The global automotive software market size was valued at USD 25 billion in 2022 and is expected to reach USD 116.62 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 16.7% over the forecast period from 2023 to 2032.
Access our Premium Real Time Data Intelligence Tool, Visit: Precedence Statistics
A collection of programmable instructions which are used in performing various operations of the in-vehicle applications which are computer based are known as the automotive software. These softwares are used for the embedded systems of the vehicles. Infotainment, body control, comfort and telematics are some of the applications that make use of the software. Advanced Driver Assistance Systems (ADAS), safety and communication or other applications that make use of the automotive software. The growing need for communication between the cars is expected to boost the automotive software's market in the coming years and the popularity of such applications has increased in the recent years.
The manufacturers of the automotive's are constantly engaged in incorporating the automotive softwares which help in providing more convenience and utility to the customers. The demand for advanced technologies has grown to a great extent in the recent years. The increasing demand for autonomous vehicles among the people has emerged as a major growth factor for the automotive software as it provides the necessary integration which helps to connect the entire vehicle to a single system that is able to manage the functioning and balance of the vehicle.
The use of telematics in the automotive software has enabled the companies to track the current status of the vehicles which helps to provide a better service to the consumers and also takes care of the current condition of the vehicle. This has proved to be a beneficial factor for the automotive industry as it reduces the maintenance cost of the vehicle. Skilled professionals are required in the automotive industry to manage the functioning of these softwares that helps to maintain the smooth functioning of the industry.
Introduction of many new market players in the automotive industry after the emergence of the electronic vehicle segment has proved to be a major driving force for the automotive software market as these vehicles use a single integrated system to connect the entire vehicle with the real time data of weather and road conditions that assists the vehicle to function smoothly and hence provides the potential consumers with a premium experience.
Increased use of the innovative technologies and the introduction of innovative technologies that provide advanced user interface are expected to help in the growth of the market in the coming years. The increased use of the ADAS feature will also help in the growth of this software market in the coming years. The increased use of artificial intelligence will prove to be a boon for the growth of the market during the forecast period. The introduction of the 5G technology is expected to provide greater potential for the growth of the market in the coming years.
Artificial intelligence is used in the autonomous as well as the semi-autonomous vehicles. The revenue in the automotive sector has grown to a great extent as many opportunities are provided to the stakeholders due to the increased use of softwares in the automotive's. The demand for the connected cars has also increased in the recent years and provided major opportunities for growth. Autonomous driving is another feature that is in great demand and this will also provide major opportunities for the growth of the market in the coming years and provide larger revenues to the market players.
Report Scope of the Automotive Software Market
|Market Size in 2023||
USD 29.05 Billion
|Market Size by 2032||
USD 116.62 Billion
|Growth Rate from 2023 to 2032||CAGR of 16.7%|
|Forecast Period||2023 to 2032|
|Segments Covered||Application, Vehicle Type, Software Layer, EV Application, Offering, Organization Size and Geography|
ATEGO SYSTEMS INC. (PTC), AUTONET MOBILE, INC., ADOBE, AIRBIQUITY INC, BLACKBERRY LIMITED, GOOGLE (ALPHABET INC.), MONTAVISTA SOFTWARE, LLC, GREEN HILLS SOFTWARE, MICROSOFT CORPORATION, WIND RIVER SYSTEMS, INC
Key Market Drivers
Key Market Challenges
Key Market Opportunities
On the basis of application, the segment of telematics has emerged as the largest market due to the increasing demand among the potential consumers all over the world. The increasing demand for this system in the modern vehicles has enable the automotive software market to record a considerable growth over the period of time. The advanced vehicle features such as tracking mechanism, container tracking, satellite navigation, fleet management and trailer tracking have emerged as the major markets which have boosted the demanding supply chain of telematics. Increasing demand for modern technology in the latest vehicle by the potential consumers has encouraged the key market players to carry out rapid research and development programs to fulfill the needs and demands of the consumers.
Vehicle Type Insights
On the basis of vehicle type, the segment of HCV has emerged as the fastest market with the increasing demand of IoT services. Heavy commercial vehicles are launching automatic systems which has encouraged the potential buyers to opt for these systems. The increasing number of export and import facilities that have been launched in the current market has demanded for better transport facilities to avoid accidents and mishaps which leads to a tremendous loss of goods and services. This has increased the demand for autonomous vehicles that are operated with the help of artificial intelligence and advanced softwares that judge the condition of the roads and traffic to avoid an unseen event. The lucrative offers provided by the key market players to attract the potential customers has also played a major role to boost the market for automotive software to a great extent.
Software Layer Insights
On the basis of the software layer, the segment of the operating system has emerged as the fastest market due to the increasing demand for a better user interface that provides a premium experience to the potential consumers.
Increasing demand for modern technology among the younger generation that has a better operating system which provides a smooth functioning experience has emerged as a major opportunity for the growth of the market. Many key market players all over the world are aiming to introduce their personalized operating systems which has helped this segment to record a considerable revenue over a period of time.
On the basis of geography, the region of Asia Pacific has emerged as the largest market up till now due to the increasing demand for advanced softwares and systems among the people. The rapid technological advancements which have been observed in this region is a major factor for the growing demand of automotive softwares. Increasing acceptance among the people for technological advancement has also boosted the demand for automotive software.
The region of North America has also emerged as a potential opportunity for the growth of the automotive software market. a huge demand is expected from the region of North America during the forecast period. The existence of the key market players and the rapid research and development programs carried out by them have emerged as a major growth factor for the growth of the automotive software market during the forecast period.
Automotive Software Market Share, By Region, 2022 (%)
|Regions||Revenue Share in 2022 (%)|
Key market players
Segments covered in the report
By Vehicle Type
By Software Layer
By EV Application
By Organization Size
PROCEED TO BUY :
ASK FOR SAMPLE
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client