NEW YORK, December 3, 2024 — AI Impact on Market Trends Report – The global automotive software market size is estimated to grow $30.89 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 14.4% during the forecast period. Growing demand for differentiated in-car experiences is driving market growth, with a trend towards over-the-air (OTA) updates for software components. However, the increasing complexity of automotive software architecture leads to higher production costs for OEMs and suppliers, which poses a challenge. Key market players include Access Co. Ltd., Alphabet Inc., Bittium Corp., BlackBerry Ltd., BorgWarner Inc., Elinext IT Solutions Ltd., Green Hills Software LLC, Hitachi Ltd., Information Technologies Institute Intellias LLC, Intel Corp. , KPIT Technologies Ltd., Microsoft Corp., Net Solutions, NVIDIA Corp., NXP Semiconductors NV, Renesas Electronics Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schaeffler AG, Siemens AG and Sigma Software.
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Forecast period |
2024-2028 |
Basic year |
2023 |
Historical data |
2018 – 2022 |
Segment covered |
Application (safety system, infotainment and telematics, powertrain and chassis), product (application software, middleware and operating system) and geography (APAC, Europe, North America, South America and the Middle East & Africa) |
Region covered |
APAC, Europe, North America, South America and the Middle East & Africa |
Key companies profiled |
Access Co. Ltd., Alphabet Inc., Bittium Corp., BlackBerry Ltd., BorgWarner Inc., Elinext IT Solutions Ltd., Green Hills Software LLC, Hitachi Ltd., Information Technologies Institute Intellias LLC, Intel Corp., KPIT Technologies Ltd. ., Microsoft Corp., Net Solutions, NVIDIA Corp., NXP Semiconductors NV, Renesas Electronics Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schaeffler AG, Siemens AG and Sigma Software |
Key market trends driving growth
The automotive software market has experienced significant growth due to the increasing installation of electronics and driver assistance systems in vehicles. OEMs are turning to remote Over-The-Air (OTA) updates to reduce costs and improve customer experience. Benefits include savings on equipment, labor and training costs, optimized test cycles and faster time to market for vehicles. Major OEMs such as BMW, Daimler and Tesla have already implemented OTA updates, making it a valuable product differentiator. This trend is expected to continue to drive market growth during the forecast period.
The Automotive Software market is experiencing significant growth, with key technologies such as connectivity, automation and electrification driving innovation. Autonomous vehicles are a major trend, with companies focusing on developing software for vehicle control, sensor fusion and machine learning. Telematics is another area of interest, with solutions providing real-time vehicle monitoring, diagnostics and infotainment services. In addition, the electrification of vehicles leads to the development of software for battery management systems, charging infrastructure and energy management. The market is competitive, with players such as Tesla, Google and Apple making significant progress. The future of the automotive software market lies in the integration of different technologies to create a seamless and connected driving experience.
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Market challenges
- • The automotive software market is facing significant challenges due to the increasing complexity of vehicle architecture. OEMs and suppliers must invest heavily in research, development and testing to ensure reliability, safety and regulatory compliance. These investments lead to higher production costs for advanced software solutions, squeezing OEMs’ profit margins and limiting innovation for smaller suppliers. Vendors also face pressure to develop and support complex software architectures, which require significant resources and extensive testing. These factors will continue to influence the growth of the automotive software market.
- • The automotive software market faces several challenges in implementing and integrating different technologies. These include adaptive and autonomous driving technologies, connectivity and telematics, cybersecurity and electric and hybrid vehicle systems. The complexity of these systems requires a high level of collaboration between car manufacturers, software developers and technology providers. Additionally, the rapid pace of technological advancement and increasing customer expectations for advanced features add to the challenges. The convergence of these technologies requires a comprehensive approach to software development and implementation in the automotive industry.
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Segment overview
This automotive software market report extensively covers the market segmentation by
- Application
- 1.1 Safety system
- 1.2 Infotainment and telematics
- 1.3 Powertrain
- 1.4 Chassis
- 2.1 Application software
- 2.2 Middleware
- 2.3 Operating system
- 3.1 APAC
- 3.2 Europe
- 3.3 North America
- 3.4 South America
- 3.5 Middle East And Africa
1.1 Safety system – The automotive software market is experiencing significant growth due to the increasing demand for connected and autonomous vehicles. Automakers and technology companies are investing heavily in developing advanced software solutions for improved vehicle performance, safety features and enhanced user experiences. This trend is expected to continue and the market is expected to generate significant revenues by 2025. Major players in the market include Bosch, Continental AG and Autodesk. These companies focus on innovation and collaboration to meet the changing needs of consumers and regulators.
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Research analysis
The automotive software market is witnessing significant growth due to the integration of advanced technologies such as 5G, autonomous vehicles and electric vehicles (EVs). These innovations are revolutionizing the automotive industry by improving vehicle applications including body control, comfort, infotainment and telematics. 5G technology enables communication between cars, ensuring seamless data exchange and improving safety features such as lane keeping assistance, adaptive cruise control and collision avoidance. Commercial vehicles also benefit from these improvements, leading to the development of embedded systems tailored to their specific needs. The automotive software market is expected to grow as these technologies become more prevalent in passenger cars and other vehicle segments.
Market research overview
The autonomous vehicle market is experiencing significant growth due to the increasing demand for advanced driving technologies. The market includes various software solutions such as ADAS (Advanced Driver Assistance Systems), V2X (Vehicle-to-Everything) communication and autonomous driving software. These technologies enable vehicles to sense their environment, make decisions and communicate with other vehicles and infrastructure. The market is driven by factors such as government regulations, consumer preferences and technological advancements. The future of the autonomous vehicle software market lies in the development of more advanced and reliable systems that can ensure safe and efficient transportation. The market is expected to grow steadily in the coming years, with an emphasis on improving safety, reducing emissions and improving the overall driving experience.
Table of contents:
1 Summary
2 Market landscape
3 Market size
4 Historical market size
5 Five Forces Analysis
6 Market segmentation
- Application
- Safety system
- Infotainment and telematics
- Powertrain
- Chassis
- Product
- Application software
- Middleware
- Operating system
- Geography
- APAC
- Europe
- North America
- South America
- Middle East and Africa
7 Customer landscape
8 Geographic landscape
9 drivers, challenges and trends
10 Business landscape
11 Business analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and consulting company. Their research and analysis focuses on trends in emerging markets and provides actionable insights to help companies identify market opportunities and develop effective strategies to optimize their market positions.
With more than 500 specialist analysts, Technavio’s report library consists of more than 17,000 reports, covering 800 technologies, across 50 countries. Their customer base includes businesses of all sizes, including more than 100 Fortune 500 companies. This growing customer base relies on Technavio’s extensive coverage, extensive research and actionable market insights to identify opportunities in existing and potential markets and assess their competitive position within changing market scenarios.
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SOURCE Technavio