Today’s markets are exposed to fierce competition and require products that go beyond shorter innovation cycles. Physical prototyping is rarely compatible with innovative product development, cost and time constraints. Therefore, the visionary objective is to extend smart virtual prototyping to multi-physics applications that include a continuous and discrete phase as encountered in thermal conversion of raw materials such as reduction of tungsten oxide powder in a hydrogen atmosphere. A requirement for smart virtual prototyping is to exploit the latest techniques of high performance computing which is achieved through a novel and innovative overlapping partitioning algorithm for multi-physics. The overlapping concept assigns common partitions to both the continuous and discrete simulation domains in order to reduce communication to a minimum under the restrictions of a well-balanced workload for all partitions of volume coupling software. Consequently, applications are highly scalable for a large number of cores that is paramount for smart virtual prototyping to be carried out within short design cycles. Such practices reduce the time-to-market, costs, and energy consumption significantly which is a strategic advantage in fiercely competitive markets.