The programmable data instruction used for executing operations of computer-based in-vehicle applications is carried out by automotive software. It has slowly evolved into in-vehicle automation and with further advancements automotive software is now leveraging the power of automation. It is an operating system that is used for the interactions of the user and electronic devices available in the vehicles. Besides, it helps in offering real-time insights, automating processes, and making better vehicle related decisions.
The global automotive software market size is predicted to reach over USD 14.9 billion by 2028. This can be ascribed to the increasing demand for advanced driver assistance system, and rising demand for automated and electrified vehicles. Besides, the increasing demand for vehicle application like automatic crash notification, remote vehicle diagnostics and emergency assistance are also the key factor driving the market growth for automotive software.
However, the rising complexity in software architecture resulting to high production cost for OEMs & suppliers are hampering the market growth. Furthermore, the future adoption of 5G technologies and use of Artificial Intelligence (AI), rising developments in semi-autonomous and autonomous vehicles, and rising data monetization in extended automotive ecosystem are likely to provide lucrative development opportunities for the automotive software market in the forthcoming years.
Automotive Software Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 14.9 billion|
|Growth Rate||CAGR of 16.3% during 2021-2028|
|Segment Covered||Product, Application, Vehicle Type, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||NXP Semiconductors N.V., Renesas Electronics Corporation, BlackBerry Limited, Robert Bosch GmbH, Airbiquity, Inc., NVIDIA Corporation, PTC, Inc., and Adobe, Inc.|
Key Segments of the Global Automotive Software Market
Product Overview, 2019-2028 (USD Million)
- Application Software
- Middleware Software
- Operating System
Application Overview, 2019-2028 (USD Million)
- Advanced Driver Assistance Systems (ADAS) & Safety Systems
- Infotainment & Telematics
- Communication Systems
- Body Control & Comfort Systems
- Powertrain Systems
Vehicle Type Overview, 2019-2028 (USD Million)
- ICE Passenger Car
- ICE Light Commercial Vehicle
- ICE Heavy Commercial Vehicle
- Battery Electric Vehicle
- Hybrid Electric Vehicle
- Plug-in Hybrid Electric Vehicle and Autonomous Vehicles
Regional Overview, 2019-2028 (USD Million)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global automotive Application Software market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global automotive software market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the automotive Application Software industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on Product, application, and industry vertical. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global automotive software market. The report will benefit every stakeholder involved in the automotive software market.
- Managers within the automotive software industry looking to publish recent and forecasted statistics about the global automotive software market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global automotive software market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Frequently Asked Questions (FAQ) :
Over the past few decades, automotive industry has evolved from conventional techniques to automated solutions. The automotive industry is leading towards an era where cars can communicate with each other and to drivers. With the growing adoption of numerous technologies, automated software is no more limited to a particular department and being adopted across a wide range of industries and their business processes.
Advent of advanced technologies such as IoT and smart & connected vehicles enable automotive Application Software to grow significantly due to the requirement of an interactive platform solution between the sensors embedded in the vehicles and users of these vehicles. Moreover, automotive software also boosts adoption of various connected car devices making use of innovative technologies for advanced UI, and rising investment in auto-tech and autonomous vehicles. This will steer the growth of the automotive software industry in the years ahead.
Furthermore, as the adoption of IoT is increasing, automotive software is used for in-vehicle embedded systems. Hence, car manufacturers will adopt a system engineering approach for updating the software as per the wants of the consumer, thereby propping up the automotive software market demand over the forthcoming years.
The market is consolidated as several major market players currently hold the major market share. However, the market is expected to become fragmented in the forthcoming years as several new market players are emerging from developing countries such as India, Japan, China, and other countries.
Based on the Product segment, the market is bifurcated into Operating System, middleware and Application Software. In 2020, the Application Software segment accumulated the maximum market share and it is likely to continue its dominance throughout the forecast years. However, the Operating System segment is projected to attain major growth throughout the forecast years owing to the increasing installation of advanced software in the vehicles.
Based on the application, the market is segmented into Advanced Driver Assistance Systems (ADAS) & Safety Systems, Communication Systems, Infotainment & Telematics, Body Control & Comfort Systems, and Powertrain Systems. The Infotainment & Telematics sector seized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years. The growth of this segment is largely ascribed to the growing adoption of advanced technologies in the near future and an increase in the need to provide information to the customers from reliable sources.
Vehicle Type Segment
Based on the industry vertical, the market is segmented into ICE Light Commercial Vehicle, ICE Passenger Car, ICE Heavy Commercial Vehicle, healthcare, manufacturing, Plug-in Hybrid Electric Vehicle and Autonomous Vehicles. The ICE Passenger Car segment gathered the major market share in 2020 and it is likely to continue its dominance throughout the forecast years. The growing need to provide engine-based software to customers is boosting the market growth across automotive industry.
Europe is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the increasing demand among small & medium as well as large enterprises to enhance their safety systems. However, the Asia-Pacific is likely to gather noteworthy growth through the forecast years 2021-2028. The growth of the automotive software market in this region is mostly ascribed to the growing adoption of automotive software by companies in countries such as India, Japan, and China to compete against other regional players.
The major players of the global automotive Application Software market are Robert Bosch GmbH, NVIDIA Corporation, Renesas Electronics Corporation, Microsoft Corporation, Intel Corporation, Adobe, Inc., BlackBerry Limited, NXP Semiconductors N.V., Airbiquity, Inc., and Atego Systems, Inc. Renowned companies are offering new and modern automotive Application Software Application Software solutions. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic Operating System and solutions and to remain competitive in the global market.