Automotive Hardware-in-the-Loop (HIL) Market by Type (System, Service), By Application (Powertrain, Three New Energy Sources, Body Electronics, Intelligent Drive, Others), by End Users (Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles, and Passenger Automobiles), and by Region (North America, South America, Africa, Asia Pacific, Europe, and the Middle East and Africa), Global forecast, 2021-2031

The desire for improved driver assistance systems and autonomous driving capabilities in passenger cars and commercial vehicles is what fuel cell the automotive Hardware-in-the-Loop (HIL) business. The automotive HIL market is expanding as a result of the requirement for efficient validation and testing of these systems before their installation in vehicles. Additionally, throughout the projected period, the automotive HIL market is anticipated to benefit from the expanding trend of electrification in the automotive sector.

The Automotive Hardware-in-the-Loop (HIL) market was valued at USD 820 million in 2021 and is estimated to reach at USD 1.3 billion by 2031, at a growing CAGR of 12% during the forecast period.

A vehicle's electronic control units (ECUs) must be tested by the automotive Hardware-in-the-Loop (HIL) industry before going on the market. The purpose of doing this is to prevent any problems from arising once the vehicle has been sold. A virtual environment is created by the HIL system to test the ECUs. Real-time application development is another usage for this system, including for the development of chassis and powertrains.
For testing and developing electronic control units, the automotive industry frequently uses hardware-in-the-loop (HIL) technology (ECUs). With this technique, a real-time simulator is used to simulate the behaviour of a genuine ECU. The interface between the HIL simulator and the ECU being tested allows developers to test the ECU in a simulated environment. The time and expense involved in physically testing ECUs are decreased because of this technology.

A CAGR of 13.9% is anticipated between 2021 and 2031 for the global automotive Hardware-in-the-Loop (HIL) market, which is now valued at USD 2.8 billion. The demand for enhanced driver assistance systems and autonomous driving capabilities in passenger automobiles and commercial vehicles is a major factor driving the expansion of this market.

Several obstacles face the automobile Hardware-in-the-Loop (HIL) sector today. First off, the adoption of HIL systems in the automobile industry is being constrained by their expensive cost. Second, the absence of industry-wide standardisation is impeding the development of the HIL market. Thirdly, it's challenging for engineers to integrate HIL systems into automobiles due to their complexity. Meanwhile, due to the rising demand for electric and autonomous vehicles, the industry is anticipated to experience a considerable increase in the next years.

COVID-19 Impact and Market Status

The COVID-19 pandemic has had a significant influence on the automobile sector, with 2020 seeing a severe decline in car production and sales. Due to the widespread usage of HIL systems in automotive testing and development, the pandemic is also anticipated to have an impact on the automotive Hardware-in-the-Loop (HIL) market. By 2022, the market is anticipated to recover from the pandemic's effects and reach pre-pandemic levels. Besides, a good CAGR is anticipated for the market's growth during the projected timeframe.

Segment Analysis

The System Type emerged as the Most Booming Segment

System and service are the two categories into which the automotive HIL market is divided. During the projected period, a greater CAGR is anticipated for the system segment. The advantages of adopting HIL systems in vehicle development, such as early problem detection, improved safety and decreased development time and costs, can be credited to this expansion.

The Most Prominent Application Segment is the Powertrain

Applications for the automobile HIL market include powertrain, three new energy sources, body electronics, intelligent driving, and others (interior & exterior applications). Due to factors such as the requirement for more rapid development cycles for new powertrains and the growing emphasis on reducing vehicle emissions and fuel consumption, the powertrain application category is anticipated to grow at the greatest CAGR during the projected timeframe.

The Passenger Car Segment emerged as the Most Booming End User

Light commercial vehicles (LCVs), heavy commercial vehicles, and passenger cars make up the three end-user segments of the automotive HIL industry (HCVs). During the projection period, the passenger car segment is anticipated to increase at the greatest CAGR. The demand for HIL simulators is rising as more passenger cars adopt ADAS and autonomous driving features.

The Asia Pacific Region to render Ample Financing Revenues

A large number of automotive manufacturers are present in the Asia Pacific, which is anticipated to be the region with the largest market for automotive HIL during the forecast period. This is because of factors like the region's high concentration of automakers and the rising demand for electric vehicles in nations like China and India.

TESLA MOTORS, INC. (US), dSPACE GmbH (Germany), Siemens AG (Germany), ETAS Group (Germany), Continental AG (Germany), Vector Informatik GmbH (Germany), Robert Bosch GmbH (Germany), LG Electronics Inc. (South Korea), and National Instruments Corporation (US) are the leading companies in the automotive Hardware-in-the-Loop (HIL) market. To keep ahead of the competition, these players have used a variety of methods, including product releases, business expansions, affiliations, cooperation, acquisitions and mergers and joint projects.

Recent Developments in the Automotive Hardware-in-the-Loop (HIL) Market

•  To speed up the creation and adoption of automated vehicles, National Instruments will introduce new hardware and software solutions in October 2020. Vector signal transceiver (VST) PXIe-5840, PXIe-5850, and PXIe-5851 chassis are some of the new hardware solutions. High-channel density, adaptability, and scalability are features of the new hardware solutions that are ideal for automated driving test systems.
•   A new product in the VectorCAST tool suite for AUTOSAR software development, VectorCAST/Driven, was introduced in October 2020 by Vector Informatik. Automation of the testing of AUTOSAR software components is the goal of this product. The Classic Platform, Adaptive Platform, and Software Components AUTOSAR standards are among those supported.
•   From Bosch, ETAS Group was purchased by IPG Automotive GmbH in September 2020. IPG's product line and clientele will both grow as a result of the agreement.

Automotive Hardware-in-the-Loop (HIL) Market Scope

Key Segments of the Global Automotive Hardware-in-the-Loop (HIL) Market

Type Overview, (USD Billion)
• System
• Service

Application Overview, (USD Billion)
• Powertrain
• Three New Energy Sources
• Body Electronics
• Intelligent Drive
• Others

End-User Overview, (USD Billion)
• Light Commercial Vehicles (LCVs)
• Heavy Commercial Vehicles
• Passenger Automobiles

Regional Overview, (USD Billion)

North America
• U.S
• Canada

Europe
• Germany
• France
• UK
• Rest of Europe

Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific

South America
• Mexico
• Brazil
• Rest of South America

Middle East and South Africa
• UAE
• South Africa