Automotive Software Market to be worth $32.3 billion by 2030
Automotive Software Market size is projected to grow from USD 19.0 billion in 2023 to USD 32.3 billion by 2030, at a CAGR of 7.8%, according to a new report by MarketsandMarkets™. The rise in focus towards software-defined vehicles paired with increasing penetration of ADAS features in vehicles are expected to increase the demand for automotive software solutions. Also, the strong government support for vehicle safety paired with rising adoption of software-over-the-air (SOTA) updates are anticipated to promote the revenue growth of automotive software market.
The operating system is expected to be a noticeable segment in the automotive software industry, as it controls the core capabilities of the vehicle while keeping passengers and the driving environment safe, which makes it the most important part of the software. Additionally, the automotive operating system market is expected to grow significantly with the growing adoption of connected car technologies. As such, operating system (OS) plays a critical role in connected vehicles. The OS provides the platform for the telematics system to run on and provides the features and functionality that allow the vehicle to communicate with other devices and services.
The passenger car segment is expected to have significant growth opportunities in the automotive software market during the forecast period. This is due to the increasing adoption of ADAS features in passenger cars and the rising inclination towards autonomous driving. Additionally, rising demand for passenger cars in emerging and developed countries has also contributed to the growth of the automotive software market. For example, in 2022, car production in China was around 23.8 million units, while in Japan, it was around 6.5 million. South Korea accounted for around 3.4 million units; in India, it was around 4.4 million units in the same year. The demand for automotive software in the Asia Pacific region is expected to increase due to the advent of autonomous driving, rising vehicle production, and prominent growth in demand for high-end services such as connected car services and telematics. All these aforementioned factors are anticipated to bolster the revenue growth of the passenger car segment during the forecast period.
Germany is expected to have a sizeable market for automotive software among all the European countries. The most significant factors supporting the growth of the automotive software market in Germany are the penetration of premium passenger car brands with high-end software applications and government mandates regarding safety. The high sales of premium vehicles, such as the Mercedes-Benz S-Class, BMW 7 Series, Mercedes-Benz G-Class Audi A8, and Audi S8, are expected to drive the automotive software market in Germany during the forecast period.
According to a recent report by MarketsandMarkets(TM), the global automotive software market is set to reach a value of $32.3 billion by 2030, with a compound annual growth rate (CAGR) of 7.8%. The demand for automotive software solutions is expected to increase due to the rising focus on software-defined vehicles and the growing adoption of advanced driver-assistance systems (ADAS) features in vehicles. Government support for vehicle safety and the increasing usage of software-over-the-air (SOTA) updates are also driving factors for the market’s growth.
An important segment in the automotive software industry is the operating system (OS), which plays a crucial role in controlling the core capabilities of vehicles and ensuring passenger and driving environment safety. With the growing adoption of connected car technologies, the automotive OS market is expected to witness significant growth. The OS provides the platform for the vehicle’s telematics system to run on and facilitates communication with other devices and services.
The passenger car segment is expected to offer substantial growth opportunities in the automotive software market. This growth is attributed to the increasing integration of ADAS features in passenger cars and the rising interest in autonomous driving. The demand for passenger cars in both emerging and developed countries has also contributed to the market’s expansion. For instance, China produced around 23.8 million cars in 2022, while Japan produced 6.5 million, South Korea produced 3.4 million, and India produced 4.4 million in the same year. The Asia Pacific region, in particular, is projected to experience increased demand for automotive software due to the rise of autonomous driving, growing vehicle production, and the demand for high-end services like connected car services and telematics.
Germany is expected to lead the automotive software market in Europe. This is primarily due to the presence of premium passenger car brands with advanced software applications and government mandates related to safety. The strong sales of luxury vehicles such as the Mercedes-Benz S-Class, BMW 7 Series, Mercedes-Benz G-Class, Audi A8, and Audi S8 are expected to drive the automotive software market in Germany.
Prominent players in the automotive software industry include Robert Bosch GmbH, NXP Semiconductors, NVIDIA Corporation, BlackBerry Limited, and Continental AG, among others. These companies are continuously innovating and introducing new software solutions to enhance vehicle handling, safety, and efficiency.
Overall, the automotive software market is set to witness substantial growth in the coming years, with a focus on software-defined vehicles, ADAS features, and government support for vehicle safety. With advancements in technology and increasing demand for software solutions, the automotive industry is poised for a significant transformation.
[Company Name] looks forward to the future of the automotive software market and the potential for further innovations and advancements in connected vehicles, autonomous driving, and telematics systems. With the support of government initiatives and the rising interest in advanced safety features, the future of the automotive software market appears promising.
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