Hardware-in-the-loop (HIL) testing market is gaining momentum following vehicles' development with advanced driver-assistance systems (ADAS) capabilities. According to a Frost & Sullivan report, this growth is driven by the need for a solution that can cost-efficiently validate the number of electronic control units (ECUs) incorporated into these vehicles.
The automotive industry accounted for 60.7% of all industry verticals in 2020 and generated $442.0 million in revenues. It also leverages innovative HIL solutions to test electric vehicles (EVs) and validate the battery unit's function and other power electronics components.
By 2026, the global HIL testing market is estimated to reach $1.30 billion from $728.3 million in 2020 at a compounded annual growth rate (CAGR) of 10.2%. The aerospace and defence industry is another important vertical, and the entry of private companies into space exploration offers new opportunities for HIL testing companies.
Rohan Joy Thomas, Industry Analyst, Industrial Practice, Frost & Sullivan, said, 'Vehicles with enhanced ADAS functionalities will involve a significant amount of sensors and embedded software that cannot be tested individually. HIL testing will be crucial for simulating the drivability of the vehicle, reducing product development costs and time to market significantly.'
'Similar to the automotive industry, the components and subsystems inside the aerospace and defence industry are becoming increasingly software-defined. With the rising amount of embedded software, a lot of the HIL testing has to be executed during the earlier phase of the development life cycle. Additionally, testing should be done for both components and the integrated system as a whole,' Thomas added.
Testing solutions system integrators are the fastest-growing component of HIL solutions, followed by software and hardware. In 2020, HIL system integration accounted for 35.3% of the entire market because it offers a custom test solution containing the best HIL test solution at a competitive price.
Growth Opportunities
China: China is an important market for EVs and accounted for more than 50% of the global EV sales in 2020. HIL testing vendors should partner with Chinese vendors, engineering service providers, and other testing equipment manufacturers that provide crucial communications testing.
Defence Spending And Commercial Space Exploration: While the Aerospace and Defence industry decreased during 2020, military spending increased. HIL testing vendors should work with the government and partner with its contractors to provide custom-based test solutions for the military.
Rise Of Smart Cities: The increase in the adoption of sensor technologies, open Internet of Things (IoT) platforms, and smart applications with smart cities' development presents immense prospects for vendors.
Aviation In Emerging Markets: Domestic air travel has witnessed an upswing in Asia-Pacific, primarily China and India. HIL testing will be required for airplanes that are more automated and equipped with electric or hybrid engines.