Report Overview

Global Automotive Simulation Market - Industry Trends & Forecast Report, 2029

The global automotive simulation market size was estimated at USD 1,817.77 million in 2022. During the forecast period between 2023 and 2029, global automotive simulation market size is expected to grow at a significant CAGR of 8.4% reaching a value of USD 3,148.74 million by 2029. The increasing investments in and focus on simulation technology R&D by major automobile manufacturers and technology developers is one of the major growth drivers for the global automotive simulation market. These technologies are primarily concerned with improving driver safety and assistance. Customer safety is provided by services such as adaptive cruise control, advanced driver assistance system (ADAS), active chassis stability, and infotainment. It is encouraging the use of automotive simulation solutions for in-vehicle electronic systems to aid in the design of rapidly changing platforms for emerging car series, which has been beneficial to product adoption.

Global Automotive Simulation Market - Overview

An automobile simulation is a sophisticated software that simulates passenger vehicles and their additives to test and develop driving assistance structures, onboard power electronics, automobile dynamic controls, and engine controls. Automotive simulation is becoming more popular in the automobile industry because it allows people to analyze and learn without endangering their lives or motors. Automotive simulation in production also allows OEMs to identify any flaws in the components before they are installed in the vehicle, improving the product's efficiency. Automotive simulation is the use of simulation software in prototyping and version testing of a vehicle to ensure complete functionality.

Growth Drivers

Increasing Adoption of Advanced Technologies

Growing number of electronic contents per vehicle and connected cars and instruction by regulatory authorities for vehicle safety is expected to stimulate market growth. Increasing technological advancement owing to dynamic government regulation for vehicle safety is impacting the market demand. Technological advancements such as autonomous vehicles, truck-platooning, and Vehicle-to-everything (V2X) are expected to build opportunities for the automotive simulation market. Continuous research and development activities coupled with increasing usage of cloud computing is contributing to supporting the growth of the market.

Increasing Focus on & Investments in Automotive R&D

Growing investment in research and development to proceed further for advanced future technologies along with dynamic technological changes are responsible for the market growth. These technologies are majorly focused on improving safety features and help to drivers. Increasing demand from consumers for vehicles with autonomous features and advanced safety is expected to drive market growth.

Restraints

Complexities Associated with Real-Time Control

Complications & constraints related to real-time control associated with simulation software are impeding the growth of global automotive simulation market. As the automation industry is adopting environment-friendly and self-driving vehicles, the old, levied regulations will hamper the growth of the automotive simulation market. The governing bodies are required to create new laws along with the revision of the existing laws. Whereas the lack of standards in integration and stimulation difficulties is also restricting the market growth.

Impact of COVID-19 on Global Automotive Simulation Market

Automotive simulation market growth is rapidly approaching pre-COVID levels, and a healthy growth rate is expected during the forecast period, fueled by economic recovery in the majority of developing countries. The frequent suspension of public transportation systems, combined with the virus's highly contagious nature, increased the demand for passenger cars, resulting in a demand for automotive simulation products. However, the anticipated third and subsequent waves of the pandemic are creating a bleak outlook. This study aims to assess the impact of various COVID-19 scenarios on the future of the automotive simulation market from 2023 to 2029.

Global Automotive Simulation Market

Segmental Coverage

Global Automotive Simulation Market - By Deployment Mode

Based on deployment mode, global automotive simulation market is bifurcated into On-premises and Cloud segments. The on-premises segment of the automotive simulation market is expected to hold a higher share during the forecast period owing to its varied range of features such as easy deployment, high-end security, and complete access to network solutions. The on-premises deployment mode assists in upgrading the in-house proficiencies of the simulation and analysis technology.

Global Automotive Simulation Market - By Component

Based on component, global automotive simulation market is split into Software and Services segments. The services segment is projected to be a faster growing segment. The demand for the services is expected to increase, especially for design and consulting. The market share of this segment is increasing due to rising demand for software as a service such as pay-per-hour and pay-per-use services.

Global Automotive Simulation Market - By End Market

Based on end market, the global automotive simulation market is segmented into OEMs, Automotive Component Manufacturers, and Regulatory Bodies. The regulatory bodies segment is expected to be the fastest-growing market in terms of value. The use of simulation software by regulatory bodies will increase as the industry moves towards the priority of manufacturing self-driving cars and environment-friendly vehicles.

Global Automotive Simulation Market - By Application

Based on application, the global automotive simulation market is bifurcated into Prototyping and Testing segments. In the coming years, the prototyping segment is expected to grow at a faster CAGR. The growing need for prototyping among manufacturers is attributed to the segment's growth. Rapid prototyping is critical as it allows automotive manufacturers to evaluate and analyze new product behavior. After prototyping is completed, the prototype can be quickly transferred into the production stage.

Global Automotive Simulation Market - By Region

Geographically, the global automotive simulation market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is expected to hold the highest share in the automotive simulation market owing to the increasing industrialization & infrastructural development, creating several opportunities for OEMs. OEMs are providing advanced applications such as keyless entry, auto-park assists, and HMI that will generate the demand for the prototyping and testing of new automotive systems. Moreover, increased production and sales of electric vehicles are expected to boost the demand for the market in this region.

