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Automotive Software Market Forecasts to 2028 - Global Analysis By Vehicle Type (Passenger Vehicle, Light Commercial Vehicles (LCV) and Heavy Commercial Vehicles (HCV)), Software Layer (Operating System, Application software and Middleware), EV Application (Battery Management, Charging Management and Vehicle-To-Grid (V2G) ), Application, Offering, Organization Size and By Geography
Estimated Year Value (2022)
US $21.7 BN
Projected Year Value (2028)
US $50.4 BN
CAGR (2022 - 2028)
North America, Europe, Asia Pacific, South America, and Middle East & Africa
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa
Highest Growing Market
According to Stratistics MRC, the Global Automotive Software Market is accounted for $21.7 billion in 2022 and is expected to reach $50.4 billion by 2028 growing at a CAGR of 15.1% during the forecast period. Automotive software is a type of application that is used to improve the functionality of automobiles. It is a system that will alter the future of the mobility business. Normally, it is a sophisticated cloud solution that must be linked to some kind of hardware. Automotive software development is difficult because it integrates embedded software with large IT systems, it is produced in a worldwide setting in remote teams, and it has one of the fastest cycle times of any industry. Automotive software product lines and versions are among the most numerous. Automotive software is full of features that allow clients to grow their operations and much more, such as over-the-air updates (OTA), advanced cloud solutions, additional hardware connectivity, and much more. Personalization, dependability and adaptability, and industry expertise
According to OFV Electric cars continue to dominate in Norway, as 2019 saw EV sales rise to 42.4%, up from 31.2% in 2018. This represents almost a 1/3 increase in EV sales from year to year. Adding in plug-in hybrid sales, about 56% of Norway's new car sales in 2019 had a plug.
Increasing adoption of connected car services
The growing number of connected cars has created new revenue-generating opportunities for the ecosystem's stakeholders. Many non-automotive players have entered the race of linked cars and autonomous driving to capitalise on the financial opportunities. Vehicles today are no longer hardware-based moving devices. Domain controllers, consolidated ECUs, HMI, and AI will comprise the majority of electronic content for advanced vehicle applications such as ADAS, telematics, engine management systems, and so on. For proper operation, these apps must be programmed with a large amount of lines of code. As cars become more technologically adept, the complexity of these applications grows. As a result, systems must be designed with more codes, increasing the demand for embedded software. As a result, the growing number of linked cars is propelling the automotive software business.
Inadequate infrastructural connectivity
The high-priced infrastructure necessary for 5G and wireless connectivity is having an impact on the growth of the automotive software business. A significant amount of capital will be required to construct the requisite software interaction platforms, which include IoT, data analytics, and cloud. Connected automobiles and ADAS systems require quick, flexible, and accessible methods of updating software to incorporate new content. Over-the-air (OTA) software updates have been given first priority. Furthermore, without suitable connectivity options, manufacturers are introducing additional services and applications spanning from emergency contacting solutions to safety alert messages thus hindering the market growth.
The possibilities of 5G and AI in the future
Transformation of design requirements and architectures is influencing software needs. Wireless connectivity is critical to the user experience of vehicle software, to find a solution, various telecom companies are working on the development of 5G to improve the safety and efficiency of car software. Automobiles are becoming network-aware, software-defined, and ultra-connected data transmitting vehicles, necessitating the use of a high-tech connectivity platform. Understanding these implications, as well as the hurdles for the automotive industry can help to accelerate the adoption of connected automobiles. Because autonomous vehicles and automotive software will be able to interact instantly, 5G will be a critical enabler thus enhances the market growth.
Vehicle architecture is quite complex
Product development in the automobile sector is influenced by variables such as rivalry in the automotive software market and rigorous CO2 emission requirements, which result in product variation, function integration, individualization, and novel technologies. These tactics enhance organisational, technical, and procedural reliance on increasingly complex development environments. The impacts of complexity emerge from time to time in the shape of waves of defect reports, exorbitant design efforts, and an explosion of warranty costs which hamper the automotive software market in the future.
The automotive industry is experiencing a significant reduction in demand and investment. Automotive Manufacturers and several mobility players have taken some of the most severe hits in the automobile industry as a result of COVID-19. Because of macroeconomic trends, shifting consumer behaviour, and regulatory developments, this could have a direct long-term impact on the automotive industry as well.
