Driving Simulator Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Driving Simulator Market Analysis

The global driving simulator market was valued at USD 1,896.7 million in 2023, which is expected to grow at a CAGR of 8.3% during the forecast period (2024–2030), to reach USD 3,301.1 million by 2030.

The major factors responsible for the growth of the market include the escalating number of vehicles, the surging need for skilled drivers due to the increased road accident rate, and the rising number of research and development (R&D) initiatives related to advanced driver-assistance systems (ADAS) across the globe.

The railways, automotive, aviation, defense, and marine sectors are seeing increased adoption of driving simulators and analysis technology since it aids in analysing and testing the designs of products in a virtual scenario.

Specifically, the automotive sector has seen a constant demand for modern safety features in medium-sized automotives due to the implementation of new laws by several countries for improving vehicular safety.

Further, robust safety and environmental regulations are forcing production companies and authorities to invest in driving simulators with new designs for training. The research and development cost of the advanced features in new vehicles has decreased due to regulations.

The gaming industry is an essential component of the market. Driving simulators are also used in various games like attractive cars, boats, and bike games. According to the reports, around 2.6 billion people play video games globally.

Driving Simulator Market Trends & Drivers

Autonomous Vehicles Are Shaping the Future

• Automotive manufacturers are investing significantly in the development of components, such as processors and sensors, that are used in autonomous vehicles.
• Automotive makers are working on autonomous vehicle technology and simulators are an essential part of it. New players are also expected to come into the field of autonomous vehicles which may further propel the market growth.
• Therefore, automotive original equipment manufacturers (OEMs) have been using driving simulators to test the capabilities and performance of these components and features.
• These systems deliver exceptional testing competence in realistic surroundings; thus, the continuous developments in autonomous vehicles are a major trend being witnessed in the market.
• An amount of USD 50 billion has been invested in the last five years to improve autonomous vehicle technology by technological giants, major automotive manufacturing companies, and start-ups.
• The advent of semi-autonomous and autonomous vehicles, the growing impact of technological companies, and the electrification of automotive components in the automobile sector are growth aspects for the driving simulator market.

Commercial Vehicle Drivers Required for Logistics Services Drive the Market

• With the vast shortage of skilled drivers and more than 90% of all accidents being caused by human mistakes, a driving simulator serves as a much-needed tool in the transportation and automotive sectors.
• Moreover, with the rising need for logistics services for e-commerce activities, including food delivery, and a growing sharing fleet, there is a high need for trained and skilled drivers.
• The driving simulator provides training to drivers to avoid collisions from all directions with the aid of a virtual environment, thus helping them in managing the situation in a controlled manner. Thus, the driving simulator improves safety to a great extent, which is why the market is growing.
• The dependency on driving simulators for whole training is likely to grow as the logistics domain grows which acts as fuel in the growth of the overall market development.

Absence of Criteria and Principles

• The major issue of the market is the lack of criteria and benchmarks to advance and implement a simulation-based virtual background. Driving simulators help in identifying known problems during the process of implementation.
• It is found in many cases that simulation supports users in designing, developing, and validating the basic processes of R&D.
• Further, the framework for validation and verification of developed prototypes is diverse from vendor to vendor.
• Vendors of driving simulators are not capable of understanding how simulation should be incorporated with an application to solve the hurdle of systems and process-related issues and the lack of standards and benchmarks are the reason behind this problem.

In-Depth Segmentation Analysis

Vehicle Type Insights

• The passenger vehicle category held a larger market share of around 70% in 2023, on the basis of vehicle type. This is mainly attributed to the rising production of and research activities related to driverless cars in various countries.
• During the development of autonomous vehicles, simulators enable automakers to virtually test millions of driving situations, in order to validate various features of the vehicles.
• On the other hand, the commercial vehicle category is expected to witness a higher CAGR of 8.6% from 2024 to 2030 in the market. This growth can be associated with the emerging demand for specific training in areas such as logistics, commercial fleet operations, and freight transport.
• Commercial vehicle drivers face different challenges such as managing diverse cargo, handling large vehicles, and navigating complex routes. To overcome these problems, businesses are investing a large amount in advanced driving simulators to train commercial drivers effectively.

