Global Hardware in the Loop Market Accelerates with Real-Time Testing Demand

The recent study of Hardware in the Loop (HIL) market growth has been estimated to reach USD 1.38 billion with a CAGR of 11.1% during the forecast period (2023-2030). The APAC region is expected to drive the global market in terms of growth and the North American region will hold the largest share in the Hardware in the Loop market.

Hardware in the Loop (HIL) refers to the real hardware connected to a simulated environment where embedded systems can be tested in real-time in real-world working conditions. It helps detect design issues at an early stage, well before prototypes are ready.

HIL testing is widely adopted in industries where it is not feasible to test in the real world due to cost, safety, and complexity.

Top Market Drivers

🕰️ 1. Need for Real-Time Simulation and Fast Development Cycles

Today’s embedded systems need a lot of testing, especially in safety-critical applications. HIL testing helps detect design flaws and errors at an early stage through the simulations of multiple scenarios.

🚙 2. Adoption of ADAS and EV Testing in the Automotive Industry

AVs and EVs are gaining popularity in the market. OEMs are investing in real-time testing to make them safe and compliant. HIL testing helps validate ADAS, powertrain systems, and battery management in various conditions.

Get Sample Report on "Hardware In The Loop Market"

✈️ 3. Adoption in Aerospace & Defense

HIL simulation is widely used in avionics systems, flight control validation, and mission-critical software testing, where real-world testing is risky and costly.

📊 4. Shift Towards Closed-Loop Systems

Closed-loop HIL segment held the largest market share of 55.4% in 2023 since the manufacturers are looking for simulation feedback and adaptive control in testing.

The Top Hardware in the Loop (HIL) Companies

Some of the top companies in the hardware in the loop (HIL) market are DSpace GmbH, National Instruments Corp., and others. These companies are consistently increasing their investment in research and development to deliver products and services in line with industry trends.

DSpace GmbH develops simulation and validation solutions for networked, autonomous, and electrically powered vehicles. The company offers a wide range of solutions that are widely adopted by automotive manufacturers and their suppliers for software and hardware component testing before the actual launch of the vehicle. The company is also involved in aerospace and industrial automation solutions.

National Instruments Corp. offers test, measurement, and control solutions for engineers and scientists. The company offers its solutions and services in different industries, including automotive, aerospace, and electronics. The company’s products and services can help customers increase productivity, innovation, and discovery through modern technology such as software-defined instrumentation and modular hardware platforms.

Some of the emerging players in the market are Cognata and Typhoon HIL, which offer innovative products and services to satisfy the needs of this growing niche.

Cognata is a company that offers simulation solutions based on digital twins. The company caters to the needs of AI-driven training, validation, and testing of ADAS technologies and Autonomous Vehicles in various industries. The company’s platform also provides advanced off-road simulation for defense applications and photorealistic digital twins for smart city planning with AI and accurate sensor simulation technologies.

Typhoon HIL offers hardware-in-the-loop solutions for various industries, including power electronics, microgrids, and e-mobility. The company’s platform has changed the way control software and hardware is validated and tested through embedded, real-time HIL technology that is powered by proprietary numerical algorithms and application-specific processors.

By Type

• Closed Loop (dominant)
• Open Loop

By Application

• Automotive
• Aerospace & Defense
• Industrial Automation
• Power Electronics
• Research & Education

By Region

North America held the largest market share of 33.6% in 2023 as it has a well-established R&D ecosystem and is an early adopter of simulation technologies.

APAC is expected to witness the highest CAGR of 11.6% during the forecast period backed by increased investments in EV manufacturing, electronics, and industrial automation.

Challenges to Watch

• High initial deployment costs
• Integration with legacy systems is complicated
• Skilled workforce availability in emerging markets
• Technology advancements and increased awareness are helping address barriers to entry.

Looking Ahead

The HIL market is no longer a niche tool for advanced engineering teams, but a go-to testing tool. With the rise of digital twins, AI-powered simulation, and hardware connected to the IoT, HIL testing is set to become a crucial part of intelligent system development. As companies aim to innovate faster and safer and more reliable systems, HIL testing will be a vital tool in different industries.

Conclusion

The Hardware in the Loop market is no longer a niche market for advanced engineering teams, it’s becoming a standard in testing. As industries demand faster, safer, and more reliable systems, HIL testing will lead the way to development with real-time simulation accuracy and reduced development risk.