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FOR IMMEDIATE RELEASE: 29th January 2020
Automotive firms must ‘adapt or die’ – Interact Analysis
New market report from Interact Analysis reveals predicament facing global automotive OEMs in light of challenges from new players.
- Global automotive design, test and simulation solutions market estimated to grow at CAGR of 11% by 2023
- Three new megatrends driving growth in this market
- Investment in automation crucial to future success – and survival – of major automotive brands
London, UK, 29th January 2020 – Market intelligence firm Interact Analysis has released a new market report focusing on automotive design, test and simulation solutions. This new market segment combines traditional software design tools such as product lifecycle management (PLM) with test solutions and new, advanced simulation tools being used to model autonomous vehicles and their behaviour.
The report estimates the global automotive design, test and simulation solutions market to be worth around $5.1 billion in 2018, and forecasts a compound annual growth rate (CAGR) of 11% to $8.6 billion in 2023.
This growth runs concurrently to major changes in the global automotive market, as OEMs attempt to keep up with major changes in consumer use habits and legislation. The report outlines how three major trends – electrification, autonomy and mobility – have emerged, forcing the entire automotive community, from raw material suppliers to aftermarket service centres, to rethink their strategies, products and futures.
OEMs are, the report states, facing major pressure on traditional sources of profit like the manufacturing or servicing of cars. Instead, they are looking to simulation to speed up design processes and bring products to market far quicker than before. This is due in part to a new breed of OEM, who are not constrained by legacy processes, costly manufacturing facilities or shareholder oversight.
Increasingly, automakers are turning to simulation to speed up the design process and achieve more successful approaches. There are two main approaches that Interact Analysis has observed: first, using simulation to reduce the need for physical prototypes and testing, and second, bringing simulation much earlier into the design process to help constrain and better define the end-product from the very start.
Alastair Hayfield, research director for Interact Analysis and the report’s author, said: “The days of cars being seen as ‘heavy metal’ products are now in the past. Most of the value in a modern car is electrical and the software used to control the functionality of the vehicles is among the most complex ever developed by humans.
“This step-change in design and functionality has attracted new market entrants from high tech industries, which has in turn brought new pressures on the established players to increase their capabilities, and quickly.
“Investing in automation solutions will help bridge that gap. OEMS and suppliers which adopt simulations, for example, should find it possible to reduce development costs and improve their time to market.
“Our research points to one key trend: the automotive industry is in the midst of a revolution, and automotive design, test and simulation solutions will prove the key weapons in the fight for market share.”
About the Automotive Design, Test and Simulations Solutions Market 2019 report
Utilizing a rigorous primary research methodology, Interact Analysis has completed interviews with over 30 vendors in the market to accurately size the market, determine key trends and produce a realistic market forecast. It is the first study to incorporate autonomous vehicle simulation software and the inter-play between test solutions and design solutions.
About Interact Analysis
Interact Analysis is an international provider of market research for the Intelligent Automation sector. Our team of experienced industry analysts delivers research into three core sectors: industrial automation, robotics and warehouse automation, and commercial vehicles. Intelligent Automation – which is the integration of artificial intelligence and automation – will change virtually every industry imaginable. This combination enables greater efficiencies, productivity, convenience and scale. It has the potential to drastically alter the outlook for many traditional industries such as manufacturing, healthcare and automotive as well as to lead to the emergence of entirely new industries. To learn more, visit www.interactanalysis.com