The Battery Management segment is expected to be the largest during the forecast period
The Battery Management segment is estimated to have a lucrative growth, due to capable monitoring voltage, temperature, and current, as well as battery status of charge (SoC) and cell balancing of lithium-ion (Li-ion) batteries. An effective vehicle battery management systems solution necessitates a significant amount of time, experience, and a thorough understanding of requirements, hardware, and software. The main functions of an electric vehicle battery management system are battery protection to prevent operations outside its safe operating area, battery monitoring to estimate the rechargeable battery condition of charge (SoC) and state of health (SoH) during charging and discharging, and battery optimisation through cell balancing to improve battery life and capacity, thus optimising driving range for hybrid (HEV), plug-in (PHEV), and full electric vehicles thereby encouraging the growth of the market during the forecast period.
The Safety & Security segment is expected to have the highest CAGR during the forecast period
The Safety & Security segment is anticipated to witness the fastest CAGR growth during the forecast period; due to companies are managing safety and reliability problems as vehicle complexity increases, from automated driving systems to electrified automobiles. Functional safety is crucial for guaranteeing that today's sophisticated electronics deliver constant performance over time, without system failures. Because of the rising amount of software and connection, there are multiple opportunities for cyber attack. Engineers can provide safe and secure products, minimise time to market, maximise profit margins, and comply with forthcoming cyber security legislation by swiftly discovering and correcting vulnerabilities and design flaws further boosting the market.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period owing to people's increasing need for innovative software and systems, the Asia Pacific area has emerged as the largest market to date. The tremendous technical improvements observed in this region are a crucial element in the increasing need for automotive software’s. People's growing embrace of technology innovation has also increased demand for car software. The rapid expansion of intelligent transportation systems and linked mobility in nations such as China and Japan is driving this region's automotive software market
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period, owing to significant growth area for the automotive software business. Throughout the projection period, North America is expected to have a high demand. Furthermore, favourable government rules dealing with driver safety and security issues mandate automakers to provide in-vehicle infotainment with hands-free linked calls, which fuels the expansion of the European automotive software business. The presence of prominent industry players, as well as their quick research and development programmes, has emerged as a crucial growth factor for the automotive software market over the projection period.
Key players in the market
Some of the key players profiled in the Automotive Software Market include Google, BlackBerry Limited, Airbiquity Inc., MontaVista Software LLC, Microsoft Corporation, Wind River Systems, HARMAN International, GlobalLogic Inc., Intellias Ltd., Robert Bosch GmbH, NVIDIA, NXP, Green Hills Software, Renesas Electronics and Autonet Mobile
In March 2023, BlackBerry and Adobe Partner to Deliver Secure Forms with Electronic Signatures on Mobile, Furthermore, the partnership agreement allows BlackBerry to resell Adobe Experience Manager Forms software.
In March 2023, BlackBerry Announces New Patent Sale Transaction with Leading Patent Monetization Company for Up to $900 Million, The transaction is not subject to any financing conditions. Funding has been secured from a leading US-based investment firm, with in excess of $30 billion of assets under management.
In Jan 2023, BlackBerry QNX and Texas Instruments Collaborate to Launch Online Training Academy to Jump-Start Embedded Software Developer Innovation, a comprehensive online software developer enablement program designed to turbocharge software
In Dec 2022, Elektrobit and Airbiquity Partner to Enable the Next Generation of Over-The-Air Services for the Mobility Industry, it easier for OEMs to source and build an end-to-end OTA system for their vehicle fleets.
