According to a research report “Automotive Software Market by ICE Application (ADAS, Autonomous Driving, Infotainment, Body Control & Comfort, Telematics), Software Layer (OS, Middleware, Application), Vehicle Type (PCs, LCVs, HCVs), EV Application & Region – Global Forecast to 2030″ published by MarketsandMarkets, the global automotive software market size is projected to grow from USD 19.0 billion in 2023 to USD 32.3 billion by 2030, at a CAGR of 7.8%. The rise in focus towards software-defined vehicles paired with increasing penetration of ADAS features in vehicles are expected to increase the demand for automotive software solutions. Also, the strong government support for vehicle safety paired with rising adoption of software-over-the-air (SOTA) updates are anticipated to promote the revenue growth of automotive software market.
Automotive Software Market:
Driver: Advancements in infotainment systems
There is strong competition among automotive manufacturers to deploy cutting-edge infotainment systems for their upcoming vehicle models. For example, Mitsubishi Motors Corporation (Japan), Nissan Motor Co., Ltd. (Japan), and Renault (France) have adopted Google’s Android operating system for their next-generation infotainment systems. In November 2022, Hyundai Motor (South Korea) also selected NVIDIA drive infotainment and AI platform for all future Hyundai, Kia, and Genesis models.
The changing consumer preference pertaining to wireless technology, along with the steady increase in demand for seamless connectivity of phones with passenger cars, is expected to drive the in-vehicle infotainment segment. This, in turn, will increase the demand for in-vehicle infotainment systems, thereby supporting the revenue growth of the automotive software market during the forecast period. As such, automotive software (operating systems such as Android, Linux, and QNX) are integral parts of the in-vehicle infotainment systems.
Furthermore, there is a high demand for infotainment services such as navigation and traffic updates. Most of these services require real-time information and are listed in the traffic efficiency section. This would require the need for automotive software to deliver real-time information. These aforementioned parameters are expected to bolster the revenue growth of the automotive software market during the forecast period.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=200707066
Opportunity: Developments in semi-autonomous and autonomous vehicles
Autonomous vehicles have become a decisive focal point for automotive stakeholders. They have invested billions of dollars and best resources into completing the task of making autonomous vehicles a reality. Currently, vehicles are equipped with various electronic components to sense their environment and exchange signals with external entities. Behind the whole communication process, a vast amount of data is generated for implementing machine learning with algorithms in the vehicle’s computer system. This would help OEMs, automotive Tier I suppliers, and non-automotive players to make autonomous vehicles a reality. Hence, reliable automotive software is the key to implementing AI and developing semi-autonomous and autonomous cars.
Manufacturers are focusing on launching new advanced software that will support autonomous driving. For example, in July 2023, Volkswagen (Germany) started its first autonomous vehicle test program in Austin, US, and anticipates a commercial launch of autonomous driving vehicles by 2026. Similarly, in March 2023, Ford Motor Company (US) established Latitude AI, a subsidiary that focuses on developing a hands-free, eyes-off-the-road automated driving system for millions of vehicles. Apart from OEMs and other players in the automotive ecosystem, start-ups are unleashing distinctive software platforms for autonomous cars. There are developments in automotive software with many potential opportunities, which are yet to be channelized for automotive software in the autonomous space. Therefore, automotive software has a lot of revenue opportunities in semi-autonomous and autonomous vehicle technologies.
Passenger car segment is expected to have significant growth opportunities in global automotive software market
The passenger car segment is expected to have significant growth opportunities in the automotive software market during the forecast period. This is due to the increasing adoption of ADAS features in passenger cars and the rising inclination towards autonomous driving. Additionally, rising demand for passenger cars in emerging and developed countries has also contributed to the growth of the automotive software market. For example, in 2022, car production in China was around 23.8 million units, while in Japan, it was around 6.5 million. South Korea accounted for around 3.4 million units; in India, it was around 4.4 million units in the same year. The demand for automotive software in the Asia Pacific region is expected to increase due to the advent of autonomous driving, rising vehicle production, and prominent growth in demand for high-end services such as connected car services and telematics. All these aforementioned factors are anticipated to bolster the revenue growth of the passenger car segment during the forecast period.
“Germany to lead the automotive software market in Europe”
Germany is expected to have a sizeable market for automotive software among all the European countries. The most significant factors supporting the growth of the automotive software market in Germany are the penetration of premium passenger car brands with high-end software applications and government mandates regarding safety. The high sales of premium vehicles, such as the Mercedes-Benz S-Class, BMW 7 Series, Mercedes-Benz G-Class Audi A8, and Audi S8, are expected to drive the automotive software market in Germany during the forecast period.
Key Players
The automotive software market is dominated by global players such as Robert Bosch GmbH (Germany), NXP Semiconductors (Netherlands), NVIDIA Corporation (US), BlackBerry Limited (Canada), and Continental AG (Germany), among others. These companies adopted new product development strategies, expansion, partnerships & collaborations, and mergers & acquisitions to gain traction in the market.
Request Free Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=200707066
