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The Global Automotive Driving Simulator Market size is estimated to grow by USD 380.89 million between 2022 and 2027 accelerating at a CAGR of 5.65%.
This automotive driving simulator market report extensively covers market segmentation by application (research, development, and training), vehicle type (car, truck, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa)It also includes an in-depth analysis of drivers, trends, and challenges.
The decrease in vehicular production costs and reduced TTM leading to increased use of driving simulators across the value chain is the main factor driving the market growth. Driving simulators were initially used only in research, but they are now being used by automotive industry members to reduce costs and delays. By using virtual prototypes for testing, designers can cycle through multiple rounds of iterations without investing in physical prototypes, reducing R&D costs and temporary traffic management time. Successful driving simulator experiments can create an enduring margin within the vehicle development cycle, resulting in better-tested and confidence-boosting solutions with a reduced TTM. This is expected to drive demand for driving simulators as a standard measure toward operational efficiencies, leading to cost benefits and price reductions in the overall simulator system. As a result, the global automotive driving simulator market is expected to grow during the forecast period.
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The key factor driving the automotive simulator market is the use of AR HUDs and HMDs to introduce inexpensive driving simulation solutions. Costly simulators simulate actual driving conditions with a recreated environment, while low-cost alternatives have a mock-up car mounted on a six-degree-of-freedom platform. Augmented reality (AR) heads-up displays (HUDs) are more efficient than traditional solutions.
AR in off-road vehicles is an advanced version of the existing HUD systems, which display important information on a windshield or nearby transparent screen. Using AR devices instead of expensive dome and screen setups can achieve total immersion and result in significant cost benefits. This is expected to increase the adoption of automotive simulations during the forecast period.
The development of stratiform machines to supplant hexapod machines in automotive DIL simulation applications is a major trend in the automotive driving simulator market. Automotive training simulators have traditionally relied on aerospace industry platforms. However, unlike aerospace, automotive motion is mainly two-dimensional, and the use of hexapod-structure-based platforms has introduced several challenges for cueing drivers in automotive training simulators. These challenges include significant mechanical lag, which can lead to issues like SAS. Therefore, the solution is the six DOF stratiform machines, which have low lag motions and are responsive, making them suitable for automotive simulations. As a result, stratiform machines are expected to revolutionize the automotive simulator space during the forecast period by reducing or eliminating lag.
The high price of overcoming lag-induced SAS is a major challenge hindering the automotive driving simulator market. The realism of a simulator affects the driver's perception of lag, inducing a phenomenon called SAS or simulator sickness. SAS symptoms include headaches, motion sickness, and disorientation. The degree of SAS is inversely proportional to the realism of the simulator, which is subjective and varies from person to person. The brain eventually adapts to simulation disparities, but this downtime can delay deployment. Simulator developers are trying to reduce SAS by using stratiform machines, better graphics, and audio-source positioning. However, these machines are expensive, limiting the growth of the market during the forecast period.
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The market share growth by the research segment will be significant during the forecast period. OEMs and suppliers, universities, and independent R&D come under the R&D segment. OEMs, suppliers, and universities are the major end-users in the market. Hence, the R&D segment is growing.
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The research segment was valued at USD 834.55 million in 2017 and continued to grow until 2021. Along with advanced driver assist systems (ADAS) and autonomy, simulation is expected to help advance R&D in the connected car space. Special neural network algorithms designed to mimic the future connected world, with human decisions tested on decision trees involving such algorithms, are the current field of study for connected car engineers. Without exposing real pedestrians and co-drivers on IRL motorways, the only other avenue of testing connected car concepts remains under the support of simulation. Hence, in addition to autonomy and ADAS, connected car algorithmic research is expected to be developed in tandem with the help of driving simulators. Simulators such as the Delta series in the new R&D center help vehicle manufacturers reduce development costs and time. These simulators have cut the validation time from 10 days to 3 days for an Electronic Stability Control program for a car maker. Such developments and benefits are expected to provide growth to the R and D segment, which in turn, will propel the market in focus during the forecast period.
The global automotive driving simulator market is dominated by the car segment during the forecast period due to the increasing popularity of autonomous vehicles, growing electric vehicles adoption, and government safety norms. Car manufacturers can reduce costs by using simulation to reduce the number of prototypes needed during development and understand powertrain performance and energy consumption. The adoption of Industry 4.0 and focus on interconnectivity, automation, and real-time data analysis further propels the growth of the car segment, with global manufacturers such as Mahindra, Audi, and BMW using car simulation to enhance passenger experience and safety. The launch of Mahindra's home-installed car simulator in June 2021 is one example. These factors are expected to continue driving the car segment and the overall market during the forecast period.
North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is expected to grow in North America. The population interested in driving lessons is high in this region. Automotive driving simulators will help customers have better driving practices. Furthermore, there is an increase in the sales of cars, which will reflect the growing number of licensed drivers and automotive driving simulator users in the region.
The automotive industry in North America underwent a radical transformation in 2018 following the successful conclusion of the US-Mexico-Canada Agreement (USMCA). This new trade treaty mandates car manufacturers in the region to use 75% American-made parts in their product offerings to avoid a hefty 25% import duty. This strategic move aims to enhance year-over-year automobile production, which increases the demand for automotive driving simulators. The US, Canada, and Mexico are the major contributors to the market in North America, given their dominance in the global automobile industry in terms of passenger car and commercial vehicle production volumes. Hence, automotive driving simulators are expected to grow in this region during the forecast period.
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Due to the COVID-19 outbreak and related lockdowns and travel restrictions, the demand for automotive driving simulators in North America declined in 2020. However, with the start of large-scale vaccination programs and the re-opening of the global market, the regional market began to recover towards the end of the year. The increase in automaker production has further boosted the demand for driving simulators, leading to a positive growth outlook for the North American market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Automotive Driving Simulator Market. One of the major vendor in the market include:
NVIDIA Corp.- The company offers automotive driving simulator such as NVIDIA DRIVE Sim powered by Omniverse.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automotive Driving Simulator Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.65% |
Market growth 2023-2027 |
USD 380.89 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.2 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, Japan, Germany, France, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Dynamics plc, Ansible Motion Ltd., AutoSim AS, AV Simulation, CAE Inc., CKAS Mechatronics Pty Ltd., Cruden, CXC Simulations, Dallara Group Srl, Groupe Gorge SA, Illinois Tool Works Inc., IPG Automotive GmbH, Mechanical Simulation Corp., Moog Inc., NVIDIA Corp., OKTAL SYDAC, Spectris Plc, Tecknotrove Systems I Pvt. Ltd., Virage Simulation Inc., and Thales |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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