Virtual Prototype Market Analysis Report By Tool, By Deployment, By Vertical, By Region And Segment Forecasts From 2018 To 2025

Industry Insights

The virtual prototype (VP) market size across the globe was valued at USD 210.4 million in the year 2017. It is projected to witness growth with a 19.4% CAGR from 2018 to 2025. This can be associated with its rising usage for designing and developing new products, enhancing product quality, and reducing production costs.

The VP tools can be used for testing the performance and durability of the products in a computer-controlled environment. Various innovative technologies for prototyping help in reducing the time to reach the market. Further, the need for product prototype testing and simulation is anticipated to drive the market demand for virtual prototypes in the upcoming years.

The VP tools are becoming an integral part of several industrial sectors. This can be associated with the development of technologies like CAD (Computer-Aided Design), VR (Virtual Reality), and Simulation. These technologies have been enabled with the development of user-friendly, low-cost, and easily accessible VP systems.

The rising competition across the manufacturing industry is driving the demand for several VP techniques for carrying out innovation and product development. However, the majority of the small-scale enterprises refrain from usage of VP solutions owing to a lack of skill set and requirement of initial investments.

Tools Insights

The CAD segment dominated the global market with a share of around 38.0%, in 2017. This can be associated with the rising need for CAD tools by several organizations for supporting the process of designing products and their developments. These tools help in increasing production efficiency and reducing operational costs. Further, its usage in the understanding of different product prototype aspects during testing and simulation is projected to fuel up the market demand in the upcoming years.

The CAD/CAM segment is gaining traction across the whole manufacturing sector. Several industrial manufacturers have started investing in the deployment of tools related to virtual prototyping for enhancing operational efficiency and production capacity.

Deployment Insights

The global virtual prototype market can be segmented into cloud-based and on-premise based on the deployment. The segment of on-premise deployment dominated the global market and accounted for a share of 65.0% in 2017. This can be associated with its rising demand for maintaining the confidentiality of the design or product model.

The cloud-based deployment segment is also projected to register growth during the forecasted years, 2018 to 2025. This can be associated with the rising demand for virtual prototypes by small and medium enterprises for reducing infrastructure and implementation costs.

Vertical Insights

In 2017, the vertical segment of automotive dominated the global market with a share of 34.0% across the globe. This can be associated with the rising adoption of VP tools across OEMs (Original Equipment Manufacturers) for enhancing efficiency in manufacturing, designing, and testing of the prototype.

The segment of consumer electronics is also projected to register substantial growth in the upcoming years. This can be attributed to features like rising consumer trends according to product functionality. Further, increasing usage of virtual prototyping tools for designing and testing aircraft models by major players like Airbus and Boeing is expected to drive the market growth of the aerospace segment.

Regional Insights

North America dominated the global virtual prototype market with a share of around 33.7% in 2017. This can be attributed to the rising CAD tools adoption across the automotive and aviation industries to design engine and aircraft equipment prototypes. Moreover, rapid advances and investments being carried out for simulating and designing ADAS (Advanced Driver Assistance System) solutions are driving the market growth for VP.

The Asia Pacific is anticipated to register the fastest growth across the globe in the upcoming years. This can be associated with the surging demand for VP tools across automotive manufacturing and consumer electronics. Moreover, the rising presence of key players across countries like Japan and China is also projected to drive the market growth for VP across this region.

Virtual Prototype Market Share Insights

The key players in the market are TWI Ltd.; Synopsys, Inc.; Autodesk Inc.; ESI Group; Siemens PLM Software; Arm Limited; Encore; and PTC. These players are engaged in product development and innovation to gain a competitive advantage over other players.

For example, Mazda Motor Corporation had collaborated with Synopsys, Inc. for launching of CoMET-METeor, a virtual prototyping solution to test the ECUs (Electronic Control Units). They are also investing more in R&Ds or product development.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2015 to 2025 in each of the sub-segments. For this study, Million Insights has segmented the global virtual prototype market report based on tool, deployment, vertical, and region:

• Tool Outlook (Revenue, USD Million, 2015 - 2025)
    • CAD
    • CAE
    • CAM
    • CFD
    • FEA

• Deployment Outlook (Revenue, USD Million, 2015 - 2025)
    • Cloud-based
    • On-premise

• Vertical Outlook (Revenue, USD Million, 2015 - 2025)
    • Aerospace
    • Automotive
    • Healthcare
    • Consumer Electronics
    • Telecom
    • Others

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • U.K.
        • Germany
        • France
        • Spain
        • Italy
    • the Asia Pacific
        • India
        • China
        • Japan
        • South Korea
    • RoW
        • Brazil
        • MEA