Automotive Software Market Size & Share Analysis - Growth, Trends & Forecasts (2025 - 2030)

The Automotive Software Market Analysis Report is Segmented by Application (Safety and Security, Infotainment and Instrument Cluster, Vehicle Connectivity, and Other Applications (Powertrain)), Vehicle Type (Passenger Cars and Commercial Vehicles), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The Report Offers Market Forecast and Size in Value (USD) for all the Above-Mentioned Segments.

Automotive Software Market Size & Share Analysis - Growth, Trends & Forecasts (2025 - 2030)

Automotive Software Market Size

Automotive Software Market Summary
Study Period 2024 - 2030
Market Size (2025) USD 12.29 Billion
Market Size (2030) USD 33.20 Billion
CAGR (2025 - 2030) 22.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Automotive Software Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Automotive Software Market with other markets in Automotive Industry

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Automotive Software Market Analysis

The Automotive Software Market size is estimated at USD 12.29 billion in 2025, and is expected to reach USD 33.20 billion by 2030, at a CAGR of 22% during the forecast period (2025-2030).

According to the market analysis, factors such as the adoption of ADAS features in vehicles, increasing adoption of connected car services, and intervention of innovative technologies for advanced UI are expected to drive the global market growth. As a result, the growth trajectory of this market is strongly correlated to the deployment of software in various applications such as entertainment and security. Growth in the electric mobility industry in countries like India and China is creating a positive outlook for the market. 

According to the International Energy Agency, in Q1 2024, electric car sales grew by around 25% compared to Q1 2023, with China holding the largest share of 45% in electric car sales, followed by Europe with 25%. 

The utilization of open-source platforms and the improved product offerings focused on user experience boosted the market growth for automotive software. Consumers and OEMs are increasingly focusing on automobile infotainment systems, and manufacturers are competing primarily on the software or operating system they utilize. Manufacturers emphasize smart capabilities in these infotainment systems and deploy software that will set their products apart from their competitors. 

Another major trend in the automotive software market is the emergence of autonomous driving technologies. These technologies use advanced sensors, machine learning algorithms, and real-time data processing to allow vehicles to navigate and make decisions without human input. Industry analysis indicates that this technology is expected to revolutionize the automotive industry and transform how we think about transportation. 

Considering the scenario, various manufacturers are focusing on upgrading their technologies for vehicles and on technological advances in the software industry. For example: 

  • In December 2023, global technology services provider FPT officially launched its automotive technology subsidiary FPT Automotive with a comprehensive suite of engineering services encompassing in-vehicle infotainment, electronic control units (ECU), functional safety, security, automotive UI/UX design, wireless connectivity, and digital engineering. 

The automotive software market growth is also driven by the need for more efficient and sustainable transportation systems. Governments worldwide are implementing regulations to reduce emissions and promote electric vehicles. Automotive software plays a key role in helping automakers develop more efficient and eco-friendly vehicles. 

Automotive Software Industry Overview

The automotive software market is consolidated and led by global and regionally established players. These companies adopt strategies such as new product launches, collaborations, and mergers to sustain their market positions. For instance: 

  • In April 2024, the BMW Group and Tata Technologies announced the signing of an agreement to form a joint venture (JV) to establish automotive software and IT development hubs in Pune, Bengaluru, and Chennai, India. 

Some of the major players in the global market include BlackBerry Limited, KPIT Technologies Limited, Microsoft Corporation, Google, and Airbiquity Inc. 

Automotive Software Market Leaders

  1. Microsoft Corporation

  2. BlackBerry Limited

  3. Google (Alphabet Inc.)

  4. KPIT Technologies Limited

  5. Airbiquity Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Automotive Software Market Concentration
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Automotive Software Market News

  • March 2024: Wipro Limited partnered with General Motors (GM) and global automotive supplier Magna to develop a B2B sales platform for buying and selling automotive software. The SDVerse platform aims to revolutionize the automotive software sourcing and procurement process by providing a matchmaking platform. 
  • April 2024: HARMAN announced that Tata Motors, India’s leading automobile manufacturer, selected the HARMAN Ignite Store as its in-vehicle app store, bringing easily accessible, reliable, and safe mobility experiences to more customers across a new geographical region. 

