The market crossed US$ 21.7 billion mark in 2022 and is expected to hit US$ 42.9 billion by 2030, recording a CAGR of 13.1% during the forecast period.
Automotive software market has been significantly growing with the rising demand for autonomous vehicles and accelerating adoption of connected car services.
Growing trend connected car services, and growing trend of autonomous vehicles (AV) are some of the major factors driving the growth of the automotive software market. In addition, the technological advancements in ADAS, telematics, AI in cars in the past few years have paved the way for new technologies that facilitate the development of different custom automotive software. In addition, there is high demand for electronic components such as ECUs, HMI, domain controllers which require applications in programed manner. The ADAS and safety system segment is expected to hold the largest market share in the market. Further, infotainment systems segment is also expected to gain traction during the forecasted year.
Within the report, the automotive software market is segmented into application, vehicle type, and geography. By application, the automotive software market is further segmented into ADAS and safety systems, body control and comfort systems, powertrain systems, infotainment systems, communication systems, telematics systems. On the basis of vehicle type, the automotive software market is bifurcated into passenger vehicles, commercial vehicles, Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), plug-in Hybrid Electric Vehicle (PHEV). Geographically, the automotive software market is subsegmented into North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa.
Growing adoption of ADAS features in vehicles is enhancing the growth of automotive software market.
Technological advancement in automotive industry such as self-driving car technology, advanced driver assistance system (ADAS) is contributing to automotive software market growth. In addition, the rising demand for advanced safety features such as autonomous emergency braking system, adaptive cruise control, and supportive government regulations are boosting the automotive software market growth. ADAS technology significantly reduces complexity in driving with stability control, upgradation with next-generation vehicles.
The rising adoption of AI and 5G services is one of the major factors accelerating the automotive software market growth.
The user experience of automotive software mainly depends on wireless connectivity. To find the digital solution, different telecom company companies are focusing on development of 5G to boost the safety as well as efficiency of automotive software. Thus, 5G will be a key factor for autonomous vehicles (AV) as well as automotive software as it allows faster communication. For instance, in 2022, South Korea and Europe have signed deal on 5G development.
Recent strategic developments in Automotive Software market
The Automotive Software market has undergone several significant developments, and a few of these have been mentioned below:
The Automotive Software market is driven by several players by implementing strategic activities such as investments, new launches, mergers & acquisitions, and partnerships. Aimotive, Airbiquity Inc., Elektrobit, Green Hills Software, Luxoft, Microsoft Corporation, NVIDIA Corporation, NXP Semiconductors, Renesas Electronics Corporation, Robert Bosch GmbH are among the prominent players operating in the market.
Target audience for the report:
Scope of the report:
In this report, the market has been segmented on the basis of:
Companies profiled
- Aimotive
- Airbiquity Inc.
- Elektrobit
- Green Hills Software
- Luxoft
- Microsoft Corporation
- NVIDIA Corporation
- NXP Semiconductors
- Renesas Electronics Corporation
- Robert Bosch GmbH