PUBLISHER: The Business Research Company | PRODUCT CODE: 1409237
PUBLISHER: The Business Research Company | PRODUCT CODE: 1409237
“Automotive Simulation Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive simulation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automotive simulation? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The automotive simulation market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Automotive simulation involves leveraging computer-based models and algorithms to replicate real-world automotive systems and environments. It aims to provide an immersive experience for users, simulating the feel and functionality of an actual vehicle within a virtual setting. This technology serves the purpose of evaluating and enhancing vehicle design, performance, safety, and overall efficiency.
The primary components utilized in automotive simulation are software and related services. Software comprises sets of instructions or computer programs employed to operate machinery and execute specific tasks. These software applications can be deployed through two main methods such as on-premises installations or cloud-based solutions. They serve various purposes, including prototyping, testing, and analysis, catering to diverse end-users such as regulatory bodies, original equipment manufacturers (OEMs), and automotive component manufacturers.
The automotive simulation market research report is one of a series of new reports from The Business Research Company that provides automotive simulation market statistics, including automotive simulation industry global market size, regional shares, competitors with a automotive simulation market share, detailed automotive simulation market segments, market trends and opportunities, and any further data you may need to thrive in the automotive simulation industry. This automotive simulation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The automotive simulation market size has grown rapidly in recent years. It will grow from $2.01 billion in 2023 to $2.28 billion in 2024 at a compound annual growth rate (CAGR) of 13.1%. The historical growth in automotive simulation can be ascribed to several factors, including cost reduction strategies in product development, the increasing complexity of vehicle systems, adherence to stringent regulatory standards, globalization trends within the automotive industry, and the rising demand for fuel-efficient solutions. These factors collectively contributed to the expansion and adoption of automotive simulation technologies during this period.
The automotive simulation market size is expected to see rapid growth in the next few years. It will grow to $3.55 billion in 2028 at a compound annual growth rate (CAGR) of 11.7%. The anticipated growth in automotive simulation is expected due to the advancements in electric and hybrid vehicle technologies, a heightened focus on sustainability, increased emphasis on cybersecurity testing, competitive market dynamics, government initiatives supporting smart transportation, and shorter product development cycles. In the forecast period, notable trends include the integration of digital twin technology, rapid advancements in simulation tools, utilization of AI in simulation processes, development of multi-physics simulation models, the rise of cloud-based simulation platforms, and the integration of advanced driver assistance systems (ADAS). These trends collectively shape the trajectory of automotive simulation.
The automotive simulation market is poised for growth, driven by flourishing automotive production and passenger vehicle sales. Passenger vehicles, designed for people transport, play a significant role in this growth, with automotive simulation serving as a crucial step in vehicle production. It is utilized to test and enhance vehicle design and performance during the manufacturing process, aiming to improve efficiency and ensure customer safety. According to reports from the European Automobile Manufacturers' Association (ACEA) in April 2021, global automobile production in 2021 reached 79.1 million units, marking a 1.3% increase. Similarly, the International Organization of Motor Vehicle Manufacturers reported an increase in passenger vehicles sold, rising from 53.91 million to 56.39 million in 2021. The robust growth in automobile production and passenger vehicle sales is a key driver of the automotive simulation market.
The automotive simulation market is also expected to experience growth due to the rising demand for cloud computing. Cloud computing, enabling the delivery of various computing services over the internet, is integral to automotive simulation applications. The adoption of cloud computing in this domain is on the rise, with 76% of people reported to have used public cloud services in 2022, reflecting a 56% increase from the previous year, according to Google LLC. The scalability, flexibility, and accessibility offered by cloud computing contribute to its increasing importance in automotive simulation, fostering market growth.
Technological advancements emerge as a key trend in the automotive simulation market, with major companies actively developing innovative solutions to enhance their market position. An illustrative example is MORAI, a South Korea-based autonomous vehicle simulation company, which launched MORAI SIM Cloud in December 2021. MORAI SIM Cloud is a cloud-based Software as a Service (SaaS) solution designed for autonomous driving simulation. This technology allows users to simulate autonomous vehicle operations in a cloud setting, leveraging a test automation function that efficiently distributes test cases and produces results. The cloud-based approach enhances test efficiency, enabling users to perform numerous simulation tests on a single computer simultaneously, a feature crucial for improving overall testing processes.
Major players in the automotive simulation market are actively innovating new products, incorporating advanced technologies such as AVSandbox, to gain a competitive edge. AVSandbox represents an autonomous vehicle simulation solution specifically designed for testing, developing, and validating autonomous vehicle safety. A notable example is Claytex Services Limited, a UK-based developer of simulation solutions, which launched AVSandbox in June 2022. This solution introduces a sensor-realistic simulation environment into the virtual realm, catering to the unique needs of automotive original equipment manufacturers (OEMs) and end-user organizations. AVSandbox facilitates the development and deployment of autonomous vehicles and advanced driver assistance systems.
In March 2022, Applied Intuition Inc., a US-based autonomous vehicle testing company, acquired Mechanical Simulation Corporation (CarSim) for an undisclosed amount. This acquisition is aimed at enhancing Applied Intuition Inc.'s product offerings and optimizing its capabilities to better serve customers. Mechanical Simulation Corporation, a US-based provider of vehicle dynamics simulation software, brings valuable expertise to Applied Intuition Inc., expanding its portfolio and contributing to the advancement of autonomous vehicle testing. This strategic acquisition reinforces Applied Intuition Inc.'s commitment to staying at the forefront of innovation in the automotive simulation market while broadening its range of products and services.
Major companies operating in the automotive simulation market report are Altair Engineering Inc., Ansys Inc., Autodesk Inc., AVL List GmbH, Dassault Systemes SE, dSpace GmbH, ESI Group, Gamma Technologies Inc., IPG Automotive GmbH, PTC Inc., Siemens AG, Simscale GmbH, SIMUL8 Corporation, Synopsys Inc., The MathWorks Inc., Design Simulation Technologies Inc., Comsol AB, MSC Software Corporation, MathWorks, Synopsys Inc., Ricardo Software, Claytex Services Limited, Mevea, Cognata, CarSim, VIRES Simulationstechnologie GmbH, VI-grade GmbH, Elaphe Propulsion Technologies, TASS International, Ansible Motion, Modelon, Hyperdrive, CarNetix, Cruden .
Asia-Pacific was the largest region in the automotive simulation market in 2023. It is expected to be the fastest-growing region in the automotive simulation market during the forecast period. The regions covered in the automotive simulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the automotive simulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The automotive simulation market includes of revenues earned by entities by providing system installation, training, and maintenance services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.