The Global Market for Automotive Software is Forecast to Reach US$8.2 Billion by 2024

Shifting Automotive Revenue Streams, Disruption in Auto OEM Status Quo & Rise of Software Expertise as a Core Competency for OEMs to Benefit Growth in the Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Automotive Software market. The global market for Automotive Software is forecast to reach US$8.2 billion by 2024, driven by the rise of software as a core strength for OEM competitiveness in a rapidly transforming automotive industry. 

Cars over the decades have evolved from a simple mechanical piece of engineering to an electronic marvel. Modern cars are today integrated with infinite electrical and electronic components that control various integrated systems ranging from ECUs, ABS brakes, GPS navigation equipment, sensors, driver assistance systems, power windows, heated seats to sunroofs. Electronification in modern vehicles is therefore a major trend in the auto industry, which continues to evolve given the perennial quest for developing intelligent self-aware vehicles. The envisioned future of smart cars, connected cars and autonomous cars are key factors driving the high tide of automobile "electronification". At the heart of this ongoing revolution is software. Innovation in automotive software has been largely responsible for the successful commercialization of electronic control units (ECU) in a vehicle. As a key enabler of automotive electronics, software will continue to benefit from increasing electronic content per car, changing automobile engineering and design trends, and customer demand for low cost, highly safe, and performance packed automobiles. Electronic content per car has and will continue to grow in the coming years. Intelligent automotive systems are poised to get progressively even more software intensive in the coming years as technologies converge and integrate onto more powerful platforms. 

Given that software is at the heart of all modern automobiles and is indispensable to their efficient operation, few of the trends poised to benefit current and future growth in the market include the growing engineering focus on fuel efficiency, emission reduction, infotainment, telematics, navigation, convenience, safety, comfort, and personalization, all of which require advanced software platforms and multitasking software algorithms. Major trends shaping growth opportunities in the market is the rise of the Internet of Things (IoT) concept and connected cars, smart mobility, electrification, proposed commercialization of autonomous self-driving cars, and growing commercial value of advanced driver assistance systems (ADAS). Strong projected growth X by Wire Systems is also forecast to bring in additional growth opportunities for automotive software, given that enhanced driving experience comes only with superior vehicle performance, comfort, style and convenience. The growing trend towards movability and reusability of software is ushering in the concept of “modularization” of software.  The need to reuse software over different ECUs, microcontroller platforms and different vehicle models is driving the development emphasis on modularization of software.

As stated by the new market research report on Automotive Software, Europe represents the largest market worldwide. Asia-Pacific is poised to emerge as the fastest growing market with  a CAGR of 6.8% over the analysis period led by factors such as growing per capita vehicle ownership in developing Asian economies; growing base of affluent middle class population and greater appetite for innovative digital automotive technologies; rise of China as a robust production hub for automobiles; and growing willingness among vehicle owners to pay for Over the Air (OTA) software  updates of infotainment and telematics systems on cars.

Major players in the market include 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 Global Operations GmbH, Lynx Software Technologies Inc., Mentor Graphics Corporation, Microsoft Corporation, MSC. Software Corporation, Nuance Communications Inc., NuTonomy, NVIDIA Corporation, NXP Semiconductors N.V., Oxbotica LTD, QNX Software Systems, Tesla Motors Inc., The MathWorks Inc., Vector Informatik GmbH and Wind River Systems Inc., among others. 

The research report titled “Automotive Software: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the USA, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America) and Rest of World. Further, the report provides market estimates and projections for all major applications areas such as Safety & Security Systems, Body Electronics/Comfort Systems, Infotainment/Telematics and Others (including Transmission Control and Engine Management Systems among others).

For enquiries e-mail us at rsd@strategyr.com or info411@strategyr.com.

To connect with us, visit our LinkedIn page.

Global Industry Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA, All Rights Reserved.