$30+ Billion Worldwide Automotive Software Industry to 2025 - Featuring Blackberry, Nvidia & Microsoft Among Others
DUBLIN, June 3, 2020 /PRNewswire/ -- The "Automotive Software Market by Application (ADAS & Safety, Connected Services, Autonomous Driving, HMI, V2X, Infotainment), Software Layer (OS, Middleware, Application), EV Application (Charging, Battery, V2G), Vehicle and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The automotive software market is projected to reach USD 37.0 billion by 2025 from USD 16.9 billion in 2020, at a CAGR of 16.9%.
Adoption of ADAS features in vehicles is one of the primary reasons for the growth of the automotive software market as these features ensure improved levels of safety, comfort, and luxury. Governments in various developed and developing countries are focusing on mandating various ADAS and safety features. For instance, both the US and EU are mandating that all vehicles be equipped with autonomous emergency braking systems and forward-collision warning by 2020.
The primary purpose of the software is to communicate autonomously with other devices. Thus, to establish communication between the driver and the vehicle, the demand for software is estimated to grow at a prominent pace.
The automotive industry is witnessing a rapid evolution of safety features. The growth rate of safety features is expected to increase exponentially in the coming years. The main objective behind the implementation of these features in vehicles is to provide a safer, efficient, and convenient driving experience. This will drive the demand for ADAS in the market, which, in turn, would drive the demand for automotive software.
Demand for connected services is likely to drive the growth of the automotive software market during the forecast period.
An increasing number of connected cars has opened new revenue-generating opportunities for the stakeholders in the connected car ecosystem. A lot of non-automotive players have entered the race of connected cars to leverage the possibility of earning revenues. Today's vehicles are no more a hardware-based moving machine. Today, they comprise almost 40% of electronic content, which is expected to become more than 60% in the next few decades. Most of the electronic content will be dominated by domain-controllers, consolidated ECUs, HMI, and AI for advanced vehicle applications like ADAS, telematics, engine management systems, etc. These applications need to be programmed with a vast number of lines of codes for proper functioning.
As vehicles get technically advanced day by day, the complexity of these applications is increasing. As a result, systems need to be programmed with more number of codes, which, in turn, is increasing the need for embedded software. Thus, the increasing penetration of connected services is driving the market for automotive software.
Europe is estimated to play a major role in the automotive software market during the forecast period.
Europe is estimated to be the second-largest market in the automotive software market. Europe is home to many major automobile companies. The automotive industry is one of the key contributors to the economy of Europe. To strengthen the competitiveness of the EU automotive industry and preserve its global technological leadership, the European Commission supports global technological harmonization and provides funding for R&D. To meet the stringent vehicle safety norms, there is a drift from the conventional systems to advanced connected systems in vehicles. This drift is expected to positively impact the demand for vehicles with automotive software in the future.
The market growth in the region can also be attributed to mandatory 15 new safety features in cars, vans, trucks, and buses by 2022; to protect passengers, pedestrians, and cyclists. These advanced technologies help in improving safety and minimize risks of collisions and hazardous situations. The implementation of more safety features in vehicles will increase the number of ECUs, which in turn will drive the software market in the region.
