by The automotive software market comprises software solutions that are installed in automobiles for enabling various functions and applications. Automotive software helps in functions like engine management, navigation, in-vehicle entertainment among others. With the growing penetration of advanced automated driver-assistance systems, vehicle connectivity features and electrification, the demand for automotive software is expected to surge significantly.
The Global automotive software market is estimated to be valued at US$ 37.68 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
The key opportunities in the Automotive Software Market Size include development of solutions for enhancing driver & passenger experience, developing secure and robust platforms for future mobility services and advanced software-defined vehicles. Growing demand for improved infotainment systems and vehicle connectivity from emerging markets will also provide huge opportunities for automotive software vendors.
Key Takeaways
Key players operating in the automotive software are ATEGO SYSTEMS INC., Autonet, Blackberry, Wind River, Microsoft, ACCESS, Broadcom, Google, Green Hills Software, MontaVista Software, Mentor Graphics, Airbiquity, Texas Instruments, Adobe Systems, PTC Inc., NXP Semiconductors, Renesas Electronics, Dassault Systems, and Intellias Ltd. The key players are focusing on developing advanced software solutions for features like fully autonomous driving, over-the-air update capabilities, and advanced connectivity & telematics.
Globally, the automotive software market is expected to witness significant expansion especially in Asia Pacific and North America owing to large automobile production clusters and early adoption of advanced vehicle features. China and US are expected to remain the lucrative markets for automotive software globally. Emerging technologies like Mobility-as-a-Service and autonomous driving will further drive the need for advanced automotive software platforms globally over the forecast period.
Market drivers: The key driver for the growth of the automotive software market is the increasing electrification and connectivity of vehicles. With more electric and hybrid vehicles being manufactured, the demand for advanced powertrain software, battery management software and charging software is witnessing strong growth. Further, growing connectivity within vehicles for enabling features like Bluetooth, Wi-Fi hotspot, navigation, and advanced driver-assistance functions is also fuelling the demand for automotive software solutions globally.
PEST Analysis
Political: Government regulations regarding vehicle emissions and safety are becoming more stringent every year, forcing automakers to adopt the latest software and technology to comply.
Economic: As vehicle production increases globally alongside rising consumer spending, the market for automotive software is projected to grow substantially to power new vehicle features and functions.
Social: Customers expect their in-vehicle experience to be as connected, personalized and user-friendly as the latest smartphones and smart home devices. This is driving automakers to develop advanced in-vehicle infotainment and connectivity solutions.
Technological: The rise of electric vehicles, autonomous driving technology, advanced driver assistance systems and cloud connectivity are leading automakers to increasingly rely on powerful and sophisticated automotive software solutions to develop these new capabilities. Newer programming languages, cyber security measures, over-the-air updates and other tools are also impacting software development.
Geographical Regions with Highest Market Concentration
North America and Europe currently account for the largest share of the global automotive software market in terms of value, due to the presence of major automakers and Tier 1 suppliers in countries like the United States, Germany, and the United Kingdom. Strong consumer demand for connected vehicles and advanced driver-assistance features is driving software investments in these developed markets.
Fastest Growing Regional Market
Asia Pacific is projected to be the fastest growing regional market for automotive software during the forecast period. This is attributed to rising vehicle production and sales led by China and India, investments in electric and autonomous vehicles, and an overall push for newer in-vehicle technologies. Countries like South Korea, Japan and Australia are also contributing to the market growth through strong exports and advanced domestic automotive industries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
