The global automotive electronics and software market size was evaluated at USD 279 billion in 2022 and is expected to hit around USD 489 billion by 2032, growing at a CAGR of 5.77% from 2023 to 2032.
Access our Premium Real Time Data Intelligence Tool, Visit: Precedence Statistics
The technologies that make use of information are playing a very important role in the future of the automotive industry. The automotive industry is continuously adopting advanced technologies and integrating these technologies with its operations at a greater scale. In order to enhance the performance of automotive vehicles electronic components like airbags or integrated in the vehicles for providing safety.
As there's a growing demand for electric vehicles and hybrid cars or hybrid vehicles there's an increasing demand for automotive electronics. The growing trend of autonomous vehicles is also expected to drive the market of automotive electronics. Automotive electronics and software are interrelated.
The COVID-19 pandemic her defected all of industries in a significant manner. The implementation of strict lockdown and social distancing policies which also restricted people from moving from one place to another across the country severely affected the automotive industry. The production of automotive cars was shut down. The disrupted supply chains and delays in the delivery of the components affected the production of this market.
Report Scope of the Automotive Electronics and Software Market
|Market Size in 2023||USD 295.1 Billion|
|Market Size by 2032||USD 489 Billion|
|Growth Rate from 2023 to 2032||CAGR of 5.77%|
|Forecast Period||2023 to 2032|
|Segments Covered||By Application, By Components and By Sales Channels|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
There shall be a major transformation in everyday transportation activities due to the use of autonomous vehicles. The use of autonomous vehicles will provide a relatively safer option for transportation as it is extremely efficient in reducing the number of accidents caused due to fatigue of the driver or negligence on the part of the driver.
Automotive vehicles have a vision which helps in identifying the obstructions on the route. There is an increase in the use of autonomous vehicles in the home deliveries. An organization which is a US start-up named Udelv provides software for vans which are used for delivering groceries to purchasers from nearby stores.
Recently there has been a new technological development which is helpful in providing a digital identity to the way it kills which is extremely useful for differentiating the vehicles and tracking information relating to insurance as well as predictive maintenance.
As the results of fossil fuel are quickly depleting there's an increasing demand for electronic vehicles in developing as well as developed nations. But the major challenges faced by the electronic vehicles industry are Steve inadequate infrastructure and the poor battery life. There is an increase in the use of artificial intelligence in the automotive industry.
The increased use of machine learning has been a boon fall the self-driving cars. the Celts in enhancing the safety of the driver. The use of artificial intelligence in the automotive industry has also been extremely helpful in increasing the output of the automotive manufacturing units across the globe. The use of human-machine interfaces it will be very helpful and provide a better platform for the interaction between the driver and the vehicle.
The use of voice based feedback for operating vehicles we'll see a growth in the coming years. The use of human machine interface will be able to provide a much safer and enjoyable experience to the driver. Due to the use of blockchain technology in the automotive industry there will be a growth in the various mobility solutions like urban transportation and it will be helpful in the home deliveries.
Blockchain technology will be extremely useful in verifying the authenticity of the spare parts. It will make sure that the raw materials are delivered from trusted sources. Cube intelligence is a startup which has provided a platform which uses the blockchain technology for preventing malicious attacks on connected cars or preventing the hacking of autonomous cars.
It is also useful for ride hailing and it provides automatic parking service for the vehicles. Other than the increase in the use of various safety features there shall be a great demand for automotive electronics across the globe. Does the rapid growth in the use of automotive softwares and electronics across the globe as they help in providing enhanced safety to the driver.
Does an increase in the investments made by the manufacturers for the research and developmental activities that will be helpful in manufacturing electronic items required in the manufacturing of automobiles at a lower cost.
on the basis of application, the ADAS segment was the highest revenue holder in 2022 and it is expected to drive the market in the coming years. The automotive electronics and software industry is seeing rapid growth under the increase in the demand for autonomous vehicles across the globe. There's a growing demand for connected services and it has also become the most important region for innovation.
Key market players are focusing on bringing advanced connected services to offer for the market. Connected services are able to provide services by connecting drivers, insurance companies, carriers, and service stations. With the use of a cloud platform for the connected services all of the authorities are connected to each other in real-time.
