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Automotive Software - Global Market Trajectory & Analytics

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    Report

  • 871 Pages
  • October 2022
  • Region: Global
  • Global Industry Analysts, Inc
  • ID: 1824119

Global Automotive Software Market to Reach $31.9 Billion by 2027

Amid the COVID-19 crisis, the global market for Automotive Software estimated at US$17.5 Billion in the year 2020, is projected to reach a revised size of US$31.9 Billion by 2027, growing at a CAGR of 8.9% over the period 2020-2027. Application Software, one of the segments analyzed in the report, is projected to record a 9.7% CAGR and reach US$17.9 Billion by the end of the analysis period. Taking into account the ongoing post pandemic recovery, growth in the Middleware segment is readjusted to a revised 8.5% CAGR for the next 7-year period.

The U.S. Market is Estimated at $2.8 Billion, While China is Forecast to Grow at 10.4% CAGR

The Automotive Software market in the U.S. is estimated at US$2.8 Billion in the year 2020. China, the world's second largest economy, is forecast to reach a projected market size of US$9.1 Billion by the year 2027 trailing a CAGR of 10.4% over the period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.7% and 7.3% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 8.2% CAGR. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$4.1 Billion by the year 2027.

Operating System Segment to Record 7.2% CAGR

In the global Operating System segment, USA, Canada, Japan, China and Europe will drive the 7.2% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$2.3 Billion in the year 2020 will reach a projected size of US$3.8 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Latin America will expand at a 7.4% CAGR through the analysis period.

Select Competitors (Total 236 Featured)

  • Airbiquity, Inc.
  • Apple, Inc.
  • Aptiv PLC
  • Bosch Software Innovations GmbH
  • Denso Corporation
  • Elektrobit
  • ETAS
  • Google Inc.
  • Green Hills Software Inc.
  • Intel Corporation
  • International Business Machines Corporation
  • Lectronix, Inc
  • Luxoft
  • Lynx Software Technologies, Inc.
  • Microsoft Corporation
  • Hexagon AB
  • NVIDIA Corporation
  • NXP Semiconductors N.V.
  • Oxbotica LTD
  • Tesla Motors Inc.
  • The MathWorks, Inc.
  • Vector Informatik GmbH
  • Wind River Systems, Inc

What's New for 2022?

  • Global competitiveness and key competitor percentage market shares
  • Market presence across multiple geographies - Strong/Active/Niche/Trivial
  • Online interactive peer-to-peer collaborative bespoke updates
  • Access to a digital archives and Research Platform
  • Complimentary updates for one year
Frequently Asked Questions about the Global Market for Automotive Software

What is the estimated value of the Global Market for Automotive Software?

The Global Market for Automotive Software was estimated to be valued at $17.5 Billion in 2020.

What is the growth rate of the Global Market for Automotive Software?

The growth rate of the Global Market for Automotive Software is 9.0%, with an estimated value of $31.9 Billion by 2027.

What is the forecasted size of the Global Market for Automotive Software?

The Global Market for Automotive Software is estimated to be worth $31.9 Billion by 2027.

Who are the key companies in the Global Market for Automotive Software?

Key companies in the Global Market for Automotive Software include Airbiquity, Inc., Apple, Inc., Aptiv PLC, Bosch Software Innovations GmbH, Denso Corporation, Elektrobit, ETAS, Google Inc. and Intel Corporation.

