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Automotive Software - Global Strategic Business Report

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    Report

  • 812 Pages
  • March 2024
  • Region: Global
  • Global Industry Analysts, Inc
  • ID: 1824119

Global Automotive Software Market to Reach $39.4 Billion by 2030

The global market for Automotive Software estimated at US$19.3 Billion in the year 2023, is projected to reach a revised size of US$39.4 Billion by 2030, growing at a CAGR of 9.3% over the analysis period 2023-2030.

Application Software, one of the segments analyzed in the report, is projected to record 10% CAGR and reach US$22.8 Billion by the end of the analysis period. Growth in the Middleware segment is estimated at 8.8% CAGR for the next 8-year period.

The U.S. Market is Estimated at $3 Billion, While China is Forecast to Grow at 10.9% CAGR

The Automotive Software market in the U.S. is estimated at US$3 Billion in the year 2023. China, the world's second largest economy, is forecast to reach a projected market size of US$11.7 Billion by the year 2030 trailing a CAGR of 10.9% over the analysis period 2023 to 2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 5.5% and 6.2% respectively over the 2023-2030 period. Within Europe, Germany is forecast to grow at approximately 7% CAGR.

Exciting New Report Features

  • Full access to influencer engagement stats
  • Free access to digital archives & research platform. The proprietary platform is fully enabled to unlock creativity and market knowledge of domain experts worldwide in a cohesive and collaborative manner. The state-of-art tools bring world class market perspectives while protecting participants` privacy and identity. Numbers, statistics and market narrative in the report are based on fully curated insights shared by domain experts and influencers in this space.
  • Opportunity to engage with interactive questionnaires that come with real-time data simulator tools & bespoke report generation capabilities
  • Full client access to peer collaborative and interactive platform for cross-enterprise smart exchange of ideas
  • Complimentary report updates for one year
  • Competitor coverage with global market shares of major players
  • Player market presence analysis (Strong/Active/Niche/Trivial) across multiple geographies
  • Access to curated YouTube video transcripts of domain experts/influencer interviews, podcasts, press statements and event keynotes

What to Expect from the Global Economy in 2024

Edgy geopolitics, and economic instability caused by monetary policy tightening and ensuing higher interest rates will create a tumultuous landscape for 2024. Several factors will continue to exert pressure on the path to recovery including hostilities in the Middle East and increasingly common climate disasters. Among the risks, several positives are also taking shape such as growing signs of disinflation and easing of anxiety over stubborn inflation, supply chain normalization and price moderation despite volatility in energy costs. Elections across several G21 jurisdictions, notably in India and the United States, will have potential ramifications for capital flows and investment strategies. While India emerges as a compelling destination in the global investment landscape, U.S, based tech firms will continue to dominate, fueled by a dynamic ecosystem of talent and capital. Tech opportunities in Silicon Valley and beyond remain attractive for investors seeking high-growth prospects supported largely by a resilient albeit slowing domestic economy and conducive regulatory environment. Europe will continue to battle tight monetary policy and recession risks with U.K. having the most challenging outlook and running the greatest risk of recession in 2024. China remains a wild card with hope for growth in the country underpinned by government spending and improvements in consumer spending. The volatile environment will offer both opportunities and challenges for investors and businesses alike. Embracing volatility as a catalyst for growth together with agility and strategic foresight in navigating investment decisions will remain important for survival.

Select Competitors (Total 175 Featured)

  • Apple, Inc.
  • Accenture PLC
  • Adobe Inc.
  • Amazon Web Services, Inc.
  • Akamai Technologies, Inc.
  • ANSYS, Inc.
  • Airbiquity, Inc.
  • Access Co., Ltd.
  • Altair Engineering, Inc.
  • Airmax Group Ltd.
  • American Digital Cartography, Inc.
  • AImotive
  • Airlinq, Inc.
  • AplusB Software Corporation
  • Accord Global Technology Solutions Private Limited

