Driving Training Simulator Market Research Report and Outlook by 2028

The market for driving training simulators is projected to expand from US$ 1,950.00 million in 2021 to US$ 2,646.73 million by 2028, reflecting a compound annual growth rate (CAGR) of 4.6% from 2022 to 2028.

Growth in the driving training simulator market is largely driven by the increasing need for simulation training for autonomous vehicles and the growing application of simulators in police and emergency vehicle training. In several nations, the integration of driving simulators into driving school curricula has become mandatory, which is anticipated to further enhance market expansion. These simulators provide learners with the opportunity to acclimate to various road scenarios and cultivate safe driving practices. For example, Singapore mandated that all learner drivers complete simulator training modules starting in December 2019. Consequently, the rising importance of driving simulators in educational institutions is expected to significantly contribute to regional market growth.

In Europe, the demand for driving simulators is on the rise, particularly for their application in vehicle testing and the training of novice drivers. Major automotive industry players are investing in the development of driving simulator technologies to meet this demand. A notable example is Honda R&D Europe, which invested in research and development to create advanced driving simulator technology in 2019. This innovation, known as DiM250 (Driver-in-Motion), is based on a sophisticated architecture and is located at Honda R&D Europe's technical center in Offenbach, Germany. The DiM250 system was designed by the simulator software company VI-grade GmbH and is produced by the automatic controls expert Saginomiya. Furthermore, in 2022, VI-grade and Stackpole Engineering Services formed a strategic partnership aimed at enhancing research and development in tire testing, modeling, and simulation applications, which is expected to propel market growth in Europe.

The European driving training simulator market is poised for significant growth throughout the forecast period. The region hosts numerous prestigious car racing events, including Formula 1, Nascar, and IndyCar, which are likely to stimulate advancements and innovations within the driving training simulator sector.

In addition to the rising interest in autonomous vehicles, the self-driving vehicle sector in China is also experiencing rapid growth. Companies like Pony.ai, Baidu, DeepRoute, and AutoX are actively testing autonomous vehicles on the streets of Shenzhen. This shift towards autonomous driving is expected to positively influence the driving training simulator market. Moreover, government initiatives and advancements within the automotive sector are anticipated to play a vital role in market growth. For instance, the Australian government has committed approximately US$17 million to the Keys2Drive program over the next five years, which incorporates simulators into its training framework.

The driving training simulator market is primarily led by key players such as Autosim AS, Bosch Rexroth AG, Cruden B.V., DALLARA, and ECA Group. These companies are expanding their market presence through new product launches, strategic initiatives, technological investments, mergers and acquisitions, and collaborative ventures.

In 2022, a strategic partnership was established between VI-grade, a company specializing in simulation and driving simulators, and Stackpole Engineering Services, which provides engineering solutions to tire and vehicle OEMs and suppliers. This collaboration aims to enhance research and development in tire testing, modeling, and simulation applications.

Market participants are employing various strategies to broaden their regional reach. For instance, in 2020, IPG Automotive GmbH inaugurated a new office in Stuttgart, Germany, to provide enhanced support to customers and partners for their projects.

Impact of COVID-19 on the Driving Training Simulator Market

The growth of the driving training simulator market in Europe faced challenges due to the COVID-19 pandemic. The shutdown of production facilities for major automotive manufacturers such as Mercedes, Volkswagen, Toyota, and Renault hindered market progress. Although these companies had begun utilizing driving simulators for vehicle testing and safety protocols, the pandemic caused delays or halts in many driving training simulation activities. Additionally, driving schools offering simulation solutions were forced to close due to lockdown measures. The market was further impacted by the cancellation of major sporting events like Formula 1 and Nascar during the pandemic.

The uncertain economic climate has led to a decline in consumer demand for new vehicles, resulting in a reduced willingness to make significant purchases, which has adversely affected driving training centers in the US and Canada. As a result, the market for driving training simulators for passenger vehicles has seen a downturn. However, there has been a notable resurgence in demand for driving simulators since 2021, as drivers participating in sports events require simulation training to gain experience in a virtual environment.

Companies featured in the driving training simulator market analysis include Autosim AS, Bosch Rexroth AG, Cruden B.V., DALLARA, ECA Group, IPG Automotive GmbH, Moog, Inc., Nvidia Corporation, Tecknotrove, and Vi-Grade GmbH. Market players are pursuing both organic and inorganic growth strategies to maintain their competitive advantage. The anticipated growth of the driving training simulator market is expected to be positively influenced by various initiatives, including investments in research and development and the establishment of virtual reality (VR) simulator training centers. For example, the Automobile Association of Southern India (AASI) has launched Asia's only 5th Generation VR-based simulator center in Chennai, India. Such initiatives by leading industry players are likely to contribute to the growth of the driving training simulator market in the coming years. Additionally, in December 2021, Adacel Technologies Limited announced a five-year contract valued at approximately US$ 1 million with Airservices Australia for support services related to their control tower simulator (CTS).

The analysis of the driving training simulator market was conducted using both primary and secondary sources. The research process commenced with extensive secondary research to gather qualitative and quantitative data from various internal and external sources. The objective was to provide an overview and forecast of the driving training simulator market size across all segments. To further validate the data and gain deeper analytical insights, interviews were conducted with industry participants and experts, including VPs, business development managers, market intelligence managers, national sales managers, external consultants, research analysts, and key opinion leaders specializing in the driving training simulator market.