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Automotive Software Market

Automotive Software Market Size, Share and Segmentation by Application (ADAS & Safety Systems, Body Control & Comfort System, Remote Monitoring, Powertrain System, Communication System, Infotainment System, Biometrics, Vehicle Management & Telematics, Connected Services, Autonomous Driving, HMI Application, V2X System), by Software Layer (Operating System, Application software, Middleware), by Solution (Autopilot Software, Navigation Software, Car safety Software, Entertainment Software), by Vehicle Type (Passenger car (PC), Heavy commercial vehicle (HCV), Light commercial vehicle (LCV)), by Regions - Global Market Forecast 2022-2028

Report Id: SNS/AUTO/1056 | May 2022 | Region: Global | 125 Pages

Report Scope & Overview:

Automotive Software Market Size was valued at USD 20.62 billion in 2021 and is expected to reach USD 60.10 billion by 2028 and grow at a CAGR of 16.51% over the forecast period 2022-2028.

Automotive software is a collection of programmable data instructions used in computer-based in-vehicle applications to accomplish activities. Automotive software also includes software for embedded systems in vehicles. Telematics, body control, comfort, communication, advanced driver assistance systems (ADAS), and safety are all examples of computer-based in-vehicle applications. These technological improvements have pushed automakers to develop automobile software solutions that provide greater utility and convenience to their customers.

Automotive Software Market Revenue Graph

The automobile industry now relies heavily on software services and solutions. Software solutions can assist improve performance, safety, and the driving experience. In the automotive industry, software systems such as auto mechanical software, safety, connectivity software, entertainment, and navigation software are just a few examples.

MARKET DYNAMICS: 

KEY DRIVERS: 

  • Growing worldwide automobile production and sales.

  • Automobile adoption of ADAS features.

  • The demand for autonomous and connected automobiles is steadily increasing.

  • Increasing the number of people who use driver assistance devices.

  • Concerns about driver and vehicle safety are mounting.

  • Increasing demand for environment-friendly vehicles.

RESTRAINTS: 

  • The communication interfaces and protocols are not standardized, incorrect data may arise.

  • The lack of technology standardization makes system integration more difficult and information flow more difficult.

  • The increasing complexity of software design drives up vehicle hardware maintenance costs.

OPPORTUNITIES: 

  • The global adoption of innovative software solutions and services in the automotive industry.

  • Population growth.

  • Increasing the economy.

  • Deep learning, which is used to apply AI, is expected to increase at a faster rate than other automotive technologies.

  • The expanding purchasing power of individuals in nations is allowing this market to expand significantly.

CHALLENGES: 

  • Cybersecurity is still a serious issue.

  • The integration of complicated integrated systems and software.

  • The lack of linked infrastructure, troubleshooting, and maintenance of automotive software.

IMPACT OF COVID-19:

No major automotive software companies have yet declared a service halt. However, as a result of the outbreak, demand for software solutions is projected to drop in the first half of 2020 as manufacturing is disrupted. Manufacturers would adapt output to minimize bottlenecks and schedule production based on OEM and Tier I demand. However, no specific impact on the company's automotive industry has been mentioned. Many software firms are experiencing supply chain disruptions as a result of the spread of COVID-19, as countries around the world have implemented lockdown precautions. As a result, the value of the automotive software industry in 2020 is expected to be in decline.

KEY PLAYERS:

A few worldwide businesses dominate the automotive software market, which also includes several regional players. Robert Bosch (Germany), Green Hills Software (US), Wind River Systems, Renesas Electronics (Japan), Airbiquity (US), BlackBerry (Canada), NVIDIA (US), Autonet Mobile, Inc. (USA), Elektrobit (US), and NXP (Netherlands) are some of the major participants in the automotive software business (US). These businesses have secure global distribution networks. These businesses also provide a diverse range of software solutions for various purposes.

MARKET ESTIMATION: 

Market, By Solution:

The market has been divided into four segments based on a solution: autopilot software, navigation software, entertainment software, and car safety software.

Market, By Application:

The market has been divided into ADAS & Safety Systems, Body Control & Comfort Systems, Powertrain Systems, Infotainment Systems, Communication Systems, and Telematics Systems on the basis of the system. During the projected period, advanced driver-assistance systems (ADAS) are expected to be the most popular application. Consumers will profit from the factors and will be protected from potential dangers.

Market, By Vehicle Type:

The market has been divided into passenger cars and commercial vehicles based on vehicle type. Due to a growth in demand for luxury, comfort, and convenience, the passenger car segment in the automotive software market accounted for 80% of the revenue share. Vehicles are becoming software-driven devices as advanced technologies such as AI, VR, and machine learning become more widely adopted.

