The driving training simulator market is expected to grow from US$ 1,950.00 million in 2021 to US$ 2,646.73 million by 2028. It is estimated to grow at a CAGR of 4.6% from 2022 to 2028.
The growing demand for simulation for the training of autonomous vehicles and the rising adoption of simulators in police and emergency vehicles are expected to boost the market growth.The driving simulator is also made compulsory in driving training schools in some countries.
These initiatives are anticipated to increase the need for driving training simulators over the forecast period.The driving training simulator helps the learner to adapt better to road situations and safe driving habits.
For example, in December 2019, Singapore made it mandatory for learners to complete driving simulator training modules. Thus, the growing utility of driving simulators in driving schools is expected to fuel regional market growth.
The rising adoption of driving simulators for vehicle testing and training novice drivers is driving their demand in Europe.Several top players in the automotive industry are investing in developing driving simulators.
For instance, in 2019, Honda R&D Europe has invested in R&D and developed driving simulator technology.This new state driving simulator technology is based on an architecture called DiM250 (Driver-in-Motion).
The new simulator technology is installed at Honda R&D Europe’s technical center in Offenbach, Germany.The DiM250 system is designed by simulator software developer VI-grade GmbH and is manufactured and engineered by automatic controls specialist Saginomiya.
Similarly, in 2022, VI-grade, the simulation and driving simulator company that accelerates product innovation by bridging the gap between simulation and physical testing, and Stackpole Engineering Services, a leading full-service provider of engineering solutions to tire and vehicle OEM’s and suppliers, today announced their strategic partnership, that will significantly advance the companies’ research and development efforts in the areas of tire testing, tire modeling and simulation application. Such initiatives are contributing to market growth.
The Europe driving training simulator market is expected to witness substantial growth over the forecast period.Every year, various car-racing sports, such as Formula 1, Nascar, and IndyCar, are hosted in European countries.
These events are expected to attract development and innovations in the driving training simulator market.
In addition to the growing trend of autonomous vehicles, self-driving vehicles are gaining traction in the Chinese market. There are plenty of autonomous driving vehicles tested on the roads of Shenzhen recently by the companies such as Pony.ai, Baidu, DeepRoute, and AutoX. Thus, the rising trend of autonomous vehicles is anticipated to influence market growth. Furthermore, supportive government initiatives and development in the automotive sector are expected to play a vital role in the driving training simulator market. For instance, the Australian government is investing around US$ 17 million over the next five years in a Keys2Drive program that utilizes simulators as part of its training program.
The driving training simulator market is mainly dominated by players such as Autosim AS, Bosch Rexroth AG, Cruden B.V., DALLARA, and ECA Group. Further, these players expand their business through new product launches, market initiatives, investment in technology upgrades, mergers & acquisitions, and other joint activities.
For instance, in 2022, VI-grade—the simulation and driving simulator company that accelerates product innovation by bridging the gap between simulation and physical testing, and Stackpole Engineering Services, a leading full-service provider of engineering solutions to tire and vehicle OEMs and suppliers, announced their strategic partnership, which will significantly advance the companies’ research and development efforts in the areas of tire testing, tire modeling, and simulation application.
Market players are implementing various strategies to expand their regional footprints. For example, in 2020, IPG Automotive GmbH opened a new office in Stuttgart, Germany, to offer the customers and partners even broader and more direct support for their projects.
COVID-19 Impact on Driving Training Simulator Market Size
In Europe, top automobile companies, including Mercedes, Volkswagen, Toyota, and Renault, had to shut down their production facilities, hindering the market growth.All these companies have adopted driving simulators for vehicle testing and safety measures.
Many driving training simulation activities were delayed or stopped due to the COVID-19 pandemic.In addition, driving schools offering simulation solutions were shut down due to lockdown restrictions.
Further, major sports events, such as Formula 1 and Nascar, were canceled during the COVID-19 pandemic, which also impacted the driving training simulator market.
Consumers’ reduced willingness to make significant purchases due to uncertain economic crises led to decreased demand for new cars.This simultaneously affected driving training centers in the US and Canada, reducing consumer demand.
As a result, the market for driving training simulators for passenger vehicles declined.However, there has been a brief rise in driving simulator demand from 2021.
Drivers, who participate in sports events, require simulation training and practice to get a virtual environment experience.
Companies profiled in the driving training simulator market study are Autosim AS; Bosch Rexroth AG; Cruden B.V.; DALLARA; ECA Group; IPG Automotive GmbH; Moog, Inc.; Nvidia Corporation; Tecknotrove; and Vi-Grade GmbH. Driving training simulator market players are following both organic and inorganic growth strategies to sustain the competitive edge. Numerous initiatives, such as investment in research and development and the formation of virtual reality (VR) simulator training centers, are expected to impact the market growth positively. For example, in India, Asia’s only 5th Generation virtual reality (VR)-based simulator center was formed in Chennai by the Automobile Association of Southern India (AASI). Such initiatives by key players will contribute to the driving training simulator market growth during the forecast period. Similarly, in December 2021, Adacel Technologies Limited announced a five-year contract with Airservices Australia for control tower simulator (CTS) support services. The contract value is estimated at US$ 1 million.
The overall driving training simulator market analysis has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the driving training simulator market.
The process also serves the purpose of obtaining an overview and forecast of the driving training simulator market size with respect to all market segments.Also, industry participants and commentators have conducted multiple primary interviews to validate the data and gain more analytical insights.
The participants typically involved in the driving training simulator market study include VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the driving training simulator market.