USD 31.06 Billion
Automotive Software Market Size, Share, Growth Analysis, By Software Layer, By Vehicle Type, By EV Application, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45E2284 |
Region:
Global |
Published Date: December, 2024
Pages:
190
|Tables:
0
|Figures:
0
Automotive Software Market Insights
Automotive Software Market size was valued at USD 31.06 Billion in 2023 and is poised to grow from USD 35.44 Billion in 2024 to USD 89.24 Billion by 2032, growing at a CAGR of 14.1% during the forecast period (2025-2032).
The global automotive software industry is expected to grow on account of the increasing demand for car-to-car connectivity. To enhance the convenience and utility of the consumers, automobile manufacturers are making strenuous efforts to integrate automotive software in their vehicles. As it enables integration needed to connect the entire car to a single system that has control over all functions of the automobile and adjustment, the increase in driverless automobiles has been the main demand catalyst for automotive software. In addition to this, the automotive software market growth will increase in the forecast period with the increasing penetration of ADAS. Another important innovation in the field of automotive software is 5G technology. The urgent need for network connectivity at increasing high speeds to provide maximum benefits to the end-users has created immense market potential. The advanced wireless networking capabilities provided by the vehicle software have significantly improved the user experience itself presenting a notable development prospect for the industry. For instance, in September 2023, well-known French international automotive supplier Valeo had unveiled "anSWer", the new solution fusing software as a service and a product. This makes the renowned specialization of fields such as ADAS, Intelligent Lighting, Electric Powertrain and Thermal Management in the portfolio of Valeo available to all players within the mobility industry with a series of solutions.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Passenger Cars
Fastest Growth
Commercial Vehicles
Growth Rate
14.1% CAGR
Global Automotive Software Market By Geography ($ Bn)
Country Share for North America Region (%)
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Automotive Software Market Segmental Analysis
Global Automotive Software Market is segmented by Software Layer, Vehicle Type, EV Application, ICE Application, and Region. Based on Software Layer, the market is segmented into Middleware, Application Software, and Operating System. Based on Vehicle Type, the market is segmented into Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles. Based on EV Application, the market is segmented into Electric Drive, Battery Management Systems, ADAS & Safety Systems, Autonomous Driving, Body Control & Comfort Systems, Infotainment Systems, Engine Management & Powertrain, and Vehicle Telematics. Based on ICE Application, the market is segmented into ADAS & Safety Systems, Autonomous Driving, Body Control & Comfort Systems, Infotainment Systems, Engine Management & Powertrain, and Vehicle Telematics. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Type
In 2023, the application software accounted for the highest percentage of the automotive software market share of autonomous driving, which signaled its critical role in the design and functioning of those sophisticated systems. The application software in such autonomous machines can further offer minimum human action toward realizing the cars' navigation and decisional capabilities. With its capacity to fuse information from different sensors such as RADAR, cameras, and LIDAR, such application software can further optimize the accuracy and reliability of the autonomously operating systems. It processes large amounts of information in real time, so that the car knows its surroundings and can take all necessary actions. This would come under the essential framework for safe navigation. The application software would always be a part of these complete autonomous driving capabilities as the technology deems fit.
However, the operating system segment is anticipated to grow significantly as the role played by an automotive OS in distributing system resources such as CPU, memory, and input/output (I/O) to varied applications will cause its development at the highest CAGR over the projection period. The peak performance of an efficient automobile operating system is assured in controlling its resource allocation and ensuring smooth communication between the hardware and software components. This aspect significantly impacts job scheduling whereby important tasks such as real-time processing and safety take priority over less important tasks. In the near future, the market is predicted to grow because of increasing demand for more complex and dependable autonomous systems, and a powerful operating system enables such innovations.
Analysis by Vehicle Type
The passenger car segment led the highest position in the automotive software market due to the higher rate of adoption of V2X communication technology and IoT devices. These developments enable passenger vehicles to communicate with cloud-based services, traffic infrastructure, as well as other passenger vehicles themselves. It then enables real-time data transfer and thus greatly improves traffic management. Moreover, most of the passenger cars available in today's market are equipped with features which boast semi-autonomous capabilities such as self-parking and autopilot. Furthermore, such advanced technologies apply complex software algorithms in an effort to carry out self-driving for greater ease and safety. Because the customer appetite for safer and smartened automobiles continues to surge, passenger car sales are expected to remain the leading market trend.
However, the commercial vehicles segment is anticipated to grow significantly due to usage-based insurance, remote monitoring, and real-time vehicle diagnostics made possible with the developments in telematics software. This cutting-edge software will enable operators of commercial vehicles to manage their fleets efficiently and ensure adherence to some essential safety, emission, and driver hour legislations that are more applicable in most countries. In addition to that, real-time data on vehicle performance serves to further enhance the effectiveness of the operation and reduce downtime. As fleet management assumes center stage in corporate agendas, advanced commercial vehicle technologies will probably be in greater demand.
Global Automotive Software Market By Vehicle Type
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Automotive Software Market Regional Insights
North America was the biggest automotive software market in 2023. Within North America, the U.S. and Canada are witnessing phenomenal popularity for electric vehicles. Advanced software is needed to expand the business for electric vehicles, right from controlling the battery efficiency up to its extension through charging infrastructure and so on. North American manufacturers, with the help of some of the giant industry players, including Tesla, General Motors, and Waymo, have been continuously investing in technology related to autonomous driving. For instance, the enforcement or encouragement by regulatory bodies, such as the National Highway Traffic Safety Administration, for the introduction of some features of ADAS into the roads for safer levels.
