Hardware In The Loop Market Size To Hit USD 1982.74 Million By 2032, Growing At 10.87% CAGR SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) Hardware in the Loop (HIL) Market growth is driven by rising complexity in automotive, aerospace & power systems, ADAS/EV testing demand, and AIenhanced simulation.

Austin, June 09, 2025 (GLOBE NEWSWIRE) -- Hardware in the Loop Market Size & Growth Insights:

According to the SNS Insider Report,“The Hardware in the Loop Market size was valued at USD 870.48 million in 2024 and is expected to reach USD 1982.74 million by 2032, growing at a CAGR of 10.87% over the forecast period 2025-2032.”

Accelerating Innovation: Key Growth Drivers in the Hardware-in-the-Loop (HIL) Market

The global market for Hardware-in-the-Loop (HIL) is gaining significantly from the increasing need for the real-time testing of the embedded systems in various industries, such as the automotive, aviation, and the electronics. As electric and autonomous vehicle, design becomes more dominant, vehicle dynamics and ADAS testing using HIL simulation to validate electronic control units (ECUs) can cut development time as well as driving tests and overall certification for safety regulations. The combination of digital twins, IoT and AI is taking testing to new levels. In United States, the HIL market is worth USD 229.14 million in 2024, with a CAGR of 10.54%. These trends are well represented by FCA (Fiat Chrysler Automobiles) where HIL is deployed to test hybrid vehicle ECUs in various subsystems, showing how it is essential for innovation.

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Regional Dynamics Shaping the Global Hardware-in-the-Loop (HIL) Simulation Market

In 2024, North America dominated the Hardware-in-the-Loop (HIL) market with a 32.2% revenue share, owing to the presence of robust automotive, aerospace and defense industries, which have been leveraging HIL for various advanced testing; for example GM, Ford, Lockheed Martin, and Raytheon. The U.S. is ahead as a result of strong R&D and tech infrastructure.

From 2025 to 2032, Asia Pacific is expected to register the highest CAGR, due to the rising industrialization and the increasing use of hybrid bearings by companies such as Toyota, Honda, and AVIC.

Europe remains vital, led by Germany, the UK, and France, where automotive and aerospace leaders, including BMW, Airbus and Rolls-Royce, have incorporated HIL for electric and autonomous systems.

The Middle East & Africa (MEA) region is seeing slow growth, with adoption driven by economic diversification in countries like the UAE and Saudi Arabia, targeting smart mobility and defense modernization.

Hardware in the Loop Market Report Scope:

Report Attributes	Details
Market Size in 2023	USD 870.48 Million
Market Size by 2032	USD 1982.74 Million
CAGR	CAGR of 10.87% From 2024 to 2032
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments	. By Type (Open Loop HIL, Closed Loop HIL) . By Application (Automotive, Aerospace & Defense, Electronics and Semiconductor, Industrial Equipment, Research and Education, Energy and Power, Others) . By Offering (Hardware, Software, Service)

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Segmental Insights: Key Trends Driving the Hardware-in-the-Loop (HIL) Simulation Market by Type, Application, and Offering

By Type

In 2024, the Closed Loop Hardware-in-the-Loop (HIL) segment led the global market with a 53.5% share, as it enables real-time feedback which helps in the improvement of the testing accuracy and reliability of complex embedded systems, in particular the extremely challenging automotive and aerospace applications.

The Open Loop HIL segment is projected to register the highest CAGR from 2025 to 2032, owing to increasing demand for economical and flexible testing solutions during the early development cycle which is suitable for software validation and academic research.

By Application

In 2024, the automotive sector led the Hardware-in-the-Loop (HIL) market with a 41.5% revenue share, due to higher ECU complexity, growing EV adoption, and autonomous driving advancements. HIL allows risk-free, efficient testing of components such as ADAS, powertrains, and battery systems.

From 2025 to 2032, the aerospace and defense sector is expected to witness the highest CAGR, during which the need for safe and cost-effective simulation of critical systems such as avionics and flight control as well as the aerospace industry's adoption of software-driven, prototype-free testing environments will drive the demand for virtual prototyping.

By Offering

In 2024, the hardware segment led the Hardware-in-the-Loop (HIL) simulation market with a 54.7% share, as it plays an essential role in real-time physical modeling with the help of controllers, sensors, and actuators that are extensively used in the automotive, aerospace, and industrial automation industries.

The software segment is expected to record the fastest CAGR from 2025 to 2032, driven by the increasing demand for flexible, scalable, and cost-effective simulation environments. Software-based HIL permits complex and readily changeable testing to be carried out without the need for physical hardware change, perfect for autonomous vehicle and avionics system development.

Leading Market Players with their Product Listed in this Report are:

• dSPACE
• National Instruments
• Vector Informatik
• Siemens
• Typhoon HIL
• Speedgoat
• Opal-RT
• Eontronix
• Robert Bosch Engineering
• ModelingTech Energy

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Recent Developments:

• In July 2024, Vector and MdynamiX release compact, modular test bench for steer-by-wire systems testing using CANoe and MXsteerCon for real-time simulation and force feedback of steering as well as brake systems validation.
• In May 2025, OPAL-RT Technologies has announced a new UK office which in addition to better assisting customers for real-time simulation and IBR integration, enables a ramp-up in power systems, aerospace and automotive.

T able o f Contents - Major Key Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

6. Competitive Landscape

7. Hardware in the Loop Market, by Type

8. Hardware in the Loop Market, by Application

9. Hardware in the Loop Market, by Offering

10. Regional Analysis

11. Company Profiles

12. Use Cases and Best Practices

13. Conclusion

CONTACT: Contact Us: Jagney Dave - Vice President of Client Engagement Phone: +1-315 636 4242 | +44- 20 3290 5010 (UK)

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