Key Topics Covered:
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights
4.1 Automotive Software Market to Grow At A Significant Rate During the Forecast Period (2020-2025)
4.2 Asia Pacific is Estimated to Lead the Global Automotive Software Market in 2020
4.3 Automotive Software Market, by Application
4.4 Automotive Software Market, by Software Layer
4.5 Automotive Software Market, by EV Application
4.6 Automotive Software Market, by Vehicle Type
5 Market Overview
5.1 Introduction
5.2 Operational Data
5.3 Market Dynamics
5.3.1 Drivers
5.3.1.1 Adoption of Adas Features in Vehicles
5.3.1.2 Increasing Adoption of Connected Car Services
5.3.1.3 Intervention of Innovative Technologies for Advanced Ui
5.3.2 Restraints
5.3.2.1 Lack of Standard Protocols to Develop Software Platforms
5.3.2.2 Lack of Connected Infrastructure
5.3.2.3 Troubleshooting and Maintenance of Automotive Software
5.3.3 Opportunities
5.3.3.1 Future Potential of 5G and Ai
5.3.3.2 Growing Developments in Semi-Autonomous and Autonomous Vehicles
5.3.3.3 Data Monetization in Extended Automotive Ecosystem
5.3.3.4 Sota Updates to Reduce Vehicle Recalls
5.3.4 Challenges
5.3.4.1 Risk of Cybersecurity
5.4 Opportunities for Automotive Software Manufacturers
5.5 Automotive Software Market, Scenarios (2018-2025)
5.5.1 Most Likely Scenario
5.5.2 Optimistic Scenario
5.5.3 Pessimistic Scenario
5.6 Covid-19 Impact on Automotive Software Market (2018-2025)
5.7 Ecosystem Analysis
5.8 Case Study Analysis
5.8.1 Green Hills Software's Safe and Secure Integrity Multivisor Powers the Latest Advancements in Multi-OS Automotive Cockpit Platforms for Marelli
5.8.2 Green Hills Software Delivers Safety and Security for Mahindra Racing's All-Electric Formula E Race Car
5.8.3 Wind River and Airbiquity Team on Vehicle-to-Cloud Ota Solutions for Connected and Autonomous Cars
6 Industry Trends
6.1 Technology Overview
6.1.1 Introduction
6.1.2 Automotive Software Development
6.1.2.1 Requirements Analysis
6.1.2.2 System Design
6.1.2.3 Component Design
6.1.2.4 Implementation
6.1.2.5 Unit Testing
6.1.2.6 Integration Testing
6.1.2.7 System Testing
6.2 Automotive Software Consortiums
6.2.1 Autosar
6.2.1.1 Basic Software (Bsw)
6.2.1.2 Autosar Runtime Environment (Rte)
6.2.1.3 Application Layer
6.2.2 Genivi Alliance
6.2.2.1 Major Benefits of Genivi Compliance Program
6.2.2.2 Genivi Compliant Software Platforms
6.2.3 International Standards for Automotive Software Quality
6.2.3.1 Systems and Software Engineering: ISO/IEC 12207
6.2.3.2 Automotive Spice: ISO/IEC 15504 and ISO/IEC 33001
6.2.3.3 Software Engineering-Product Quality: Iso/IEC 9126 and ISO/IEC 25010:2011
6.2.3.4 Functional Safety Road Vehicles: ISO 26262 and IEC 61508
6.3 Automotive Software: Trends
6.3.1 Consolidation of Ecu and Domain-Controller Functionality
6.3.2 Over-the-Air (Ota) Updates
6.3.3 AI in Automotive
6.3.4 Cybersecurity for in-Vehicle Software
6.3.5 Need for Software in Autonomous Driving
6.3.6 Changing Automotive Industry with Application Program Interface (API)
6.3.7 Use of Open Source Software (OSS) in Automotive
6.4 Regulatory Overview
6.5 Porter's Five Forces
6.5.1 Rivalry Among Existing Competitors: High
6.5.2 Threat of New Entrants: High
6.5.3 Threat of Substitutes: Low
6.5.4 Bargaining Power of Suppliers: Medium
6.5.5 Bargaining Power of Buyers: High
7 Covid-19 Impact
7.1 OEM Announcements Amid Covid-19
7.2 Tier I Manufacturers Announcements Amid Covid-19
