Modeling and simulation

Modeling and simulation (M&S) is an industry around the use of physical or logical representations of a system. This is done to generate data about the system or make predictions about the system, often as a decision support tool or for better planning and development of a new system. Modeling and simulation is used widely in the social and physical sciences, engineering, manufacturing, and product development. Some applications of M&S include creating models for weather systems, simulating the effects of severe weather events like hurricanes, creating programs for modeling or social simulations or observing the behavior of individuals, and simulating how a physical change to a system will affect its performance.

Despite the growing popularity of modeling and simulation, with the United States Department of Defense spending almost USD $9 billion annually on M&S activities, the North American Industry Classification System (NAICS)—which is used to classify business activities in the United States—has never designated a NAICS code to represent the industry. Because of this, it is often recorded as occurring as a part of activities in other industries; for example, it has been recorded under 5417 for Scientific Research and Development Services and 5415 for Computer Systems Design and Related Services.