Automotive Software Market by Product (Application Software, Middleware, Operating System), Application (Infotainment & Telematics, Powertrain, Safety System), Vehicle, End-User - Global Forecast 2024-2030

Automotive Software Market by Product (Application Software, Middleware, Operating System), Application (Infotainment & Telematics, Powertrain, Safety System), Vehicle, End-User - Global Forecast 2024-2030

The Automotive Software Market size was estimated at USD 25.61 billion in 2023 and expected to reach USD 28.99 billion in 2024, at a CAGR 13.64% to reach USD 62.72 billion by 2030.

The automotive software market is a dynamic and rapidly evolving sector central to modernizing and enhancing vehicle capabilities. It encompasses a range of applications and systems integral to the operation and user experience of vehicles, such as engine management systems, infotainment systems, connectivity solutions, autonomous driving technologies, and vehicle management and control systems. The escalating demand for enhanced user experience and comfort has necessitated the development of sophisticated infotainment systems and connectivity features. The global push towards electric vehicles (EVs) as a sustainable transportation method is another significant driver, as these vehicles heavily rely on software for managing battery systems, range, and overall performance. The automotive software sector boasts a highly competitive landscape, constituted by a mix of established automotive giants and emerging technology firms. Players in this field aggressively invest in research and development to enhance their product offerings and integrate cutting-edge technologies such as artificial intelligence (AI) and machine learning (ML) into their automotive solutions. Cybersecurity threats are a substantial concern as the reliance on automotive software increases, necessitating robust security solutions. Furthermore, the complexity of software integration and the need for standardization across various automotive platforms also pose significant challenges for industry players. Rapid advancements in technology, such as AI, machine learning, and cloud computing, combined with the increasing demand for electric and autonomous vehicles, will likely help overcome challenges and support market expansion. Regulatory approval for safer and more fuel-efficient vehicles will also contribute to the growing need for advanced automotive software solutions.

Regional Insights

North America, particularly the United States and Canada, has historically been at the forefront of automotive innovation. The region's automotive software market is a vibrant space characterized by high levels of vehicle automation, connectivity, and electrification. The presence of major automotive players, coupled with favorable government policies aimed at promoting electric and autonomous vehicles, have catalyzed the market's growth. The European market for automotive software is underpinned by stringent regulatory standards concerning vehicle safety and emissions. The European Union's strong focus on environmental sustainability has led to a surge in the demand for electric vehicle (EV) software solutions to support a burgeoning fleet of EVs. In addition, Europe's robust automotive industry, with leading OEMs such as Volkswagen, Bayerische Motoren Werke AG, and Mercedes-Benz, is aggressively pushing the boundaries regarding autonomous driving technologies and software. Asia-Pacific (APAC) is recognized as one of the fastest-growing regions in the automotive software market due to the rapidly increasing vehicle production, particularly in China, India, Japan, and South Korea. The proliferation of internet users and tech-savvy consumers has accelerated the demand for advanced infotainment systems, facilitating the growth of the region's automotive software market. China, being the significant automotive market, is pivotal in driving the regional market dynamics with its hefty investments in vehicle electrification and autonomous driving initiatives.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Automotive Software Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

• Demand for innovative and advanced infotainment and user interface
• Government initiatives to foster the development of connected and secured vehicles
• Integration of ADAS technology in vehicles and demand for automotive softwares

Market Restraints

• High cost associated with digital vehicle connectivity and limited connected road infrastructure

Market Opportunities

• Developments in semi-autonomous and autonomous vehicles
• Emergence of data monetization in the current automotive ecosystem

Market Challenges

• Cybersecurity risk and maintenance concerns related to connected vehicle technology

Market Segmentation Analysis

• Increasing advancement in application software to enhancing vehicle connectivity, safety, and comfort
• Rising demand for advanced safety systems such as anti-lock braking systems (ABS) and stability control systems
• Deployment of automotive software in autonomous and semi autonomous passenger vehicle
• Deployment of bespoke software solutions across OEM sector to meet industry demand

Market Disruption Analysis

• Porter’s Five Forces Analysis
• Value Chain & Critical Path Analysis
• Pricing Analysis
• Technology Analysis
• Patent Analysis
• Trade Analysis
• Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Automotive Software Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Automotive Software Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Qualcomm Diversifies Automotive Portfolio with Launch of Snapdragon Digital Chassis for 2-Wheelers and New Vehicle Classes

Qualcomm Technologies, Inc. has expanded its Snapdragon Digital Chassis lineup by introducing two innovative platforms, the QWM2290 and QWS2290. Integrating these platforms will significantly elevate safety measures, infotainment systems, connected services via cloud, and user personalization and convenience.

Helm.ai Secures USD 55 million in Series C Funding to Advance its AI Software for Autonomous Vehicles

Helm.ai, an innovative company developing artificial intelligence software for self-driving vehicles, has successfully secured USD 55 million during its Series C financing round. This significant influx of capital will accelerate Helm.ai’s research and development initiatives, bolstering its efforts to perfect and commercialize its autonomous driving solutions.

Honda and SCSK Reach Basic Agreement on Software Development Partnership

Honda Motor Company has announced a strategic partnership with SCSK Corporation, an established IT solutions provider based in Japan. This collaboration is designed to enhance Honda’s software development processes in response to the evolving trends in automotive technology. Together, the alliance aims to create a more efficient and streamlined system for the rapid development of software. This joint effort aims to expedite the software development cycle, ultimately accelerating the delivery of advanced technological features in Honda vehicles.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Automotive Software Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Automotive Software Market, highlighting leading vendors and their innovative profiles. These include Adobe Inc., Airbiquity Inc., ANSYS, Inc., Autodesk, Inc., BlackBerry Limited, CDK Global, Inc., Cox Automotive, Inc., Ford Motor Company, Fullbay, Inc., General Motors Company, Green Hills Software LLC, KPIT Technologies Limited, LeddarTech Inc., Microsoft Corporation, MontaVista Software, LLC, Nvidia Corporation, NXP Semiconductors N.V., Oracle Corporation, Renesas Electronics Corporation, Robert Bosch GmbH, SAP SE, Texas Instruments Incorporated, The Reynolds and Reynolds Company, Waymo LLC by Alphabet Inc., and Wipro Limited.

Market Segmentation & Coverage

This research report categorizes the Automotive Software Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Product
• Application Software
• Middleware
• Operating System
• Application
• Infotainment & Telematics
• Powertrain
• Safety System
• Vehicle
• Commercial Vehicles
• Passenger Vehicle
• End-User
• Dealer
• OEMs

Region

• Americas
• Argentina
• Brazil
• Canada
• Mexico
• United States
• California
• Florida
• Illinois
• New York
• Ohio
• Pennsylvania
• Texas
• Asia-Pacific
• Australia
• China
• India
• Indonesia
• Japan
• Malaysia
• Philippines
• Singapore
• South Korea
• Taiwan
• Thailand
• Vietnam
• Europe, Middle East & Africa
• Denmark
• Egypt
• Finland
• France
• Germany
• Israel
• Italy
• Netherlands
• Nigeria
• Norway
• Poland
• Qatar
• Russia
• Saudi Arabia
• South Africa
• Spain
• Sweden
• Switzerland
• Turkey
• United Arab Emirates
• United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year