Typically, there are 'group', 'ring' and 'field' tactics that will perform simplification in the relevant algebraic structures. Going from that to solving sin^2 x + cos^2 x is simply a matter of writing more such tactics, operating on e.g. real fields or whatever is applicable in any given case.
This is a lot less ad-hoc than whatever CAS's do, but it's also less error prone.
