I've read in the Nielsen's, Chuang's "Quantum Computation and Quantum Information":
Classical simulation begins with the realization that in solving a simple differential equation such as $dy/dt = f(y)$, to first order, it is known that $y(t + \Delta t) \approx y(t) + f (y)\Delta t$. Similarly, the quantum case is concerned with the solution of $id|\psi \rangle/dt = H|\psi \rangle$, which, for a time-independent $H$, is just $$|\psi(t)\rangle = e^{-iHt}|\psi(0)\rangle.\ \ \ \ \ \ (4.96)$$ Since H is usually extremely difficult to exponentiate (it may be sparse, but it is also exponentially large), a good beginning is the first order solution $|\psi(t + \Delta t)\rangle \approx (I − iH \Delta t)|\psi(t)\rangle$. This is tractable, because for many Hamiltonians $H$ it is straightforward to compose quantum gates to efficiently approximate $I − iH \Delta t$. However, such first order solutions are generally not very satisfactory.
Efficient approximation of the solution to Equation (4.96), to high order, is possible for many classes of Hamiltonian. For example, in most physical systems, the Hamiltonian can be written as a sum over many local interactions. Specifically, for a system of $n$ particles, $$ H = \sum_{k=1}^L H_k,\ \ \ \ \ \ \ (4.97)$$ where each $H_k$ acts on at most a constant c number of systems, and L is a polynomial in $n$. For example, the terms $H_k$ are often just two-body interactions such as $X_i X_j$ and one-body Hamiltonians such as $X_i$. [...] The important point is that although $e^{−iHt}$ is difficult to compute, $e^{−iH_kt}$ acts on a much smaller subsystem, and is straightforward to approximate, using quantum circuits.
This may be a silly question, but I'm stuck with this one. Does the difficulty of obtaining $e^{-iHt}$ lies only in its size? Both $e^{-iHt}$ and $e^{-iH_kt}$ can be seen as matrices (of course, the first one is immensely larger than the latter one) and a Taylor series can be used to approximate both of them. This in turn boils down to just making a number of multiplications of $H$ (with different coefficients standing by the consecutive matrices). So, it makes sense for a sparse matrix to be easier to obtain, because we just don't have to do a number of multiplications, which would at the end give 0.
There are two things that come to my mind. First of which is a divide-and-conquer approach, where obtainment of $e^{-iH_kt}$ is simple and all "small" results are combined to get a big one. In fact, I think that Trotterization is this kind of approach. The second thing is a guess, that maybe $e^{-iH_kt}$ can be computed in some different way, than using Taylor series (it's a really wild guess)?