The “Automotive Software – Global Market Trajectory & Analytics” report has been added to ResearchAndMarkets.com’s offering.
Global Automotive Software Market to Reach $29.3 Billion by 2026
Global market for Automotive Software estimated at US$17.7 Billion in the year 2020, is projected to reach a revised size of US$29.3 Billion by 2026, growing at a CAGR of 8.9% over the analysis period.
Also referred to as software for in-vehicle embedded systems, automotive software covers programmable data instructions used to execute various tasks of in-vehicle computer-based applications such as infotainment, telematics, communication, body control & comfort, powertrain, safety and advanced driver assistance systems (ADAS).
Growth in the global market is being driven by due to increasing influx of emerging and advanced technologies into vehicle models to improve functionality, safety and the driving experience. The incorporation of new features and increasing use of connectivity services for communication and real-time data transfer are creating a strong demand for automotive software solutions offering high convenience and utility to customers.
Global uptake of automotive software is also favored by stringent regulations pertaining to safety and fuel efficiency coupled with incorporation of electronics-based driving safety and comfort systems. Mandatory installation of e-call systems and rear-view cameras in all vehicles for reducing the chances of back-over accidents are bound to augment the market growth.
Application Software, one of the segments analyzed in the report, is projected to grow at a 9.7% CAGR to reach US$18.3 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Middleware segment is readjusted to a revised 8.5% CAGR for the next 7-year period.
This segment currently accounts for a 30.1% share of the global Automotive Software market. Application software is the software layer designed for helping the users to run applications developed and defined by vehicle manufacturers and incorporated in vehicles to perform single or multiple tasks. The increasing integration of infotainment and telematics services is driving the demand for application software.
Middleware represents the software layer that resides between operating systems and application components. Middleware software manages application components that run on distributed hosts, and primarily establishes communications between applications and the back end.
The U.S. Market is Estimated at $2.4 Billion in 2021, While China is Forecast to Reach $7.4 Billion by 2026
The Automotive Software market in the U.S. is estimated at US$2.4 Billion in the year 2021. The country currently accounts for a 13.28% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of US$7.4 Billion in the year 2026 trailing a CAGR of 10.4% through the analysis period.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.7% and 7.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.2% CAGR while Rest of European market (as defined in the study) will reach US$8.3 Billion by the end of the analysis period. The market growth in Asia-Pacific region is favored by increasing adoption of connected mobility and smart transport systems.
The market growth is also stimulated by enforcement of stringent emission regulations in countries like Japan, China and India, driving the adoption of automotive software for powertrain and engine management systems. Europe represents the second largest regional market and growth is being driven by rising concerns pertaining to vehicle and driver safety along with the resulting implementation of smart transportation systems.
Key Topics Covered:
I. METHODOLOGY
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
- Impact of COVID-19 Pandemic and Looming Global Recession: 2020 Marked as a Year of Disruption & Transformation
- Impact of the Pandemic on the Automotive Industry
- COVID-19-Led Tech Adoption among Automakers Holds Positive Implications for Global Automotive Software Market
- An Introduction to Automotive Software
- Applications of Automotive Software in Vehicles
- Industry Standards
- Rising Integration of Advanced Technology in Vehicles Scripts Phenomenal Growth Story for Automotive Software Market
- Connectivity as New Buzzword Augments Growth of Automotive Software Market
- Influx of New Technology Continues Fueling Growth
- Impediments to Market Growth
- Analysis by Product Type
- Analysis by Application
- Analysis by End-Use: Passenger Cars Remain Primary Growth Segment
- Regional Analysis
- Competitive Scenario
- Recent Market Activity
- Select Global Brands
2. FOCUS ON SELECT PLAYERS (Total 247 Featured)
- Airbiquity, Inc.
- Apple, Inc.
- Aptiv PLC
- Bosch Software Innovations GmbH
- Denso Corporation
- Elektrobit
- ETAS
- Google Inc.
- Green Hills Software Inc.
- Intel Corporation
- International Business Machines Corporation
- Lectronix, Inc
- Luxoft Global Operations GmbH
- Lynx Software Technologies, Inc.
- Microsoft Corporation
- MSC Software Corporation
- Nuance Communications, Inc.
- NVIDIA Corporation
- NXP Semiconductors N.V.
- Oxbotica LTD
- Tesla Motors Inc.
- The MathWorks, Inc.
- Vector Informatik GmbH
- Wind River Systems, Inc
3. MARKET TRENDS & DRIVERS
- Automobile Electronification: The Cornerstone for the Evolution of Software Solutions
- Continued Proliferation of Digital Technologies Maintains Progressive Tide in the Automotive Software Market
- With Advanced Technologies Making a Big Impact on Automotive Sector, Automotive Software Set to Widen its Footprint
- Continued Refinements to Business Models Set to Scale the Importance of Automotive Software
- Over the Air (OTA) Software Updates for Cars: The Next Stage of Software Evolution
- Changing Automotive Revenue Streams Bring-Out Software Expertise as the Core Competency for Auto OEMs
- Falling Growth in New Car Sales Through 2025 Shifts OEM Focus to New Revenue Streams
- Shift Towards Recurring Revenue Streams Makes “Software” an Indispensable Platform for Service Provisioning
- As the Fuel that Powers the Era of Connected Cars, Automotive Software is Poised to Gain Richly From the Exploding Growth of Connected Car Services
- Infotainment Systems as the Touchpoint for Connectivity, Becomes the Hotbed for Software Development Activity
- Evolving Role of V2X to Further Enhance the Importance of Automotive Software
- Telematics Software: A Key Component in Modern Automotive Vehicles
- Autonomous Cars: A Landmine of Growth Opportunity for Automotive Software
- Technological Forces Driving Autonomous Car Segment
- Critical Need for Sensor Fusion in Automobiles Steps Up the Importance of Software
- Automotive HMI: A Rich Application Area for Software
- Migration Towards Automatic Transmission Systems Drives the Importance of Software and Algorithms for Transmission Control Systems
- Rise of X-By-Wire Technologies Offers Opportunities for Software to Increasingly Replace Mechanical & Hydraulic Components
- Strong Adoption of ADAS Accelerates the Indispensability of Software
- Adoption of On-Board Vehicle Health Monitoring & Diagnostic System Drives Growth
- Safety Regulations Step Up the Pressure on Software
- TPMS Regulations Drives Demand for Software Driver Components
- Fuel Management and Safety Standards Drives Automotive Engine Management Systems Market
- Growing Lenience towards Airbag Technology Widens the Prospects for Automotive Software
- OEMs Focus on Reducing Software Development Costs
- Hybrid Cars Promise High Volume of Software Deployments
- Automotive Software Outsourcing Rises in Popularity
- Increase in Software Content Raises the Risk of Failure & Difficulty in Repairing
- Cybersecurity & Compliance: Red Hot Button Issues for Automotive Software Market
- Vulnerabilities in Automotive Supply Chain Expose Security Threat to Software-Enabled Systems
4. GLOBAL MARKET PERSPECTIVE
III. REGIONAL MARKET ANALYSIS
IV. COMPETITION
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