Market, by Software Type:

The market is divided into three categories based on product type: operating systems, middleware, and application software. For the forecast period, the application software sector has the biggest market share. The vehicle's specific functionalities and architecture are supported by the application software. It is made up of various apps and software layers that allow tasks to be completed according to the application.

MARKET SEGMENTATION:

By Application:

  • ADAS & Safety Systems

  • Body Control & Comfort System

  • Remote Monitoring

  • Powertrain System

  • Communication System

  • Infotainment System

  • Biometrics

  • Vehicle Management & Telematics

  • Connected Services

  • Autonomous Driving

  • HMI Application

  • V2X System

By Software Layer:

  • Operating System

  • Application software

  • Middleware

By Solution:

  • Autopilot Software

  • Navigation Software

  • Car safety Software

  • Entertainment Software

By Vehicle Type:

  • Passenger car (PC)

  • Heavy commercial vehicle (HCV)

  • Light commercial vehicle (LCV)

Automotive Software Market Segment Chart

REGIONAL ANALYSIS:

North America, Europe, Asia-Pacific, and the Rest of the World are the four key regions in which the global Automotive Software Industry is divided. Due to rising automotive infrastructure and increased sales of connected vehicles across the region, the Asia-Pacific region is expected to hold the biggest market share over the projection period. Furthermore, rising production and sales of electric vehicles are likely to drive demand for automotive software in this region. Furthermore, rising demand for car safety features, as well as increased public and private investment in ICT infrastructure development, are all contributing to the market's growth in this region.       

REGIONAL COVERAGE:

  • North America

    • The USA

    • Canada

    • Mexico

  • Europe

    • Germany

    • The UK

    • France

    • Italy

    • Spain

    • The Netherlands

    • Rest of Europe

  • Asia-Pacific

    • Japan

    • south Korea

    • China

    • India

    • Australia

    • Rest of Asia-Pacific

  • The Middle East & Africa

    • Israel

    • UAE

    • South Africa

    • Rest of Middle East & Africa

  • Latin America

    • Brazil

    • Argentina

    • Rest of Latin America

Automotive Software Market Report Scope:
Report Attributes Details
Market Size in 2021 US$ 20.62 Billion
Market Size by 2028 US$ 60.10 Billion
CAGR CAGR of 16.51% From 2022 to 2028
Base Year 2021
Forecast Period 2022-2028
Historical Data 2017-2020
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • by Application (ADAS & Safety Systems, Body Control & Comfort System, Remote Monitoring, Powertrain System, Communication System, Infotainment System, Biometrics, Vehicle Management & Telematics, Connected Services, Autonomous Driving, HMI Application, V2X System)
• by Software Layer (Operating System, Application software, Middleware)
• by Solution (Autopilot Software, Navigation Software, Car safety Software, Entertainment Software)
• by Vehicle Type (Passenger car (PC), Heavy commercial vehicle (HCV), Light commercial vehicle (LCV))
Regional Analysis/Coverage North America (USA, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Netherlands,
Rest of Europe), Asia-Pacific (Japan, South Korea,
China, India, Australia, Rest of Asia-Pacific), The
Middle East & Africa (Israel, UAE, South Africa,
Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
Company Profiles • Robert Bosch (Germany), Green Hills Software (US), Wind River Systems, Renesas Electronics (Japan), Airbiquity (US), BlackBerry (Canada), NVIDIA (US), Autonet Mobile, Inc.
• (USA), Elektrobit (US), and NXP (Netherlands) are some of the major participants in the automotive software business (US).
Key Drivers • Growing worldwide automobile production and sales.
• Automobile adoption of ADAS features.
RESTRAINTS • The communication interfaces and protocols are not standardized, incorrect data may arise.
• The lack of technology standardization makes system integration more difficult and information flow more difficult.