Further, vehicle types are classified into:

• Passenger Vehicle (Larger Category)
• Commercial Vehicle (Faster-Growing Category)

Simulator Type Insights

• Compact simulator is the largest category on the basis of simulator type, with a revenue share of 45% in 2023. This is ascribed to the usage of compact driving simulators for training people on a variety of automobiles, such as cars, vans, buses, and off-highway vehicles.
• Furthermore, the category is expected to retain its dominant position in the upcoming years.
• Whereas, the advanced simulator category is expected to grow at the highest CAGR of 8.7% from 2024 to 2030. This can be attributed to modern technological qualities like motion platforms and 3600 viewing angles, which help provide an immersive experience.
• A research and analysis platform are required for an advanced driving simulator that facilitates the development of intelligent highway designs and the study of human behavior when it comes to the dynamics testing of highly technological vehicles.

During the study, we found types of simulators which are listed below:

• Compact Simulator (Largest Category)
• Full-Scale Simulator
• Advanced Simulator (Fastest-Growing Category)

Application Insights

• Based on application, the research and testing category holds a larger market share and is rapidly growing at a higher CAGR. This is attributed to the increased emphasis on performance, innovation, and safety in defense, aerospace, and automotive.
• Driving simulators are an essential component that helps in conducting complete research and testing for designing vehicles and technological advancements.
• The demand for advanced stimulation technology in research and testing applications will rise and drive growth since industries are seeking to optimize vehicle performance, lower risks, and improve overall safety.

Further, analyzed applications are divided into:

• Research and Testing (Faster and Larger Application Category)
• Training

Regional Assessment

• Asia-Pacific (APAC) is projected to be the fastest-growing market, with a CAGR of 8.7% from 2024 to 2030. The primary reasons behind growth are the increasing population, the rising number of metro cities, and improved lifestyles.
• These factors play a crucial role in boosting the manufacturing and sales of passenger cars in APAC.
• Some countries like South Korea and Japan have safety regulations and these countries will witness the surge in demand in the coming years. India, China, South Korea, and Japan are also coming up with robust vehicle and road safety regulations because of their increasing population and vehicle demand.
• The growing number of accidents and limited infrastructure are the aspects that will spark the demand for capable drivers, which will further raise the demand for training simulators.
• Whereas, North America has dominated the market. This is mainly attributed to the increasing number of vehicles on the roads, together with the strict government legislation for traffic control and road safety.
• Such systems have significant benefits in terms of teaching and evaluating driving skills, which is why their usage is rising in the region.
• In addition, market players all over the world are making advancements in driving simulator technology in order to prevent potential failures that might result in driver injury.

Further, these regions and countries were analyzed for this report:

• North America (Largest Regional Market)
  • U.S. (Larger Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• APAC (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Market Nature - Consolidated

The market is growing rapidly with intense competition along with major players. Strategies adopted by these players are very unique to keep their market position safe. There are various strategies such as partnerships, collaborations, acquisitions, expansions, and new product development.

Driving Simulator Industry News

• Ansible Motion partnered up with Guangzhou Zeer Testing Technology Co., Ltd. (Zeer) in July 2023 to bring state-of-the-art driving simulators to China, which contributes to the advancement of testing and development abilities in the automotive domain of China.
• The first truck driver training simulator in India was launched by BharatBenz in May 2023. BharatBenz is a subsidiary of Daimler India Commercial Vehicles (DICV), which unveiled a truck driver training simulator, particularly for heavy truck drivers.
• The TechnoSIM forklift training simulator was introduced by the Tecknotrove Simulator System Pvt. Ltd., in December 2022, with a material handling expo in Chennai, India.
• Ansible Motion Limited was acquired by AB Dynamics PLC in September 2022.
• Continental AG partnered up with the CITY project in June 2022 for an automated driving initiative in urban parts which involves research firms, academic institutes, and 15 companies.
• Ansible Motion revealed all specifications for the manufacturing of the Delta series S3 Driver in the Loop (DIL) simulator in May 2022, the product was designed to validate the technologies for driver assistance, autonomy, HMI, and growing trends of electrification.