Automotive Simulation Market size is set to surpass USD 5 billion by 2030, according to a new research report by Global Market Insights Inc.
The market growth is credited to the rising demand for advanced communication technology in vehicles and favorable investments in R&D to develop effective autonomous solutions. The widespread popularity of the Internet of Things (IoT), along with cloud computing and big data analytics, would accelerate the development of Advanced Driver Assistance Systems (ADAS), which is poised to provide the impetus for industry progression.
Rise in availability of trained professionals to increase service segment share
In terms of component, the service segment held over 28% of the global market share in 2021 owing to an upsurge in the hiring of trained professionals by SMEs and component manufacturers to offer product designing and consultation services. Market players are also offering training services on how to use the software and maximize productivity, which is further impelling industry demand.
Easy connectivity of cloud-based systems to push cloud segment growth
Get more details on this report - Request Free Sample PDF
In terms of deployment model, the cloud segment is poised to register substantial gains during the forecast period. The uptake of cloud-based automotive simulation software is expected to rise on account of its advantageous features, such as providing swift configuring, quick deployment capabilities, and reliability. Furthermore, many OEMs are adopting cloud-based simulations to leverage their abilities of developing cloud connected infotainment systems.
Benefits of automotive simulation to augment product penetration in vehicle engineering
The vehicle engineering application segment is projected to record USD 5 billion in revenue by 2030. Automotive simulation tools used for vehicle engineering enable automakers to re-engineer various components and deliver swift innovation via rapid virtual prototyping & testing for electrification, light-weighting, energy efficiency, and smart controls, which is speculated to bolster the product adoption rate substantially during the forecast timeframe.
Browse key industry insights spread across 240 pages with 353 market data tables & 34 figures & charts from the report, “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”, in detail along with the table of contents:
Mounting need for outsourcing to aid component manufacturers segment growth
In terms of end use, the component manufacturers segment is anticipated to depict over 15% CAGR through 2030. The upsurge in outsourcing projects carried out by auto manufacturers, coupled with the prevalent need of cost-effective outsourcing solutions, is set to boost the growth of the segment. The segment is further foreseen to expand steadily on account of the mounting need for high-quality components at optimum prices in autonomous vehicles.
Robust R&D base to propel industry dynamics in North America
North America automotive simulation market accounted for USD 800 million in 2021. The region is emerging as a major hub for this industry owing to the presence of extensive R&D facilities that are investing in smart automotive production systems and process automation. Moreover, manufacturers are actively deploying ADAS in vehicles due to rising consumer awareness regarding improved safety offered by these systems, thereby pushing the regional industry growth.
Product development to remain a key growth strategy
The strategic landscape of the market is predicted to witness a series of product range expansion efforts and strategic mergers & acquisitions by players. For instance, in April 2021, aiMotive, an autonomous vehicle technology specialist, announced the launch of its next generation aiSim3.0 simulator. The innovation is the world's first ISO26262 certified simulator that provides multi-client and multi-node support with advanced safety features close to reality.
Top participants operating in the industry 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, and others.
Explore More on Related Topics: