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Hardware-in-the-Loop Market Segmentation by Component (Actuator, Sensors, and Others); by Application (Defense, Automotive, Electronics, Research & Education, and Others) – Global Demand Analysis & Opportunity Outlook 2031

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Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

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Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

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  • May 27, 2021: OPAL-RT Technologies announced the opening of its office in São Paulo, Brazil, to expand its reach in the Latin American region. Aerospace, defense, transportation, and energy sectors are the key focus for OPAL-RT.

  • May 18, 2020: Typhoon HIL launched the Virtual Here software to support remote use of HIL devices.

Global Hardware-in-the-Loop Market Highlights over 2022 – 2031

The global hardware-in-the-loop market is estimated to grow at a CAGR of ~10% over the forecast period, i.e., 2022 – 2031. Hardware-in-the-loop or (HIL) is a simulation system used to test control systems, by mimicking the actual hardware interconnection. The growth of the market can be attributed to the increasing application of HIL in automotive and electronic sectors. HIL is used to test the vehicles, equipment, and electronic devices, to simulate every possible scenario, and check the controller and device performance. This can save a significant amount spent on real-time testing of these devices, which is estimated to boost the market growth. Moreover, introduction of advanced technologies, such as, ADAS systems and AI, for cars, unmanned aerial vehicles, and defense machineries, is expected to encourage the growth of the market. In addition to this, the increasing investment in research and development activities, is anticipated to boost the market growth. According to the data by the World Bank, 2.203% of the global gross domestic product (GDP) was spent on research and development activities, in 2018.

Hardware-in-the-Loop Market

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The global hardware-in-the-loop market is segmented by application into defense, automotive, electronics, research & education, and others. Out of these, the automotive segment is anticipated to hold the notable share over the forecast period on account of increasing sales of cars, combined with the growing demand for semi-autonomous vehicles. According to the data by the International Energy Agency, more than 88 million cars were sold in 2019, globally.  

Major Macro-Economic Indicators Impacting the Market Growth

Research and Development Expenditure

The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.

Global Hardware-in-the-Loop Market Regional Synopsis

On the basis of geographical analysis, the global hardware-in-the-loop market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the Asia Pacific region is estimated to witness modest growth over the forecast period on the back of presence of major automobile manufacturers in the region. Moreover, the increasing demand for vehicles is expected to further promote the market growth. According to the data by the International Energy Agency (IEA), 25 million cars were sold in China, 4 million in India, 4 million sold in Japan.

The market in the North America region is anticipated to gain the largest market share throughout the forecast period owing to the adoption of advanced technology, along with rising manufacturing of defense equipment and machines in the region. Furthermore, the high production of automobiles, and electronic devices, is also estimated to boost the market growth.

Hardware-in-the-Loop Market Share

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The global hardware-in-the-loop market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

  • Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Market Segmentation

Our in-depth analysis of the global hardware-in-the-loop market includes the following segments:

By Component

  • Actuators
  • Sensors 
  • Others

By Application

  • Defense
  • Automotive
  • Electronics
  • Research & Education
  • Others

Growth Drivers

  • Increasing Demand for Control Testing of Vehicles
  • Rapid Advancement in Technology


  • Additional Cost Requirement for HIL Testing
  • Absence of Advanced Technology in Low-Income Nations

Top Featured Companies Dominating the Market

  • Robert Bosch GmbH
    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis 
  • Speedgoat GmbH
  • Typhoon HIL
  • Opal-RT Technologies INC.
  • Airbus Group SE
  • Honda Aircraft Company
  • Embraer S.A.
  • dSPACE GmbH
  • Aegis Technologies Group, Inc.
  • Siemens Digital Industries (Siemens AG)


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