Competitive Landscape

Competition in the global automotive simulation market is intense. Major companies in the market include Altair Engineering, Ansys, PTC, Siemens, Autodesk, Dassault Systèmes, Synopsys, Mathworks, ESI, IPG Automotive, AVL, Aras, Comsol, Simul8 Corporation, Design Simulation Technologies, Dspace GmbH, Opal-Rt, Simscale, and Anylogic. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In May 2021 - NI, formerly National Instruments Corporation, acquired monoDrive, a leader in ultra-high fidelity simulation software for advanced driver-assistance systems (ADAS) and autonomous vehicle development.

Scope of the Report

By Deployment Mode

• On-premises

• Cloud

By Component

• Software

• Services

By End Market

• OEMs

• Automotive Component Manufacturer

• Regulatory Bodies

By Application

• Prototyping

• Testing

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

1. Research Framework

1.1. Research Objective

1.2. Product Overview

1.3. Market Segmentation

2. Research Methodology

2.1. Qualitative Research

1. Primary & Secondary Sources

2.2. Quantitative Research

1. Primary & Secondary Sources

2.3. Breakdown of Primary Research Respondents, By Region

1. Secondary Research
2. Primary Research

2.4. Breakdown of Primary Research Respondents

2.5. Market Size Estimation

2.6. Assumption For The Study

2.7. Market Breakdown & Data Triangulation

3. Executive Summary
4. Global Automotive Simulation Insights

4.1. DROC Analysis

1. Growth Drivers
2. Restraints
3. Opportunities
4. Challenges

4.2. Technological Landscape/Recent Developments

4.3. Regulatory Framework

4.4. Company Market Share Analysis,2019

4.5. Porter’s Five Forces Analysis

1. Bargaining Power of Suppliers
2. Bargaining Power of Buyers
3. Threat of New Entrants
4. Threat of Substitutes
5. Intensity of Rivalry
5. Global Automotive Simulation Market Overview

5.1. Market Size & Forecast By Value, 2016-2026

1. By Value (USD Billion)

5.2. Market Share & Forecast

5.2.1. By Deployment

1. On-premise
2. Cloud

5.2.2. By Component

1. Software
2. Services

5.2.3. By End-market

1. OEMs
2. Automotive Component Manufacturer
3. Regulatory Bodies

5.2.4. By Application

1. Prototyping
2. Testing

5.2.5. By Region

1. North America
2. Europe
3. Asia Pacific
4. Latin America
5. Middle East & Africa
6. North America Automotive Simulation Market

6.1. Market Size & Forecast By Value, 2016-2026

1. By Value (USD Billion)

6.2. Market Share & Forecast

1. By Deployment
2. By Component
3. By End-market
4. By Application
5. By Country
1. United States
2. Canada
7. Europe Automotive Simulation Market

7.1. Market Size & Forecast By Value, 2016-2026

1. By Value (USD Billion)

7.2. Market Share & Forecast

1. By Deployment
2. By Component
3. By End-market
4. By Application
5. By Country
1. Germany
2. United Kingdom
3. France
4. Italy
5. Spain
6. Rest of Europe
8. Asia Pacific Automotive Simulation Market

8.1. Market Size & Forecast By Value, 2016-2026

1. By Value (USD Billion)

8.2. Market Share & Forecast

1. By Deployment
2. By Component
3. By End-market
4. By Application
5. By Country
1. China
2. India
3. Japan
4. South Korea
5. Rest of Asia Pacific
9. Latin America Automotive Simulation Market

9.1. Market Size & Forecast By Value, 2016-2026

1. By Value (USD Billion)

9.2. Market Share & Forecast

1. By Deployment
2. By Component
3. By End-market
4. By Application
5. By Country
1. Brazil
2. Mexico
3. Argentina
4. Rest of Latin America

10.Middle East & Africa Automotive Simulation Market

1. Market Size & Forecast By Value, 2016-2026
1. By Value (USD Billion)
2. Market Share & Forecast
1. By Deployment
2. By Component
3. By End-market
4. By Application
5. By Country
1. Saudi Arabia
2. UAE
3. South Africa
4. Rest of Middle East and Africa

11.Company Profile (Company Overview, Financial Matrix, Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)*

1. Altair Engineering
2. Ansys
3. PTC
4. Siemens
5. Autodesk
6. Dassault Systèmes
7. Synopsys
8. Mathworks
9. ESI
10. IPG Automotive
11. AVL
12. Aras
13. Comsol
14. Simul8 Corporation
15. Design Simulation Technologies
16. Dspace GmbH
17. Opal-Rt
18. Simscale
19. Anylogic
20. Other Prominent Players

*Financial Details will be captured as per data availability in case of unlisted companies.

**The user segmentation and the companies are subjected to modifications based on the in-depth secondary for the final deliverable.