Frequently Asked Questions (FAQ) :


Table of Contents

 

1. Introduction

1.1 Market Definition

1.2 Scope

1.3 Research Assumptions

 

2. Research Methodology

 

3. Market Dynamics

3.1 Drivers

3.2 Restraints

3.3 Opportunities

3.4 Challenges

 

4. Impact Analysis

4.1 COVID-19 Impact Analysis

4.2 Impact of the Ukraine-Russia War

 

5. Value Chain Analysis

 

6. Porter’s 5 forces model

 

7.  PEST Analysis

 

8. Global Automotive Software Market Segmentation, by Application

8.1 ADAS & Safety Systems

8.2 Body Control & Comfort System

8.3 Remote Monitoring

8.4 Powertrain System

8.5 Communication System

8.6 Infotainment System

8.7 Biometrics

8.8 Vehicle Management & Telematics

8.9 Connected Services

8.10 Autonomous Driving

8.11 HMI Application

8.12 V2X System

 

9. Global Automotive Software Market Segmentation, by Software Layer

9.1 Operating System

9.2 Application software

9.3 Middleware

 

10. Global Automotive Software Market Segmentation, by Solution

10.1 Autopilot Software

10.2 Navigation Software

10.3 Car safety Software

10.4 Entertainment Software

 

11. Global Automotive Software Market Segmentation, by Vehicle type

11.1 Passenger car (PC)

11.2 Heavy commercial vehicle (HCV)

11.3 Light commercial vehicle (LCV)

 

12. Regional Analysis

12.1 Introduction

12.2 North America

12.2.1 the USA

12.2.2  Canada

12.2.3  Mexico

12.3 Europe

12.3.1  Germany

12.3.2  the UK

12.3.3  France

12.3.4  Italy

12.3.5  Spain

12.3.6  The Netherlands

12.3.7  Rest of Europe

12.4 Asia-Pacific

12.4.1  Japan

12.4.2  South Korea

12.4.3  China

12.4.4  India

12.4.5  Australia

12.4.6  Rest of Asia-Pacific

12.5 The Middle East & Africa

12.5.1  Israel

12.5.2  UAE

12.5.3  South Africa

12.5.4  Rest

12.6 Latin America

12.6.1  Brazil

12.6.2  Argentina

12.6.3  Rest of Latin America

 

13. Company Profiles

13.1 Robert Bosch GmbH

13.1.1 Financial

13.1.2 Products/ Services Offered

13.1.3 SWOT Analysis

13.1.4 The SNS view

13.2 Green Hills Software (US)

13.3 Wind River Systems

13.4 Renesas Electronics (Japan)

13.5 Airbiquity (US)

13.6 BlackBerry (Canada)

13.7 NVIDIA (US)

13.8 Autonet Mobile, Inc. (USA)

13.9 Elektrobit (US)

13.10 NXP (Netherlands)

 

14. Competitive Landscape

14.1 Competitive Benchmarking

14.2 Market Share analysis

14.3 Recent Developments

 

15. Conclusion

An accurate research report requires proper strategizing as well as implementation. There are multiple factors involved in the completion of a good and accurate research report and selecting the best methodology to complete the research is the toughest part. Since the research reports, we provide play a crucial role in any company’s decision-making process, therefore we at SNS Insider always believe that we should choose the best method which gives us results closer to reality. This allows us to reach a stage wherein we can provide our clients best and most accurate investment to output ratio.

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The 5 steps process:

Step 1: Secondary Research:

Secondary Research or Desk Research as the name suggests is a research process wherein, we collect data through readily available information. In this process, we use various paid and unpaid databases to which our team has access and gather data through the same. This includes examining listed companies’ annual reports, Journals, SEC filling, etc. Apart from this, our team has access to various associations across the globe across different industries. Lastly, we have exchange relationships with various universities as well as individual libraries.

Secondary Research

Step 2: Primary Research

When we talk about primary research, it is a type of study in which the researchers collect relevant data samples directly, rather than relying on previously collected data.  This type of research is focused on gaining content-specific facts that can be sued to solve specific problems. Since the collected data is fresh and first-hand therefore it makes the study more accurate and genuine.

We at SNS Insider have divided Primary Research into 2 parts.

Part 1 wherein we interview the KOLs of major players as well as the upcoming ones across various geographic regions. This allows us to have their view over the market scenario and acts as an important tool to come closer to accurate market numbers. As many as 45 paid and unpaid primary interviews are taken from both the demand and supply sides of the industry to make sure we land an accurate judgment and analysis of the market.

This step involves the triangulation of data wherein our team analyses the interview transcripts, online survey responses, and observation of on-field participants. The below-mentioned chart should give a better understanding of part 1 of the primary interview.

Part 2: In this part of the primary research the data collected via secondary research and part 1 of the primary research is validated with the interviews with individual consultants and subject matter experts.

Consultants are those set of people who have at least 12 years of experience and expertise within the industry whereas Subject Matter Experts are those with at least 15 years of experience behind their back within the same space. The data with the help of two main processes i.e., FGDs (Focused Group Discussions) and IDs (Individual Discussions). This gives us a 3rd party nonbiased primary view of the market scenario making it a more dependable one while collation of the data pointers.

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