Why Does EM Software Cost a Fortune?

If you’ve ever looked into electromagnetic (EM) simulation software, you’ve probably wondered: why does it cost so much?

The answer comes down to who the software is designed for—large corporations.

It should come as no surprise that most commercial EM software is developed with an enterprise focus, meaning it’s built for companies with big R&D budgets, dedicated engineering teams, and complex organizational needs that need to share data and processes among different departments.

For small businesses, startups, and independent engineers, this pricing model is slamming the door in their faces.

But that doesn’t mean high-end simulations are out of reach. So let’s break down why EM software is so expensive and what alternatives exist.

The Market for EM Software Is Enterprise-Driven

At its core, this market revolves around what big enterprises need and want. Think about companies like Dassault, Siemens, Altair, and Synoptic - they’ve built massive software platforms that do pretty much everything a large organization could need around EM simulation.

Why do they take this approach?

When a company has large engineering teams, simulation software needs to support more than just technical accuracy—it must also facilitate collaboration, data management, workflow efficiency across multiple departments, compliance, and security protocols. These challenges don’t exist in small teams, where a handful of engineers can work directly with each other and use simpler and more modular tools without major bottlenecks.

Because of this complexity, the software market for large enterprises has become self-reinforcing—once a platform is widely adopted, switching becomes increasingly difficult. Companies invest millions in licenses, training, and workflow integration, making any transition costly and disruptive. On top of these natural switching costs, vendors introduce additional lock-in mechanisms, such as proprietary file formats, long-term licensing agreements, and deep integrations with other enterprise systems. As a result, even if alternative solutions emerge, the inertia of existing investments and built-in vendor constraints keep companies tied to their current platforms.

The end result is a market where the products and pricing are shaped by enterprise requirements - everything from feature sets to integration capabilities is built around what large organizations need to operate efficiently, and priced at a premium because of the high switching costs. Considering these characteristics, it’s no surprise that the financial performance of enterprise-grade simulation software suites is so remarkable. If you had invested $100 in Ansys stock back in January 1998, you would have around$16.000 today (in 2025), compared to $520 if you had invested the same ammount in the S&P 500 index.

Licensing Strategies That Shut Out Small Players

Electromagnetic simulation software pricing isn’t just high—it’s structured specifically for enterprise customers, making it difficult for smaller players to access.

As discussed in this post, tools like HFSS, FEKO, and CST come with steep costs. A single-seat license can range from $20,000 to over$100,000 per year, with strict per-user, per-machine, and sometimes even per-core restrictions. The pricing structure quickly escalates when you factor in additional modules—high-frequency simulations, thermal analysis, or even just using more than four computing cores often require separate purchases, driving up costs significantly.

These tools are designed with large, full-time engineering teams in mind, where continuous usage justifies the investment. But for startups, small engineering firms, or researchers who only need occasional simulations, the cost-benefit equation becomes much harder to justify. While large corporations absorb these costs as part of their R&D budgets, smaller players have to get creative. Some rely on approximations instead of full simulations, others invest time in mastering open-source alternatives, and many find that outsourcing simulation work is the most cost-effective solution.

This pricing model leads to different approaches to simulation based on company size. Large enterprises benefit from fully integrated, high-end tools because they need software that works seamlessly across departments and complex workflows. While big companies esentially excel at putting things together, smaller organizations, on the other hand, tend to be more agile and innovation-driven, often choosing a modular approach—picking the best tool for each task rather than committing to a single ecosystem. These differences shape how companies approach product development, engineering workflows, and strategic decisions around simulation.

Enterprise vs. SMB Needs: Key Differences

Factor	Large Corporations (Enterprise)	Small Businesses / Startups
Budget	High, dedicated R&D funds	Limited, cost-sensitive
Software Features Needed	Full suite, multiphysics, automation	Only essential features
Integration Requirements	Must integrate across departments	Usually standalone use
Industry Standards	Compliance-driven	More flexibility in software choice
Vendor Preference	One-stop-shop, established brands	Open to modular or open-source solutions
Switching Costs	High, deeply embedded in workflows	Lower, easier to adapt new tools
Cost Structure	High upfront, long-term contracts	Pay-as-you-go, short-term flexibility
Usage Model	Built for full-time engineering teams	Used occasionally, making high-cost licenses hard to justify
Approach to Simulation	Integration-focused – prioritizing tools that connect across teams and processes	Innovation-driven – selecting the best tool for each task

A More Strategic Approach to Electromagnetic Simulation

Let’s talk about a practical solution for organizations that need high-quality electromagnetic simulations without the substantial software investment. There’s an alternative to taking on those hefty license fees: outsourcing your simulation needs.

Consider working with a specialized consulting service like Epsilon Forge. This approach shifts the equation in several important ways. Rather than investing in expensive software licenses and training, organizations can access enterprise-grade simulation capabilities on demand. You’re essentially tapping into both the tools and the expert knowledge, but only paying for what you actually use.

Think about it this way: instead of committing to annual licenses that could cost tens of thousands per year or more, you can direct those resources toward getting exactly the simulation results you need, when you need them. It’s about staying competitive and getting enterprise-level results without taking on enterprise-level overhead.

Are you looking to optimize your approach to electromagnetic simulation? Let’s discuss how we can help you achieve the precise results you need while maintaining better control over your costs. Book a free consultation with us to explore how this could work for your specific requirements.”