As there is a growing concern for the safety of the passenger as well as the safety of the vehicle the market for connected services is expected to grow in the coming years. There is a growth in the adoption off connected services which provide intelligent transportation across many nations in the North American region and the European region.
Europe dominates the market relating to the automotive software connected services. There's an increased use of intelligent transportation in Europe and this is expected to grow in the coming years. The connected services market is also expected to grow in the Asia Pacific region.
The safety systems used in the vehicles we will also have a good share in the coming years this segment will have a larger market share due to the various components associated with the safety systems. Keyless entry systems, airbags, electric power steering, electronic brake distribution, etc. The availability of various technologies and increasing awareness about these technologies among consumers will drive the market.
Growing demand for safety is also expected to lead to the growth of the safety systems market. As there is a growing demand for automation in driving the advanced driver assistance system will however good compound annual growth rate during the forecast period. Sensors are the most important component of this system.
Sales Channel Insights
Depending upon the sales channel, the original equipment market segment will have the largest market share in the coming years period this segment has dominated the market in recent years an authentic source that provides durable electronic components.
As electronic components are the integral part off passenger as well as commercial vehicles this segment is expected to grow in the coming years. Genuine parts can be obtained from the original equipment manufacturers and there is a growing preference among consumers for buying these parts from the original equipment manufacturers. The aftermarket segment will also grow well in the coming years.
The ECU segment will have the largest market share in terms of revenue in the coming years. The different types of equipment that carry the current are Frances, electronic switches, different types of connectors etc. the availability of different types of electronic components in the market which are used in the manufacturing of automotive vehicles are leading to the growth of this market.
As there is a growth in the connectivity services which provides safety to the passenger as well as the car these devices are expected to be in demand in the coming years. Increased use of this equipment in commercial vehicles and passenger cars will drive market growth.
Increased use of sensors which is extremely efficient when clubbed with the sensing devices which help in detecting the position of the vehicle, the proximity add various other parameters will drive the market for the sensors. As there is a growth in the initiatives taken by the government for providing security and safety to passengers the market for the sensor is expected to grow across many regions. It shall also help in increasing the revenue of the market. These equipment are efficient in detecting various parameters like the tire pressure, heat, and speed of the vehicle, and this market is expected to grow in the coming years.
Software Layer Insights
In the software layer, the operating system segment is expected to drive the market in the coming years. The operating system is an interface which is useful in the interaction of the user and the software. one of the most popularly used and preferred operating systems is QNX, a large number of automobile manufacturers but for this operating system. The market for this operating system is expected to grow in the coming years. This operating system is supported by different types of hardware. Apart from QNX there are other very commonly used systems like apple iOS, Microsoft and Linux.
Linux is a open-source system and it can be tailored for use in different applications. It is compatible with various hardware as well as software platforms as it provides a feature lake multiuser and the other feature of multiprogramming. The market for the Linux operating system is expected to have good growth in the coming years due to its wide adoption across many platforms.
Other operating systems that are expected to grow well in the coming years or apple iOS which provides better customization for usage in automobiles and Android Auto which is also seeing growth among the end users as well as the manufacturers of automobiles. the original equipment manufacturers are expected to adopt apple iOS and Android automotive systems as they are flexible and provide a user interface that is liked by many passengers.
The use of these systems is expected to grow in the coming years as the population is familiar with these two systems. Due to the extensive use of these operating systems in mobile phones, there is a growing popularity for the usage of these operating systems in automobiles. The Android and Apple iOS system are expected to drive the market in the coming years.
The use of electronics associated with this segment is also expected to see the fastest growth in the coming years. due to the availability of this role was still an extremely flexible operating system the market for these operating systems is expected to grow in the Asia Pacific region.
On the basis of geography, the Asia Pacific market will have the largest share in terms of revenue in the coming years period this market has seen great growth in recent years and had the highest compound annual growth rate.
Apart from India and China, Japan, Taiwan, Malaysia and Thailand have also contributed to the growth of this region. Maximum manufacturing of electronics in the Asia Pacific region comes from Japan as well as China.
Key Market Developments
Key Market Players
Segments Covered in the Report
By Sales Channels
PROCEED TO BUY :
ASK FOR SAMPLE
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client