Driving Simulator Market to Gain $4.0 Billion, by 2032 with 7.4% CAGR: States Allied Market Research
Allied Market Research
7 min read
Allied Market Research
The global driving simulator market is expanding rapidly due to factors such as incorporation of technologies like AI and IoT, profitable training solutions as compared to traditional methods, and robust demand for development and testing of autonomous vehicles.
Wilmington, Delaware, Nov. 15, 2023 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, "Driving Simulator Market by Application (Training, Research & Testing, Entertainment), Vehicle Type (Car Simulators, Truck & Bus Simulators), Simulator Type (Training Simulator, Advanced Driving Simulator): Global Opportunity Analysis and Industry Forecast, 2023-2032".
The report states that the global driving simulator industry size is anticipated to garner $4.0 billion by 2032, having witnessed a value of $2.0 billion in 2022 and is expected to witness a noteworthy CAGR of 7.4% between 2023 to 2032.
Even before physically handling the vehicle, a driving simulator provides the sensation of operating a vehicle. Unlike the extensive on-road or closed track training typically associated with driving jobs, utilizing a driving simulator in a digital space simplifies and facilitates the learning process.
The global driving simulator market is expanding rapidly due to factors such as incorporation of technologies like AI and IoT, profitable training solutions as compared to traditional methods, and robust demand for development and testing of autonomous vehicles. However, shortage of real-time experience and high initial cost of simulators restrain the market growth to some extent. Nevertheless, advancement of the DIL (Driver-in-the-Loop) simulators and integration of AR (Augmented Reality) and VR (Virtual Reality) are expected to offer ample growth opportunities to the market in the upcoming years.
Report Coverage & Details:
Report Coverage
Details
Forecast Period
2023–2032
Base Year
2022
Market Size in 2022
$2.0 billion
Market Size in 2032
$4.0 billion
CAGR
7.4 %
No. of Pages in Report
234
Segments covered
Application, Vehicle Type, Simulator Type, and Region.
Drivers
Surge in demand of testing and development of autonomous vehicle Cost effective training solution over traditional method Integration of AI and IoT in driving simulators
Opportunities
Adoption of virtual reality (VR) and augmented reality (AR) Development of Driver-in-the-Loop (DIL) simulators
Restraints
High initial cost of simulators The lack of the real-world experience
Impact of Russia-Ukraine Conflict
The continued conflict between Russia and Ukraine has created waves of instability that extend across geopolitical, economic, and industrial sectors.
The ongoing Russia-Ukraine conflict has added a layer of geopolitical uncertainty, with the potential to impact market confidence and shape investment decisions.
While existing orders may provide support to new car sales in the short term, the cumulative impact of supply chain disruptions, inflation, and consumer confidence issues is likely to catch up with the market. This could potentially result in a decline in new car sales over the long term.
There's a collective hope among manufacturers and dealers for a speedy resolution to these challenges, aiming to salvage what initially looked like a promising year for the driving simulator market.
The training segment to uphold the leading position during the forecast period
On the basis of application, the training segment grabbed the highest share in 2022, contributing to more than two-fifths of the total market revenue and is expected to rule the roost from 2023 to 2032. The lack of professional drivers in the U.S. and Europe contributes toward the expansion of the segment. The research and testing segment, on the other hand, is expected to display the fastest CAGR of 8.2% during the forecast period, due to research and testing play a crucial role in ensuring the reliability and accuracy of information provided to vehicle manufacturers about the desired output of their vehicles. This, in turn, contributes to the growth of testing simulator manufacturers in the global market.
Key Highlights of the Report:
The investigation into the driving simulator market spans 14 countries, offering regional and segment analysis for each country in terms of value ($million) during the projected period of 2023-2032.
Employing a research approach that integrates high-quality data, professional opinions, and critical independent perspectives, this study aims to present a well-rounded view of global markets. The objective is to assist stakeholders in making informed decisions that align with their ambitious growth objectives.
A comprehensive review of over 3,700 pieces of product literature, annual reports, industry statements, and comparable materials from major industry participants was conducted to enhance understanding of the market dynamics.
The car simulator segment to retain its dominance by 2032
On the basis of vehicle type, the car simulator segment gained the largest share in 2022, contributing to nearly three-fourths of the global driving simulator market revenue and is expected to retain its dominance from 2023 to 2032. The growth is attributed to a surge in adoption of car simulation systems for training drivers. The truck and bus simulator segment, on the other hand, is estimated to cite the fastest CAGR of 8.4% throughout the forecast timeframe, due to robust demand of drivers for logistics and delivery services.
The advanced driving simulator segment to continue its supremacy throughout the forecast timeframe
In terms of simulator type, the advanced driving simulator segment held the lion’s share in 2022, accounting for nearly three-fifths of the global market revenue and is projected to lead the trail throughout the forecast period. Also, the same segment is estimated to display the fastest CAGR of 8.0% during the forecast period. The latest driving simulator assists manufacturers in the automotive sector to develop various types of performance vehicles such that they can function off roads and on roads.
Asia-Pacific to dominate the market by 2032
The regional analysis in the report states that the Asia-Pacific generated the largest market share in 2022, contributing to more than one-third of the total market revenue and is likely to continue its lead position throughout the forecast timeframe. Also, the same region would cite the fastest CAGR of 8.2% during the forecast period. This is because emerging economies face significant challenges, such as the increasing demand for comprehensive driver training programs, driven by the expanding nature of the automobile sector.
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