The Global Automotive Software Market Size valued for USD 16.5 Billion in 2021 and is anticipated to reach USD 71.4 Billion by 2030 with a CAGR of 17.8% from 2022 to 2030.

Software systems and programmes used in automobiles, such as cars, trucks, buses, and other vehicles, are referred to as automotive software. Modern cars require these software systems to function properly since they manage many different parts, including the engine, transmission, brakes, suspension, and more. Automotive software comes in a variety of forms, each with a distinct function and goal. Software for driverless vehicles, entertainment, diagnostics, and embedded devices are just a few examples. Overall, automotive software is a crucial part of contemporary vehicles, providing vital features relating to convenience, performance, and safety. We may anticipate seeing more sophisticated automotive software systems as technology advances, enabling even higher degrees of automation and control in our cars.

Automotive Software Market Dynamics

Vehicles with internet connectivity and sophisticated sensor and software systems that enable real-time communication with other vehicles and the local infrastructure are referred to as connected automobiles. Because they may increase safety, increase fuel efficiency, and offer a more pleasant and enjoyable driving experience, linked automobiles are becoming more and more popular. With many major automakers investing considerably in research and development, autonomous driving technology is growing quickly. The demand for vehicle software that supports these skills will rise as self-driving cars become more common. Concerns about the sustainability of the environment and growing gasoline prices are also driving an increase in the usage of electric vehicles. The market for automotive software is anticipated to increase as a result of the need for specialized software systems to manage the battery, motor, and other components in electric vehicles.

Vehicles are more susceptible to cybersecurity risks as they become more networked and more dependent on software systems to function. Any successful cyber assault on a car's software system might jeopardize the security and safety of the automobile and its occupants, which would erode consumer confidence in connected cars and impede the market's expansion for automotive software.

Vehicle software system integration can be a difficult and drawn-out operation. Given the number of systems and components involved, it can be difficult for automakers to ensure that software systems are compatible with other software systems and the hardware of the car. This complexity may make it more expensive and time-consuming to create and implement automotive software systems, which can restrain the market's expansion.

Modern in-car entertainment and infotainment systems that offer a variety of services, such as GPS navigation, music streaming, hands-free calling, and more, are becoming more and more popular with consumers. The demand for automotive software that can provide these functions and smoothly incorporate them into the other systems of the vehicle is increasing as a result. The development of new business models for the automotive sector, such as ride- and car-sharing, is also anticipated to fuel market expansion for automotive software. The demand for automotive software will increase as these new models become more prevalent since they call for sophisticated software systems to manage and coordinate the use of automobiles.

Automotive Software Market Insight

The automotive software market is divided into application, product, and geographic markets. Application segment is further sub-segmented into infotainment and telematics, chassis, safety system, and powertrain. The market segments based on Product are middleware, operating system, and application software. North America, Asia-Pacific, Europe, Latin America, and the Middle East and Africa comprise the region sector.

Global Automotive Software Market Geographical Competition

The presence of leading automotive software companies, rising demand for advanced driver assistance systems (ADAS) and connected cars, and increased investment in autonomous driving technologies are all expected to drive significant growth in the North American automotive software market. Because of the presence of significant automotive software companies and expanding government initiatives to promote autonomous driving, the United States is expected to be the region's largest market.

Europe is expected to be a significant market for automotive software, owing to the existence of leading automotive software companies, the due to the implementation of electric and hybrid vehicles, and a growing emphasis on autonomous driving. Germany is expected to be the region's largest market, owing to the presence of major automotive software companies such as Bosch, Continental, and Siemens.

The Asia Pacific region is expected to experience significant growth in the automotive software market, owing to factors such as rising demand for connected vehicles, increased adoption of electric and hybrid vehicles, and increased investment in autonomous driving technologies. Because of the increasing adoption of electric vehicles and social programmes to promote autonomous driving, China is expected to be the region's largest market.

Global Automotive Software Industry Segment Analysis

Market By Application

·         Infotainment and Telematics

·         Chassis

·         Safety System

·         Powertrain

Market By Product

·         Middleware

·         Operating System

·         Application Software

Automotive Software Market Leading Companies

The players profiled in the report are ACCESS, Airbiquity, Autonet, Blackberry, Broadcom, Google, Green Hills Software, Mentor Graphics, Microsoft, NXP Semiconductors, Renesas Electronics, Robert Bosch Gmbh, and Wind River.

Automotive Software Market Regions