Automotive Simulation Market Size By Component (Software, Services), By Deployment Model (On-premise, Cloud), By Application (Vehicle Engineering [Chassis, Powertrain, Electricals, Cabin, Battery Engineering, Electric Drive Engineering, Brake System Engineering], Safety Engineering), By End Use (OEMs, Component Manufacturers, Regulatory Bodies), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2030

Industry Statistics

Automotive Simulation Market size exceeded USD 2 billion in 2021 and is anticipated to witness over 10% CAGR from 2022 to 2030. Rising demand for automated vehicles across the globe will drive the industry growth.
 

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The rapid change in consumer preference for electric vehicles and premium cars that supply optimum power and speed is likely to foster automotive simulation software demand owing to its ability to provide fast acceleration and stable driving performance, enhance vehicle efficiency, and reduce carbon footprint, which is proliferating product uptake.
 

Additionally, the introduction of stringent vehicle safety regulations in numerous countries is set to provide lucrative opportunities for automotive simulation market outlook. The burgeoning focus of regulatory agencies on improving passenger safety and enabling OEMs to detect faults before customer use by incorporating automotive simulation software is predicted to augment industry dynamics. For instance, in September 2022, the UK Government’s Vehicle Certification Agency began evaluating the use of the Safety Pool Scenario Database in the approval process for automated driving systems. Built by experts from Silicon Valley-headquartered Deepen AI and the University of Warwick, Safety Pool is touted to be the largest public scenario database for testing autonomous vehicles.
 

Increasing cybersecurity threat may restrain industry progression

Rising threats of cybersecurity in connected vehicles is foreseen to hamper automotive simulation market growth. Software vulnerabilities can be accessed by hackers using cellular networks and Wi-Fi, which has curtailed consumer demand for autonomous simulation software. Moreover, ongoing technological advancements in the system are slated to support the development, testing, and validation of safe automated driving technologies, thereby impelling business expansion.
 

Technological improvements to accelerate software segment

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In terms of component, the automotive simulation market from software segment is expected to observe around 20% gains between 2022 and 2030. This growth is attributed to increased emphasis of market players on the development of simulation software with innovative and state-of-the art technologies to enhance truck platooning, smart driving, fleet management, and other processes.
 

High investments by automotive manufacturers to help on-premise segment gain traction

The on-premise deployment model segment is poised to register a valuation of USD 3 billion by 2030, propelled by significant investments from automotive manufacturers to fortify their in-house facilities. In addition, advantageous subsidies for OEMs provided by government authorities to help them transform their car plants to accommodate EV production are anticipated to promote the on-premise deployment of automotive simulation software.
 

Rising demand for EVs to push product adoption by regulatory bodies

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In terms of end use, the regulatory bodies segment held over 10% of global automotive simulation market share in 2021. The ongoing shift in the automobile sector has stimulated the development of electric vehicles and vehicles that run on alternative fuels which is speculated to further escalate revenues from this end-use segment.
 

Stringent government regulations to propel safety engineering industry dynamics

In terms of application, the safety engineering segment is estimated to attain a growth rate of more than 15% through 2030 on account of surging government emphasis on crash safety regulations as well as growing customer awareness about vehicle safety. Furthermore, OEMs that offer low and mid-range vehicles are working on capturing high safety ratings to attract more buyers, which is slated to further promote segment growth.
 

Expanding population to amplify industry expansion across Asia Pacific

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The Asia Pacific automotive simulation market is set to witness a CAGR of around 15% till 2030. The surge in the demand for electric vehicles backed by supportive initiatives to reduce the environmental impact of the huge population base and control carbon emissions is boosting product penetration. Moreover, regional market players are gaining a competitive edge due to the export of component to OEMs based in Europe and North America, thereby positively influencing the business scenario.
 

Surge in strategic alliances to give impetus to industry demand

Top companies operating in the automotive simulation market are Altair Engineering Inc., Ansys, Inc., Anthony Best Dynamics Limited, Autodesk Inc., AVL List GmbH, Dassault Systèmes, Design Simulation Technologies, Inc., dSPACE GmbH, ESI Group, Gamma Technologies, LLC, IPG Automotive GmbH, Numeca, OPAL-RT TECHNOLOGIES, Inc., PTC, Siemens, SimScale, Simul8 Corporation, Synopsys, Inc., and The MathWorks, Inc. These leaders are adopting multiple strategies, including portfolio diversification, product development, and mergers & acquisitions, to strengthen their market position.
 

Impact of COVID-19 on the industry trends

The automotive simulation market was negatively impacted by the COVID-19 pandemic. Stringent lockdowns and disruptions in the global supply chain hampered manufacturers’ consumer reach. However, supportive government initiatives to promote better autonomous performance in the automotive sector encouraged market players to focus on R&D and innovate reliable and multi-tasking vehicle systems.
 

For instance, in October 2021, the UK government invested £2.3 million (~USD 2.5 million) in four self-driving vehicle projects to continue the development of technologies and ensure safe use of automated vehicles. Consequently, soaring need for safety in self-driving cars is foreseen to fuel market progression in the future.
 

The automotive simulation market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2018 to 2030, for the following segments:

Market Insights, By Component

• Software
• Service

Market Insights, By Deployment Model

• On-premise
• Cloud

Market Insights, By Application

• Vehicle Engineering
  • Chassis
  • Powertrain
  • Electricals
  • Cabin
  • Battery Engineering
  • Electric Drive Engineering
  • Brake System Engineering
  • Others
• Safety Engineering

Market Insights, By End Use

• OEMs         
• Component Manufacturers
• Regulatory Bodies

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa