Automotive Software Market

Automotive Software Market Insights

"The global automotive software market was estimated at USD 22.56 billion in 2022 and is likely to grow at a CAGR of 13.24% during 2023-2028 to reach USD 47.88 billion in 2028."

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Introduction

Automotive software is designed to support and enhance the experience of operating a motor vehicle. New developments and integrations in the automotive technology world are progressively being implemented as the industry realizes the position of data to a vehicle operator.

COVID-19 Impact

The automotive industry was severely hit by the pandemic in the year 2020. The industry experienced a downturn in global demand. This impact was also felt in the automotive software market directly and the market experienced a decline in sales in the year 2020.

Automotive Software Market Dynamics

Automotive Software Market Drivers

The growing demand for automotive software is mainly due to stringent government regulations focusing on the vehicle's safety coupled with the fast adoption of AI and IoT in vehicles to assist better drivers, which is likely to drive the market during the forecast period.

• Rise of Connected Cars – Growing integration of internet-enabled features increases the demand for automotive software solutions.

• Electrification of Vehicles – EVs rely heavily on software for battery, powertrain, and charging management systems.

• Demand for Advanced Driver Assistance Systems (ADAS) – Safety regulations and consumer expectations drive software-enabled ADAS adoption.

• Shift Toward Autonomous Driving – Autonomous technologies need complex software algorithms for real-time decision-making.

• Trend of Over-the-Air (OTA) Updates – Automakers deploying OTA functionalities rely on robust software ecosystems.

Automotive Software Market Opportunities

• EV & Autonomous Vehicle Growth: The rise of electric and autonomous vehicles is driving demand for advanced vehicle control and sensor fusion software.

• Software-Defined Vehicles (SDVs): OEMs are shifting towards SDVs, opening opportunities for over-the-air updates, real-time data management, and feature monetization.

• Cybersecurity Solutions: Increasing connectivity in vehicles creates a growing need for embedded cybersecurity software to protect critical systems.

• Connected Car Ecosystems: Expansion of V2X (vehicle-to-everything) communication drives demand for telematics, infotainment, and fleet management software.

• Aftermarket Software Services: Rising demand for predictive maintenance, diagnostics, and vehicle personalization creates a lucrative aftermarket software segment.

Key Players

Some of the major automotive software manufacturers are:

• Ansys Inc.

• Autodesk, Inc.

• Bosch Software Innovations GmbH

• CDK Global LLC

• Cox Automotive

• Daimler AG

• Dassault Systèmes SE

• DealerTrack Holdings, Inc.

• Delphi Technologies

• Ford Motor Company.

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

Software Insights

"The vehicle management software segment accounted for the largest market share."

Based on the software type, the market is segmented as autonomous driving software, safety & security software, vehicle management software, and infotainment software. The vehicle management software segment held the largest share of the market in 2022 and is expected to remain dominant during the forecast period. This system provides accident tracking, vehicle self-diagnosis, driver fatigue management, and fuel management. All of these systems assist drivers by giving information regarding vehicle maintenance and regular checkups.

Application Insights

"The engine management system segment accounted for the largest market share."

Based on the application type, the market is segmented as engine management system (EMS), anti-lock braking system (ABS), airbag control, car navigation system, infotainment system, and mobility service. The engine management system segment is expected to remain dominant during the forecast period owing to stringent government regulations in relation to fuel emissions. For instance, the Euro 5 and BS IV regulations state the mandatory usage of electronic engine management systems in vehicles, driving the growth of the segment during the forecast period.

Regional Insights

"North America accounted for the largest market share."

In terms of regions, North America is estimated to be the largest market for automotive software during the forecast period, with the USA, Canada, and Mexico being the major countries offering lucrative growth opportunities. The growth of the North American region can be attributed to the extensive growth in the production of passenger vehicles in the region and the presence of a large number of automotive software manufacturers in countries, such as the USA, Canada, and Mexico. Further, the North American automotive software market is mainly driven by favorable government policies. On the other hand, Europe and Asia-Pacific are also expected to offer sizeable growth opportunities over the forecast period.

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Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects automotive software market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.

• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.

• Market trend and forecast analysis.

• Market segment trend and forecast.

• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.

• COVID-19 impact and its recovery curve

• Attractive market segments and associated growth opportunities.

• Emerging trends.

• Strategic growth opportunities for the existing and new players.

• Key success factors.

Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The automotive software market is segmented into the following categories:

By Software Type

• Autonomous Driving Software

• Safety & Security Software

• Vehicle Management Software

• Infotainment Software

By Application Type

• Engine Management System (EMS)

• Anti-Lock Braking System (ABS)

• Airbag Control

• Car Navigation System

• Infotainment System 

• Mobility Service

By Vehicle Type

• Passenger Vehicle

• Commercial Vehicle

By End-Use Type

• Manufacturer Retail Store

• Automotive Dealer

• Automotive Repair Store

• Auto Part Wholesaler & Agent

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)

• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and the Rest of Europe)

• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and the Rest of Asia-Pacific)

• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)

• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.