Driving Simulator Market Generated ~$2 Billion Revenue In 2020
- Published: June 2021
The global driving simulator market was valued at ~$2 billion in 2020. The major factors behind the growth of the market are the rising number of vehicles, increasing demand for skilled drivers because of the high rate of road accidents, and rising research and development (R&D) activities related to advanced driver-assistance systems (ADAS).
Due to the COVID-19 pandemic, manufacturing facilities across the world, including those of driving simulators, were affected owing to the lockdowns. As a result, product sales witnessed a negative impact in the short run (till the third quarter of 2020), thus leading to a reduction in the market growth rate. However, the demand for driving simulators resurged after the resumption of manufacturing operations, lifting of lockdowns, and streamlining of imports and exports.
Compact Simulators Hold Largest Share
The driving simulator market is categorized into compact simulator, full-scale simulator, and advanced simulator, on the basis of simulator type. Among these, the compact simulator category held the largest market share in 2020, and it is expected to retain its dominance during the forecast period. This is mainly because compact simulators have wide applications in commercial and off-highway vehicles. Furthermore, compared to full-scale and advanced simulators, this portable simulator is more cost-effective.
Furthermore, the driving simulator market is categorized into passenger vehicle and commercial vehicle, on the basis of vehicle type. Out of these, the passenger vehicle category is expected to hold the larger market share during the forecast period. Automotive firms all over the world are making advancements in the driving simulator technology in order to prevent the failure of vehicle systems and protect drivers from injuries. As a result, manufacturers are installing advanced driving simulators, which give them a realistic view of the vehicle's overall performance.
Geographically, the Asia-Pacific (APAC) driving simulator market is expected to witness the fastest growth till 2030. This can be mainly ascribed to the presence of stringent road safety regulations in Japan and South Korea. Besides, the improving lifestyle, rising number of metro cities, and steady population growth are playing an important role in the increasing sales of passenger cars in APAC, which necessitates the need for simulators.
Technological Advancements and Product Launches Are Most-Effective Strategic Measures Taken by Market Players
Players in the driving simulator market are involved in technological advancements and product launches to gain a significant position. For instance, in July 2020, Anthony Best Dynamics Limited unveiled a static driving simulator for better driver immersion, considering the increasing importance of driver-in-the-loop (DIL) simulation for developing and launching new vehicle models in a short time.
Similarly, in April 2020, a new feature was launched by Corys TESS to provide remote training opportunities to employees. The company developed its new web portal to offer access to operator training simulators in remote places in a cloud-based simulation environment.
Major players operating in the global driving simulator market include Cruden B.V., Ansible Motion Ltd., AutoSim AS, CAE Inc., Dallara Group Srl, Mechanical Simulation Corp., Moog Inc., MTS System Corp., NVIDIA Corp., and OKTAL SYDAC.