Automotive Software
Automotive Software Market by Vehicle Type (Autonomous Vehicles, Commercial Vehicles, Electric Vehicles), Software Type (Application Software, Embedded Software, Operating System Software), Functions, End User, Connectivity Type, Deployment Mode, Technology Integration, Sales Channel, Vehicle Connectivity Solutions, Security Features - Global Forecast 2025-2030
SKU
MRR-437D45957919
Region
Global
Publication Date
February 2025
Delivery
Immediate
2024
USD 22.88 billion
2025
USD 24.82 billion
2030
USD 37.13 billion
CAGR
8.40%

The Automotive Software Market size was estimated at USD 22.88 billion in 2024 and expected to reach USD 24.82 billion in 2025, at a CAGR 8.40% to reach USD 37.13 billion by 2030.

Automotive Software Market
To learn more about this report, request a free PDF copy

The Automotive Software market plays a pivotal role in enhancing vehicle performance, safety, and user experience, encompassing a wide array of applications such as driver assistance, infotainment systems, telematics, and vehicle management solutions. This rapidly evolving segment is crucial due to the increasing demand for connected vehicles, autonomous driving capabilities, and stringent regulatory standards on emission and safety. Automotive software finds application across passenger vehicles, commercial and electric vehicles, making it indispensable in the transformation towards smart, efficient transport systems. End-use scope primarily covers automotive OEMs and aftermarket service providers, driven by technological advancements and consumer preference for advanced vehicular features. Key growth factors include the proliferation of IoT integrations, advancements in AI, and the escalating need for cybersecurity in automotive systems. Opportunities flourish in regions with robust automotive markets like North America and Asia-Pacific, where tech-driven solutions foster innovation. To tap into these opportunities, stakeholders should focus on collaborating with software developers to integrate AI-driven insights and offer seamless over-the-air (OTA) updates, ensuring vehicles remain up-to-date with the latest functionalities. However, challenges like the high costs of development, stringent regulatory compliances, and potential cybersecurity threats pose significant hurdles. Limitations also include the slow adoption rate in developing regions due to lack of infrastructure and awareness. For innovation, focusing on areas such as vehicle-to-everything (V2X) communication, electrification integration software, and enhanced user interface experiences can provide business growth and position companies at the forefront of market trends. The automotive software market is characterized by rapid technological shifts, necessitating agile responses to emerging trends and consumer demands. By investing in research and development, particularly in leveraging AI for predictive analytics and optimizing vehicle dynamics, companies can unlock new growth avenues and build resilient strategies in this competitive landscape.

Ask ResearchAI anything

World's First Innovative Al for Market Research

Ask your question about the Automotive Software market, and ResearchAI will deliver precise answers.
How ResearchAI Enhances the Value of Your Research
ResearchAI-as-a-Service
Gain reliable, real-time access to a responsible AI platform tailored to meet all your research requirements.
24/7/365 Accessibility
Receive quick answers anytime, anywhere, so you’re always informed.
Maximize Research Value
Gain credits to improve your findings, complemented by comprehensive post-sales support.
Multi Language Support
Use the platform in your preferred language for a more comfortable experience.
Stay Competitive
Use AI insights to boost decision-making and join the research revolution at no extra cost.
Time and Effort Savings
Simplify your research process by reducing the waiting time for analyst interactions in traditional methods.

Market Dynamics

The market dynamics represent an ever-changing landscape of the Automotive Software Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

  • Market Drivers
    • Rapid advancements in autonomous and semi-autonomous driving technology are pushing market expansion
    • Increasing demand for connected vehicles is driving the growth of the automotive software market
    • Growing integration of artificial intelligence in automotive applications boosts software development
  • Market Restraints
    • Key restraints challenging the growth trajectory of the automotive software market due to evolving variables
    • Primary limitations faced by stakeholders in the proliferation of automotive software capabilities
    • Prominent deterrents in optimizing automotive software development and market penetration
  • Market Opportunities
    • Harnessing blockchain technology to improve vehicle identity management and secure transaction systems
    • Expanding the role of infotainment systems in transforming the in-car user experience and connectivity
    • Exploring the potential of AI-driven predictive maintenance in reducing automotive failure rates
  • Market Challenges
    • Adapting to consumer expectations for continuous software updates and seamless user experiences in cars
    • Balancing the investments required for research and development with securing digital transformation
    • Dealing with the increased consumer demand for electric vehicles affecting automotive software development

Market Segmentation Analysis

  • Increasing advancement in application software to enhancing vehicle connectivity, safety, and comfort