Table of Contents

I. METHODOLOGYII. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
  • Impact of COVID-19 Pandemic and Looming Global Recession
  • 2020 Marked as a Year of Disruption & Transformation
  • As the Race between the Virus & Vaccines Intensifies, Where is the World Economy Headed?
  • Exhibit 1: World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
  • COVID-19 Pandemic Severely Disrupts the Automotive Industry
  • Exhibit 2: Global Automotive Market Reset & Trajectory - Growth Outlook (In %) For Years 2019 Through 2025
  • Exhibit 3: Car Production YoY % Growth Across Major Regional Markets in 2020
  • COVID-19-Led Tech Adoption among Automakers Holds Positive Implications for Global Automotive Software Market
  • COVID-19-Led Tech Adoption among Automakers Holds Positive Implications for the Automotive Software Market
  • Exhibit 4: Automotive Software - Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for 247 Players Worldwide in 2022 (E)
  • 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
  • Analysis by Product Type
  • Exhibit 5: World Automotive Software Market by Product Type: Percentage Breakdown of Sales for Application Software, Middleware, and Operating System (2021 & 2027)
  • Analysis by Application
  • Exhibit 6: World Automotive Software Market by Application (2021 & 2027): Percentage Breakdown of Sales for Safety Systems, Infotainment & Telematics, Powertrain, and Other Applications
  • Analysis by End-Use: Passenger Cars Remain Primary Growth Segment
  • Exhibit 7: 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
  • Exhibit 8: World Automotive Software Market - Geographic Regions Ranked by CAGR (Value) for 2020-2027: China, Asia-Pacific, Latin America, Rest of World, USA, Europe, Canada, and Japan
  • Competitive Scenario
  • World Brands
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
  • Automobile Electronification: The Cornerstone for the Evolution of Software Solutions
  • Exhibit 9: Increasing Electronic Content in Automobiles & the Resulting Proliferation of Smart Components and Subassemblies Provides the Platform for the Growth of Software: Breakdown of the Total Cost of Electronics in an Automobile (in %) for the Years 1970, 1980, 2000, 2017, 2020 and 2030
  • Exhibit 10: Average Value of In-Vehicle Electronics (In US$) Per Vehicle for the Years 2018, 2025 & 2030
  • Continued Proliferation of Digital Technologies Maintains Progressive Tide in the Automotive Software Market
  • With Advanced Technologies Making a Big Impact on Automotive Sector, Automotive Software Set to Widen its Footprint
  • Continued 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
  • Exhibit 11: 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) for the Years 2019 and 2025 by Segment
  • 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
  • Exhibit 12: With the Industry Moving Past the Recovery Boom, Sluggish to Flat Growth in New Vehicle Sales Catalyzes the Volume of Software Content in a Car as OEMs Seek to Monetize the Car Beyond the One-Time Sale: Global Automobile Production in Million Units: 2008-2022
  • Shift Towards Recurring Revenue Streams Makes “Software” an Indispensable Platform for Service Provisioning
  • Exhibit 13: 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
  • Exhibit 14: Global Number of Connected Cars Shipped (In 000 Units) for the Years 2017, 2019 and 2022
  • Exhibit 15: Global Connected Car Shipments Breakdown by Country/Region for 2021
  • Infotainment Systems as the Touchpoint for Connectivity, Becomes the Hotbed for Software Development Activity
  • Exhibit 16: As Cars Evolve Into Software Defined Machines, the Importance of Automotive Software Platforms Gathers Force: Global Automotive Infotainment System Sales Breakdown (in %) by Operating System 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
  • Exhibit 17: 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
  • Exhibit 18: Autonomous Vehicles Commercialization & Technology Penetration Timeline
  • Technological Forces Driving Autonomous Car Segment
  • Exhibit 19: Global Autonomous Vehicle Sales (In Million) for Years 2020, 2025 & 2030
  • Critical Need for Sensor Fusion in Automobiles Steps Up the Importance of Software
  • Exhibit 20: Falling Cost of Sensors Bode Well for Sensor Proliferation in the Automotive Industry: Global Average Price of Sensors (In US$ Per Unit) for the Years 2010, 2015, 2018 and 2020
  • Exhibit 21: Rising Average Number of Sensors Per Car Throws the Development Focus on Sensor Fusion Software: Global Number of Sensors Used in the Automotive Industry (In Billion Units) for the Years 2017 and 2020
  • Automotive HMI: A Rich Application Area for Software
  • Exhibit 22: Growing Market for Automotive Human Machine Interface (HMI) Solutions to Expand the Addressable Market Opportunity for HMI Software: Global Market for HMI Solutions (In US$ Million) by Geographic Region for the Years 2018 and 2022
  • Migration Towards Automatic Transmission Systems Drives the Importance of Software and Algorithms for Transmission Control Systems
  • Exhibit 23: Growing Clout of Automated Transmission Systems Expands the Addressable Market Opportunity for Transmission Software: Global Sales of Automotive Transmission Systems (In Million Units) by Transmission Technology for the Years 2018 and 2024
  • Rise of X-By-Wire Technologies Offers Opportunities for Software to Increasingly Replace Mechanical & Hydraulic Components
  • Exhibit 24: Growing Popularity of Drive by Wire Systems Spurs the Emphasis on Software Reliability for Developing Fault Tolerant Systems: Global Sales of X-By-Wire Systems (In 000 Units) for the Years 2018 and 2022 by Geographic Region