Table of Contents

I. METHODOLOGYII. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
  • An Introduction to Automotive Software
  • Types of Software Technologies
  • Applications of Automotive Software in Vehicles
  • Industry Standards
  • Rising Integration of Advanced Technology in Vehicles Scripts Phenomenal Growth Story for Automotive Software Market
  • Connectivity as New Buzzword Augments Growth of Automotive Software Market
  • Influx of New Technology Continues Fueling Growth
  • Impediments to Market Growth
  • Application Software Emerges as the Largest Segment
  • World Automotive Software Market by Product: Percentage Breakdown of Sales for Application Software, Middleware, and Operating System (2021 & 2027)
  • Adoption of Safety Systems Continue Fueling Market Growth
  • World Automotive Software Market by Application (2021 & 2027): Percentage Breakdown of Sales for Safety Systems, Infotainment & Telematics, Powertrain, and Other Applications
  • Passenger Cars Remain Primary Growth Segment
  • World Automotive Software Market by End-Use: Percentage Breakdown of Sales for Passenger Cars, and Commercial Vehicles (2021 & 2027)
  • Developing Economies to Spearhead Future Growth
  • World Automotive Software Market - Geographic Regions Ranked by CAGR (Value) for the Period 2020-2027
  • Competition
  • With Software Poised to Drive Profits, Car Makers Making Moves to Transform into Software/Tech Enterprises
  • Automotive Software - Global Key Competitors Percentage Market Share in 2023 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2023 (E)
  • World Brands
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
  • Automobile Electronification: The Cornerstone for the Evolution of Software Solutions
  • Increasing Electronic Content in Automobiles & the Resulting Proliferation of Smart Components and Subassemblies Provides the Platform for the Growth of Software: Automotive Electronics as a Percentage of Vehicle Production Cost for the Years 2010, 2020 & 2030
  • Continued Proliferation of Digital Technologies Maintains Progressive Tide in the Automotive Software Market
  • Virtualization - Key to Overcoming Challenges
  • With Advanced Technologies Making a Big Impact on Automotive Sector, Automotive Software Set to Widen its Footprint
  • Sustained Refinements to Business Models Set to Scale the Importance of Automotive Software
  • Automakers Revise Strategies to Leverage Opportunities in the Automotive Software Space
  • Over the Air (OTA) Software Updates for Cars: The Next Stage of Software Evolution
  • As the Automotive Industry Takes its Next Technology Leap, Auto OEMs Focus Shifts Towards Building a Smart Software Platform Strategy: Global Number of OTA Enabled Cars On Road (In Million) by Segment for the Years 2019 and 2025
  • Changing Automotive Revenue Streams Bring-Out Software Expertise as the Core Competency for Auto OEMs
  • Falling Growth in New Car Sales Shifts OEM Focus to New Revenue Streams
  • Shift towards Recurring Revenue Streams Makes “Software” an Indispensable Platform for Service Provisioning
  • Automobile Industry’s Migration towards New Recurring Revenue Streams to Make Software the Platform for Enabling In-Car Services: Global % Breakdown of Automobile Industry’s Profits by Revenue Streams for the Years 2017 & 2030
  • Pandemic Drives Auto Industry to Use Innovative Technologies, Presenting Growth Opportunities
  • As the Fuel that Powers the Era of Connected Cars, Automotive Software is Poised to Gain Richly From the Exploding Growth of Connected Car Services
  • Global Connected Cars Market (In US$ Billion) for the Years 2021, 2023 and 2025
  • Rise in Production of New Vehicles with Built-in Connectivity to Support Automotive Software Market: % of New Vehicles with In-Built Connectivity for 2021 and 2030
  • Infotainment Systems as the Touchpoint for Connectivity, Becomes the Hotbed for Software Development Activity
  • As Cars Evolve into Software Defined Machines, the Importance of Automotive Software Platforms Gathers Force: Global Automotive Infotainment System Sales Breakdown by Operating System (in %) for 2017 and 2022
  • Evolving Role of V2X to Further Enhance the Importance of Automotive Software
  • Telematics Software: A Key Component in Modern Automotive Vehicles
  • Global Vehicle Telematics Market Size (in US$ Billion) for the Years 2020, 2023 and 2026
  • Autonomous Cars: A Landmine of Growth Opportunity for Automotive Software
  • Autonomous Vehicles Commercialization & Technology Penetration Timeline
  • Technological Forces Driving Autonomous Car Segment
  • Global Autonomous Vehicle Sales (In Million) for Years 2020, 2025 & 2030
  • Critical Need for Sensor Fusion in Automobiles Steps Up the Importance of Software
  • Automotive HMI: A Rich Application Area for Software
  • Growing Market for Automotive Human Machine Interface (HMI) Solutions to Expand the Addressable Market Opportunity for HMI Software: Global Market for Automotive HMI (In US$ Billion) for the Years 2020, 2022, 2024 and 2026
  • Migration towards Automatic Transmission Systems Drives the Importance of Software and Algorithms for Transmission Control Systems
  • Rise of X-By-Wire Technologies Offers Opportunities for Software to Increasingly Replace Mechanical & Hydraulic Components
  • Growing Popularity of Drive-by-Wire Systems Places Emphasis on Software Reliability for Developing Fault Tolerant Systems: Global Market for X-By-Wire Systems (In US$ Billion) for the Years 2021, 2023, 2025 and 2027
  • Strong Adoption of ADAS Accelerates the Indispensability of Software
  • Strong Sales of ADAS Expands the Use Case Scenario for Advanced Software Platforms Including ADAS Operating System & Middleware: Global Advanced Driver Assistance System (ADAS) Market Size in US$ Billion for the Years 2021, 2023, 2025 & 2027
  • Adoption of On-Board Vehicle Health Monitoring & Diagnostic System Drives Growth
  • Safety Regulations Step-Up the Pressure on Software
  • TPMS Regulations Drives Demand for Software Driver Components
  • Fuel Management and Safety Standards Drives Automotive Engine Management Systems Market
  • Airbag Technology Widens the Prospects for Automotive Software
  • OEMs Focus on Reducing Software Development Costs
  • Electric Cars Promise High Volume of Software Deployments
