Automotive Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The automotive software market has been segmented by Application (Safety & Security, Infotainment and Instrument Cluster, Vehicle Connectivity and Other Applications (Powertrain)), by Vehicle Type (Passenger Car and Commercial Vehicle), and by Geography.

Automotive Software Market Snapshot

Automotive Software Market
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 0 %

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Market Overview

The global automotive software market is expected to register a CAGR of 5.11%, during the forecast period, 2019-2024.

  • Increasing vehicle safety standards, as well as growing investments toward autonomous vehicle deployment, are driving the demand for advanced software solutions in the automotive market.
  • Asia-Pacific is expected to see a faster growth rate for the automotive software market during the forecast period, as many OEMs, especially in China, Japan, India, and other ASEAN countries, have been predominantly launching new vehicle models equipped with some of the advanced driver assistance features as standard features even in the mid-size car segments.
  • The competition in the market is high, as many startup companies have been widely expanding their software solutions in the automotive sector, to capture the rising demand for electric and autonomous vehicle trends during the forecast period.

Scope of the Report

Automotive software is a set of instructions that controls and monitors different in-vehicle applications/functions, which has been considered in the scope of the study.

Different in-vehicle functions have been majorly segmented by application as safety and security, infotainment and instrument cluster, vehicle connectivity, and other applications (powertrain).

The market studied covers the factors that are driving the demand for automotive software by analyzing various trends, like ADAS, electric, and autonomous features, and their adoption rate in passenger and commercial vehicles across the world, challenges surrounding the automotive software market, and the market share of the major players.

By Application
Safety & Security
Infotainment and Instrument Cluster
Vehicle Connectivity
Other Applications (Powertrain)
By Vehicle Type
Passenger Car
Commercial Vehicle
Geography
North America
US
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Rest of Europe
Asia Pacific
China
Japan
India
Rest of Asia-Pacific
Rest of the World

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Key Market Trends

Safety & Security Software is Expected to Witness Faster Growth Rate

Safety & Security segment is expected to capture a significant share in the market studied during the forecast period, owing to the increasing adoption of few ADAS features as a standard option even in mid-size vehicles in the coming years. For instances:

  • The demand for advanced driver assistance systems (ADAS) is expected to rise significantly over the forecast period, fueled largely by consumer interest and regulatory mandates in safety applications that help protect drivers and reduce accidents.
  • 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. These regulations are soon to follow suite in the Asian and South Asian countries, which may drive the market studied.
  • In 2019, Peugeot, a French automotive manufacturer launched its 3008 SUV Plus and 5008 SUV Plus models in Malaysia. The top variants of these vehicles are fitted with advanced safety features, such as speed limit information, driver attention alert, active lane-keeping assistance, and blind-spot monitoring assistance.
  • 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.
Automotive Software Market

North America Captured a Major Market Share

  • Among the North American countries, 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 semi-autonomous car models, as well as the development of vehicle autonomous systems among the players in the automotive industry, over the past two year (2017-2018). Furthermore, it is expected to continue its growth rate during the forecast period.
      • In May 2018, Nissan announced to expand its ProPILOT Assist semi-autonomous driving system to additional models, including the Rogue Sport, in the United States. The ProPILOT Assist technology is anticipated to be featured in the upcoming, all-new 2019 Nissan Altima sedan. The technology is also expected to be expanded to 20 models and 20 markets by the end of 2022.
  • Such above-mentioned developments in vehicle systems are likely to drive the demand for advanced software solutions in the country, during the forecast period.
Automotive Software Market

Competitive Landscape

Some of the major players in the market includes BlackBerry Limited, KPIT Technologies Limited, Microsoft Corporation, Google, Airbiquity Inc., Wind River Systems etc.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Challenges

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Application

      1. 5.1.1 Safety & Security

      2. 5.1.2 Infotainment and Instrument Cluster

      3. 5.1.3 Vehicle Connectivity

      4. 5.1.4 Other Applications (Powertrain)

    2. 5.2 By Vehicle Type

      1. 5.2.1 Passenger Car

      2. 5.2.2 Commercial Vehicle

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 US

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 BlackBerry Limited

      2. 6.2.2 KPIT Technologies Limited

      3. 6.2.3 Google

      4. 6.2.4 Airbiquity Inc.

      5. 6.2.5 Wind River Systems

      6. 6.2.6 Microsoft Corporation

      7. 6.2.7 MontaVista Software LLC

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Automotive Software Market market is studied from 2018 - 2026.

The Automotive Software Market is growing at a CAGR of 0% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

BlackBerry Limited, KPIT Technologies Limited, Google, Microsoft Corporation, Wind River Systems are the major companies operating in Automotive Software Market.

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