The global automotive software market size is expected to reach USD 43.29 billion in 2024 and is anticipated to reach USD 86.43 billion by 2029 growing at a CAGR of 14.83% during the forecast period 2024 to 2029.
Automotive software denotes embedded software or firmware that's mainly related to automobile industry-specific products or services. The automotive industry, if considered an economy, is going to be the sixth-largest economy in the world.
Automotive software may be a set of instructions that help the user interact with underlying in-vehicle hardware and perform control functions in a vehicle. It focuses on the expanding trend towards sensor fusion, automotive haptics, and the adoption of the onboard vehicle health monitoring and diagnostic system. Manufacturers of automotive infotainment systems are shifting towards the PC-like architectural concept, where the functionality of the system depends on the central processing unit.
Increasing R&D activities for connected and autonomous vehicles and increasing use of electronic content are expected to drive the global automotive software market. Growing demand for electric cars is another critical factor in supporting market growth. Moreover, by 2021, it's assumed that there'll be 250 million connected vehicles on the road, an element further complimenting the automotive software market growth. In the future, cars are supposed to be designed in a way with a good range of digital technologies so as to enhance fuel efficiency, road safety, and vehicle reliability, alleviate traffic jams and enhance the experience of both passengers and drivers.
The use of open-source platforms and standardization of product offerings has resulted in reduced cost of application and firmware development, thereby augmenting the general marketplace for the global automotive software market. The consumers also as OEMs are gradually increasing their specialization in automotive infotainment systems and these manufacturers are contending to support the software or OS that's utilized in these systems. Furthermore, the manufacturers also are that specialize in offering PC-like functionality in these infotainment systems and are concentrating on the utilization of software which will distinguish their products from their contenders.
Presently, vehicles support OS platforms like Windows CE, Android, Apple OS, QNX, and Linux-based OS. Nonetheless, the OEMs and Tier-1 car suppliers are sustained by organizations like GENIVI Alliance that standardize product offerings and endorse the usage of open-source platforms like Linux OS. This factor is probably going to result in a discount on the cost of automotive software applications also as firmware development, subsequently resulting in the expansion of the worldwide automotive software market.
The increasing complexity in software architecture results in higher production costs for OEMs & suppliers that acts as a restraint for business growth.
REPORT METRIC |
DETAILS |
Market Size Available |
2023 to 2029 |
Base Year |
2023 |
Forecast Period |
2024 to 2029 |
CAGR |
14.83% |
Segments Covered |
By Application, Product, and Region. |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Adobe Systems Software Ireland Ltd., Airbiquity, BlackBerry Limited, Microsoft Corporation, Wind River Systems Inc., Atego, Green Hills Software, MontaVista Software, LLC, Autonet Mobile, Inc., GoogleTop of FormBottom of Form, and Others. |
The engine management system (EMS) application held a prominent share of 25% in the global automotive software market impelled by the growing need to improve vehicle performance and efficiency. The government authorities are making stringent regulations associated with fuel emissions, fueling the adoption of EMS. The EMS is predicted to continually improve processor capabilities and control theory research to supply reduced emissions, increased drivability, and enhanced performance & efficiency.
The application software segment is probably going to account for the top share of the market in the coming years. The growing demand for infotainment also as telematics services around the globe is perhaps going to be the key factor fuelling the expansion of the market segment within the foreseen years.
North America's automotive software market held around 35% share in the global business in 2018 due to the presence of an outsized number of automakers and technology giants. The rise in vehicle production, increase in the number of connected vehicles, rapid changes in-vehicle electronics architecture, improvements in C-V2X technology, and expansion of leading OEMs are the different factors contributing to plug growth. The region also features a favorable regulatory framework for self-driving vehicles, which has allowed companies to conduct tests on autonomous vehicles. The Canadian authorities, on the opposite hand, are currently observing independent developments within the U.S. markets to implement best practices and a regulatory framework for autonomous cars.
The developing countries within the Europe and Asia Pacific region also are developing infrastructure to support mobility services. Europe's automotive software market is probably going to dominate the worldwide business during the projection period. Factors including substantial growth prospects for automobiles having advanced driver assistance systems in this region because of the presence of a longtime ICT infrastructure are about to fuel the expansion of the automotive software market within the area during the outlook period.
The Asia Pacific, automotive software market, is predicted to be the most critical region within the global market during the foreseen period. In previous years, the area has emerged as a hub for automobile production. Infrastructural developments and industrialization within emerging economies have opened new avenues, creating several opportunities for automotive OEMs.
Adobe Systems Software Ireland Ltd. Airbiquity, BlackBerry Limited, Microsoft Corporation, Wind River Systems Inc., Atego, Green Hills Software, MontaVista Software, LLC, Autonet Mobile, Inc., GoogleTop of FormBottom of Form. These are the market players that are dominating the automotive software market.
By Application
By Product
By Region
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