Driving Simulation Market Analysis by Vehicle Type (Passenger, and Commercial Vehicles); by Simulation Type (Full-Scale, and Compact Simulation); by Application (Training, Research, and Sports Gaming)– Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4786 | Published Date: Apr 05, 2023
The global driving simulation market size is estimated to reach ~USD 8.66 Billion by the end of 2035 by growing at a CAGR of ~10.20% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of global driving simulation market was ~USD 2.7 Billion. The growth of the market can be attributed to the surge in the road accidents across the globe. A driving simulation allows the learners to face different road conditions, and events in order to face them easily. In addition, it will reduce accidents owing to the bad road conditions, and it is expected to boost the growth of the global driving simulation market. As per the reported data by the World Health Organization, nearly 1.3 Million people die every year, as a result of road traffic crashes across the globe.
Simulations are already been used among the aviation and marine industries in order to train their pilots and crew members through giving real-time experience. Furthermore, simulations are used for the vehicles learners to handle critical situations. In addition, the risk associated with the passengers can be reduced through developing of skills in the training session. Furthermore, there have been increasing commercial vehicles for transporting goods from one location to another, and it is expected to boost the growth of the global driving simulation market.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~10.20% |
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Base Year Market Size (2022) |
~ USD 2.7 Billion |
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Forecast Year Market Size (2035) |
~ USD 8.66 Billion |
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Regional Scope |
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Growth Drivers
Growing Autonomous Vehicles Trend Among People– As per the estimates, there was more than 34 million autonomous vehicles around the world in the year 2020. On account of the increasing prevalence of manufacturers investing in the research and development of different components for the autonomous cars. This is one of the factors that is expected to boost the growth of the global driving simulation market.
Rising Adoption of Driving Simulation in the Entertainment Industry– In the gaming industry, driving simulations are used for the super coolest cars, boats, and motorcycles games. Hence, it is projected to increase the market’s growth over the forecast period. According to the data, more than 2.5 billion people around the world play video games.
Increasing Opening of Training Centers– Driving simulations are used in training centers to provide training to the learners in order to give them real time environment. In the initial stages, it is difficult for learners to drive directly on the road owing to strict norms, and traffic. In addition, the real car parts are installed in a correct position in the driving simulation cabin, that are developed under professional guidance. Therefore, increasing the number of training centers is predicted to surge the growth of the market. There are more than 4,000 driving centers in India. Moreover, the driving licenses issued in the year 2019 was accounted to more 10 million.
Growing Development of New Advancements in Vehicles – There are development of new cars owing to the various features such as automatic parking, adaptive cruise control, blind spot monitor and others. In addition, the development of new cars requires the new cars to test on simulations in order to check the performance of the cars. Therefore, it is expected to rise the growth of the market in the upcoming years. Furthermore, the operations of the electric cars are different from those of traditional vehicles, that requires the use of a driving simulation. For instance, more than 6 million electric cars were sold in the year 2022 around the world.
Challenges
The global driving simulation market is also segmented and analyzed for demand and supply by vehicle type into passenger, and commercial vehicles. Out of these, the passenger vehicles are expected to have a significant share over the forecast period. The growth of the segment can be attributed to the rise in the sale of passenger vehicles across the globe. In addition, people are more concerned about their own safety as well as the passenger safety so in order to correct decision at the right time while driving is predicted to drive the growth of the segment in the upcoming years. Additionally, there has been rising innovation in passenger cars, in order to get automatic parking, and systems in the vehicles, is further predicted to surge the growth of the segment in the market. In the year 2020, the total number of passenger cars registered in China was more than 240.0 million, representing a 7 percent increase from the previous year.
The global driving simulation market is segmented and analyzed for demand and supply by simulation type into full-scale, and compact simulation. Out of these, the compact simulation segment is anticipated to hold the largest share over the forecast period. This can be attributed to the rising use of compact simulations for various purposes such as cars, bikes, and others, as they are small in size as compared to the full-size simulations. Moreover, they are less costly for the driving training institutes, and easily accessed by all the local drivers. In addition, it can be installed in a small space and doesn’t require a large infrastructure for the operations. Hence, it is projected to rise the growth of the compact simulation segment in the market.
Our in-depth analysis of the global driving simulation market includes the following segments:
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By Vehicle Type |
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By Simulation Type |
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By Application |
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The market share of driving simulation in Europe, amongst the market in all the other regions, is projected to be the largest with a share of about ~33% by the end of 2035. The growth of the market can be attributed majorly to the presence of leading automotive manufacturers in the region. In addition, these manufacturers are using driving simulations in order to test the performance of the vehicles, and it is anticipated to rise the growth of the market in the region. Moreover, there has been the adoption of new technologies in the form of automated parking systems, connected cars, and others that are further expected to expand the market’s growth in the region. It is projected that more than 40 percent of all the vehicles in operation in the Europe region could have advanced or basic connectivity by the end of 2035. In addition, there has been a surge in the investment by the vehicle companies for research and development in vehicle sector to advance the cars in relation to various features such as ADAS. Hence, it is anticipated to rise the market’s growth in the region.
The North America driving simulation market is estimated to be the second largest, registering a share of about ~27% by the end of 2035. The growth of the market can be attributed majorly to the strict adoption of environmental norms in relation to emissions. These norms lead to the requirement for changes in the engines that will be checked through the driving simulation. In addition, the vehicles with the clearing report for the emissions will have more demand in the consumers. Therefore, it is expected to surge the growth of the market in the region. Furthermore, the rising support from the government for autonomous cars is further anticipated to surge the growth of the driving simulation market in the region. The United States has implemented a net zero emissions till the year 2050.
Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to witness the fastest growth by the end of 2035. The growth of the market can be attributed majorly to the increasing frequency of the increasing training centers, followed by the rising population in countries such as China, and India. Moreover, the emerging countries attract more manufacturers for the manufacturing of the products, as the raw material and labor costs are low in the countries. In addition, the growing research and development operations in the Asia Pacific region for the better performance of the vehicles are further predicted to increase the market’s growth in the region during the forecast period.
Anthony Best Dynamics Limited announced the acquisition of Ansible Motion Limited, in order to supply advanced simulation products and services to the motorsport and automotive industries.
Cruden B.V. announced the purchase of nine driver-in-the-loop (DIL) simulators for the BMW Group's new FIZ Driving Simulator Centre in Munich in 2020.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Harshita Srivastava, Saima Khursheed
Ans: Rising adoption of driving simulation in the entertainment industry, and growing autonomous vehicles trend among people are the major factors driving the market growth.
Ans: The market size of driving simulation is anticipated to attain a CAGR of ~10.20% over the forecast period, i.e., 2023 – 2035.
Ans: Lack of infrastructure needed for the driving simulations establishment, and high cost for the training in the driving training centers are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Europe region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are L3Harris Technologies, Inc., CAE Inc., Bosch Rexroth AG, Adacel Technologies Limited, Tecknotrove Systems Pvt Ltd., Cruden B.V., Anthony Best Dynamics Limited, ECA Group, NVIDIA Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by vehicle type, stimulator type, application, and by region.
Ans: The passenger vehicles segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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