Driving Simulator Market Expected to Reach $4 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Driving Simulator Market," The driving simulator market was valued at $2 billion in 2022, and is estimated to reach $4 billion by 2032, growing at a CAGR of 7.4% from 2023 to 2032.

Asia-Pacific currently dominated the driving simulator market in 2022. This was primarily due to numerous growing economies deal with difficult issues including the requirement for comprehensive driver training programs as the Asia-Pacific area sees a rise in demand for driving simulators due to the expansion of the automotive industry.

Europe is the second largest market for the driving simulator` in 2022. Several significant automakers with European headquarters include Volkswagen, Mercedes, Renault, and BMW. A number of automakers are always working to build complex, high-performance, safe, and technologically advanced vehicles. Before being used on public roads, new car features, systems, and technologies may be tested and improved in a controlled environment provided by driving simulators. Europe is a significant hub for automotive research and development, too. Testing and evaluating new technologies, such as driverless vehicles, advanced driver assistance systems (ADAS), and electric vehicles, requires the use of driving simulators. For instance, Dynisma Ltd., a motion simulator technology company with headquarters in the UK, will introduce the DMG-1 and DMG-1C driving simulators in 2021. It conducts testing for ADAS systems and sophisticated and extreme vehicle dynamics in total safety.

Beyond driver education, driving simulators are used in a wide range of other contexts. They are essential to the automotive sector, notably for system evaluation and autonomous vehicle performance testing. Driving simulators are a practical way to test and validate the performance of autonomous driving systems as the automotive industry works to produce autonomous vehicles. The development of autonomous vehicles may proceed more quickly because to this economical testing strategy's huge cost reductions. Early detection of possible problems throughout the development process enables rapid modifications, saving time and money on physical prototype and testing.

Furthermore, the incorporation of IoT into driving simulators enables continuous data collecting during training sessions. Sensors built inside the simulators can record data such as speed, acceleration, braking patterns, and steering behavior. This data is then analyzed in real-time by AI algorithms, offering vital insights into the learner's performance. This data can be used by learners and instructors to identify areas for growth and measure progress over time.

Furthermore, the AI was used by the driving school to monitor the driver during the ride. For instance, in November 2021, a new artificial intelligence-based driving Centre developed in Dubai to improve driver skills and reduce accident risks. This private driving school will use AI technologies to evaluate and enhance driver performance.

Moreover, the training simulator offers safety benefits to the driver, and helps to enhance skills of the driver such as parking, lane merging, and car reversing practice until the driver become proficient. It is also cost effective than the traditional training method as it offers real scenarios but in virtual environment.

The development and utilization of training simulators assists the automobile industry in lowering the cost of teaching real-world drivers, as real-world training may involve the danger of crashing the car. These reasons enhance the market demand for driving simulator training simulators.

In addition, there are numerous video game simulators that provide driving experience for entertainment purposes. Dirt, Euro Truck Simulator, and Forza Motorsport are all included in the video game. The driving simulator for entertainment also includes a physical cabin rig with a steering wheel, gear shifters, and pedals that are linked to a screen where any of the video game simulations mentioned above can be performed for entertainment purposes.

Moreover, the increasing conflict between Russia and Ukraine has sent shockwaves across the geopolitical, financial, and industrial sectors. As tensions rise and possible consequences emerge, the driving simulator sector is not immune to the fallout from this conflict. Geopolitical causes, economic restrictions, supply chain interruptions, and changed objectives have all had an impact on the driving simulator sector.

Furthermore, the influence is primarily seen in European countries. The ongoing conflict in Ukraine is having a huge influence on the European car market, compounding the industry's already difficult situation. After a difficult year defined by the pandemic and a global microprocessor shortage, there was hope for a resurgence in the European automotive market at the start of 2022. The conflict, on the other hand, has added new complexity. One significant result is a spike in European inflation, which has reached 10.60% in October 2022. This inflationary increase is the largest since the euro was introduced almost two decades ago. The rapidly rising cost of living is creating fears that it may exacerbate the already-common issue of car order delays.

Furthermore, growing demand for army vehicles as a result of the ongoing war drives the demand for skilled drivers, which supports the expansion of the driving simulator industry. Manufacturers and dealers are hoping for a rapid resolution to these issues in order to salvage what appeared to be a good year for the driving simulator market.

KEY FINDINGS OF THE STUDY

• By application, the training segment is anticipated to exhibit significant growth in driving simulator market in the near future.
• By vehicle type, the car simulator segment is anticipated to exhibit significant growth in driving simulator market in the near future.
• By simulator type, the advanced driving segment is anticipated to exhibit significant growth in driving simulator market in the near future.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

The key players profiled in the driving simulator market report include Cruden, Tecknotrove, Hottinger Brel & Kjr (HBK), AVSimulation, CXC Simulations, Thales, Arotech Corporation, Exail Technologies (former GROUPE GORGE), Moog Inc., and AB Dynamics PLC.