    Application software in the automotive industry is fundamental to enhancing vehicle functionalities. Programs such as in-vehicle infotainment, autonomous driving software, and safety & security systems feature prominently in this spectrum. They offer immense growth, driven by the need for connectivity, safety, and comfort. IVI, for instance, has observed immense popularity, with consumers demanding superior entertainment, advanced navigation systems, and driver assistance apps. With its cutting-edge AI algorithms, next-generation autonomous driving software is paving the way toward self-driving cars, another significant trend contributing to the evolution of the application software space in the automotive industry. Middleware is the vital intermediary software enabling communication and data management between different automotive software applications. Central to this segment is the provision of standardized interfaces and synchrony in managing the intricacies of distributed environments. Middleware includes database middleware, message-oriented middleware, web middleware, and others, each contributing distinct benefits such as vulnerability thwarting and simplified debugging. Notably, the increased adoption of telematics and Internet of Things (IoT) devices in automobiles has amplified the relevance of middleware for seamless data flow, thus enhancing the overall driving experience. The Operating System (OS) forms the backbone of an automobile's software infrastructure. By managing hardware resources and providing requisite services for software applications, OS significantly influences a vehicle's performance and safety parameters.

  • Rising demand for advanced safety systems such as anti-lock braking systems (ABS) and stability control systems

    The infotainment and telematics segment has emerged as a core application area in the contemporary automotive software landscape. It encompasses software functionalities for entertainment, interaction, and vehicle-to-driver communication features. The components include navigation, multimedia streaming, real-time vehicle diagnostics, hands-free connectivity, and telematics services for remote control and software updates. Automotive software has revolutionized the powertrain segment with innovative engine management, transmission control, and emission control applications. The goal is to optimize energy usage and control the vehicle's operation for optimal power and efficiency. Through sophisticated algorithms and diagnostics, automotive powertrain software ensures seamless operation while maximizing fuel efficiency, reducing carbon emissions and adhering to stringent regulatory standards. The safety systems are software applications that protect drivers, passengers, and pedestrians. Integral components include anti-lock braking systems (ABS), stability control systems, adaptive cruise control, parking assistance, and collision detection systems. As safety regulations become more stringent around the globe, there is increasing pressure on automakers to integrate advanced safety systems. Furthermore, technologically savvy consumers emphasize safety features in their purchasing decisions, contributing to the growth of the safety systems segment within the automotive software market.

Porter’s Five Forces Analysis

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Automotive Software Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

PESTLE Analysis

The PESTLE analysis offers a comprehensive tool for understanding and analyzing the external macro-environmental factors that impact businesses within the Automotive Software Market. This framework examines Political, Economic, Social, Technological, Legal, and Environmental factors, providing companies with insights into how these elements influence their operations and strategic decisions. By using PESTLE analysis, businesses can identify potential opportunities and threats in the market, adapt to changes in the external environment, and make informed decisions that align with current and future conditions. This analysis helps companies anticipate shifts in regulation, consumer behavior, technology, and economic conditions, allowing them to better navigate risks and capitalize on emerging trends.

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Automotive Software Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Automotive Software Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Recent Developments

  • Strategic alliance between BMW Group and Tata Technologies establishes an automotive software hub in India

    BMW Group and Tata Technologies formed a strategic partnership to establish an automotive software and IT development hub in India, aiming to advance BMW's global software development. This joint venture leverages Tata's digital engineering expertise, focusing on software-defined vehicles, automated driving, infotainment, and digital services. [Published On: April 02, 2024]

  • SDVerse a B2B platform for automotive software needs

    General Motors, Magna, and Wipro collaborated to create SDVerse, a B2B digital marketplace designed to streamline automotive software sourcing by connecting software buyers and sellers. By enhancing transparency and efficiency across the procurement process, SDVerse allows sellers to showcase their offerings while enabling buyers to explore various software options. SDVerse aims to cut costs, reduce duplication, and boost automotive software quality, addressing the increasing demand for software-defined vehicles. [Published On: March 05, 2024]

  • Karma Automotive amplifies its software prowess by acquiring assets and expertise from Airbiquity

    Karma Automotive acquired Seattle-based Airbiquity's technology assets, intellectual property, and key personnel to enhance its focus on software-defined vehicles. This transaction, involving significant OEM contracts, integrates Airbiquity's robust software solutions into Karma's Connected Cloud Services, including OTA updates and data analytics. [Published On: February 27, 2024]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Automotive Software Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Automotive Software Market, highlighting leading vendors and their innovative profiles. These include Adobe Inc., Airbiquity Inc. by Karma Automotive, ANSYS, Inc., Autodesk, Inc., BlackBerry Limited, CDK Global, Inc., Continental AG, Cox Automotive, Inc., Ford Motor Company, Fullbay, Inc., General Motors Company, Green Hills Software LLC by Cadence Design Systems, Inc., KPIT Technologies Limited, LeddarTech Inc., Microsoft Corporation, MontaVista Software, LLC by Cavium Networks, Nvidia Corporation, NXP Semiconductors N.V., Oracle Corporation, Renesas Electronics Corporation, Robert Bosch GmbH, SAP SE, Tata Technologies Ltd., Texas Instruments Incorporated, The Reynolds and Reynolds Company, Waymo LLC by Alphabet Inc., Wind River Systems, Inc., and Wipro Limited.

