Hardware-in-the-loop Market Size & Share, by Component (Actuator, Sensors); Application (Defense, Automotive, Electronics, Research & Education) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Hardware-in-the-loop Market size was over USD 743.91 million in 2024 and is anticipated to cross USD 2.82 billion by 2037, witnessing more than 10.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of hardware-in-the-loop is estimated at USD 812.2 million.

 Hardware-in-the-loop or (HIL) is a simulation system used to test control systems, by mimicking the actual hardware interconnection. The growth of the market can be attributed to the increasing application of HIL in automotive and electronic sectors. HIL is used to test the vehicles, equipment, and electronic devices, to simulate every possible scenario, and check the controller and device performance. This can save a significant amount spent on real-time testing of these devices, which is estimated to boost the market growth. Moreover, introduction of advanced technologies, such as, ADAS systems and AI, for cars, unmanned aerial vehicles, and defense machineries, is expected to encourage the growth of the market. In addition to this, the increasing investment in research and development activities, is anticipated to boost the market growth. According to the data by the World Bank, 2.203% of the global gross domestic product (GDP) was spent on research and development activities, in 2018.