, that ability to quantify the impact is what sells the software.

Software helps optimize material use and reduce physical prototyping waste.

The most tangible environmental benefit Ansys offers is the reduction of physical waste and the optimization of expensive materials. By allowing engineers to conduct virtual experimentation, the software minimizes the need for costly, real-world prototypes. This isn't just theory; it translates directly into hard numbers for their customers.

For example, in a case study involving the optimization of a pantograph for sustainable rail transport, the use of Ansys simulation slashed development waste by a projected 20%. Across various customer use cases, the shift from older product generations to newer ones using their solutions has more than doubled the sustainability impact, leading to a reduction in product-related downstream emissions by up to 10% in the assessed cases.

The Ansys Granta 2025 R2 release further locks this in with new sustainability-focused data and advanced material comparison tools. It helps engineers select sustainable options and make data-driven decisions crucial for the circular economy (designing products for reuse and minimal waste).

Growing customer demand for simulation in green technologies like batteries and EVs.

The shift to green technologies, especially electric vehicles (EVs) and battery energy storage systems (BESS), is a near-term tailwind for Ansys's revenue. The global BESS market alone is projected to exceed $120 billion by 2030, and Ansys is a key player in the simulation required to make these systems safe and efficient. They are actively promoting tools like Motor-CAD and Discovery for these advanced applications in 2025.

This demand is translating into impressive efficiency gains for their clients:

• Danfoss Drives used Ansys to optimize a drive controller, reducing its lifetime energy consumption by up to 45% compared to the previous generation.
• Simulation accelerates the development of next-generation mobility, a huge factor as automakers face stringent emissions legislation.
• The software addresses critical challenges in battery design, including safety, thermal management, and second-life battery applications.

This is a defintely strong growth vector, as automakers and energy companies simply cannot afford to iterate slowly with physical prototypes in this high-stakes, fast-moving sector.

Corporate inclusion in the America's Most Responsible Companies 2024 list.

Ansys's own corporate environmental performance strengthens its brand authority in the sustainability space. Newsweek recognized Ansys on its America's Most Responsible Companies 2024 list, which considers all three pillars of ESG: Environmental, Social, and Governance.

Here's the quick math on their internal environmental progress:

They blew past their 2027 emissions reduction target of 15% by achieving a 42% reduction in Scope 1 and Scope 2 market-based greenhouse gas (GHG) emissions against their 2019 baseline. This operational excellence in their own house provides credibility when they sell sustainability solutions to their customers. It's a powerful proof point for their 'Advancing sustainability through our products' pillar.