Automotive Software Industry Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Drivers
    • 4.1.1 Increasing Investments by Automobile Manufacturers for Electric Vehicles
  • 4.2 Market Challenges
    • 4.2.1 Lack of Standard Protocols for Developing Software Platforms
  • 4.3 Industry Attractiveness - Porter's Five Forces 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 (Market Size in Value (USD))

  • 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 By Geography
    • 5.3.1 North America
    • 5.3.1.1 United States
    • 5.3.1.2 Canada
    • 5.3.1.3 Rest of North America
    • 5.3.2 Europe
    • 5.3.2.1 Germany
    • 5.3.2.2 United Kingdom
    • 5.3.2.3 France
    • 5.3.2.4 Italy
    • 5.3.2.5 Rest of Europe
    • 5.3.3 Asia-Pacific
    • 5.3.3.1 China
    • 5.3.3.2 Japan
    • 5.3.3.3 India
    • 5.3.3.4 South Korea
    • 5.3.3.5 Rest of Asia-Pacific
    • 5.3.4 Rest of the World
    • 5.3.4.1 South America
    • 5.3.4.2 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
    • 6.2.3 Google (Alphabet Inc.)
    • 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

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Automotive Software Industry Segmentation

Automotive software refers to the computer programs, applications, and systems used in designing, manufacturing, operating, and maintaining automobiles, including the software used in developing and operating vehicle components and systems. 

The automotive software market is segmented by application, vehicle type, and geography. By application type, the market is segmented by safety and security, infotainment and instrument cluster, vehicle connectivity, and other applications (powertrain). By vehicle type, the market is segmented by passenger cars and commercial vehicles. By geography, the market is segmented by North America, Europe, Asia-Pacific, and Rest of the World. The report offers market forecast and size in value (USD) for all the above-mentioned segments. 

By Application Safety and Security
Infotainment and Instrument Cluster
Vehicle Connectivity
Other Applications (Powertrain)
By Vehicle Type Passenger Cars
Commercial Vehicles
By Geography North America United States
Canada
Rest of North America
Europe Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Rest of Asia-Pacific
Rest of the World South America
Middle East and Africa
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Automotive Software Market Research FAQs

How big is the Automotive Software Market?

The Automotive Software Market size is expected to reach USD 12.29 billion in 2025 and grow at a CAGR of 22% to reach USD 33.20 billion by 2030.

What is the current Automotive Software Market size?

In 2025, the Automotive Software Market size is expected to reach USD 12.29 billion.

Who are the key players in Automotive Software Market?

Microsoft Corporation, BlackBerry Limited, Google (Alphabet Inc.), KPIT Technologies Limited and Airbiquity Inc. are the major companies operating in the Automotive Software Market.

Which is the fastest growing region in Automotive Software Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Automotive Software Market?

In 2025, the North America accounts for the largest market share in Automotive Software Market.

What years does this Automotive Software Market cover, and what was the market size in 2024?

In 2024, the Automotive Software Market size was estimated at USD 9.59 billion. The report covers the Automotive Software Market historical market size for years: 2024. The report also forecasts the Automotive Software Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Automotive Software Industry Report

The Global Automotive Software Market is on a significant upswing, fueled by the growing integration of advanced driver assistance systems (ADAS) and a surge in demand for connected car services. This growth is further propelled by the adoption of infotainment systems and connected technologies, enhancing vehicle user experience. Automotive software companies are at the forefront, capitalizing on the development of semi-autonomous and autonomous vehicles that heavily depend on sophisticated software for operation and safety. Despite facing challenges like complex vehicle architecture and the absence of standardized software development protocols, the market is set for substantial growth. Key opportunities lie in ADAS & safety systems, application software, and body control & comfort systems, with Asia-Pacific leading in terms of market share, driven by advancements in autonomous driving technology. The importance of software in the automotive industry is increasingly recognized, with automotive software companies playing a crucial role in vehicle technology and connectivity evolution. For detailed insights, Mordor Intelligence™ Industry Report offer a comprehensive industry analysis, including market share, size, revenue growth rate, and a forecast outlook, available as a free report PDF download.