Asia-Pacific is expected to grow at the highest CAGR during the forecast period. With huge investments into electric vehicle infrastructure and technology, China, Japan, and South Korea are at the forefront in the global EV market, and the region has experienced tremendous growth in the automobile industry. For maximum performance drawing out of the batteries and securing both safety and efficiency of the electric vehicles, it is well required to make use of advanced battery management systems. Advanced infotainment systems are in sharp demand in this region as well, with characteristics such as advanced user interfaces, internet connectivity, and exact fit with the smartphones. The connected car features include real-time navigation, traffic data, and remote diagnostics, amongst other options intended to enhance the driving experience altogether.
Global Automotive Software Market By Geography
- Largest
- Fastest
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Automotive Software Market Dynamics
Automotive Software Market Drivers
Increase in Interest for Connected Cars
- Rising customer demand for connected cars is an important factor behind the growth in the automotive software market. Rising infotainment systems, navigation, and Vehicle-to-Everything (V2X) connectivity are forcing manufacturers to invest in advanced vehicle software. This innovation upgrades total driving efficiency, safety, and experience, making it more attractive for customers, thereby driving the growth of the market for connected cars.
Emergence of Autonomous Driving Technology
- Among the biggest drivers of the automotive software market, emerging driverless car technology is the most prominent. A stream of advancement in self-driving technology forces the firms to install software for the processing of huge streams of data in real-time, integration of sensors, and decision-making algorithms. Increasing the development of autonomous systems, that are supposed to concurrently enhance road safety and efficiency in transit in reality, is boosting demand for advanced automotive software solutions.
Automotive Software Market Restraints
High R&D Cost
- The large expense to develop and integrate software is one of the major deterrents to the automotive software sector. The development of complex automotive software systems requires massive R&D, talented manpower, and testing. Such costs may deter small producers from entry into the market or expansion in the lines of products offered, which could limit market growth in general.
Challenges Related to Regulatory Compliance
- In the automobile industry, strict legal aspects apply to data security, pollution, and safety. Regulatory constraints might be stringent and time-consuming for software engineers to implement. In the event of noncompliance, severe fines and product launch delays may result, leading to stagnated innovation and discouraging firms from sourcing new software with resultant growth retardation in markets.
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Automotive Software Market Competitive Landscape
Major companies are focusing on presenting products specific to their sector to improve its market status. To acquire such a stature, major firms are implementing merger and acquisition strategies with local competitors. Huge and established firms are coming up with innovative policies to acquire greater access to customers. Moreover, the automotive software market share would also be on account of improved capital expenditure in R&D to introduce high-tech products in the market. In addition, big companies are adopting strategies to maintain their lead in the market.
Top Player’s Company Profile
- Robert Bosch GmbH
- NXP Semiconductors
- NVIDIA Corporation
- BlackBerry Limited
- Continental AG
- Alphabet Inc.
- Automotive Grade Linux
- Green Hills Software
- Aptiv
- Airbiquity Inc.
- TomTom International BV
- Sigma Software
- Siemens
- ZF Friedrichshafen AG
- DXC Technology
Recent Developments
- In March 2024, Valeo opened up its business-to-business (B2B) sales platform, as did General Motors, Magna, Wipro, and SDVerse Vehicle Software Marketplace to facilitate buying and selling in the automotive software market.
- In March 2024, Arm unveiled Modern Arm Automotive Enhanced processors and new virtual platforms that can potentially save automotive development cycles up to two years.
- In January 2024, Hyundai Mobis chose Wind River to push forward further advancements on its software development for a software-defined vehicle in a step that should help give a boost to its business on automotive software through the VxWorks real-time operating system and Wind River Linux.
Automotive Software Key Market Trends
- Shift to Electric and Hybrid Cars: Increasing environmental factors coupled with regulatory pressures contribute to the momentum in the automotive software market toward electric and hybrid cars. Companies now design software that exploits battery management, energy efficiency, and charging infrastructure best. This will not only boost the burgeoning electric vehicles market but also promote innovation in automotive software that could be adapted to powertrain evolution.
- Integration of Machine learning and AI Together: By trend, the application of machine learning (ML) and artificial intelligence (AI) in the automotive software market are obvious. From advanced driver assistance systems (ADAS) up to predictive maintenance as well as user experience, AI and ML will even do better in automotive vehicle software. AI and ML characterize the future of the automobile business as well as enhance higher operational effectiveness, safety, and driving experience.
Automotive Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the automotive software market outlook has great prospects, especially with growing demand for connected and driverless cars and increasing vehicle sales of hybrid and electric varieties. Such improvements notwithstanding, high development costs and strict compliance by regulatory authorities present obstructions towards further integration into new-age emerging technologies such as artificial intelligence and machine learning. The market will evolve further as car manufacturers invest in enhancing features of safety and connectivity, responding to changing customer and legislative conditions. Looking at all these points, the automotive software market does seem to have a promising future with radical developments going on to have a say in the direction of the sector in the future.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 31.06 Billion |
| Market size value in 2032 | USD 89.24 Billion |
| Growth Rate | 14.1% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Automotive Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Automotive Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Automotive Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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