Newark, Aug. 28, 2024 (GLOBE NEWSWIRE) -- A recent report by The Brainy Insights forecasts significant growth in the global automotive software market, projecting an increase from USD 29.16 billion in 2023 to USD 136.04 billion by 2033. This growth, at a compound annual growth rate (CAGR) of 16.65% during the forecast period 2024- 2033, underscores the rapid expansion and innovation within the industry.
The global market for electric and connected vehicles is witnessing significant growth, driven by several key factors. The rising international demand for these vehicles, coupled with the increasing need for advanced automotive applications like remote vehicle diagnostics, automatic crash notifications, and emergency assistance, is propelling market expansion during the projection period.
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Moreover, leading players are continually launching cutting-edge technology-based smart systems aimed at improving fuel efficiency, which further contributes to market growth. The adoption of open-source platforms, enhanced product offerings focused on user experience, and the rise in automotive production featuring sophisticated software systems are also key drivers.
Additionally, the increasing incorporation of electronic applications in vehicles, the demand for advanced driver assistance systems, the surge in electric vehicle (EV) demand, and the involvement of innovative technologies for improved user interfaces (UI) are crucial factors fueling market expansion.
However, several challenges are restraining market growth, including the lack of standardized protocols for software platform development, a shortage of connected infrastructure, and a deficit in skilled labor and automotive expertise. The complexity of integrating software like Apple, IoT, and Android into existing automotive systems presents further challenges.
On the other hand, the growing adoption of advanced software services and solutions in the automotive sector, along with the integration of AI and 5G technologies, presents significant opportunities for market growth. These advancements are expected to play a pivotal role in shaping the future of the electric and connected vehicle market.
Report Scope and Segmentation –
| Report Coverage | Details |
| Forecast Period | 2024-2033 |
| Forecast CAGR | 16.65% |
| 2033 Value Projection | USD 136.04 Billion |
| Market Size in 2023 | USD 29.16 Billion |
| Historical Data | 2020-2022 |
| No. of Pages | 238 |
| Report Coverage | Revenue Forecast, Company Profiles, Competitive Landscape, Growth Factors and Latest Trends |
| Segments Covered | Software Layer, Vehicle Type, Application, Regions |
| Regions Covered | The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level. |
| Automotive Software Market Growth Drivers | The rise in demand for autonomous and connected vehicles |
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Asia Pacific region emerged as the largest market for the global automotive software market with a 45.03% share of the market revenue in 2023. The region's growth is driven by the rapid development of smart transportation systems and connected mobility in key markets like China and Japan. Additionally, increased investments by both private and public sectors to enhance information and communications technology infrastructure are further fueling the market's expansion in this region.
North America is expected to exhibit the fastest CAGR growth over the forecast period, attributed to the rising number of connected cars and the ongoing increase in vehicle production across the region.
Market Segmentation Insights
Software Layer: The market is segmented into application software, operating system, and middleware. The application software segment led the market with a 42.98% share in 2023, driven by the growing demand for vehicle architecture customization and enhanced functionalities.
Vehicle Type: This segment includes ICE light commercial vehicles, ICE passenger cars, ICE heavy commercial vehicles, plug-in hybrid electric vehicles, hybrid electric vehicles, and autonomous vehicles. In 2023, the ICE passenger car segment dominated the market with a 24% share, largely due to the increasing adoption of advanced technologies like machine learning, AI, and virtual reality (VR) in vehicles.
Application: The application segment is divided into vehicle management & telematics, HMI application software, remote monitoring charging management, connected services, ADAS & safety systems, V2X systems, and others. The ADAS & safety systems segment led the market with a 22.07% share in 2023, bolstered by the growing launch of autonomous driving vehicles by leading industry players.
Key Market Drivers
The automotive software market is being propelled by the growing integration of telematics services and the influx of emerging technologies into vehicle models to enhance functionality, safety, and the overall driving experience. Additionally, the expansion of smart capabilities in automotive infotainment systems is driving the demand for advanced automotive software, contributing to the market’s robust growth.
Leading Companies
Prominent companies in the industry include Denso Corporation, Airbiquity, Inc., Aptiv PLC, Google Inc., Intel Corporation, ETAS, Apple, Inc., Elektrobit, Luxoft Global Operations GmbH, MSC Software Corporation, Bosch Software Innovations GmbH, International Business Machines Corporation, Green Hills Software Inc., Microsoft Corporation, Lectronix, Inc, NVIDIA Corporation, Nuance Communications, Inc., The MathWorks, Inc., Lynx Software Technologies, Inc., Oxbotica LTD, Wind River Systems, Inc., Tesla Motors Inc., NXP Semiconductors N.V., and Vector Informatik GmbH. These companies are actively focused on new product developments and venture capital investments to secure and expand their market share.
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