Hardware in the Loop (HIL) is a technique used in the design
and testing of complex systems, such as aircraft, automobiles, and industrial
machinery. It involves integrating physical hardware components with virtual
simulations to create a more realistic testing environment.
In HIL, the physical components are connected to a computer
that runs simulations to simulate real-world conditions. The computer generates
signals that simulate the behavior of the system under different scenarios, and
the physical components respond accordingly. The goal of HIL is to test the
system's performance and functionality before it is deployed in the real world.
The benefits of using HIL are numerous. One of the main
advantages is that it allows engineers to test systems under a variety of
conditions without the need for expensive physical prototypes. This saves time
and money in the development process and helps ensure that the final product is
reliable and safe.
Another advantage of HIL is that it can be used to test
systems that are difficult or dangerous to test in the real world. For example,
HIL can be used to test aircraft engines at high altitudes or to simulate
emergency situations in automobiles.
To implement HIL, engineers typically use specialized
hardware and software. The hardware includes sensors, actuators, and other
components that are connected to a computer. The software includes modeling and
simulation tools that allow engineers to create virtual environments to test
Dynamics of Hardware in the loop market
Drivers in Hardware
in the Loop Market
The hardware in the loop market is propelled by the rapid
advancements in electric and autonomous vehicles. Automobile manufacturers are
integrating advanced driver assistance systems, collision avoidance systems,
and autonomous driving technologies in their vehicles to enhance ride comfort
and safety. The hardware in the loop testing is performed to validate the ECUs,
algorithms, and software used in autonomous technology.
Additionally, the camera, radar, LiDAR, Image Signal
Processing units, GPS, and other sensors are evaluated to verify the accuracy
of the sensor data through hardware in the loop test benches. Major automotive
companies such as Continental and Hyundai are investing heavily in the
development of ADAS and autonomous driving technologies in their facilities
located in Germany and the US, respectively.
Furthermore, start-up companies such as Minus Zero based in
Bangalore, India, are also investing in research and development infrastructure
to create affordable self-driving cars, resulting in an increased demand for
hardware in the loop testing in autonomous vehicle technology. Therefore, as
more automotive manufacturers incorporate autonomous features in their
vehicles, the demand for hardware in the loop testing is expected to increase.
Hardware in the Loop Market
The implementation of the hardware in the loop technique can
be challenging due to the high cost of ownership and technical complexity
involved. Developing a mathematical model that includes variables and function
blocks can be complex, especially for systems like microgrids, aircraft models,
and automobile environments that require hardware capable of processing heavy
data. To run the simulation model, expensive real-time simulators and rack
computers are necessary, which can be a significant investment for
manufacturers looking to set up a new system. In addition, complex programs are
needed to configure the simulation model, which further adds to the technical
complexity of implementing the hardware in the loop technique. The increasing
complexity in embedded controller design has driven up demand for compatible
hardware in the loop systems to fulfill testing requirements.
Hardware in the Loop Market
Hardware in the loop testing solutions have traditionally
been used in the automotive and aerospace sectors to meet increasing functional
demands. Hardware in the loop systems are primarily used for verification and
validation of aerospace control systems, which eliminates the need for
dangerous physical testing. In the automotive sector, the demand for hardware
in the loop testing solutions has increased with the rise in the number of
functionalities in modern vehicles.
The power electronics sector has also seen a recent increase
in demand for hardware in the loop testing techniques. This is particularly
true for testing the operation, stability, and fault tolerance of electrical
grids. Furthermore, the hardware in the loop technique is being utilized in the
robotics sector for testing complex controllers used for robots.
The hardware in the loop market is expected to grow as
manufacturers look to meet industry safety standards. This presents growth
opportunities for the hardware in the loop market.
One of the biggest challenges of implementing a hardware in
the loop system is the complexity involved in creating real-time simulations.
Each hardware in the loop system must be uniquely designed and programmed
according to the specific requirements of the user. In order to accurately
simulate real-world conditions, the specifications of the hardware in the loop
system must be tailored to each individual application. Because of this, it is
not possible to create a one-size-fits-all program for all applications.
To illustrate, the programming required for an automobile
manufacturer to ensure their products conform to the Controller Area Network
(CAN) protocol will be vastly different from that of an aerospace manufacturer
testing their aerospace control systems. Developing the necessary expertise and
skills to carry out these programming tasks requires extensive training and
During the forecast period, the closed loop market is
expected to achieve the highest CAGR. Real-time simulation equipment is
connected to protective relays, controllers, and other hardware equipment for
hardware in the loop simulation. This technology has been used in various
industries such as aerospace, defense, space, and utilities. The increasing
implementation of autonomous driving and ADAS in the automotive industry is
expected to boost the demand for closed-loop hardware in the loop systems.
The automobile vertical is expected to hold the highest
market share in the hardware in the loop market during the forecast period. The
increasing use of this technique in automobiles to develop improved ECUs,
reduce the time to market, and comply with industry standards is the primary
reason for its growth.
The development of new technologies such as electric
vehicles and autonomous driving requires advancements in the testing of crucial
components such as Battery Management Systems, LiDAR, and computer vision.