Vehicle Types Covered:
• Passenger Vehicle
• Light Commercial Vehicles (LCV)
• Heavy Commercial Vehicles (HCV)
Software Layers Covered:
• Operating System
• Application software
EV Applications Covered:
• Battery Management
• Charging Management
• Vehicle-To-Grid (V2G)
• Infotainment & Instrument Cluster
• Safety & Security
• Vehicle Connectivity
• Body Control & Comfort System
• Communication System
• Autonomous Driving
• Remote Monitoring
• Powertrain System
• Vehicle Management & Telematics
Organization Sizes Covered:
• Small Scale Organization
• Medium Scale Organization
• Large Scale Organizations
• North America
o Rest of Europe
• Asia Pacific
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
3 Market Trend Analysis
3.6 Application Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Automotive Software Market, By Vehicle Type
5.2 Passenger Vehicle
5.3 Light Commercial Vehicles (LCV)
5.4 Heavy Commercial Vehicles (HCV)
6 Global Automotive Software Market, By Software Layer
6.2 Operating System
6.3 Application software
7 Global Automotive Software Market, By EV Application
7.2 Battery Management
7.3 Charging Management
7.4 Vehicle-To-Grid (V2G)
8 Global Automotive Software Market, By Application
8.2 Infotainment & Instrument Cluster
8.3 Safety & Security
8.4 Vehicle Connectivity
8.5 Body Control & Comfort System
8.6 Communication System
8.7 Autonomous Driving
8.9 Remote Monitoring
8.10 Powertrain System
8.11 Vehicle Management & Telematics
9 Global Automotive Software Market, By Offering
10 Global Automotive Software Market, By Organization Size
10.2 Small Scale Organization
10.3 Medium Scale Organization
10.4 Large Scale Organizations
11 Global Automotive Software Market, By Geography
11.2 North America
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.5 Other Key Strategies
13 Company Profiling
13.2 BlackBerry Limited
13.3 Airbiquity Inc.
13.4 MontaVista Software LLC
13.5 Microsoft Corporation
13.6 Wind River Systems
13.7 HARMAN International
13.8 GlobalLogic Inc.
13.9 Intellias Ltd.
13.10 Robert Bosch GmbH
13.13 Green Hills Software
13.14 Renesas Electronics
13.15 Autonet Mobile
List of Tables
1 Global Automotive Software Market Outlook, By Region (2020-2028) ($MN)
2 Global Automotive Software Market Outlook, By Vehicle Type (2020-2028) ($MN)
3 Global Automotive Software Market Outlook, By Passenger Vehicle (2020-2028) ($MN)
4 Global Automotive Software Market Outlook, By Light Commercial Vehicles (LCV) (2020-2028) ($MN)
5 Global Automotive Software Market Outlook, By Heavy Commercial Vehicles (HCV) (2020-2028) ($MN)
6 Global Automotive Software Market Outlook, By Software Layer (2020-2028) ($MN)
7 Global Automotive Software Market Outlook, By Operating System (2020-2028) ($MN)
8 Global Automotive Software Market Outlook, By Application software (2020-2028) ($MN)
9 Global Automotive Software Market Outlook, By Middleware (2020-2028) ($MN)
10 Global Automotive Software Market Outlook, By EV Application (2020-2028) ($MN)
11 Global Automotive Software Market Outlook, By Battery Management (2020-2028) ($MN)
12 Global Automotive Software Market Outlook, By Charging Management (2020-2028) ($MN)
13 Global Automotive Software Market Outlook, By Vehicle-To-Grid (V2G) (2020-2028) ($MN)
14 Global Automotive Software Market Outlook, By Application (2020-2028) ($MN)
15 Global Automotive Software Market Outlook, By Infotainment & Instrument Cluster (2020-2028) ($MN)
16 Global Automotive Software Market Outlook, By Safety & Security (2020-2028) ($MN)
17 Global Automotive Software Market Outlook, By Vehicle Connectivity (2020-2028) ($MN)
18 Global Automotive Software Market Outlook, By Body Control & Comfort System (2020-2028) ($MN)
19 Global Automotive Software Market Outlook, By Communication System (2020-2028) ($MN)
20 Global Automotive Software Market Outlook, By Autonomous Driving (2020-2028) ($MN)
21 Global Automotive Software Market Outlook, By Biometrics (2020-2028) ($MN)
22 Global Automotive Software Market Outlook, By Remote Monitoring (2020-2028) ($MN)
23 Global Automotive Software Market Outlook, By Powertrain System (2020-2028) ($MN)
24 Global Automotive Software Market Outlook, By Vehicle Management & Telematics (2020-2028) ($MN)
25 Global Automotive Software Market Outlook, By Offering (2020-2028) ($MN)
26 Global Automotive Software Market Outlook, By Solutions (2020-2028) ($MN)
27 Global Automotive Software Market Outlook, By Services (2020-2028) ($MN)
28 Global Automotive Software Market Outlook, By Organization Size (2020-2028) ($MN)
29 Global Automotive Software Market Outlook, By Small Scale Organization (2020-2028) ($MN)
30 Global Automotive Software Market Outlook, By Medium Scale Organization (2020-2028) ($MN)
31 Global Automotive Software Market Outlook, By Large Scale Organizations (2020-2028) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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