Automotive Simulation Market Size, Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Russia, Spain, China, India, Japan, Australia, Brazil, Mexico, GCC, South Africa), Growth Potential, Competitive Market Share & Forecast, 2019 – 2025
Report ID: GMI3200
Automotive Simulation Market size is proliferating during the forecast period propelled by stringent norms imposed by governments related to vehicle safety. OEMs are focusing on using the IoT for connected vehicles to assist drivers and improve passenger safety. For instance, the percentage of cars with internet connectivity is anticipated to rise from 13% in 2015 to 75% in 2020. Connected cars is expected to increase to 22% by 2020 from 10% in 2015. AI technologies such as machine learning and deep learning technologies are expected to further enhance applications such as ADAS, and adaptive cruise control, among others to drive the market growth over the forecast period.
The automotive simulation is an advanced software, which simulates passenger vehicles and their components for testing & development of driver assistance systems, on-board power electronics, vehicle dynamic controls, and engine controls. Automotive simulation in the vehicle environment is increasingly adopted in the driving training as it helps a person to learn driving without any risk to life or vehicles. Automotive simulation in manufacturing also helps OEMs to detect any shortcomings of the vehicle component before its fitted into the vehicle, enhancing the efficiency of the product.
Increasing focus on R&D activities to reduce the carbon footprint and enhance the efficiency of vehicles is driving automotive simulation market growth. OEMs are manufacturing lightweight vehicles as these can combust in less fuel, reducing the carbon footprint and increasing the efficiency of vehicles. OEMs are also manufacturing intelligent vehicles, which detect, predict, and diagnose equipment failures, and perform corrective interventions that include triaging of damage on the go following a collision.
Complications & constraints related to real-time control in simulation software are impeding automotive simulation market growth. With the automation industry moving toward self-driving and environment-friendly vehicles, old regulations imposed will hinder the growth of the automotive simulation market. The governing bodies are required to understand and complete the functioning of self-driving and environment-friendly vehicles to create several new laws along with revision of the existing laws.
With increasing connectivity and digitalization, OEMs are focusing on improving cybersecurity over connected vehicles & devices, which is expected to drive the automotive simulation market. Along with cybersecurity, rapid infrastructure development and advancements in 5G technology are anticipated to fuel the growth of the automotive simulation market over the forecast period.
With the increasing demand for design and consulting, the service segment is expected to be the fastest growing in the automotive simulation market. The service segment is gaining a large share of the market due to an increase in demand for Software as a Services (SaaS) such as pay per hour services. The on-premises segment is expected to hold the largest market share as it helps in upgrading in-house capabilities of simulation & analysis technology. It also offers various functionalities such as easy deployment, high-end security, and complete access to network solutions.
The testing application is anticipated to drive the market due to the rising use of the simulation software for testing designs and validating the findings with the desired results. The simulation software reduces the efforts of OEMs during on-road and lab testing, helping them in improving their products and technologies within the stipulated time.
Asia Pacific is expected to have the largest share in the automotive simulation market due to the rapid industrialization & infrastructural development, creating several opportunities for OEMs. OEMs, with the help of infrastructural development, are offering advanced applications such as auto-park assists, keyless entry, and HMI that will create the demand for testing and prototyping of new automotive systems. This provides a competitive advantage to OEMs and will drive the growth of the automotive simulation market in the region. Moreover, stringent government regulations are compelling manufacturers to improve designs of vehicles accordingly. In 2016, the government of India announced that the country would adopt Bharat Stage VI norms by 2020. For instance, in an automotive conference in 2018 held in India, Eicher Motors Limited and Maruti Suzuki India Limited provided information related to reducing the weight of their vehicles to comply with Bharat Stage VI and further increase vehicle efficiency and reduce carbon emissions.
Some of the major players operating in the automotive simulation market are Altair Engineering Inc., Ansys, Inc., Dassault Systèmes SE, Design Simulation Technologies, Inc., dSPACE GmbH, ESI Group, IPG Automotive GmbH, PTC, Inc, Siemens AG, SIMUL8 Corporation, Synopsys, Inc., and The MathWorks, Inc. These players are constantly entering into strategic partnerships and mergers & acquisitions to strengthen their product portfolio and global presence by building customer relations. These players are focusing on improving their strategies in the emerging markets such as India to increase their market share. For instance, in March 2018, ANSYS, Inc. acquired OPTIS to strengthen its multi-physics-based portfolio by adding software for optical simulation.
Automotive Simulation Market, By Component, 2014-2025 (USD Million)
Automotive Simulation Market, By Deployment model, 2014-2025 (USD Million)
Automotive Simulation Market, By Application, 2014-2025 (USD Million)
The above information is provided for the following regions and countries:
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
- South Africa
- Saudi Arabia
- Altair Engineering Inc.
- Ansys, Inc.
- Dassault Systèmes SE
- Design Simulation Technologies Inc.
- dSPACE GmbH
- ESI group
- IPG Automotive GmbH
- PTC Inc
- Siemens AG
- SIMUL8 Corporation
- Synopsys, Inc.
- The MathWorks, Inc
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