Automotive Software Market To Generate Revenue Worth $78,894.2 Million by 2030

The rising demand for connected cars, advent of advanced user interface technologies, and increasing research and development (R&D) for autonomous driving (AD) are the key factors propelling the growth of the industry. Due to these factors, the global automotive software market is projected to generate $78,894.2 million revenue by 2030, advancing at a CAGR of 12.4% during the forecast period (2020–2030).

The ongoing coronavirus disease (COVID-19) pandemic across the world is expected to have a tremendous adverse impact on different industries, including the automotive sector. All the COVID-19-affected countries around the world took the measure to lock down their operation around March 2020, in order to curb the transmission of the infection. From the shutting down of manufacturing facilities, due to labor shortages, to the disruption in the supply chain, the global automotive sector has been one of the worst hit during the pandemic. For most automotive markets, declines in the 20–30% range are expected for 2020. The shutdown of the automotive industry is therefore negatively impacting the growth of the automotive software market.

ADAS and AD Category To Grow at Highest Rate during Forecast Period

The automotive software market has been categorized, on the basis of software, into advanced driver-assistance systems (ADAS) and AD; infotainment, connectivity, security, and connected services; powertrain and chassis; body and energy; and operating system (OS) and middleware. Among these, the ADAS and AD category is projected to witness the fastest growth during the forecast period, owing to the rising awareness about road and traffic safety, at both the individual and government levels. Technologies such as lane assist and automatic braking substantially improve the driving experience and help in preventing the violation of traffic rules, which, in turn, helps in causing a decline in road accidents.

The automotive software market has been bifurcated into passenger car and commercial vehicle, based on vehicle type. Between the two, the commercial vehicle bifurcation is projected to attain faster growth during the forecast period. The rising demand for telematics solutions for commercial vehicles, coupled with the improving infotainment features, will drive the adoption of software in these vehicles in the coming years.

Geographically, Asia-Pacific (APAC) is projected to hold the largest share in the automotive software market in 2030. Electric and autonomous vehicles largely depend on software, and the rising deployment of electric vehicles, coupled with the growing R&D for autonomous vehicles in the region, is benefitting the automotive software industry in APAC. The region holds the largest share in the electric vehicle market, with the major country being China. In 2019, 1.1 million plug-in electric cars were sold in the country, with the top three vehicle manufacturers being BYD Co. Ltd., BAIC Group, and SAIC Motor Corp. Ltd.

Partnership Is Strongest Strategic Measure Taken by Players in Market

Players in the automotive software market are building partnerships with each other to enhance their market presence. For instance, in November 2019, Blackberry Ltd. signed an agreement with Arrival Ltd. to use Blackberry Ltd.’s QNX technology in Arrival Ltd.’s autonomous-ready commercial vehicles. Under this agreement, Blackberry Ltd. is licensing its QNX technology, including its QNX SDP 7.0 real-time operating system, to serve as a secure and safe foundation for the ADAS features within Arrival Ltd.’s autonomous commercial vehicle platform.

Similarly, in August 2019, Elektrobit Automotive GmbH and Baidu Inc. signed a strategic partnership, in which Elektrobit Automotive GmbH agreed to offer automotive infrastructure software for Baidu Inc.’s advanced in-vehicle computing platform for autonomous driving, Apollo Computing Unit (ACU). The ACU, one of the most significant products of Baidu Inc., is being developed with 156 industry partners, including several Chinese vehicle manufacturers. Furthermore, Elektrobit Automotive GmbH is offering its EB tresos automotive basic software products for the Baidu ACU-Advanced Automated Valet Parking project.

Browse report overview with detailed TOC on "Automotive Software Market Research Report: By Software (ADAS and Autonomous Driving , Infotainment, Connectivity, Security, and Connected Services, Powertrain and Chassis, Body and Energy, Operating System and Middleware), Function (Development, Validation and Verification, Integration), Vehicle Type (Passenger Car, Commercial Vehicle) - Global Industry Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/automotive-software-market

Some of the major players operating in the global automotive software market are Airbiquity Inc., Robert Bosch GmbH, NXP Semiconductors N.V., Renesas Electronics Corp., BlackBerry Ltd., Microsoft Corp., NVIDIA Corp., Continental AG, Green Hills Software LLC, Alphabet Inc., CloudMade, Intellias Ltd., Connexion Telematics Ltd., GlobalLogic Inc., Harman International Industries Inc., KaaIoT Technologies LLC, Ignite Ltd., NORDSYS GmbH, SAP SE, Elektrobit Automotive GmbH, Wind River Systems Inc., Vector Informatik, Apple Inc., Rightware Oy, Sigma Software Group, Luxoft Holding Inc., Autonet Mobile Inc., AImotive Ltd., KPIT Technologies Ltd., and Saferide Technologies Ltd.