ADAS technology driving the automotive software market
Various industries are struggling to adapt as quickly as possible to the rapid transition to digital technology. Software and mobile apps have made things so easy and convenient that business owners can maximize their use. Automotive software is a set of programmable data instructions for running in-vehicle computer applications. Automotive software also includes software used for on-board vehicle systems. Computer applications within a car include telematics, entertainment, powertrain, body control and comfort, communication, advanced driver assistance systems (ADAS) and safety. Automobiles will talk to each other and to drivers soon. With so many vehicles in need of maintenance or repair, it is difficult for staff to complete the work and maintain the organization. For this reason, every workshop, garage and auto shop should invest in automotive software. Automakers have been compelled by these technological advancements to incorporate vehicle software solutions that provide more excellent utility and convenience for customers.
Automotive Software Market Size is Expected to Reach $57.68 Billion by 2030, Growing at a CAGR of 14.8%: Straits Research
The use of ADAS technologies in vehicles is increasing the use of connected car services. Introducing technical breakthroughs for improved user interface will drive the growth of automotive software market. Additionally, lack of standard protocols and standards for software platform development, lack of interconnected infrastructure, and automotive software diagnostics and repair limit the development of the automotive software market. Additionally, the potential of 5G and AI, increasing development of semi-autonomous and autonomous vehicles, and monetization of data in the extended automotive ecosystem are expected to generate excellent growth opportunities for the automotive software industry. .
Implementing ADAS Features and Connected Car Services to Drive Global Automotive Software Market
The automotive sector has made tremendous progress in self-driving car technology in recent years, and advanced driver assistance systems (ADAS) are a fundamental part of this technology. Along with the growing demand for advanced safety systems such as adaptive cruise control and autonomous emergency braking systems and increasing government regulations to reduce traffic accidents, major automotive OEMs are integrating ADAS functionality into the next generation of vehicles. With software features such as lane monitoring, emergency braking, stability controls and more, ADAS technologies have made driving much easier. Due to the introduction of ADAS capabilities in the next generation of vehicles, a significant number of enterprises and Tier 1 OEMs are developing collaborations with software development companies to create advanced ADAS software. As a result, the automotive software market is growing.
Additionally, the connection is now a common feature of virtually all electronic devices, including automobiles. These services enable automakers, fleet operators and drivers to improve resource utilization, promote safety, automate key driving activities and generate critical data, such as vehicle performance and road conditions. In-vehicle, integrated, cloud and connected connection options can provide connected car services in a vehicle. Many connected vehicle services require software to perform their respective functions. Moreover, the increase in demand for connected car services is mainly linked to an increase in safety and security concerns, an increase in the desire for a better driving experience and the arrival of the Internet of Things (IoT) in the automotive industry. Therefore, the expansion of automotive software for connected services can be attributed to the growing number of advanced services offered in connected automobiles.
Future potential of 5G and artificial intelligence to create opportunities in the global automotive software market
AI and 5G will play an important role in the future of the automotive industry as predictive capabilities become more widespread in vehicles and the driving experience becomes increasingly personalized. More and more automakers are automating vehicle tuning using algorithms based on data, including infotainment system and app preferences. Additionally, 5G is better equipped to perform critical communications for safer driving, support greater vehicle-to-vehicle (V2V) connectivity, and enable connected mobility solutions. As a result, the wide range of 5G and AI applications in future mobility are expected to generate lucrative growth opportunities for the automotive software market in the near future.
|Market size||$57.68 billion by 2030|
|Forecast units||Value (USD billion)|
|Report cover||Revenue forecasts, competitive landscape, growth factors and trends|
|Segments Covered||Application, product, vehicle type, region|
|Geographical areas covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Top Profiled Companies/Suppliers||Adobe Inc., Airbiquity Inc., Atego Systems Inc. (PTC), Autonet Mobile, Inc., Blackberry Limited, Goggle, Green Hills Software, Microsoft Corporation, Montavista Software, Wind River Systems, Inc.|
|Key market opportunities||Future Potential of 5G and Artificial Intelligence to Drive Market Opportunities|
|Key Market Drivers||Implementing ADAS functionality and connected car services to drive growth|
Asia-Pacific will dominate the market with the largest market share while growing at a CAGR of 16.9%. Rapid growth in luxury automobile sales in emerging markets such as China, Thailand, and India is expected to drive the growth of the Asia-Pacific automotive software market. The automotive software market in this region is mainly driven by the rapid expansion of intelligent transportation systems and connected mobility in countries like China and Japan. For example, in 2019, the 5G Automotive Association (5GAA), SAIC Motor, China Mobile, Huawei, and Shanghai International Automobile City announced the launch in 2020 of the first 5G-based intelligent transportation demonstration project. This initiative will take place in the international automobile city of Shanghai. The four companies are working on 5G internet communications, smart driving, smart mobility, supporting infrastructure and piloting 5G-based services for smart driving and smart mobility.
Europe will hold a share of $20,612 million, growing at a CAGR of 15.4%. The increasing adoption of software technologies such as ADAS, in-car infotainment and telematics is one of the reasons for the growth of the European automotive software market. The rise of the automotive industry, advances in technology, and government regulations designed to improve the diving experience are also contributing to this growth. For example, the SMMT or Society of Motor Manufacturers and Traders predicts that by 2025 over 95% of all vehicles currently on UK roads will be connected. Following government rules regarding driver safety issues are forcing car manufacturers to provide in-car infotainment system with hands-free calling, which is fueling the expansion of the European car software market.
- The global automotive software market size generated a revenue share of USD 19,123 million in 2021, which is expected to reach USD 57,689 million, at a CAGR of 14.8% during the forecast period.
- Based on applications, the infotainment and telematics segment is expected to grow at a CAGR of 16.5% and hold the largest market share.
- Based on product, the application software segment is expected to grow at a CAGR of 14.3% and hold the largest market share.
- Based on vehicle type, the ICE passenger car segment is expected to grow at a CAGR of 11.1% and hold the largest market share.
- Based on regional analysis, Asia-Pacific will lead the market with the largest market share while growing at a CAGR of 16.9%.
Competitive market players
- Adobe Inc.
- Airbiquity Inc.
- Atego Systems Inc. (PTC)
- Autonet Mobile, Inc.
- blackberry limited
- Green Hills Software
- Microsoft Corporation
- Montavista Software
- Wind River Systems, Inc.
Global Automotive Software Market: Segmentation
- Security system
- Infotainment and telematics
- Operating system
- Application software
By type of vehicle
- ICE passenger car
- ICE light commercial vehicle
- ICE heavy utility vehicle
- Battery electric vehicle
- Hybrid electric vehicle
- Plug-in hybrid electric vehicle
- Autonomous vehicles
- North America
- Asia Pacific
To view the full report, please visit https://straitsresearch.com/report/automotive-software-market/
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