Automotive Simulation Market Share

Automotive Simulation Market Overview:

Automotive Simulation Market Size was valued at USD 1.98 Billion in 2023. The Automotive Simulation market industry is projected to grow from USD 2.17 Billion in 2024 to USD 4.27 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.76% during the forecast period (2024 - 2032). Increased demand for passenger automobiles and commercial vehicles, rising vehicle manufacturing, and expanding demand for fuel-efficient vehicles are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Simulation Market Trends

Growing technology advancement is driving the market growth

Market CAGR for automotive simulation is being driven by the rising technology advancement. The increasing amount of electronic items per vehicle and linked automobiles and regulatory bodies' instructions for vehicle safety are likely to drive market expansion. Due to dynamic government regulation for car safety, the market demand is being influenced by increasing technical progress. Autonomous cars, truck platooning, and Vehicle-to-everything (V2X) are projected to create possibilities in the automotive simulation sector. Continuous research and development initiatives and increased use of cloud computing are helping sustain market expansion. Growing investment in research & development to improve future technologies and dynamic technological advancements are driving market expansion. 

These technologies are primarily concerned with increasing safety features and assisting drivers. These technologies are primarily concerned with increasing safety features and assisting drivers. Consumer desire for automobiles with self-driving capabilities and sophisticated safety features is projected to fuel market expansion. Shortly, the fast progress of fresh technology will trigger certain fundamental changes in the automobile sector. Artificial intelligence (AI) and machine learning will significantly revolutionize manufacturing, increasing robotic uniformity, accuracy, and efficiency.

Furthermore, due to increasing connectivity and digitalization, OEMs focus on improving cybersecurity over linked cars and devices, which is expected to fuel the Automotive Simulation Market. Over the forecast period, cybersecurity, rapid infrastructure development, and improvements in 5G technology are expected to all contribute to the growth of the Automotive Simulation Market. Furthermore, due to increasing connectivity and digitalization, OEMs focus on improving cybersecurity over linked cars and devices, which is expected to fuel the Automotive Simulation Market. The problems and restrictions connected with real-time control in simulation software are impeding the growth of the Automotive Simulation Market.

The increased demand for new and demanding vehicle test applications that necessitate high-performance equipment, new solutions in response to changing environments, and innovative approaches, as well as the increase in investment by automobile OEMs to develop advanced vehicle technology such as smart electronics, autonomous driving systems, and safety-critical control software, all have an impact on the automotive simulation market's growth. The rising demand for software technology, as the automotive simulator and its software elements are controlled through a modeling system and real-time simulation, aids in the coordination of the vehicle's monitoring, dynamics, and driver feedback, as well as the rising adoption of the technology for improving fuel efficiency and emission reduction, propels the automotive simulation market. 

Furthermore, the emergence of environmentally friendly simulation program generators, the increased demand for increasing analysis and understanding of decision-making processes, and the expansion of the automotive sector all benefit the automotive simulation market. Thus, driving the Automotive Simulation market revenue.

Automotive Simulation Market Segment Insights:

Automotive Simulation Application Insights

Based on application, the Automotive Simulation Market segmentation includes drive systems, mechanical components, and fluid power. The drive systems segment dominated the market, accounting for 35% of market revenue. Manufacturers' increasing requirement for prototypes is related to the segment's rise. Rapid prototyping is essential because it helps automakers to examine and analyze novel product behavior. After prototyping, the prototype may be promptly transferred into the manufacturing stage.

Automotive Simulation End users Insights

Based on End users, the Automotive Simulation Market segmentation includes OEMs, suppliers. The suppliers segment dominated the market. The suppliers category will expand the fastest as the industry transitions towards the new focus of developing self-driving automobiles and environmentally friendly vehicles. The suppliers must amend the existing norms and adopt several new laws to properly comprehend how these modern cars work. Automotive simulation software is commonly used for this purpose at regulatory testing facilities.

Automotive Simulation Deployment Insights

Based on deployment, the Automotive Simulation Market segmentation includes on-premises and cloud. The on-premises segment dominated the market due to its broad characteristics, such as simple implementation, high-end security, and total access to network solutions. The on-premises deployment approach aids in the improvement of simulation and analysis technologies in-house.

Automotive Simulation Component Insights

Based on Components, the Automotive Simulation Market segment includes software and services. The service category generated the most income. An increase in demand for process optimization and product design services through consulting and design.

Figure 1: Automotive Simulation Market, by Component, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Simulation Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Automotive Simulation market area will dominate this market. The existence of a significant number of manufacturers and OEMs that are early adopters of modern technology is linked to the region's success. Furthermore, regulatory authorities such as the National Highway Traffic Safety Administration (NHTSA) and the Federal Motor Carrier Safety Administration (FMCSA) impose strict rules.

Further, the major countries studied in the market report are The US, China, Japan, Canada, German, France, the UK, Italy, Spain, India, Australia, South Korea, and Brazil.

Figure 2: Automotive Simulation Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe has the second-largest market share for Automotive Simulation. It is utilized in a variety of studies. Because of increased industrialization and infrastructure development, OEMs have several chances. OEMs are developing sophisticated applications such as keyless entry, auto-park assist, and HMI, which will drive demand for developing and testing new automotive systems. Furthermore, increased R&D efforts have fueled the expansion of the Automotive Simulation market. Furthermore, the German Automotive Simulation market dominated, while the UK Automotive Simulation market grew fastest in Europe.