Market Segmentation & Coverage

This research report categorizes the Automotive Software Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Vehicle Type
    • Autonomous Vehicles
      • Level 1 – Driver Assistance
      • Level 2 – Partial Automation
      • Level 3 – Conditional Automation
      • Level 4 – High Automation
      • Level 5 – Full Automation
    • Commercial Vehicles
      • Heavy Commercial Vehicles
      • Light Commercial Vehicles
    • Electric Vehicles
    • Passenger Vehicles
  • Software Type
    • Application Software
    • Embedded Software
    • Operating System Software
  • Functions
    • Driver Assistance
    • Infotainment & Telematics
      • Communication Systems
      • Entertainment Systems
      • Navigation Systems
    • Safety & Security
    • Vehicle Management
      • Fleet Management
      • Tire Management
  • End User
    • Aftermarket
    • OEMs
  • Connectivity Type
    • V2I
    • V2P
    • V2V
    • V2X
  • Deployment Mode
    • Cloud-Based
      • Hybrid Cloud
      • Private Cloud
      • Public Cloud
    • On-Premises
  • Technology Integration
    • AI & Machine Learning
    • Augmented Reality
    • Blockchain
    • IoT
  • Sales Channel
    • Direct Sales
    • Indirect Sales
  • Vehicle Connectivity Solutions
    • 5G Connectivity
    • Bluetooth
    • Satellite Connectivity
    • Wi-Fi
  • Security Features
    • Biometric Authentication
    • Encryption Solutions
  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

This research report offers invaluable insights into various crucial aspects of the Automotive Software Market:

  1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
  2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
  3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
  4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
  5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

Additionally, the report addresses key questions to assist stakeholders in making informed decisions:

  1. What is the current market size and projected growth?
  2. Which products, segments, applications, and regions offer promising investment opportunities?
  3. What are the prevailing technology trends and regulatory frameworks?
  4. What is the market share and positioning of the leading vendors?
  5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Automotive Software Market, by Vehicle Type
  7. Automotive Software Market, by Software Type
  8. Automotive Software Market, by Functions
  9. Automotive Software Market, by End User
  10. Automotive Software Market, by Connectivity Type
  11. Automotive Software Market, by Deployment Mode
  12. Automotive Software Market, by Technology Integration
  13. Automotive Software Market, by Sales Channel
  14. Automotive Software Market, by Vehicle Connectivity Solutions
  15. Automotive Software Market, by Security Features
  16. Americas Automotive Software Market
  17. Asia-Pacific Automotive Software Market
  18. Europe, Middle East & Africa Automotive Software Market
  19. Competitive Landscape
  20. List of Figures [Total: 37]
  21. List of Tables [Total: 688 ]
  22. List of Companies Mentioned [Total: 28]
360iResearch Analyst Ketan Rohom
Download a Free PDF
Get a sneak peek into the valuable insights and in-depth analysis featured in our comprehensive automotive software market report. Download now to stay ahead in the industry! Need more tailored information? Ketan is here to help you find exactly what you need.
Frequently Asked Questions
  1. How big is the Automotive Software Market?
    Ans. The Global Automotive Software Market size was estimated at USD 22.88 billion in 2024 and expected to reach USD 24.82 billion in 2025.
  2. What is the Automotive Software Market growth?
    Ans. The Global Automotive Software Market to grow USD 37.13 billion by 2030, at a CAGR of 8.40%
  3. When do I get the report?
    Ans. Most reports are fulfilled immediately. In some cases, it could take up to 2 business days.
  4. In what format does this report get delivered to me?
    Ans. We will send you an email with login credentials to access the report. You will also be able to download the pdf and excel.
  5. How long has 360iResearch been around?
    Ans. We are approaching our 7th anniversary in 2024!
  6. What if I have a question about your reports?
    Ans. Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available and included in every purchase to help our customers find the research they need-when they need it.
  7. Can I share this report with my team?
    Ans. Absolutely yes, with the purchase of additional user licenses.
  8. Can I use your research in my presentation?
    Ans. Absolutely yes, so long as the 360iResearch cited correctly.