Automotive manufacturers and suppliers develop new vehicle technologies to increase traffic safety and transportation efficiency. Autonomous and cooperative vehicle systems are crucial examples of such advanced technologies. The hustle to deploy these fascinating systems onto public roads increases as customer's expectations rise. Networked driving simulation represents an effective virtual prototyping tool that can support the development, and hence, accelerate system deployment. In networked driving simulation, two or more human-driven virtual vehicles share the same environment and form a very close approximation of real-world traffic interactions. This emerged multi-interactive virtual environment can serve various applications related to the new vehicle technologies and the ever increasing traffic complexity. This paper introduces the promising applications of networked driving simulation and outlines the necessary system design requirements. In addition, the work presents an extensive literature review and evaluation of utilizations of networked driving simulation. Furthermore, three compelling systems of networked driving simulation are analyzed regarding their technical specifications and application scopes. The systems are compared and evaluated using the derived requirements. Finally, potential future work is revealed regarding the design of resilient networked driving simulation systems that can be tailored for possible changes of application requirements.