Hardware in the Loop Market

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 the system.

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.

Restraints in 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.

Opportunities in 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 knowledge.

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 industry.

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 expansion.

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 improve efficiency.

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 systems.

Dominating Companies in Hardware in the Loop Market

• DSPACE
• NATIONAL INSTRUMENTS
• VECTOR INFORMATIK
• ELEKTROBIT AUTOMOTIVE
• OPAL-RT TECHNOLOGIES
• SPEEDGOAT
• BOSCH
• IPG AUTOMOTIVE
• ACUTRONIC
• PLEXIM
• KONRAD TECHNOLOGIES
• MICRONOVA
• LHP ENGINEERING SOLUTION
• GENUEN
• TYPHOON HIL
• MODELINGTECH
• BLOOMY CONTROLS
• CONTROLLAB
• PICKERING INTERFACES
• APPLUS+
• ADD2 LIMITED
• BLUEHALO
• SIEMENS
• 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 complex systems.

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 remotely.

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 automotive industry.

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 efficiently.

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.