Automotive Software Market Size By Software (Autonomous Driving Software, Safety & Security Software, Vehicle Management Software, Infotainment Software), By Application (Engine Management System (EMS), Anti-Lock Braking System(ABS), Air bag control, Car Navigation System, Infotainment System, Mobility Service), By Vehicle Type (Passenger Vehicle, Commercial Vehicle), By End-use (Manufacturer Retail Store, Automotive Dealer, Automotive Repair Store, Auto Part Wholesaler & Agent), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, Sweden, China, Japan, India, Australia, South Korea, Brazil, Mexico, Argentina, South Africa, UAE, Saudi Arabia, Qatar, Oman), Growth Potential, Competitive Market Share & Forecast, 2019 - 2025

Published Date: Mar 2019 | Report ID: GMI3214 | Authors: Ankita Bhutani, Preeti Wadhwani Report Format: PDF

  Request Sample
Summary Table of Contents Industry Coverage Methodology

Industry Trends

Automotive Software Market size estimated at over USD 18 billion in 2018 and will grow at a CAGR of 15% from 2019 to 2025.
 

Canada Automotive Software Market Revenue, By End Use, 2018 & 2025 (USD Million)
Canada Automotive Software Market Revenue, By End Use, 2018 & 2025 (USD Million)

Get more details on this report - Request Free Sample PDF
 

The automotive software market is projected to exhibit an accelerated growth between 2019 and 2025 due to the rapid increase in the use of electronic components to enhance various features of vehicles such as modernization of cockpit, ADAS, and infotainment system. User interface designers are adopting several innovative technologies, such as Big Data, AI, and VR, to provide solutions for the growing demand for enhanced comfort and safety. Stringent government regulations related to emissions and safety of passengers are compelling OEMs and automotive software developers to alter their designs accordingly.
 

The rising internet penetration, infrastructure development for EVs & HEVs, and the growing adoption of connected cars have increased the number of electronic components in vehicles. These cars and their electronic components include multiple lines of programming codes, which amounts to be a few megabytes. For instance, a premium car implements about 270 functions as user interacts with and is deployed over about 70 embedded platforms. The next-generation of upper-class vehicles, hitting the market in about five years, are expected to run up to 1 GB of software. 
 

Automotive Software Market, By Software

Vehicle management software held a majority market share of over 30% in the automotive software market due to the increasing vehicle connectivity and cloud-based solutions provided at remote locations. The growing demand for efficient data analysis, data visualization, and reduction in operation cost for OEMs has increased the use of vehicle management software in the market. It enables innovative service solutions through predictive diagnostics, helping automakers to enhance customer loyalty & satisfaction.
 

Autonomous driving software is projected to exhibit the fastest growth between 2019 and 2025 due to the increasing demand for passenger & driver safety. The rapid adoption of advanced technologies, such as AR, VR, machine learning, and AI, has helped in enhancing autonomous driving solutions. It also helps drivers in object recognition, lane assistance, park assistance, and navigation, leading to a safe and hassle-free driving experience. OEMs providing enhanced features in cockpit & additional safety for drivers and passengers will proliferate the growth of this segment in the market.
 

Automotive Software Market, By Application

Engine Management System (EMS) dominated the automotive software market with more than 20% share due to the increasing demand for fuel-efficient vehicles. The growing global environmental concerns and stringent government regulations related to environmental safety require OEMs to build fuel-efficient engines with low-carbon emissions. OEMs are deploying EMS in combination with sophisticated sensors, such as control fuel injection, fuel supply, ignition, and air management, to improve fuel efficiency and emissions.
 

The mobility services segment is estimated to project the fastest growth rate between 2019 and 2025 due to the rising internet penetration and the increasingly connected cars in the automotive industry. The growing demand for safe & secure mobility services along with the adoption of innovative technologies, such as blockchain, AR, and machine learning, is impacting the growth of this segment. The rising environment awareness among consumers, rapid urbanization, and emerging smart cities have increased the use of shared mobility across the globe, further propelling the market. For instance, in 2016, the shared automobile market was estimated to be over USD 50 billion in the U.S., Europe, and China. The growth of this segment is attributed to the increasing domination of e-hailing players such as Uber, Addison lee, and Ola in these countries.
 

South Korea Automotive Software Market Revenue, By Application, 2018 & 2025 (USD Million)
South Korea Automotive Software Market Revenue, By Application, 2018 & 2025 (USD Million)

Get more details on this report - Request Free Sample PDF
 

Automotive Software Market, By Vehicle Type

The passenger vehicles segment is expected to dominate the automotive software market over the forecast period and secure a market share of over 80% by 2025. With the advent of increasing sales of luxury vehicles, electronic components integrated with various software equipped in these vehicles to enhance the safety, convenience, and comfort of passengers will drive the market. The increase in sales of hatchbacks and sedans in the past few years has also contributed to the growth of this segment. These vehicles are deployed with various sensors integrated with innovative software to enhance the features of vehicles such as ADAS, lane assist, and parking assist, contributing to the growth of the market.
 

