Market Trends of Automotive Software Industry
This section covers the major market trends shaping the Automotive Software Market according to our research experts:
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.
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.