  • Major Challenges Confronting Development of EV Software Solutions
  • Automotive Innovations to Accelerate with 5G’s Launch
  • Cloud Environment Offers the Benefit of Reduced Development Cycle Times for Automotive Software Solutions
  • Automotive Software Outsourcing Rises in Popularity
  • Software Solutions for the Mobility Industry Facilitate Performance Enhancements
  • Key Trends in Automotive Software Verification and Validation
  • Role of Open Standards in Advancing Automotive Industry
  • Increase in Software Content Raises the Risk of Failure & Difficulty in Repairing
  • Cybersecurity & Compliance: Red Hot Button Issues for Automotive Software Market
  • Major Software Challenges in the Automotive Industry
  • Vulnerabilities in Automotive Supply Chain Expose Security Threat to Software-Enabled Systems
  • Can Hardware Solve Next-Gen Architecture’s Major Challenges?
4. GLOBAL MARKET PERSPECTIVE
  • Table 1: World Automotive Software Market Analysis of Annual Sales in US$ Million for Years 2014 through 2030
  • Table 2: World Recent Past, Current & Future Analysis for Automotive Software by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 3: World Historic Review for Automotive Software by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 4: World 16-Year Perspective for Automotive Software by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets for Years 2014, 2024 & 2030
  • Table 5: World Recent Past, Current & Future Analysis for Application Software by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 6: World Historic Review for Application Software by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 7: World 16-Year Perspective for Application Software by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World for Years 2014, 2024 & 2030
  • Table 8: World Recent Past, Current & Future Analysis for Middleware by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 9: World Historic Review for Middleware by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 10: World 16-Year Perspective for Middleware by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World for Years 2014, 2024 & 2030
  • Table 11: World Recent Past, Current & Future Analysis for Operating System by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 12: World Historic Review for Operating System by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 13: World 16-Year Perspective for Operating System by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World for Years 2014, 2024 & 2030
  • Table 14: World Recent Past, Current & Future Analysis for Safety Systems by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 15: World Historic Review for Safety Systems by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 16: World 16-Year Perspective for Safety Systems by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World for Years 2014, 2024 & 2030
  • Table 17: World Recent Past, Current & Future Analysis for Infotainment & Telematics by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 18: World Historic Review for Infotainment & Telematics by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 19: World 16-Year Perspective for Infotainment & Telematics by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World for Years 2014, 2024 & 2030
  • Table 20: World Recent Past, Current & Future Analysis for Powertrain by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 21: World Historic Review for Powertrain by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 22: World 16-Year Perspective for Powertrain by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World for Years 2014, 2024 & 2030
  • Table 23: World Recent Past, Current & Future Analysis for Other Applications by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 24: World Historic Review for Other Applications by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 25: World 16-Year Perspective for Other Applications by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World for Years 2014, 2024 & 2030
  • Table 26: World Recent Past, Current & Future Analysis for Passenger Cars by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 27: World Historic Review for Passenger Cars by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 28: World 16-Year Perspective for Passenger Cars by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World for Years 2014, 2024 & 2030
  • Table 29: World Recent Past, Current & Future Analysis for Commercial Vehicles by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2023 through 2030 and % CAGR
  • Table 30: World Historic Review for Commercial Vehicles by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2014 through 2022 and % CAGR
  • Table 31: World 16-Year Perspective for Commercial Vehicles by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific, Latin America and Rest of World for Years 2014, 2024 & 2030
III. MARKET ANALYSIS
UNITED STATES
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2024 (E)
CANADA
  • Automotive Software Market Presence - Strong/Active/Niche - Key Competitors in Canada for 2022 (E)
JAPAN
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2024 (E)
CHINA
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2024 (E)
EUROPE
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2024 (E)
FRANCE
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2024 (E)
GERMANY
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2024 (E)
ITALY
UNITED KINGDOM
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2024 (E)
SPAINRUSSIAREST OF EUROPE
ASIA-PACIFIC
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2024 (E)
INDIA
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2024 (E)
SOUTH KOREAREST OF ASIA-PACIFIC
LATIN AMERICA
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2024 (E)
BRAZILMEXICOREST OF LATIN AMERICAREST OF WORLDIV. COMPETITION

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Apple, Inc.
  • Accenture PLC
  • Adobe Inc.
  • Amazon Web Services, Inc.
  • Akamai Technologies, Inc.
  • ANSYS, Inc.
  • Airbiquity, Inc.
  • Access Co., Ltd.
  • Altair Engineering, Inc.
  • Airmax Group Ltd.
  • American Digital Cartography, Inc.
  • AImotive
  • Airlinq, Inc.
  • AplusB Software Corporation
  • Accord Global Technology Solutions Private Limited