Virtual Prototype Market (Updated Version Available)

Key Market Overview:

Virtual Prototype Market is estimated to reach over USD 1933.59 Million by 2030 from a value of USD 457.67 Million in 2022, growing at a CAGR of 19.74% from 2023 to 2030.

A virtual prototype is a digital representation of a physical product or system that is used for testing and simulation purposes. Virtual prototype is created using computer-aided design (CAD) software and is manipulated and analyzed in a virtual environment. Virtual prototyping allows engineers to test the functionality of a product or system before it is built, thereby saving time and money. Moreover, virtual prototyping helps engineers optimize the design of a product or system to improve performance and reduce costs.

Virtual prototypes save companies a significant amount of money compared to physical prototypes as they eliminate the need for expensive materials and manufacturing processes. By simulating different operating conditions and scenarios, virtual prototypes help companies identify and address potential design flaws or performance issues before a product is built, resulting in a higher-quality end product. For instance, in April 2022, Universal Engineering Sciences launched virtual design consulting services to help architects, engineers, and contractors by increasing safety and reducing the risk for people involved in construction projects. Therefore, the virtual prototyping market continues to grow as companies seek to improve product quality, reduce costs, and accelerate time-to-market, thereby driving the growth of the virtual prototype market.

Virtual Prototype Report Coverage:

Report Attributes	Report Details
Study Timeline	2017-2030
Market Size in 2030 (USD Million)	1933.59 million
CAGR (2023-2030)	19.74 %
Base Year	2022
By Tool	CAD, CAE, CAM, FEA, and CFD
By Deployment	On-Premise and Cloud-Based
By End-User	Automotive, Healthcare, Consumer Electronics, Aerospace, and Others
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Synopsys, Inc., TWI Ltd., AutoDesk Inc., Carbon Design Systems Inc., ESI Group, Arm Limited, Cadence Design Systems, Inc., Siemens PLM Software, PTC, IronCAD, Corel Corporation, Bentley Systems Incorporated, Dassault Systèmes, CAD International

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Market Dynamics:

Driver:

The increasing complexity of systems and the need to ideate new products are the significant drivers of the virtual prototype market. Virtual prototyping is becoming increasingly popular as a way to simulate and test the behavior of these systems before they are built. Moreover, growing competition in the manufacturing industry facilitates companies to innovate and bring new products to market faster and with higher quality to remain competitive. For instance, in September 2022, Synopsys launched the industrys first unified emulation and prototyping system for significant development in the virtual prototyping market. Therefore, the integration of these technologies allows businesses to develop and test complex systems-on-chips (SoCs) prior to their physical production.

Restraint:

Virtual models limits users to touch or physically interact with the model in the same way as physical prototypes. As a result, the actual size, real shape, and feel of the material is not estimated, thereby limiting the growth of the virtual prototype market. Furthermore, virtual prototyping is not suitable for certain industries, such as healthcare, where physical prototypes are needed for testing and validation. For instance, in the medical industry, physical prototypes are necessary to test the usability of medical devices before they are approved for use. Therefore, the inability to interact with the model or product is limiting the growth of the virtual prototype market.

Opportunities:

The integration of emerging technologies such as augmented reality (AR) and virtual reality (VR) with existing virtual prototyping technologies is expected to present potential opportunities for the growth of the virtual prototype market. Both technologies use computer-generated graphics and environments to provide a realistic and interactive experience to users. For instance, in the manufacturing industry, AR and VR are expected to be used for product design, assembly, and quality control. Moreover, the technologies are expected to be used to train employees and simulate dangerous or complex scenarios in a safe environment.

Virtual Prototype Market Competitive Landscape:

The market for virtual prototypes is highly competitive owing to a number of vendors providing virtual prototype technologies to the international and domestic markets. The key market players are adopting strategies for mergers and acquisitions, and product innovations to stay competitive in the market. These factors are examined to offer an insightful understanding of current market circumstances. Following are the major market players that comprise the latest market concentration–

• Synopsys, Inc.
• TWI Ltd.
• AutoDesk Inc.
• Carbon Design Systems Inc.
• ESI Group
• Arm Limited
• Cadence Design Systems, Inc.
• Siemens PLM Software
• PTC
• IronCAD
• Corel Corporation
• Bentley Systems; Incorporated
• Dassault Systèmes
• CAD International

Recent Developments:

• In March 2022, Autodesk, Inc. acquired The Wild, an extended reality platform (XR) to enable architecture, engineering, and construction (AEC) professionals to present, collaborate and review projects together in immersive and interactive experiences.

