PUBLISHER: The Business Research Company | PRODUCT CODE: 1662553
PUBLISHER: The Business Research Company | PRODUCT CODE: 1662553
Automotive Simulation Global Market Report 2025
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 $2.23 billion in 2024 to $2.49 billion in 2025 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to cost reduction in product development, complexity of vehicle systems, stringent regulatory standards, globalization of automotive industry, demand for fuel efficiency.
The automotive simulation market size is expected to see rapid growth in the next few years. It will grow to $4.06 billion in 2029 at a compound annual growth rate (CAGR) of 13.0%. The growth in the forecast period can be attributed to electric and hybrid vehicle development, focus on sustainability, cybersecurity testing, market competitiveness, government initiatives for smart transportation, shortened product development cycles. Major trends in the forecast period include digital twin integration, rapid technological advancements, integration of ai in simulation, multi-physics simulation models, cloud-based simulation platforms, advanced driver assistance systems (ADAS).
The flourishing automotive production and rising sales of passenger vehicles are expected to drive growth in the automotive simulation market in the future. Passenger vehicles are specifically designed to carry people. Automotive simulation plays a crucial role in automotive production, as it is utilized to test and enhance vehicle design and performance throughout the manufacturing process, thereby improving efficiency and ensuring customer safety. For example, in January 2024, Eurostat, a European Commission database organization, reported that in 2022, the number of battery-only electric passenger cars in EU countries approached 3.0 million, marking a 55% increase compared to 2021, when there were 1.9 million. Therefore, the growth in automotive production and passenger vehicle sales is driving the expansion 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.
Leading companies in the automotive simulation market are developing traffic simulation software to improve vehicle performance testing, enhance traffic flow, boost safety, and support autonomous driving technologies. This software employs advanced computational tools to model and analyze traffic behavior within road networks. For example, in July 2024, PTV Planung Transport Verkehr GmbH, a Germany-based firm, introduced PTV Vissim Automotive, an upgraded traffic simulation software. This tool offers a dynamic, closed-loop testing environment, allowing for the simulation of realistic traffic scenarios during extensive virtual test drives. It incorporates behavior models that replicate human interactions between cars, cyclists, and pedestrians, thus enhancing the accuracy of simulations.
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 include 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, 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 2024. 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.
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Table of Contents
1. Executive Summary
2. Automotive Simulation Market Characteristics
3. Automotive Simulation Market Trends And Strategies
4. Automotive Simulation Market - Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics And Covid And Recovery On The Market
5. Global Automotive Simulation Growth Analysis And Strategic Analysis Framework
- 5.1. Global Automotive Simulation PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
- 5.2. Analysis Of End Use Industries
- 5.3. Global Automotive Simulation Market Growth Rate Analysis
- 5.4. Global Automotive Simulation Historic Market Size and Growth, 2019 - 2024, Value ($ Billion)
- 5.5. Global Automotive Simulation Forecast Market Size and Growth, 2024 - 2029, 2034F, Value ($ Billion)
- 5.6. Global Automotive Simulation Total Addressable Market (TAM)
6. Automotive Simulation Market Segmentation
7. Automotive Simulation Market Regional And Country Analysis
8. Asia-Pacific Automotive Simulation Market
9. China Automotive Simulation Market
10. India Automotive Simulation Market
11. Japan Automotive Simulation Market
12. Australia Automotive Simulation Market
13. Indonesia Automotive Simulation Market
14. South Korea Automotive Simulation Market
15. Western Europe Automotive Simulation Market
16. UK Automotive Simulation Market
17. Germany Automotive Simulation Market
18. France Automotive Simulation Market
19. Italy Automotive Simulation Market
20. Spain Automotive Simulation Market
21. Eastern Europe Automotive Simulation Market
22. Russia Automotive Simulation Market
23. North America Automotive Simulation Market
24. USA Automotive Simulation Market
25. Canada Automotive Simulation Market
26. South America Automotive Simulation Market
27. Brazil Automotive Simulation Market
28. Middle East Automotive Simulation Market
29. Africa Automotive Simulation Market
30. Automotive Simulation Market Competitive Landscape And Company Profiles
31. Automotive Simulation Market Other Major And Innovative Companies
32. Global Automotive Simulation Market Competitive Benchmarking And Dashboard
33. Key Mergers And Acquisitions In The Automotive Simulation Market
34. Recent Developments In The Automotive Simulation Market
35. Automotive Simulation Market High Potential Countries, Segments and Strategies
36. Appendix
