July 13, 2024
Automotive Software Market
Ict

Automotive Software Market sees increased adoption of Autonomous driving technology by 2031

The automotive software market is poised to grow significantly with increased focus on enhancing automotive safety features and enabling vehicle connectivity options. Automotive software plays a vital role in advanced driver assistance systems (ADAS), autonomous driving, infotainment, vehicle and network access, and other electronic control units (ECUs). With the advent of autonomous vehicles and car connectivity becoming mainstream, demand for automotive software solutions is projected to increase substantially in the coming years.

 The Global Automotive Software Market is estimated to be valued at US$ 37.68 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.

The increasing demand for safety and driver assistance features is a major factor driving the need for Automotive Software Market Size. Further, automakers are focusing on developing software solutions to enable connectivity of vehicles with external networks and provide over-the-air updates.

Key Takeaways

Key players operating in the automotive software market are ATEGO SYSTEMS INC., Autonet, Blackberry, Wind River, Microsoft, ACCESS, Broadcom, Google, Green Hills Software, MontaVista Software, Mentor Graphics, Airbiquity, Texas Instruments, Adobe Systems, PTC Inc., NXP Semiconductors, Renesas Electronics, Dassault Systems, and Intellias Ltd.

The growing demand for vehicles in Asia Pacific and Latin America has also prompted automakers to increase their focus on developing innovative software solutions. China, with its huge population and government support for new energy vehicles, is expected to spearhead the demand for automotive software in coming years. Additionally, established automakers are partnering with top technology companies to develop sophisticated software architectures needed for autonomous driving technologies.

The automotive industry is witnessing a gradual shift towards software-defined vehicles with advanced automated driving functions. Growing availability of high-speed telematics networks and interest in Mobility-as-a-Service business models are prompting automakers to develop vehicles with seamless upgrade capabilities and remote diagnostic functions. This, in turn, is propelling the demand for automotive-grade software with enhanced safety, cybersecurity and resiliency.

Market key trends

One of the key trends gaining popularity in the automotive software market is the increased focus on developing centralized automotive architectures and domain controller units. This involves consolidating multiple ECUs into fewer, more powerful centralized computer modules having advanced processing capabilities. Such modular architectures help reduce wiring complexity and support seamless over-the-air updates. Furthermore, integration of artificial intelligence capabilities into automotive software solutions is enhancing the scope of applications such as predictive maintenance, computer vision and driver/passenger monitoring systems.

Porter’s Analysis

Threat of new entrants: New players find it difficult to enter this market due to the high investments required for R&D and product development.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several players providing automotive software solutions.

Bargaining power of suppliers: Software developers and technology providers have moderate bargaining power over automotive software solution providers.

Threat of new substitutes: There exist few product substitutes currently.

Competitive rivalry: The market is competitive given the presence of multiple global and regional players.

Geographical Regions

North America holds the largest share of the global automotive software market currently in terms of value, owing to the presence of major automakers as well as technology companies. Asia Pacific is expected to be the fastest growing regional market during the forecast period supported by increasing vehicle production and sales across countries like China and India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it