Light Detection and Ranging (LiDAR), an essential technology for acquiring three-dimensional spatial data, has been extensively utilized in various fields such as autonomous driving, intelligent transportation systems, and aerospace. The simulation of LiDAR technology is crucial for the development of algorithms, assessment of equipment performance, and integration and verification of systems. Firstlly, this paper outlines the context of LiDAR's three-dimensional imaging simulation applications and provides a detailed analysis of the current state of research in this field globally, focusing on two main aspects: enhancing system performance and visualizing and applying point cloud data. Furthermore, it summarizes the challenges and prospects in the advancement of LiDAR three-dimensional imaging simulation, which include the development of high-fidelity simulation models, integration of multi-sensor data, and the growth of LiDAR data enhancement and simulation techniques. This study sets a solid foundation for further progress in the field of LiDAR three-dimensional imaging simulation.