From 2024 to 2032, the Asia-Pacific Automotive Simulation Market will develop at the quickest CAGR, due to increased R&D activities undertaken by key industry players towards developing and introducing innovative automotive software solutions tailored to evolving customer requirements & demands across various application segments such as design studios, training centers, and research facilities, among others. Furthermore, China's Automotive Simulation market had the highest market share, while India's Automotive Simulation market was the fastest expanding in the Asia-Pacific region.

Automotive Simulation Key Market Players & Competitive Insights

Leading market companies are extensively spending R&D on increasing their product lines, which will help the Automotive Simulation market grow even more. Important market developments include new product releases, contractual agreements, acquisitions and mergers, greater investments, and collaboration with other organizations. The Automotive Simulation industry must produce cost-effective merchandise to flourish and thrive in a more competitive and increasing market climate.

Manufacturing locally to reduce operating costs is an effective business strategy manufacturers use in the worldwide Automotive Simulation industry to serve clients and expand the market sector. The Automotive Simulation industry has provided some of the most important benefits recently. Major players in the Automotive Simulation market, including AImotive, and others, are attempting to increase market demand by investing in research and development operations.

AImotive is a leader in automotive technology, developing level-agnostic autonomous driving solutions. The company provides an integrated portfolio of tools and embedded solutions that enable customers to rapidly develop and deploy production automated driving features by combining in-house expertise with AImotive modular capabilities and achieving significant cost and time savings. The product portfolio of the firm has been verified in large manufacturing programs. In April 2021, AiSim 3.0, the newest edition of the ISO 26262-certified simulator from ADAS and AD technology leader AImotive, is now available for ADAS and AD system development and validation.

The Volvo Group, is dedicated to influencing the future landscape of sustainable transport and infrastructure solutions. Their clients use our products and services to carry, distribute, build, and ferry things, objects, and people worldwide daily. Their products and services serve to put food on our tables, transport people to work or school, create roads, keep our cities clean, and much more, successfully assisting in meeting the world's expanding demands. The Volvo Group promotes prosperity by providing transportation and infrastructure solutions, such as  trucks, construction equipment,buses, power solutions for marine and industrial applications, finance, and services that boost the uptime and productivity of our clients. 

In March 2021, Volvo Group and NVIDIA have agreed to collaborate on the decision-making system for autonomous commercial cars and machinery. The final system should be developed to securely handle completely autonomous driving on public roads and highways, utilizing NVIDIA's end-to-end artificial intelligence platform for training, simulation, and in-vehicle computing.

Key Companies in the Automotive Simulation market include

• 
  ESI Group (Germany)


• dSPACE GmbH (Germany)


• ANSYS, Inc. (US)


• 
  MOOG INC. (US)


• Dassault Systèmes (France)


• PG Automotive GmbH (Germany)


• TESIS GmbH (Germany)


• Siemens PLM (US).

Automotive Simulation Industry Developments

March 2024: In a statement released today, Cadence Design Systems, Inc. disclosed that it has reached a formal agreement to acquire BETA CAE Systems International AG. BETA CAE Systems International AG is a leading system analysis platform supplier of automotive simulation solutions. Cadence's Intelligent System DesignTM strategy will be accelerated as a result of the inclusion of BETA CAE's proven technologies and people. This will be accomplished by increasing Cadence's portfolio of multiphysics system analysis and allowing the company to enter the structural analysis market, which will unlock a multi-billion dollar additional TAM potential.

Cadence will pay roughly $1.24 billion for the acquisition, with sixty percent of the consideration being paid in cash and forty percent being paid via the issue of Cadence common stock to present BETA CAE shareholders. The terms of the formal agreement provide that Cadence will fund the transaction. In connection with the deal, Cadence anticipates acquiring fresh debt financing in order to finance a part of the cash component of the acquisition price. In order to swiftly pay off the debt that was acquired to finance the deal, Cadence intends to utilize the free cash flow that is produced by its current activities. In addition, the company intends to continue to buy shares.

The demand for multiphysics simulations at an early stage in the design cycle is being driven by a number of factors, including the increase in system complexity and time-to-market challenges brought on by the acceleration of mechanical and electrical hyperconvergence, as well as the digital revolution that is occurring in a number of different sectors. Cadence has been expanding its system analysis portfolio over the past few years in order to build out a comprehensive multiphysics platform that includes solutions for electromagnetics (EM), electrothermal (ET), and computational fluid dynamics (CFD). With the introduction of BETA CAE, Cadence will enter the structural analysis market, which is the largest system analysis segment.

June 2022: NI  announced the acquisition of monoDrive, an ultra-high fidelity simulation software pioneer for advanced driver-assistance systems (ADAS) and autonomous car development. The purchase broadens NI's footprint in the ADAS and simulation sectors, allowing NI's transportation clients to speed the development, testing, and implementation of safer autonomous systems. ADAS design cycles are complicated, and automotive OEMs and suppliers require solutions that speed transitions between simulation, lab-based, and physical test settings to develop safer vehicles. Today, fragmented tools contribute to siloed processes, time-to-market delays, and greater expenses, slowing innovation and lowering the quality of modern products.

Automotive Simulation Market Segmentation:

Automotive Simulation Application Outlook

• Drive Systems


• Mechanical Components


• Fluid Power

Automotive Simulation End users Outlook

• OEM


• Suppliers

Automotive Simulation Deployment Outlook

• On-premises


• Cloud

Automotive Simulation Component Outlook

• Software


• Services

Automotive Simulation Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America