The global automotive software market was valued at USD 18.70 Billion in 2018 and is predicted to be assessed about USD 61 Billion by 2025, expanding at a CAGR of above 18% during the forecast period of 2020 to 2025.
Automotive software denotes an embedded software or firmware that's related mainly 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 helps the user interact with underlying in-vehicle hardware and also perform control functions in a vehicle. It focuses on the expanding trend towards sensor fusion, automotive haptics, and adoption of the on-board 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 2020, 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, vehicle reliability, alleviate traffic jam and enhance the experience of both passengers and drivers.
Airbiquity®, a worldwide leader in connected vehicle services, demonstrated its latest OTAmatic™ over-the-air (OTA) software and data management solution in Nuremberg, Germany at embedded world 2019 event. Located within the NXP Semiconductors booth, the corporate displayed its technology integration with the NXP MPC-LS Vehicle Network Processing Evaluation Board (EVB) for efficient, secure, and highly-scalable multi-ECU software updates and data management, which was powered by advanced high-performance service-oriented gateways compatible with multiple vehicle network interfaces.
BlackBerry Limited unveiled a customizable concept solution for OEMs and fleet managers that can be used for vehicle health and security cases to 'future-proof' the vehicles, accelerating development timelines and reducing the value of moving projects from research to production and onto roads.
BlackBerry Limited announced its collaboration with Amazon Web Services, Inc. (AWS) to exhibit a connected vehicle software platform for in-vehicle applications that mix the security and security of BlackBerry's QNX real-time OS with AWS' Internet of Things (IoT) Services within the cloud and in the car.
Drivers and Restraints of Automotive Software Market:
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 specialize in automotive infotainment systems and these manufacturers are contending supported 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 within 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.
The engine management system (EMS) application held a prominent share of 25% in the global automotive software market impelled by growing need to improve vehicle performance and efficiency. The government authorities are making stringent regulation 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.
Automotive Software Market Region wise analysis:
Marked Segmentation based on the region:
a. Middle East
North America 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 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 is 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 regions 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 the emerging economies have opened new avenues, creating several opportunities for the automotive OEMs.
Key Players of Market:
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Automotive Software Market, By Product
6.1.1 Operating System
6.1.3 Application Software
6.1.4 Market Size Estimations & Forecasts (2019-2024)
6.1.5 Y-o-Y Growth Rate Analysis
6.1.6 Market Attractiveness Index
6.2 Automotive Software Market, By Application
6.2.1 Safety System
6.2.2 Infotainment and Telematics
6.2.5 Market Size Estimations & Forecasts (2019-2024)
6.2.6 Y-o-Y Growth Rate Analysis
6.2.7 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.2 By Product
7.2.3 By Application
7.3.1 By Country
188.8.131.52 Rest of Europe
7.3.2 By Product
7.3.3 By Application
7.4 Asia Pacific
7.4.1 By Country
184.108.40.206 South Korea
220.127.116.11 South East Asia
18.104.22.168 Australia & NZ
22.214.171.124 Rest of Asia-Pacific
7.4.2 By Product
7.4.3 By Application
7.5 Latin America
7.5.1 By Country
126.96.36.199 Rest of Latin America
7.5.2 By Product
7.5.3 By Application
7.6 Middle East and Africa
7.6.1 By Country
188.8.131.52 Middle East
7.6.2 By Product
7.6.3 By Application
8. Key Player Analysis
8.1 Adobe Systems Software Ltd
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.3 BlackBerry Limited
8.4 Microsoft Corporation
8.5 Wind River systems Inc
8.7 Green Hills Software
8.8 MontaVista Software, LLC
8.9 Autonet Mobile, Inc.
8.10 Google Inc
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures