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Automotive Software Market Size, Share, Industry Growth Analysis by 2030
Automotive Software Market - Global Forecast to 2030
The global automotive software market [https://www.marketsandmarkets.com/Market-Reports/automotive-software-market-200707066.html?utm_source=abnewswire.com&utm_medium=referral&utm_campaign=Automotive%20Software%20Market] 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%. The increasing adoption of L2 vehicles across several countries, combined with the advancement in infotainment systems, are expected to drive the automotive software market. Additionally, booming sales of premium passenger cars paired with adoption of software-over-the-air (SOTA) updates will support the revenue growth for automotive software during the projected period.
Based on Vehicle Type: The light commercial vehicles segment of the automotive software market, by vehicle type, is expected to register noticeable growth during the forecast period. With increased demand for technologically advanced light commercial vehicles, the market for automotive software will grow rapidly in the forecasted period. As such, light commercial vehicles are largely equipped with automotive software to support ADAS features such as automatic emergency braking and lane departure warning. All these aforementioned parameters are expected to augment revenues for the light commercial vehicles segment in the automotive software market in the foreseeable future.
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Based on EV Application: The ADAS & safety systems segment, by EV application, is expected to hold a larger market share in the automotive software market during the forecast period. This is attributed to the increasing adoption of ADAS-equipped features in BEVs and PHEVs. Audi Q5 e-tron, BMW i7 xDrive 60, BMW i3 eDrive35L, Toyota bZ4X, Hyundai Ioniq 6, Kia Niro PHEV, Toyota Harrier PHEV, and Hyundai Tucson Plug-in Hybrid are a few examples of BEVs and PHEVs with ADAS features. ADAS relies on software to run its applications effectively. For example, automatic emergency braking (AEB) systems use software to analyze sensor data and determine whether to apply the brakes automatically to avoid a collision. All these above factors are expected to support the revenue growth for ADAS & safety systems segment of the automotive software market during the forecast period.
By ICE Application: The infotainment systems segment is expected to register significant growth during the forecast period. In-vehicle infotainment systems are becoming increasingly advanced, with features such as voice control, gesture control, augmented reality, and integration with smartphones and other devices. These features require complex automotive software to develop and maintain. Companies such as TomTom International BV. (Netherlands), Continental AG (Germany), Robert Bosch LLC. (Germany), Garmin Ltd. (US), and Harman International (US), among others provide in-vehicle infotainment systems. These companies are collaborating with automotive OEMs for advancement pertaining to infotainment systems. For example, in January 2023 Garmin Ltd (US) recently demonstrated its latest in-cabin solution for the automotive OEMs at consumer Electronics Show 2023. Similarly, in July 2021, TomTom International BV (Netherlands) launched Virtual Horizon, a new software that demonstrated ADAS offering that helps drivers and automated vehicles make more intelligent decisions. All these aforementioned parameters are likely to bolster the growth opportunities for the information systems segment of the automotive software market.
By Region: North America is expected to have noticeable market for automotive software during the forecast period. This is owing to the strong penetration of high-end luxury vehicles coupled with rising sales of L2 vehicles. The market growth in North America is expected to be significant due to the rise in connectivity-based applications that include autonomous driving, connected services, ADAS, high-end infotainment, and powertrain solutions. Thus, the demand for software solutions in cars will also increase. The presence of key automotive software providers such as NVIDIA Corporation (US), Alphabet Inc. (US), Automotive Grade Linux (US), and Green Hill Software (US) would help to drive the North American automotive software market during the forecast period.
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