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PIPE-FLO from Revalize

Fluid System Modeling & Simulation Software

Smart Manufacturing 2025

Trends Shaping the Digital-First Era and Beyond

Download our report to learn how companies are using modeling and simulation software to streamline processes and shorten timelines for faster ROI.

The future of manufacturing is crucial to the global economy, employing over 13.6% of the global workforce and contributing 16% to the global GDP. To understand the priorities and challenges of manufacturing organizations in 2025, we surveyed 500 CPQ, PLM, and engineering modeling or simulation software professionals in the US and Germany.

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New technologies, managing labor and skill shortages, and continuous innovation are top of mind for these professionals.

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Key Priorities for 2025 Include:

Adopting new

technologies
Developing new
products
Improving security
and data protection
Notably, 70% of manufacturing professionals report increased software budgets, and nearly all businesses plan to invest in Industrial IoT (IIoT) platforms, sustainable technologies, and cloud-based manufacturing in the coming year.

Addressing the Challenges Ahead

Over the next year and beyond, manufacturers will encounter skilled labor shortages, supply chain disruptions, and pressures for innovation and sustainability. Data security and software platform integration are top challenges, along with keeping up with rapid technological advancements, managing automation costs, and addressing AI energy consumption.

Reshaping the Manufacturing Landscape

Simulation and modeling software is evolving rapidly, driven by advancements in areas such as cloud computing, AR / VR, 3D printing, and digital twin technology. The market is projected to grow significantly as more industries, including finance, healthcare, and retail, adopt these tools for complex problem-solving, risk assessment, logistics, and inventory management.

Technology is predicted to continue to change what modeling and simulation software may look like in the future. Engineering and manufacturing professionals expect emerging technology like real-time simulations (45%) and cloud computing (42%) to have the greatest impact on their industry by 2050. 

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© 2025