The global automotive software market is poised for substantial growth, projected to surge from $19 billion in 2023 to $32.3 billion by 2030, boasting a robust CAGR of 7.8%, according to a recent report from ResearchAndMarkets.
Report Summary:
The comprehensive 'Global Automotive Software Market by ICE Application (ADAS, Autonomous Driving, Infotainment, Body Control & Comfort, Telematics), Software Layer (OS, Middleware, Application), Vehicle Type (PCs, LCVs, HCVs), EV Application and Region - Forecast to 2030' delves into various segments of the automotive software market. It provides estimations of market size and growth potential across categories such as ICE application, EV application, software layer, vehicle type, and region. Additionally, the report includes an in-depth competitive analysis of key market players, exploring their company profiles, product offerings, recent developments, and acquisitions.
Market Dynamics:
The surge in demand for automotive software solutions is attributed to the widespread adoption of Advanced Driver Assistance Systems (ADAS) features globally. The anticipated increase in Electronic Control Units (ECUs) and domain controllers in vehicles, coupled with advancements in semi-autonomous and autonomous vehicles, is expected to drive substantial revenue growth in the automotive software market.
The use of software in various automotive applications, including telematics, infotainment, powertrain, body control, and ADAS, has led to a significant increase in lines of code over the last decade. Notably, the lines of code have seen a fifteenfold increase, reflecting the industry's dynamic evolution.
As the automotive sector undergoes major developments, especially in the realm of autonomous vehicles, factors such as Over-the-Air (OTA) updates, hypervisors, ADAS, and Vehicle-to-Everything (V2X) communication contribute to the high growth rate of automotive software. Industry players are prioritizing safety, quality, reliability, and security of vehicle software, fostering a heightened demand for efficient automotive software solutions throughout the forecast period.
Key Players:
Major players in the automotive software market include Robert Bosch GmbH (Germany), NXP Semiconductors (Netherlands), NVIDIA Corporation (US), BlackBerry Limited (Canada), and Continental AG (Germany), among others.
Market Segmentation:
Passenger Cars Segment: The passenger cars segment is anticipated to dominate the automotive software market during the forecast period. The high penetration of software services in passenger cars, especially in developed countries, is driven by strong demand for advanced applications such as ADAS and connected car services. Major players are strategically adopting measures to cater to this rising demand, as exemplified by Harman International's acquisition of Apostera in February 2022.
Battery Management Systems (BMS) Segment: The BMS segment, within EV applications, is expected to hold a significant market share. These systems play a critical role in enhancing battery performance and lifespan. The surge in Battery Electric Vehicle (BEV) sales, exemplified by Toyota Motor Corporation's announcement to launch next-generation BEVs globally, is set to fuel the demand for BMS, with automotive software playing a pivotal role in optimizing these systems.
Regional Growth:
Europe: Europe is poised to register notable growth in the automotive software market during the forecast period. Boasting top Tier I suppliers such as Continental AG, Robert Bosch GmbH, and ZF Friedrichshafen AG, the region's automotive sector is witnessing substantial growth. The high purchasing power of European buyers, coupled with the presence of leading automotive OEMs like Volkswagen, Mercedes-Benz Group AG, and Stellantis NV, positions Europe as a lucrative market for automotive software.
In summary, the global automotive software market is on an upward trajectory, fueled by technological advancements, rising demand for advanced automotive applications, and strategic initiatives by key players. Europe emerges as a focal point for growth, driven by a robust automotive sector and the presence of industry leaders.
Courtesy: ResearchAndMarkets. Photo is representational; courtesy: NXP.
Also Read:
Hyundai Motor Group Advocates Software-Centric Approach for Future Mobility
ZF Unveils Brake-by-Wire System for Software-Defined Vehicles