South Korea Automotive Software Industry Revenue, By Vehicle Type, 2018 & 2025 (USD Million)
South Korea Automotive Software Industry Revenue, By Vehicle Type, 2018 & 2025 (USD Million)

Get more details on this report - Request Free Sample PDF
 

Automotive Software Market, By End use

The growing demand for a smarter & faster inventory, increase in sales & profit margin, and better Return on Investment (RoI) are increasing the demand for automotive software in the automotive dealer segment. The rising innovative software that provides mobility solutions and software updates through cloud solutions will impact the growth of the automotive dealer segment in the customer-centric approach to drive customer loyalty and adapt to the changing customer behavior & expectations. Additionally, the increasing competitiveness due to the entry of e-commerce dealers, such as Carvana, Vroom, and shift, to provide enhanced customer satisfaction during the product sale and in the aftermarket is proliferating the growth of this segment in the market.
 

Automotive Software Market, By Region

North America dominated the automotive software market with a share of over 35% in 2018. The majority share is attributed due to the presence of prominent market players developing automotive software and automobile manufacturers. The market growth in this region can be attributed to the increasing vehicle production, increasing connected cars, changing in-vehicle electronics architecture, V2V & V2I development, and expansion of leading OEMs.
 

Asia Pacific is estimated to be the fastest growing region with the highest growth rate of more than 17% during the forecast period. Stringent government regulations related to environmental safety are impacting OEMs in the region to build fuel-efficient and low-carbon emission vehicles with the help of automotive software and electronic components. The highly-populated countries in this region, such as China and India, are facing traffic congestion and mishaps, impacting the growth of this software to provide predictive navigation, traffic details, and object recognition to avoid crashes or collisions. The emerging smart cities in this region are expected to drive the market.
 

Competitive Market Share

The automotive software market is highly-fragmented due to the presence of several multinational corporations in both OEMs and software companies in various regions. Major global players, such as Oracle, Dassault Systèmes, SAP, and Autodesk, dominate the market with a major market share and an extensive global presence. These companies invest heavily in R&D to develop more robust automotive software solutions, innovate new products, and improve their existing products in the market. For instance, Autodesk is enabling a new set of capabilities that will help designers of automakers to build a sophisticated & robust vehicle infrastructure design with its automotive software. The company uses advanced technologies, such as Virtual Reality (VR) and real-time clay modeling, to enhance the vehicle designing process for automakers. Major companies are focusing on strategic acquisitions & mergers to facilitate inorganic growth and expand their technology capabilities and product lines.
 

Some of the key players operating in the market are Ansys, Inc., Autodesk, Inc., Bosch Software Innovation GmbH, CDK Global LLC, Cox Automotive, Daimler AG, Dassault Systèmes SE, DealerTrack Holdings, Inc., Delphi Technologies, Ford Motor Company, General Motors Company, Genesys, Honda Motor Company, Nvidia Corporation, Oracle Corporation, SAP SE, Siemens PLM Software, Inc., Solera Holdings, The Reynolds and Reynolds Company, and Wipro Limited.
 

Industry Background

Automotive Software Market Segmentation

Get more details on this report - Request Free Sample PDF
 

The rising adoption of advanced technologies, such as AI, deep learning, machine learning, AI, and VR, is bringing innovations in automotive software to enhance features in automobiles along with increased fuel efficiency and reduced carbon emissions. The use of electronic components and automotive software has brought a paradigm shift in the automobile industry in the past 30 years. For instance, in 1977, microprocessors coded with machine language or programming language C were deployed in automobiles for the ignition of the engine for the first time. The code was written in a single line with the software of few KBs. With the subsequent development of technologies and electronic equipment, such as sensors, radars, and ICs, the market has evolved to offer a modernized cockpit with features such as ADAS, ABS, and park assist. It has increased fuel efficiency, reduced carbon emissions, and enhanced the safety of passengers & drivers. The automotive software industry is expected to proliferate during the forecast period due to the introduction of self-driving cars, shared mobility solution, and connected cars concept.
 


What Information does this report contain?

Historical data coverage: 2014 to 2018; Growth Projections: 2019 to 2025.
Expert analysis: industry, governing, innovation and technological trends; factors impacting development; drawbacks, SWOT.
6-7 year performance forecasts: major segments covering applications, top products and geographies.
Competitive landscape reporting: market leaders and important players, competencies and capacities of these companies in terms of production as well as sustainability and prospects.


Premium Report: Details

Pages: 270
Tables: 298
Charts / Figures: 31
Companies covered: 20
Countries covered: 21

Special Requests?

Inquire Before Buying
This site is protected by Trustwave's Trusted Commerce program Authorize.Net Merchant - Click to Verify BBB Rating - Click to Verify

15% Free Customization
Share your Requirements

Customize this Report

Questions? Speak to an Analyst

Full Name *
Email *
Phone (With Country Code)
Message *
Are you human?
4 + 4 =

Your personal details are secure. Privacy Policy

Connect with our sales team

Chat With Us
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies. More info. I Agree