7.3 Impact on Global Automotive Industry
7.4 Impact on Global Automotive Software Market
8 Automotive Software Market, by Autonomous Car
8.1 Introduction
8.2 Trajectory of Autonomous Software
8.3 AI and Cloud Computing Paving the Way for Advanced Software
9 Automotive Software Market, by Application
9.1 Introduction
9.2 Operational Data
9.3 Research Methodology
9.4 Assumptions
9.5 Key Primary Insights: by Application
9.6 Adas & Safety Systems
9.7 Body Control & Comfort System
9.8 Engine Management & Powertrain
9.9 Infotainment System
9.1 Communication Systems
9.11 Vehicle Management & Telematics
9.12 Connected Services
9.13 Autonomous Driving
9.14 HMI Application
9.15 Biometrics System
9.16 V2X System
9.17 Remote Monitoring
9.18 Market Leaders
10 Automotive Software Market, by Software Layer
10.1 Introduction
10.2 Research Methodology
10.3 Assumptions
10.4 Key Primary Insights: by Software Layer
10.5 Operating System
10.5.1 Demand for Comparatively Faster and Reliable OS is Driving the Market
10.6 Middleware
10.6.1 Need for More Flexible and Adaptive Layer is Driving Demand
10.7 Application Software
10.7.1 Growing Demand for High-End Applications will Drive the Market
10.8 Market Leaders
11 Automotive Software Market, by Vehicle Type
11.1 Introduction
11.2 Operational Data
11.3 Research Methodology
11.4 Assumptions
11.5 Key Primary Insights: by Vehicle Type
11.6 Passenger Car
11.7 Light Commercial Vehicle
11.8 Heavy Commercial Vehicle
11.9 Market Leaders
12 Automotive Software Market, by EV Application
12.1 Introduction
12.2 Operational Data
12.3 Research Methodology
12.4 Assumptions
12.5 Key Primary Insights: by EV Application
12.6 Charging Management
12.7 Battery Management
12.8 V2G
13 Automotive Software Market, by Region
13.1 Introduction
13.2 Assumptions
13.3 Key Primary Insights: by Region
13.4 Asia Pacific
13.5 Europe
13.6 North America
13.7 Latin America
13.8 Rest of the World
14 Recommendations
14.1 Asia Pacific will Hold Major Market for Automotive Software
14.2 Adas & Safety System Can be A Key Focus for Software Providers
14.3 Connected Services will Create Revenue Opportunity for Automotive Software Providers
14.4 Conclusion
15 Competitive Landscape
15.1 Market Evaluation Framework
15.2 Overview
15.3 Market Ranking Analysis
15.4 Market Evaluation Framework Revenue Analysis of Top 5 Player
15.5 Competitive Leadership Mapping
15.5.1 Star
15.5.2 Emerging Leaders
15.5.3 Pervasive
15.5.4 Emerging Companies
15.6 Strength of Product Portfolio
15.7 Business Strategy Excellence
15.8 Winners Vs. Tail-Enders
15.9 Competitive Scenario
15.9.1 New Product Developments
15.9.2 Expansions
15.9.3 Collaborations
15.9.4 Mergers/Acquisitions
16 Company Profiles
16.1 Key Players
16.1.1 Robert Bosch Gmbh
16.1.2 NXP Semiconductor
16.1.3 Renesas Electronics
16.1.4 Blackberry
16.1.5 Nvidia
16.1.6 Microsoft Corporation
16.1.7 Airbiquity
16.1.8 Elektrobit
16.1.9 Green Hills Software
16.1.10 Wind River System
16.1.11 Intel Corporation
16.2 Other Key Players
16.2.1 Asia Pacific
16.2.1.1 Panasonic
16.2.1.2 KPIT Technologies
16.2.2 North America
16.2.2.1 Google
16.2.2.2 Apple
16.2.2.3 Autonet Mobile
16.2.2.4 Siemens Industry Software Inc.
16.2.3 Europe
16.2.3.1 Vector Informatik
16.2.3.2 Rightware
16.2.3.3 Sigma Software Group
16.2.3.4 Luxoft
16.2.3.5 AImotive
16.2.3.6 Aptiv Plc
16.2.4 RoW
16.2.4.1 Saferide Technologies Ltd
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