PUBLISHER: The Business Research Company | PRODUCT CODE: 1425258
PUBLISHER: The Business Research Company | PRODUCT CODE: 1425258
Automotive Software Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automotive software? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automotive software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Automotive software represents a category of applications designed to enhance the performance and capabilities of vehicles, playing a transformative role in the future of the transportation industry.
Key components within automotive software solutions encompass autopilot software, navigation software, entertainment software, and car safety software. Autopilot software serves as a tool that specifically governs an aircraft's control within defined parameters, utilizing the vehicle's hydraulic, mechanical, and electronic systems. This software landscape extends across various vehicle types, including passenger cars, LCVs, and HCVs, incorporating multiple software layers such as operating systems, middleware, and application software. Diverse applications within this domain encompass ADAS and safety systems, body control and comfort systems, powertrain systems, infotainment systems, communication systems, vehicle management and telematics, connected services, autonomous driving, HMI applications, and a v2x system. This dynamic suite of automotive software solutions underscores its pivotal role in shaping the technological landscape of the automotive sector.
The automotive software market research report is one of a series of new reports from The Business Research Company that provides automotive software market statistics, including automotive software industry global market size, regional shares, competitors with automotive software market share, detailed automotive software market segments, market trends and opportunities, and any further data you may need to thrive in the automotive software industry. This automotive software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The automotive software market size has grown rapidly in recent years. It will grow from $26.32 billion in 2023 to $30.79 billion in 2024 at a compound annual growth rate (CAGR) of 17.0%. The expansion observed during the historical period can be ascribed to several factors, including heightened consumer demand for connectivity, regulatory imperatives related to emissions and safety standards, the evolution of in-car infotainment systems, a surge in the demand for fuel efficiency, the globalization of automotive supply chains, and the escalating complexity of vehicle systems.
The automotive software market size is expected to see rapid growth in the next few years. It will grow to $54.62 billion in 2028 at a compound annual growth rate (CAGR) of 15.4%. The anticipated growth in the forecast period can be linked to the evolution of business models in mobility services, a rising demand for personalization and enhanced user experiences, an increased emphasis on data security and privacy, the implementation of advanced predictive maintenance practices, and the ongoing trend of upgrades and retrofitting. Noteworthy trends expected in the forecast period encompass the emergence of software-defined vehicles, the growing complexity of in-car infotainment systems, a heightened focus on cybersecurity for connected vehicles, the widespread adoption of over-the-air (OTA) updates, and a dedicated emphasis on user experience (UX) design.
The anticipated surge in the automotive software market is driven by the increasing adoption of connected cars. Connected vehicles, capable of two-way communication with external systems, enable various devices both inside and outside the car to access the internet and exchange data. Automotive software in these vehicles connects through sophisticated in-car connectivity systems, facilitating internet access, remote control of car systems, and robust security features. According to Cisco's report in May 2022, it is projected that by 2025, approximately 2 billion connected vehicles will be on the global roads, attributing this growth to advancements in automotive technologies and aftermarket equipment.
The automotive software market is set to experience significant growth due to the rising demand for electric vehicles (EVs). These vehicles, powered by electric motors and rechargeable through external sources, heavily rely on automotive software for managing and controlling various functions and components. Automotive software in EVs plays pivotal roles in autonomous driving, enhancing safety and performance, managing power electronics, battery systems, and enabling over-the-air upgrades. The International Energy Agency reported a substantial increase in EV sales, nearly doubling to 6.6 million in 2021 compared to 2020, consequently expanding the global EV fleet to 16.5 million vehicles. This escalating demand for electric vehicles is a driving force behind the automotive software market's growth.
In the automotive software sector, product innovation has become a prominent trend among major industry players. Leading companies are dedicatedly focusing on developing innovative solutions to cater to evolving customer needs. Notably, in December 2021, Robert Bosch, a German-based technological company, introduced a robust computer system designed specifically for the infotainment domain. This system facilitates the swift integration of services like in-car communication, payment mechanisms, video streaming, voice assistants, and more into vehicles. Leveraging their expertise in automotive software solutions and domain-specific hardware, Robert Bosch has collaborated with a network of leading technology firms to create this information domain computer.
Leading firms within the automotive software market are strategically forging partnerships and collaborations to harness advanced software engineering capabilities from key industry players in developing sophisticated automotive software platforms. Strategic partnerships involve mutual leveraging of strengths and resources among companies to attain shared benefits and enhance overall success. For example, in January 2023, EPAM Systems Inc., a US-based product engineering company, joined forces with Renesas Electronics Corporation, a US-based provider of advanced semiconductor solutions, to introduce AosEdge. This vehicle-to-cloud (V2C) platform signifies a progressive step in connected car evolution, enabling original equipment manufacturers (OEMs) to build fully software-defined vehicles. AosEdge streamlines the functionality of diverse software components within a unified environment, significantly enhancing the delivery of in-vehicle software. Leveraging Renesas' embedded automotive software expertise and EPAM's proficiency in digital platforms, this collaborative platform furnishes a comprehensive software infrastructure linking cars to the cloud, encompassing installation through operation.
In July 2022, Brookfield Business Partners, a Canadian entity specializing in owning and managing high-quality essential products and services, successfully acquired CDK Global for a sum of $8.3 billion. This acquisition is poised to empower CDK in further enhancing the dealer and consumer experience within the automotive, heavy truck, recreation, and heavy equipment sectors. CDK Global, a US-based company renowned for its provision of software and technology solutions to various industries, will benefit from this acquisition by reinforcing its capabilities to elevate customer experiences during vehicle sales, purchases, and ownership processes.
Major companies operating in the automotive software market report are NVIDIA Corporation, NXP Semiconductors N.V., BlackBerry Limited, Airbiquity Inc., Wind River Systems Inc., Green Hills Software LLC, Renesas Electronics Corporation, Microsoft Corporation, Elektrobit Automotive GmbH, Autonet Mobile Inc., MontaVista Software LLC, AImotive Kft., Adobe Inc., Atego Systems Inc., Robert Bosch GmbH, Alphabet Inc., Luxoft, Cox Automotive Inc., SAP SE, CDK Global Inc., Reynolds and Reynolds, Google LLC, KPIT Technologies Limited, Solera Holdings Inc., Dominion Enterprises, Epicor Software Corporation, Wipro Limited, Infosys Limited, Tata Consultancy Services Limited, Tech Mahindra Limited, HCL Technologies Limited, Capgemini SE, International Business Machines Corporation, Oracle Corporation, Accenture plc
Asia-Pacific was the largest region in the automotive software market in 2023. The regions covered in the automotive software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the automotive software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The automotive software market includes revenues earned by entities through digital imaging software and inventory management software. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.