• In January 2022, EMCDDA launched PLATO e-learning platform and virtual community of practice (VCP).

Virtual Prototype Market Segmentation:



By Tool

Based on the tools, the market is segregated into CAD, CAE, CAM, FEA, and CFD. The CAD (Computer-Aided Design) segment dominates the virtual prototype market due to the increasing demand for 3D modeling and design tools. CAD software is widely used in product design and development enabling designers to create 3D models of products and test their functionality before physical prototypes are built. For instance, in June 2020, Siemens launched the industrys first Artificial Intelligence (AI)-powered CAD sketching technology, called SketchMate, that helps engineers and designers to create 2D sketches of complex 3D models using AI algorithms to interpret user input and generate accurate sketches.
The CAE segment is expected to emerge as the fastest-growing segment during the forecast period due to the increasing complexity of products. The growing complexity of products has led to increasing demand for advanced simulation and testing tools, contributing to the growth of this segment. CAE software enables engineers to simulate the behavior of products under various conditions, such as stress, temperature, and vibration, and optimize the design to improve performance and reliability.

By Deployment

Based on the deployment, the market is bifurcated into On-premise and Cloud-based. The On-premise segment accounted for the largest revenue share in the year 2022. The growth of on-premise segment is attributed to maintain the confidentiality of a product model or design. On-premise virtual prototyping software provides greater control over data security and access. Moreover, On-premise virtual prototyping software is customized according to the specific needs of a company or industry.
The cloud-based segment is anticipated to register the fastest CAGR growth during the forecast period. The adoption of cloud-based software is increasing across industries as companies look to reduce IT costs and improve scalability and flexibility. Moreover, the COVID-19 pandemic has accelerated the adoption of remote work and cloud-based collaboration tools leading to increased demand for cloud-based virtual prototyping software.

By End-User

Based on the end-user, the market is segmented into automotive, healthcare, consumer electronics, aerospace, and others. The automotive industry accounted for the largest revenue share in the year 2022. The automotive industry has been an early adopter of virtual prototyping technologies, using computer-aided design (CAD), computer-aided engineering (CAE), and computer-aided manufacturing (CAM) software to design and test new car models. Virtual prototyping allows automotive companies to iterate on designs quickly, and reduce physical prototypes and testing costs. For instance, in September 2020, BMW Group started using augmented reality (AR) technology in its prototyping processes that allows engineers and designers to project virtual images onto a real car, allowing them to visualize design changes and make adjustments in real time.

The consumer electronics segment is expected to grow with the fastest CAGR during the forecast period. The consumer electronics industry is using virtual prototyping technologies to design and test new products, such as smartphones, tablets, and wearables. Virtual prototyping allows consumer electronics companies to iterate on designs quickly, reduce development costs, and improve product quality.

By Region:

North America is accounted for the largest revenue share in the year 2022. North American region has a high adoption rate of advanced manufacturing technologies such as 3D printing, additive manufacturing, and robotics. Such technologies are used in conjunction with virtual prototyping to improve product design and development processes, thereby driving the market growth. For instance, in March 2022, Autodesk, Inc. acquired The Wild, an extended reality platform (XR) to enable architecture, engineering, and construction (AEC) professionals to present, collaborate and review projects together in immersive and interactive experiences.
Therefore, the presence of key players such as AutoDesk, Inc., Dassault Systèmes, and Siemens is contributing to the growth of the regional market.



The Asia-Pacific region is expected to register the fastest CAGR growth during the forecast period. Asia-Pacific region has the worlds largest manufacturing economies, such as China, Japan, and South Korea. The regions manufacturing sector is expanding rapidly, driving demand for virtual prototyping solutions that help to improve product design and development processes. Furthermore, government of countries such as India, China, and Japan are taking several initiatives to promote the manufacturing industry. For instance, the government of India launched \"The National Manufacturing Policy\" to support research and development, improve infrastructure, and promote innovation in the manufacturing industry.