LeddarTech, a leading manufacturer of ADAS and AD sensing technology, has
developed LeddarEcho, a LiDAR simulation software for hardware in the loop
applications. This software simulates LiDAR sensor models on dSPACE AURELION,
eliminating the need to use actual LiDAR sensors for developing sensing
platforms and perception systems. This technological advancement is expected to
further boost the demand for hardware in the loop testing in the automotive
The Asia Pacific region is projected to witness the highest
compound annual growth rate (CAGR) in the hardware in the loop market during
the forecast period. By 2031, this region is expected to account for the
largest market share, owing to the presence of significant drivers such as
China, Japan, and India. The rapid growth of the automotive, aerospace, and
power electronics sectors in Asia Pacific has contributed to the market's
Several automobile manufacturers in the region, such as TATA
Motors in India and Subaru in Japan, have adopted the hardware in the loop
technique to modernize their vehicles with advanced features like Advanced
Driver-Assistance Systems (ADAS), cameras, and radar. However, the increasing
complexity associated with embedded control systems is a challenge for
manufacturers. The use of electronic control units (ECUs) in a vehicle leads to
a large number of signals representing different functions and I/O types, which
can result in test overhead and catastrophic schedule impacts. To address this
challenge, HIL simulation and testing is being used to reduce test overhead and
Despite the benefits of HIL simulation and testing, reluctance
to invest due to the additional cost requirements for dedicated HIL hardware
and software hinders the growth of the hardware-in-the-loop market.
Nonetheless, the high adoption rate of the technique in a broad range of
applications, including power electronics and industrial robotics, provides an
opportunity for the market to grow during the forecast period.
The hardware in the loop market has been rapidly growing,
with recent developments in technology and industry players investing heavily
in research and development.
One significant development is the rising implementation of
closed-loop hardware in the loop systems in the automotive industry, which is
expected to boost the demand for this technology. The closed-loop market is
expected to grow at the highest CAGR during the forecast period.
Automobile manufacturers are increasingly using the hardware
in the loop technique to develop enhanced ECUs, reduce time to market, and
comply with industry standards. This has led to the automobile vertical holding
the highest market share in the hardware in the loop market.
Another development is the increasing demand for hardware in
the loop testing in autonomous vehicle technology. As more automotive
manufacturers integrate advanced driver assistance systems, collision avoidance
systems, and autonomous driving technologies into their vehicles, the need for
hardware in the loop testing is expected to rise.
In response to these developments, industry players such as
Continental and Hyundai are investing heavily in the development of ADAS and
autonomous driving technologies. LeddarTech has also developed a LiDAR
simulation software for hardware in the loop applications, which eliminates the
need to use actual LiDAR sensors for developing sensing platforms and perception
Dominating Companies in Hardware in the Loop Market
- NATIONAL INSTRUMENTS
- VECTOR INFORMATIK
- ELEKTROBIT AUTOMOTIVE
- OPAL-RT TECHNOLOGIES
- IPG AUTOMOTIVE
- KONRAD TECHNOLOGIES
- LHP ENGINEERING SOLUTION
- TYPHOON HIL
- BLOOMY CONTROLS
- PICKERING INTERFACES
- ADD2 LIMITED
- SPIRENT COMMUNICATIONS
- UAV NAVIGATION
Recent Developments in Hardware in the Loop Market
One of the significant mergers was in 2021, where National
Instruments (NI), a company specializing in HIL testing, merged with Ettus
Research. Ettus Research is a manufacturer of software-defined radio systems,
which are essential components in many HIL systems. The merger allowed NI to
expand its offerings and provide a more comprehensive solution for HIL testing.
In 2020, Texas-based test and measurement equipment
manufacturer Keysight Technologies acquired Eggplant, a software testing
company. The acquisition allowed Keysight to integrate Eggplant's automation
and artificial intelligence technology into its HIL testing solutions, which
would enable faster and more efficient testing of complex systems.
Another significant partnership in the field of HIL testing
was between Ansys, a simulation software provider, and NI. The partnership was
formed in 2019 and aimed to provide an integrated solution for HIL testing. The
partnership combined Ansys's simulation software with NI's hardware and
software tools to create a more efficient and effective testing environment for
In 2018, Honeywell, a multinational conglomerate that
produces aerospace systems, acquired German software company, Nextnine. The
acquisition allowed Honeywell to expand its offerings in the HIL testing market
and integrate Nextnine's remote access technology into its HIL testing
solutions, making it easier for engineers to test and troubleshoot systems
In 2020, dSPACE, a provider of HIL systems, acquired
understand.ai, a startup that specializes in developing and annotating data for
autonomous driving. The acquisition allowed dSPACE to integrate understand.ai's
data services into its HIL systems, enabling engineers to test autonomous
driving systems more effectively.
In 2019, Vector Informatik, a provider of software and
engineering services for automotive electronics, acquired Squoring
Technologies, a French company specializing in software analytics. The
acquisition enabled Vector to integrate Squoring's software analytics tools
into its HIL testing solutions, providing a more comprehensive solution for the
Also in 2019, Cadence Design Systems, a provider of
electronic design automation software, partnered with National Instruments (NI)
to provide a comprehensive solution for HIL testing in the automotive industry.
The partnership combined Cadence's simulation software with NI's HIL testing
hardware and software tools, enabling engineers to test automotive systems more
In 2018, Ansys, a provider of simulation software, acquired
OPTIS, a French company specializing in optical simulation software. The
acquisition enabled Ansys to integrate OPTIS's software into its HIL testing
solutions, providing a more comprehensive solution for the automotive,
aerospace, and defense industries.
In conclusion, Hardware in the Loop (HIL) is a valuable tool
for testing complex systems. It allows engineers to test systems under a
variety of conditions, without the need for expensive physical prototypes. HIL
helps ensure that the final product is reliable and safe, and it can be used to
test systems that are difficult or dangerous to test in the real world.