Hardware-in-the-Loop Market Size

Hardware-in-the-loop Market size was over USD 671.4 million in 2023 and is anticipated to reach USD 25.46 billion by 2036, growing at around 10.8% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of hardware-in-the-loop is estimated at USD 729.41 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.