Press release
Automotive Software Market Size, Share, Trends & Forecast by 2030
Automotive Software Market
The global automotive software market [https://www.marketsandmarkets.com/Market-Reports/automotive-software-market-200707066.html] size is projected to grow from USD 19.0 billion in 2023 to USD 32.3 billion by 2030, at a CAGR of 7.8%. Rapid integration of ADAS features in vehicles, and increasing adoption of connected car [https://www.marketsandmarkets.com/Market-Reports/connected-car-market-102580117.html] services, paired with rising deployment of ECUs and domain controllers in vehicles are anticipated to increase the demand for automotive software all over the world.
Market Driver: Advancements in infotainment systems
There is strong competition among automotive manufacturers to deploy cutting-edge infotainment systems for their upcoming vehicle models. For example, Mitsubishi Motors Corporation (Japan), Nissan Motor Co., Ltd. (Japan), and Renault (France) have adopted Google's Android operating system for their next-generation infotainment systems. In November 2022, Hyundai Motor (South Korea) also selected NVIDIA drive infotainment and AI platform for all future Hyundai, Kia, and Genesis models.
The changing consumer preference pertaining to wireless technology, along with the steady increase in demand for seamless connectivity of phones with passenger cars, is expected to drive the in-vehicle infotainment segment. This, in turn, will increase the demand for in-vehicle infotainment systems, thereby supporting the revenue growth of the automotive software market during the forecast period. As such, automotive software (operating systems such as Android, Linux, and QNX) are integral parts of the in-vehicle infotainment systems.
Furthermore, there is a high demand for infotainment services such as navigation and traffic updates. Most of these services require real-time information and are listed in the traffic efficiency section. This would require the need for automotive software to deliver real-time information. These aforementioned parameters are expected to bolster the revenue growth of the automotive software market during the forecast period.
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Operating system segment is expected to have significant share in the global automotive software market
The operating system is expected to be a noticeable segment in the automotive software market, as it controls the core capabilities of the vehicle while keeping passengers and the driving environment safe, which makes it the most important part of the software. Additionally, the automotive operating system market is expected to grow significantly with the growing adoption of connected car technologies. As such, operating system (OS) plays a critical role in connected vehicles. The OS provides the platform for the telematics system to run on and provides the features and functionality that allow the vehicle to communicate with other devices and services.
Passenger car segment is expected to have significant growth opportunities in global automotive software market
The passenger car segment is expected to have significant growth opportunities in the automotive software market during the forecast period. This is due to the increasing adoption of ADAS features in passenger cars and the rising inclination towards autonomous driving. Additionally, rising demand for passenger cars in emerging and developed countries has also contributed to the growth of the automotive software market. For example, in 2022, car production in China was around 23.8 million units, while in Japan, it was around 6.5 million. South Korea accounted for around 3.4 million units; in India, it was around 4.4 million units in the same year. The demand for automotive software in the Asia Pacific region is expected to increase due to the advent of autonomous driving, rising vehicle production, and prominent growth in demand for high-end services such as connected car services and telematics. All these aforementioned factors are anticipated to bolster the revenue growth of the passenger car segment during the forecast period.
"Germany to lead the automotive software market in Europe"
Germany is expected to have a sizeable market for automotive software among all the European countries. The most significant factors supporting the growth of the automotive software market in Germany are the penetration of premium passenger car brands with high-end software applications and government mandates regarding safety. The high sales of premium vehicles, such as the Mercedes-Benz S-Class, BMW 7 Series, Mercedes-Benz G-Class Audi A8, and Audi S8, are expected to drive the automotive software market in Germany during the forecast period.
Key Players
The automotive software market is dominated by global players such as Robert Bosch GmbH (Germany), NXP Semiconductors (Netherlands), NVIDIA Corporation (US), BlackBerry Limited (Canada), and Continental AG (Germany), among others. These companies adopted new product development strategies, expansion, partnerships & collaborations, and mergers & acquisitions to gain traction in the market.
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