Automotive Software Market Snapshot
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The global automotive software market is valued at USD 10.7 Billion in 2020 and is expected to reach USD 29.3 Billion by 2026 registering a CAGR of 5.11%, during the forecast period, 2021-2026.
The automotive industry is experiencing unprecedented challenges and uncertainty due to the COVID-19 pandemic. The outbreak has had a swift and severe impact on the globally integrated automotive industry. This is placing intense pressure on an industry with a downshift in global demand. With declining demand in view, automotive companies are examining their strategies and operational plans for the post-pandemic period. As economies are recovering slowly, it is expected that the market grows positively during the forecast period.
The utilization of open-source platforms and the improved product offerings focused on user experience boosted the entire market for automotive software. Consumers and OEMs are increasingly focusing on automobile infotainment systems, and manufacturers are competing primarily on the software or operating system that these systems utilize. Furthermore, manufacturers are emphasising smart capabilities in these infotainment systems, as well as the deployment of software that will set their products apart from their competitors.
However high cost of automotive software solutions and the vehicles these software is incorporated has been a restarining factor for the market growth.
Scope of the Report
The Automotive Software Market has been segmented by application, vehicle type, and geography. The report offers market size and forecast for the Automotive Software Market in Value (USD billion) for all the above-mentioned segments.
By Application, the market is segmented as Safety and Security, Infotainment and Instrument Cluster, Vehicle Connectivity and Other Applications (Powertrain).
By Vehicle Type, the market is segmented as Passenger Cars and Commercial Vehicles.
and By Geography, the market is segmented as North America, Europe, Asia-Pacific, and the Rest of the world
|Safety and Security|
|Infotainment and Instrument Cluster|
|Other Applications (Powertrain)|
|By Vehicle Type|
Key Market Trends
Safety and Security Software is Expected to Witness Faster Growth Rate
Due to the increasing adoption of a few ADAS technologies as a standard option even in mid-size vehicles in the coming years, the safety & security category is expected to acquire a considerable part of the market studied during the forecast period. Consumer interest and regulatory demands in safety applications that help safeguard drivers and decrease accidents are predicted to drive demand for advanced driver assistance systems (ADAS) to expand significantly over the forecast period.
The Federal Motor Vehicle Safety Standards (FMVSS) are a set of standards issued by the United States that outline the safety criteria for all motor vehicles. While the EU's standards are mostly based on UN studies and recommendations, the FMVSS was formed within the context of US regulatory organizations. Both the United States and the European Union are framing mandates to see that all vehicles are equipped with forward-collision warning systems and emergency-braking systems by 2020. FWVSS specifies three domains of testing for meeting their regulatory requirements, including crash avoidance crashworthiness and post-crash survivability
For instance, 2021 Kia Carnival comes with the 'safe exit warning' and 'safe exit assist' systems that will use sensors located near the tail lights to detect potential approaching hazards when the car is travelling less than 3km/ h and avoid crashes.Such launches of safety and security features in vehicles are likely to drive the demand for reliable software solutions from the suppliers in the market studied, during the forecast period.
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North America Captured a Major Market Share
North America is expected to dominate the market in the forecast period. Owing to factors like strong and established automotive company clusters and also being the home for the world's biggest technology companies like Google, Microsoft, etc the region has been pioneer regard to autonomous vehicles. Particularly in the United States, self-driving cars have already been tested and used in California, Texas, Arizona, Washington, Michigan, and other states of the United States. The United States covers the largest market share of more than 65% in the North American automotive software market.
The country has been significantly increasing the number of launches of autonomous car models, as well as the development of vehicle autonomous systems among the players in the automotive industry, over the past two years. Furthermore, it is expected to continue its growth rate during the forecast period.
In June 2021, General Motors Co. announced investments in electric and autonomous vehicles June, with a plan to spend USD 35 billion by 2025.
Such above-mentioned developments in vehicle systems are likely to drive the demand for advanced software solutions in the country, during the forecast period.
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Some of the major players in the market includes BlackBerry Limited, KPIT Technologies Limited, Microsoft Corporation, Google, Airbiquity Inc., etc. Many OEM's are teaming up with the technology companies to introduce new features. For instance,
- In February 2021, Bosch teamed up with Microsoft to develop a software-defined vehicle platform for seamless integration between cars and cloud. The collaboration brings together automotive and cloud computing expertise to shape the next generation of vehicle software.
- In february 2022, automotive software company TTTech Auto raised USD 285 million investment from Audi and APTIV. In this fund raise, Aptiv is going to invest US$ 228 million, while Audi has proposed to increase its existing stake by US$ 57 million.
- Innoviz Technologies, Ltd., a leading provider of high-performance, solid-state LiDAR sensors and perception software, is pleased to announce that it has achieved compliance with automotive standard IATF 16949:2016. The compliance statement recognizes Innoviz for developing its own automated manufacturing processes and complying with this standard itself in addition to its supply chain.
- In September 2021, Woven Planet Holdings, a subsidiary of Toyota Motor Corp., has acquired Renovo Motors, to advance software development for autonomous vehicles.
- In July 2021, Volvo has revealed plans to overhaul its infotainment and data systems with a new in-house developed operating system, VolvoCars.OS, which will be used on future cars from 2022.
- In February 2021, Volkswagen Group partnered with Microsoft to accelerate the development of automated driving. Volkswagen Group’s Car Software Organisation and Microsoft will build an Automated Driving Platform for the agile development of automated driving functions. With the cloud-based platform, Car Software Organisation will simplify its development processes on Microsoft Azure to bring automated driving solutions to the group.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Challenges
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Application
5.1.1 Safety and Security
5.1.2 Infotainment and Instrument Cluster
5.1.3 Vehicle Connectivity
5.1.4 Other Applications (Powertrain)
5.2 By Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.3.1 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
5.3.3 Asia Pacific
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.3.4 Rest of the World
126.96.36.199 South America
188.8.131.52 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles *
6.2.1 BlackBerry Limited
6.2.2 KPIT Technologies Limited
6.2.4 Airbiquity Inc.
6.2.5 Wind River Systems
6.2.6 Microsoft Corporation
6.2.7 MontaVista Software LLC
6.2.8 Robert Bosch GmbH
6.2.9 Intellias Ltd.
6.2.10 HARMAN International
6.2.11 GlobalLogic Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Frequently Asked Questions
What is the study period of this market?
The Automotive Software Market market is studied from 2018 - 2027.
What is the growth rate of Automotive Software Market?
The Automotive Software Market is growing at a CAGR of 5.11% over the next 5 years.
What is Automotive Software Market size in 2018?
The Automotive Software Market is valued at 10 Billion USD in 2018.
What is Automotive Software Market size in 2027?
The Automotive Software Market is valued at 29 Billion USD in 2027.
Which region has highest growth rate in Automotive Software Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Software Market?
North America holds highest share in 2021.
Who are the key players in Automotive Software Market?
Google, Microsoft Corporation, Airbiquity, KPIT , BlackBerry Limited are the major companies operating in Automotive Software Market.