Automotive Software Market size to grow by USD 12.75 billion from 2022 to 2027, The growing demand for differentiated in-car experiences drives the market, Technavio

NEW YORK, March 15, 2024 /PRNewswire/ -- The Automotive Software Market report has been added to Technavio's offering. With ISO 9001:2015 certification, Technavio has proudly partnered with more than 100 Fortune 500 companies for over 16 years. The potential growth difference for the automotive software market between 2022 and 2027 is USD 12.75 billion.

The escalating demand for customized in-car experiences is fueling market expansion, driving profound shifts in the global automotive industry. Intense competition stems from technological advancements and heightened integration of electronic components. Automotive OEMs are leveraging cloud-based platforms to deliver digital services like telematics, expediting the deployment of Autonomous Cars through Cloud Mapping integration. Unified cloud infrastructure facilitates various applications, including simulation tests and HD map generation, enhancing vehicle performance and scalability. Collaborations between OEMs and software suppliers are intensifying to meet evolving technical demands. Such partnerships are poised to drive significant market growth in the foreseeable future.

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• The hacking and data security issues a significant challenges hindering the market growth.  

The automotive software market is segmented by application (Safety system, Infotainment and telematics, Powertrain, and Chassis), product (Application software, Middleware, and Operating system), and geography (APAC, Europe, North America, South America, and Middle East and Africa). 

• The market share growth by the safety system segment will be significant during the forecast period. The automotive industry has witnessed a rising demand for safety systems in vehicles due to legislative requirements mandating their installation. These regulations, often aimed at mitigating incidents such as back-over accidents, are enforced by entities like the National Highway Transportation Safety Authority (NHTSA) in the US. The growing emphasis on safety and convenience among vehicle consumers and regulatory bodies is fueling the integration of advanced safety features into next-generation vehicles. Developed regions like North America and Europe have shown substantial adoption of these safety technologies, which is expected to generate increased demand for automotive safety system software during the forecast period. 
• APAC is estimated to account for 40% of the global market during the forecast period. The automotive software market in the APAC region is projected to experience faster growth compared to Europe and North America in the forecasted period. Despite the current lower adoption rates of Advanced Driver Assistance Systems (ADAS) and  IVI systems, the market is anticipated to exhibit robust expansion. 

 View Sample Report for insights into the contribution of all the segments and regional opportunities in the report.

Key Companies:

Access Co. Ltd., Airbiquity Inc., Alphabet Inc., Bittium Corp., BlackBerry Ltd., Elinext IT Solutions Ltd., Green Hills Software LLC, Hitachi Ltd., Information Technologies Institute Intellias LLC, Intel Corp., KPIT Technologies Ltd., Microsoft Corp., NVIDIA Corp., NXP Semiconductors NV, Renesas Electronics Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schaeffler AG, Siemens AG, and Sigma Software

Analyst Review

The automotive software market is experiencing a transformative shift, driven by the increasing integration of computer-based applications and embedded systems within vehicles. This evolution encompasses a wide array of functionalities spanning from body control and comfort features to communication applications and advanced safety systems. As technology progresses, programmable instructions play a pivotal role in enhancing the capabilities of in-vehicle software, facilitating tasks ranging from basic operations to complex car-to-car communication protocols.

In the Asia Pacific region, where the automotive industry is burgeoning, the adoption of 5G technology is set to revolutionize in-vehicle connectivity, paving the way for enhanced communication capabilities and sophisticated telematics systems. Companies like Valeo are at the forefront, continuously innovating to deliver cutting-edge solutions in the automotive software landscape.

Within this dynamic market, segments such as ADAS & safety and connectivity are witnessing significant growth, fueled by a relentless focus on improving passenger and commercial vehicle safety and facilitating seamless communication between vehicles and external networks. Competitive benchmarking, historical data analysis, and accurate forecasts provide invaluable insights into market trends and dynamics, enabling stakeholders to make informed decisions.

Passenger cars and commercial vehicles alike benefit from advancements in automotive software, with tailored solutions catering to various propulsion types, be it internal combustion engines or electric vehicles. Software applications encompass a broad spectrum of functionalities, including infotainment systems, telematics, and safety features such as ADAS, crucial for the development of autonomous vehicles.

Regional opportunities abound, particularly in Asia Pacific and North America, where key companies vie for market share through innovation and strategic partnerships. In this competitive landscape, understanding the nuances of each market segment and operating system is paramount for success.

As the automotive industry continues to evolve, the role of software in shaping the future of mobility becomes increasingly pronounced. With a focus on delivering enhanced user experiences, improving safety standards, and driving innovation, automotive software remains a cornerstone of modern vehicle development, facilitating the transition towards a more connected, efficient, and autonomous transportation ecosystem. 

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Market Overview

The global automotive software market is experiencing a transformative shift, driven by advancements like programmable instructions and computer-based in-vehicle applications. Embedded systems are revolutionizing functions such as body control, comfort, and communication applications within vehicles. Moreover, with the emergence of 5G technology, car-to-car communication is becoming increasingly seamless and efficient. In the Asia Pacific region, this market is particularly dynamic, with rapid adoption of automotive software solutions. From enhancing safety features to enabling sophisticated entertainment systems, automotive software plays a pivotal role in shaping the future of transportation. As technology continues to evolve, the automotive software market is poised for further expansion and innovation, driving a new era of connected and intelligent vehicles.

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1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com

SOURCE Technavio

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