  • Strong Adoption of ADAS Accelerates the Indispensability of Software
  • Exhibit 25: 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
  • Exhibit 26: Passenger Cars to Emerge as the Largest Market for Automotive Remote Diagnostics Over the Medium-Term Period: Breakdown of the Global Automotive Remote Diagnostics Market by Vehicle Type (in %) for the Year 2022
  • Exhibit 27: Robust Double Digit Growth Projected for the Vehicle Diagnostics Market Bodes Well for the Future Growth of Software: Global Market for Vehicle Diagnostics (In US$ Billion) for the Years 2019 & 2022
  • 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
  • Growing Lenience towards Airbag Technology Widens the Prospects for Automotive Software
  • OEMs Focus on Reducing Software Development Costs
  • Hybrid Cars Promise High Volume of Software Deployments
  • Exhibit 28: Global Electric Car Fleet Size (In Thousand Units) for the Years 2014, 2016, 2018 and 2021
  • Exhibit 29: Projected Growth in Electric Vehicles Drives Opportunities for Software that Enable Safe Management of Electrical Energy in the Vehicle: Breakdown of On-Road Electric Cars (In %) by EV Type for 2022
  • Automotive Software Outsourcing Rises in Popularity
  • Key Trends in Automotive Software Verification and Validation
  • Increase in Software Content Raises the Risk of Failure & Difficulty in Repairing
  • Cybersecurity & Compliance: Red Hot Button Issues for Automotive Software Market
  • Vulnerabilities in Automotive Supply Chain Expose Security Threat to Software-Enabled Systems
4. GLOBAL MARKET PERSPECTIVE
  • Table 1: 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 2020 through 2027 and % CAGR
  • Table 2: 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 2012 through 2019 and % CAGR
  • Table 3: World 15-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 2012, 2021 & 2027
  • Table 4: 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 2020 through 2027 and % CAGR
  • Table 5: 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 2012 through 2019 and % CAGR
  • Table 6: World 15-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 2012, 2021 & 2027
  • Table 7: 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 2020 through 2027 and % CAGR
  • Table 8: 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 2012 through 2019 and % CAGR
  • Table 9: World 15-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 2012, 2021 & 2027
  • Table 10: 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 2020 through 2027 and % CAGR
  • Table 11: 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 2012 through 2019 and % CAGR
  • Table 12: World 15-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 2012, 2021 & 2027
  • Table 13: 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 2020 through 2027 and % CAGR
  • Table 14: 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 2012 through 2019 and % CAGR
  • Table 15: World 15-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 2012, 2021 & 2027
  • Table 16: 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 2020 through 2027 and % CAGR
  • Table 17: 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 2012 through 2019 and % CAGR
  • Table 18: World 15-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 2012, 2021 & 2027
  • Table 19: 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 2020 through 2027 and % CAGR
  • Table 20: 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 2012 through 2019 and % CAGR
  • Table 21: World 15-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 2012, 2021 & 2027
  • Table 22: 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 2020 through 2027 and % CAGR
  • Table 23: 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 2012 through 2019 and % CAGR
  • Table 24: World 15-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 2012, 2021 & 2027
  • Table 25: 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 2020 through 2027 and % CAGR
  • Table 26: 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 2012 through 2019 and % CAGR
  • Table 27: World 15-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 2012, 2021 & 2027
  • Table 28: 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 2020 through 2027 and % CAGR
  • Table 29: 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 2012 through 2019 and % CAGR
  • Table 30: World 15-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 2012, 2021 & 2027
III. MARKET ANALYSIS
UNITED STATES
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • Market Analytics
CANADAJAPANCHINA
EUROPE
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • Market Analytics
FRANCEGERMANYITALYUNITED KINGDOMSPAINRUSSIAREST OF EUROPE
ASIA-PACIFIC
  • Automotive Software Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • Market Analytics
INDIASOUTH KOREAREST OF ASIA-PACIFICLATIN AMERICABRAZILMEXICOREST OF LATIN AMERICAREST OF WORLD
IV. COMPETITION
  • Total Companies Profiled: 236

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Airbiquity, Inc.
  • Apple, Inc.
  • Aptiv PLC
  • Bosch Software Innovations GmbH
  • Denso Corporation
  • Elektrobit
  • ETAS
  • Google Inc.
  • Green Hills Software Inc.
  • Intel Corporation
  • International Business Machines Corporation
  • Lectronix, Inc
  • Luxoft
  • Lynx Software Technologies, Inc.
  • Microsoft Corporation
  • Hexagon AB
  • NVIDIA Corporation
  • NXP Semiconductors N.V.
  • Oxbotica LTD
  • Tesla Motors Inc.
  • The MathWorks, Inc.
  • Vector Informatik GmbH
  • Wind River Systems, Inc