Factors Underlying the Growth of the Autonomous Simulation Solutions Market
The imagined future of flying cars might be far from true, but the reality of self-driving cars is here. The current market size of the autonomous simulation solutions market in 2021 is $731.3 Million and according to the BIS research report, the market is expected to reach $2.97 billion by 2031, with a CAGR of 13.4% during the forecast period 2022–2031.
The global automotive industry is investing heavily in the future mobility trends and working towards upgrading the transportation experience. Factors such as increasing traffic, road safety and security concerns, environmental concerns, increasing demand for a convenient transport system, and the rising popularity of mobility-as-a-service (MaaS) are contributing to the demand for innovative autonomous vehicles.
Some major market players such as Altair Engineering, Inc., Ansys, Inc., Applied Intuition, Inc., Autodesk Inc., AVL List GmbH, and Cognata, are laying their strategies through partnership and collaboration with original equipment manufacturer (OEM) firms and other technology providers.
There are many growth driving factors in the autonomous simulation solutions market which are mentioned in this article.
Emphasis on Road Safety
Governments and consumers worldwide are pushing to ensure road safety which has increased the demand for a reliable transportation system. According to the BIS research market report, the safety features of automotive vehicles are the most luring factor for customers across the world.
The currently available advanced driver-assistance systems (ADAS) for Level 1 and Level 2 cars offer safety features like lane keep assist, lane departure warning, rear cross-traffic alert, intelligent headlamps control, adaptive cruise control, forward collision warning, and auto emergency brake.
In the future, the next generation of automotive vehicles aims to develop more safety features to ensure more road safety with lesser human efforts. It is expected to raise the revenue generation of self-driving cars. One of the significant examples of this trend is the US.
According to the BIS research report, North America is the largest market player in the autonomous vehicle simulation solutions market as of 2021 and is expected to dominate the market throughout the forecast period of 2022–2031.
The autonomous vehicle industry in America is majorly driven by the growing demand for advanced safety features such as adaptive cruise control, traffic jam assist, and autopilot. Additionally, the increasing number of high-end passenger cars is expected to boost the market growth, as North America is home to numerous leading car manufacturers providing vehicles that are equipped with level 1 and level 2 of autonomy.
Advancement in Technology
Emerging technologies like artificial intelligence (AI), fifth generation (5G) communication, and the Internet of Things (IoT) are the steppingstone toward Level 3 and Level 4 ADAS cars. The safe, efficient, and convenient driving experience of autonomous vehicles (AVs) depends on the software and technologies delivered by OEMs.
Proper functioning of smart cars depends on software and sensors installed in them. There is a complex interaction of systems such as sensory (optical, Lidar, radar, ultrasound sensors and the driver/ controller logic), environment (light, weather, obstacles, pedestrians, road and traffic conditions), and the physical behaviour of the vehicle (structural, crash, noise, vibration, handling, ride, comfort, durability, and fatigue).
The need for these systems to be tested and validated is growing exponentially. Still, such complex systems are difficult to be tested in physical settings. Therefore, the demand for virtual simulation testing is apparent. Hence, the advancement of technologies and the growing scale of automotive vehicles is a huge growth driver of the autonomous simulation solutions market.
Favourable Government Policies and Infrastructure
Such a huge transformation in the automobile industry is not possible without the support of the government and policymakers. The execution of such advanced technology also needs an enabling infrastructure.
Governments across the world are taking initiatives to enable the smooth functioning of the automotive industry, as the demand for reliable transport systems and environmental challenges with climate change are increasing. Concerning road safety measures, many countries have mandated the use of safety features like lane departure warnings and auto emergency breaks.
Although creating a viable infrastructure for automotive vehicles is a huge challenge for several developing countries due to high capital investments involved in the execution, policymakers are taking strides to the best of their capabilities.
Conclusion
To conclude, the autonomous simulation solutions market is a growing market that is driven by several key factors. With ample reasons to grow, a dedicated section is focusing on the futuristic trend in the global autonomous simulation industry. With the help of simulation solutions, the industry is preparing for the next generation of automotive vehicles with Level 3 and Level 4 ADAS systems.
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