The Global Automotive Software Market size was valued at USD 23.50 billion in 2021 and is expected to reach USD 39 billion in 2030 at a CAGR of 15% from 2021 to 2030.

The market is primarily driven by the rise in connected cars, novel technologies for cutting-edge UI, an increase in electronic applications in vehicles, increased demand for electric vehicles, and vehicles with cutting-edge driver assistance systems.

The rise in linked cars, the use of cutting-edge UI technologies, the expansion of electronic applications in cars, the need for electric cars, and vehicles with sophisticated driver assistance systems are the main reasons propelling the market's expansion. Global demand has increased due to the growing demand for passenger cars. The necessity for passenger automobiles with top-notch electronics has increased due to the high demand for personal mobility, rising disposable income, rising per capita income, and improved lifestyle. Due to increased global production and sales of passenger automobiles, the adoption of modern technology in this vehicle class is still high. In addition, the emergence of technologies like autonomous driving is anticipated to spur growth in demand for automotive software.

Driving Factors

The usage of open-source platforms and the standardisation of product offerings has decreased the cost of application and firmware development, growing the Automotive Software Market as a whole. Consumers and OEMs are steadily increasing their focus on car infotainment systems as a result of recent technological developments in commercial automotive software, and these manufacturers are competing primarily on the software or operating system that is utilised in these systems.

Additionally, the adoption of ADAS features in vehicles, the rapid adoption of connected vehicles, and government partners to build infrastructure for connected vehicles have positively anticipated in propelling the growth of the global Automotive Software Market. At the moment, vehicles support operating system platforms such as Windows CE, Android, Apple OS, QNX, and Linux-based OS.

Restraining Factors

The market growth is being constrained by issues including a shortage of experienced workers, automotive engineers, expertise, and standards and protocols. Additionally, sophisticated integrated systems and the challenging process of integrating IoT, Android, and Apple software into the current automotive systems restrict growth. Additionally, the absence of linked infrastructure, the difficulty of maintaining and debugging automotive software, and the threat of cybersecurity are all possible roadblocks to the overall expansion of the global automotive software market.

COVID 19 Impact

Millions of businesses have been impacted by the economic and social turmoil as the world struggles with one of its worst health pandemics. The revenues decreased in 2020 and may begin to increase again gradually in 2021. Businesses that optimise their operations and strategies will survive and outperform their rivals. In-depth information about COVID-19's growth and fall, rapid changes to the major players in each industry.

Segmentation

The global automotive software market is segmented into Product Type, Application, and Region.

Global Automotive Software Market, By Product Type

The operating system, middleware, and application software segments of the market are segmented based on product type. For the foreseeable future, the application software segment has the biggest market share. The application software supports the vehicle's specialised architecture and functionalities. It is made up of a number of software layers and apps that enable the execution of tasks in accordance with the application. The elements that contribute to the rising need for telematics services and infotainment systems globally are projected to increase demand for the application category.

Global Automotive Software Market, By Application

The market is segmented based on application into advanced driver-assistance systems, infotainment and telematics, powertrain, and safety systems (ADAS). During the projected period, Advanced Driver-Assistance Systems (ADAS) are anticipated to be the most popular application. The elements work to benefit consumers and shield them from potential risks. It helps to increase both the driver's and the passengers' general sense of security. In ADAS features like blind-spot recognition, adaptive cruise control, lane departure warning, automatic emergency braking, and park assist, communication technology is applied. It also incorporates fundamental safety features including the tyre pressure monitoring system (TPMS), electronic stability control, adaptive cruise control, and anti-lock braking system (ABS).

Global Automotive Software Market, By Region

The Global Automotive Software Market is segmented into North America, Europe, Asia Pacific, and the Rest of the World based on regional analysis. The majority of the market is in Asia-Pacific. the rise in linked services' popularity, especially in China, Japan, and South Korea. These nations' tech-savvy citizens seek a connected and safe driving experience. Additionally, it is the biggest market since it produces the majority of the vehicles, which are then exported to other areas. Additionally, there are significant governmental initiatives and current projects that will help to expand the market in the APAC region.

Recent Developments in Global Automotive Software Market

• February 2021: To hasten the advancement of automated driving, the Volkswagen Group and Microsoft Corporation have announced their partnership. The Volkswagen Group's Car Software Organization and Microsoft Corporation will develop an automated driving platform as part of this agreement for the rapid development of automated driving features.
• November 2020: An important automaker, the Hyundai Motor Group, has teamed with NVIDIA. The goal of this partnership is to equip every car in the lineup of Kia, Hyundai, and Genesis with NVIDIA DRIVE, an In-Vehicle Infotainment (IVI) system, as standard equipment starting in 2022.
• September 2021: Woven Planet Holdings, a division of Toyota Motor Corporation, has purchased Renovo Motors Inc., an American automobile firm. The goal of this acquisition is to promote autonomous car software development.

List Of Key Market Players

• Airbiquity
• Adobe
• ACCESS
• Atego
• Blackberry
• Green Hills Software
• Mentor Graphics
• Microsoft
• Wind River
• Autonet Mobile
• NXP Semiconductors
• Renesas Electronics
• Broadcom
• Google
• MontaVista Software
• Texas Instruments

Segmentation

By Product Type

• Operating System
• Middleware
• Application Software

By Application

• Safety System
• Infotainment and Telematics
• Powertrain

By Region

North America

• North America, by Country
  • U.S.
  • Canada
  • Mexico
• North America, by Product Type
• North America, by Application

Europe

• Europe, by Country
  • Germany
  • Russia
  • U.K.
  • France
  • Italy
  • Spain
  • The Netherlands
  • Rest of Europe 
• Europe, by Product Type
• Europe, by Application

Asia Pacific

• Asia Pacific, by Country
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Indonesia
  • Rest of Asia Pacific 
• Asia Pacific, by Product Type
• Asia Pacific, by Application

Middle East & Africa

• Middle East & Africa, by Country 
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa
• Middle East & Africa, by Product Type
• Middle East & Africa, by Application

South America

• South America, by Country 
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• South America, by Product Type
• South America, by Application