PUBLISHER: The Business Research Company | PRODUCT CODE: 1503924
PUBLISHER: The Business Research Company | PRODUCT CODE: 1503924
A virtual prototype serves as a digital rendition of a physical product or system, utilized for pre-production testing and validation purposes. Its primary function is to streamline design processes, minimize expenses, and expedite development timelines through comprehensive testing and simulation within a virtual environment.
The essential components of a virtual prototype encompass both software and hardware. Software comprises programs and applications running on computers, facilitating the design and simulation of virtual prototypes. These tools encompass computer-aided design (CAD), computer-aided engineering (CAE), computer-aided manufacturing (CAM), computational fluid dynamics (CFD), and finite element analysis (FEA). They find application across various domains such as product design and development, testing and validation, training, and education. End-users of virtual prototypes span a multitude of industries, including automotive, aerospace, petroleum, chemical, government or military, healthcare, telecommunications, electronics, and entertainment.
The virtual prototype market research report is one of a series of new reports from The Business Research Company that provides virtual prototype market statistics, including virtual prototype industry global market size, regional shares, competitors with a virtual prototype market share, detailed virtual prototype market segments, market trends and opportunities, and any further data you may need to thrive in the virtual prototype industry. This virtual prototype market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The virtual prototype market size has grown exponentially in recent years. It will grow from $0.64 billion in 2023 to $0.79 billion in 2024 at a compound annual growth rate (CAGR) of 23.4%. The growth observed in the historical period can be attributed to several factors, including the escalating demand for product simulation, the rising expenses associated with physical prototypes, the necessity for accelerated time-to-market, concerns regarding environmental impact, and the pressures stemming from regulatory requirements.
The virtual prototype market size is expected to see exponential growth in the next few years. It will grow to $1.83 billion in 2028 at a compound annual growth rate (CAGR) of 23.6%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing prevalence of remote work culture, the growing demand for digital twins, a heightened emphasis on sustainability practices, a greater focus on cybersecurity measures, and the widespread adoption of smart manufacturing technologies. Major trends expected in the forecast period encompass the rise of digital twin technology, an increased utilization of virtual reality (VR) and augmented reality (AR) in prototyping processes, the integration of predictive analytics in virtual prototyping workflows, the emergence of collaborative virtual prototyping platforms, and the adoption of blockchain technology for secure data sharing in virtual prototyping environments.
The increasing adoption of consumer electronics is poised to propel the virtual prototype market forward. Consumer electronics encompass electronic devices designed for everyday use, serving entertainment, communication, or productivity purposes. The surge in adoption of consumer electronics is attributed to factors such as improved affordability, evolving consumer lifestyles, and escalating demand for interconnected devices. Virtual prototypes play a crucial role in the consumer electronics industry by enabling rapid and cost-effective testing and refinement of product designs prior to physical manufacturing. For instance, data from the Consumer Technology Association (CTA) in January 2022 projects that the U.S. consumer technology industry will generate over $505 billion in retail sales revenue, indicating a 2.8% increase from the remarkable 9.6% growth observed in 2021 over 2020. Consequently, the rising adoption of consumer electronics is driving the virtual prototype market.
Prominent players in the virtual prototype market leverage advanced simulation and virtualization technologies, particularly in domains such as automotive chips, to streamline product development processes and cater to the evolving demands of the automotive sector. Virtual prototypes of automotive chips are digital simulations representing physical chips powering various automotive systems. For example, Arm Holdings Ltd., a UK-based semiconductor and software design company, unveiled the Arm Automotive Enhanced range in March 2024, based on Armv9 architecture, targeting the automotive industry with server-class performance for vehicle AI applications. These new AE processors address the escalating demand for AI-driven capabilities, enhanced performance, and functional safety in modern software-defined vehicles (SDVs). Arm also provides virtual prototypes of these new AE processors, enabling automotive partners to commence software development even before physical silicon availability, thereby accelerating time-to-market by up to 2 years. Additionally, the company offers virtual prototypes of the latest chips, allowing developers to initiate application development much earlier, circumventing the traditional linear chip design cycle where physical chips arrive one to two years after IP delivery.
In August 2023, Synopsys Inc., a leading provider of electronic design automation (EDA) software and associated services, strategically acquired PikeTec GmbH for an undisclosed sum. This acquisition strengthens Synopsys' position in the virtual prototype market, offering comprehensive testing and verification solutions tailored to the growing complexity of software-defined vehicles in the automotive industry. PikeTec GmbH, headquartered in Germany, specializes in automotive-focused virtual prototyping and test automation tools for software testing, thus complementing Synopsys' strategic objectives for expansion and innovation in the automotive domain.
Major companies operating in the virtual prototype market are Siemens AG, Qualcomm Technologies Inc., NVIDIA Corporation, Rockwell Automation, Dassault Systemes SE, Hexagon AB, Keysight Technologies, Synopsys Inc., Autodesk Inc., Cadence Design Systems Inc., Arm Holdings, ANSYS Inc., PTC, National Instruments Corp., The MathWorks Inc., Mentor Graphics Corporation, Altair Engineering Inc., Aspen Technology Inc, Zuken, TWI Ltd., Imagination Technologies, Corel Corporation, ESI Group, Imperas Software Ltd., Magillem Design Services, Carbon Design Systems Inc.
North America was the largest region in the virtual prototype market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual prototype market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the virtual prototype market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The virtual prototype market consists of revenues earned by entities by providing services such as consulting and advisory services, development and integration services, simulation and testing services, optimization and performance tuning services, and training and education. The market value includes the value of related goods sold by the service provider or included within the service offering. The virtual prototype market also includes sales of products such as virtual reality (VR) headsets and simulators, augmented reality (AR) glasses and devices, visualization tools and platforms, and hardware-in-the-loop (HIL) testing systems. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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.
Virtual Prototype 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 virtual prototype 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 virtual prototype ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The virtual prototype 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.
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