Market Size of Automotive Software Industry
| Study Period | 2024 - 2029 |
| Market Size (2024) | USD 10.07 Billion |
| Market Size (2029) | USD 29.30 Billion |
| CAGR (2024 - 2029) | 22.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players.webp "Automotive Software Market Major Players")
*Disclaimer: Major Players sorted in no particular order |
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Automotive Software Market Analysis
The Automotive Software Market size is estimated at USD 10.07 billion in 2024, and is expected to reach USD 29.30 billion by 2029, growing at a CAGR of greater than 22% during the forecast period (2024-2029).
According to the market analysis, factors such as the adoption of ADAS features in vehicles, increasing adoption of connected car services, and intervention of innovative technologies for advanced UI are expected to drive the global market growth. As a result, the growth trajectory of this market is strongly correlated to the deployment of software in various applications such as entertainment and security. Growth in the electric mobility industry in countries like India and China is creating a positive outlook for the market.
According to the International Energy Agency, in Q1 2024, electric car sales grew by around 25% compared to Q1 2023, with China holding the largest share of 45% in electric car sales, followed by Europe with 25%.
The utilization of open-source platforms and the improved product offerings focused on user experience boosted the market growth for automotive software. Consumers and OEMs are increasingly focusing on automobile infotainment systems, and manufacturers are competing primarily on the software or operating system they utilize. Manufacturers emphasize smart capabilities in these infotainment systems and deploy software that will set their products apart from their competitors.
Another major trend in the automotive software market is the emergence of autonomous driving technologies. These technologies use advanced sensors, machine learning algorithms, and real-time data processing to allow vehicles to navigate and make decisions without human input. Industry analysis indicates that this technology is expected to revolutionize the automotive industry and transform how we think about transportation.
Considering the scenario, various manufacturers are focusing on upgrading their technologies for vehicles and on technological advances in the software industry. For example:
- In December 2023, global technology services provider FPT officially launched its automotive technology subsidiary FPT Automotive with a comprehensive suite of engineering services encompassing in-vehicle infotainment, electronic control units (ECU), functional safety, security, automotive UI/UX design, wireless connectivity, and digital engineering.
The automotive software market growth is also driven by the need for more efficient and sustainable transportation systems. Governments worldwide are implementing regulations to reduce emissions and promote electric vehicles. Automotive software plays a key role in helping automakers develop more efficient and eco-friendly vehicles.
Automotive Software Industry Segmentation
Automotive software refers to the computer programs, applications, and systems used in designing, manufacturing, operating, and maintaining automobiles, including the software used in developing and operating vehicle components and systems.
The automotive software market is segmented by application, vehicle type, and geography. By application type, the market is segmented by safety and security, infotainment and instrument cluster, vehicle connectivity, and other applications (powertrain). By vehicle type, the market is segmented by passenger cars and commercial vehicles. By geography, the market is segmented by North America, Europe, Asia-Pacific, and Rest of the World. The report offers market forecast and size in value (USD) for all the above-mentioned segments.
| By Application | |
| Safety and Security | |
| Infotainment and Instrument Cluster | |
| Vehicle Connectivity | |
| Other Applications (Powertrain) |
| By Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| By Geography | |||||||
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Automotive Software Market Size Summary
The automotive software market is poised for significant expansion, driven by the increasing integration of advanced technologies such as ADAS, connected car services, and innovative user interfaces. The market's growth is closely linked to the rising demand for software applications in areas like entertainment and security, as well as the burgeoning electric mobility sector in regions such as India and China. The shift towards electric vehicles, supported by government regulations and incentives, is further propelling the demand for automotive software. This software is crucial for developing efficient, eco-friendly vehicles and enhancing the driving experience through improved infotainment systems and smart capabilities. The emergence of autonomous driving technologies, utilizing advanced sensors and machine learning, is set to revolutionize the industry, creating new opportunities for software developers.
In North America, the automotive software market is bolstered by the presence of major automakers and technology companies, with a strong focus on ADAS, autonomous vehicles, and electric vehicle platforms. The demand for connected cars, equipped with internet connectivity and sophisticated software applications, is also on the rise. Collaborations and partnerships among industry players, such as those between General Motors, Magna, and Wipro, are facilitating the development of platforms like SDVerse, which aim to streamline the procurement of automotive software. The market is characterized by consolidation, with key players like Microsoft, Google, and BlackBerry leading through strategic initiatives such as joint ventures and new product launches. These developments are expected to drive the market's growth, offering innovative solutions and enhancing the overall automotive experience.
Automotive Software Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increasing Investments by Automobile Manufacturers for Electric Vehicles
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1.2 Market Challenges
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1.2.1 Lack of Standard Protocols for Developing Software Platforms
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in Value (USD))
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2.1 By Application
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2.1.1 Safety and Security
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2.1.2 Infotainment and Instrument Cluster
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2.1.3 Vehicle Connectivity
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2.1.4 Other Applications (Powertrain)
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2.2 By Vehicle Type
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2.2.1 Passenger Cars
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2.2.2 Commercial Vehicles
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2.3 By Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Italy
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2.3.2.5 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 South Korea
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 Rest of the World
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2.3.4.1 South America
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2.3.4.2 Middle East and Africa
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Automotive Software Market Size FAQs
How big is the Automotive Software Market?
The Automotive Software Market size is expected to reach USD 10.07 billion in 2024 and grow at a CAGR of 22% to reach USD 29.30 billion by 2029.
What is the current Automotive Software Market size?
In 2024, the Automotive Software Market size is expected to reach USD 10.07 billion.
