Automotive Simulation Market Development | Industry Report 2025

Automotive Simulation Market

The Automotive Simulation Market is estimated to be USD 1.4 billion in 2018 and is projected to reach USD 2.9 billion by 2025, at a CAGR of 11.1% during the forecast period. Increasing focus on R&D activities and rapid technological changes owing to the changing government norms for vehicle safety are projected to drive the market.

The study involves four main activities to estimate the current size of the automotive simulation market. Exhaustive secondary research was done to collect information on the market such as the use of simulation software in various applications and by various end users. The next step was to validate these findings, assumptions, and market analysis with industry experts across value chains through primary research. A top-down approach was employed to estimate the complete market size of different segments considered in this study.

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The regulatory bodies segment is expected to be the fastest growing segment in the automotive simulation market, by end market, during the forecast period.

The regulatory bodies segment will grow at the highest rate as the industry moves toward the new priority of manufacturing self-driving cars and environment-friendly vehicles. Thus, the old regulations need a lot of revision, and several new laws need to be created; the governing bodies need to understand the complete functioning of these modern vehicles. The automotive simulation software are widely used at the test centers of regulatory bodies for this purpose.

The testing segment is expected to be the largest contributor in the automotive simulation market, by application, during the forecast period.

The testing application segment will grow at the fastest rate as simulation software are widely used in the automotive industry at this stage. Simulation software helps in testing the designs and validating the findings with desired results. Moreover, the simulation software significantly reduces the efforts of OEMs during lab testing and on-road testing apart from their go-to-market time for new products and technologies.

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Key Questions addressed by the report

  • Where will all these developments take the industry in the mid- to long-term?
  • How increasing the adoption of electric vehicles and changing environmental norms affecting the automotive simulation market?
  • What new application areas are the automotive simulation software providing companies exploring?
  • Which are the key players in the market and how intense is the competition?
  • How will the advent of autonomous vehicles impact the market?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst