Automotive Software Market

Global Automotive Software Market Size

The global automotive software market was valued at USD 43.29 billion in 2024 and is anticipated to reach USD 49.71 billion in 2025 from USD 150.27 billion by 2033, growing at a CAGR of 14.83% during the forecast period from 2025 to 2033.

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. The 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 complementing 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. 

MARKET 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. Consumers, 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 specialize in offering PC-like functionality in these infotainment systems and concentrate on the utilization of software that will distinguish their products from their competitors. 

Presently, vehicles support OS platforms like Windows CE, Android, Apple OS, QNX, and Linux-based OS. Nonetheless, OEMs and Tier-1 car suppliers are sustained by organizations like GENIVI Alliance, which standardizes product offerings and endorses 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, such as firmware development, subsequently resulting in the expansion of the worldwide automotive software market.

MARKET RESTRAINTS

The increasing complexity in software architecture results in higher production costs for OEMs & suppliers, which acts as a restraint for business growth.

REPORT COVERAGE

SEGMENT ANALYSIS

By Application Insights

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.

By Product Insights

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.

REGIONAL ANALYSIS

North America's automotive software market held around a 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 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 other 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 Europe and the Asia Pacific region are also 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 long-term 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.

KEY MARKET PLAYERS

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.

RECENT HAPPENINGS IN THE MARKET

• 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 the embedded world 2019 event. Located within the NXP Semiconductors booth, the corporation 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 mixes the security and reliability of BlackBerry's QNX real-time OS with AWS' Internet of Things (IoT) Services within the cloud and in the car.

MARKET SEGMENTATION

This research report on the automotive software Market is segmented and sub-segmented into the following categories.

By Application

• Safety System
• Engine Management System
• Infotainment and Telematics
• Powertrain
• Chassis

By Product

• Operating system
• Middleware
• Application software

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa