The Role of Driving Simulators in Automotive Testing and Development

Key Highlights

• The driving simulator market generated a value of USD 1,896.7 million in 2023, and it will touch USD 3,301.1 million, advancing at more than 8.0% CAGR, by 2030.
• The requirement for commercial vehicle drivers in logistics services is a key factor for the industry expansion. 
• With the huge shortage of trained drivers and over 90% of all accidents being because of human errors, a driving simulator serves as an essential tool in the automotive and transportation industries. 
• With the increasing requirement for logistics services for e-commerce activities like food delivery and an increasing sharing fleet, there is a significant demand for skilled and trained drivers. 
• The driving simulator offers training to drivers to prevent accidents from all directions through a virtual environment, therefore, assisting them in skillfully handling the condition.  
• Vehicle makers are significantly funding in developing components, including sensors and processors, that are employed in autonomous vehicles. 
• Vehicle manufacturers are also focusing on autonomous vehicle technology and simulators are a key part of it. Also, new companies are likely to come into the autonomous vehicles field which may further boost the industry expansion. 
• Automotive OEMs have been utilizing driving simulators to test the abilities and performance of such features and components.

Market Insights

The passenger vehicle category accounted for the larger share of the industry in 2023, of approximately 70%. This will be primarily because of the increasing production of as well as research activities associated with driverless cars across different nations.

The commercial vehicle category will propel at a higher compound annual growth rate, of 8.6%, in the years to come. This development can be ascribed to the rising need for specific training in areas like commercial fleet operations, freight transport, and logistics.

Compact simulator was the largest contributor to the industry in 2023, with a 45% revenue share. This can be because of the utilization of compact driving simulators for training individuals on various vehicles, including vans, cars, off-highway vehicles, and buses.

The research and testing category accounted for the larger share of the industry, and it will further propel at a higher rate in the years to come. This can be because of the increased focus on innovation, safety, and performance in the aerospace, automotive, and defense sectors.

North America is the largest contributor to the industry. This is because of the rising count of automobiles on the roads, coupled with the stringent government regulations for road safety and traffic control.

Such systems have substantial advantages in terms of teaching as well as evaluating driving skills, therefore, their adoption is increasing in this region.

APAC is likely to advance at the fastest compound annual growth rate, of 8.7%, during this decade. This is mainly because of the surging population, improved lifestyles, and the increasing count of metro cities.

These factors play a crucial role in boosting the manufacturing and sales of passenger cars in APAC.

The driving simulator industry is consolidated. The industry is rapidly growing with strong competition along with key companies.

Strategies like collaborations, partnerships, acquisitions, new product development, and expansions, are implemented by these players to enhance their market presence.

Source: P&S Intelligence