Global Automotive Software Market Report 2022: AI and 5G Developments Show Huge Potential in the Sector

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Jul 25, 2022, 09:15 ET

DUBLIN, July 25, 2022 /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 2027' report has been added to ResearchAndMarkets.com's offering.

The global automotive software market size is projected to grow from USD 21.7 billion in 2022 to USD 40.1 billion by 2027, at a CAGR of 13.1%. ADAS & safety systems segment has the largest market share among all the applications in the automotive software market.

Government mandates and increasing awareness about vehicle safety are expected to fuel the growth of ADAS & safety systems across the globe. Implementation of regulations regarding the safety of vehicles, such as UN Regulation on Advanced Emergency Braking Systems (AEBS) for cars, to significantly improve road safety.

Intervention of innovative technologies for advanced UI is likely to drive the growth of the automotive software market during the forecast period
Earlier, the focus of the industry was on optimizing the internal functioning of vehicles, but now the trend is shifting toward better and enhanced connectivity solutions. Automotive software allows for optimizing vehicle performance along with better connectivity solutions. This increasing demand for high-end connectivity is driving the intervention of agile and innovative technologies for software.

The automotive industry is experiencing a change in the automobile buying and ownership behavior of consumers. These consumers are getting highly involved in digital solutions through smartphones, which are further changing lifestyles and increasing the comfort and convenience of vehicles. Hence, various software is required to achieve a high level of UI with machines. Technologies such as HMI and GRS are boosting the market for automotive software.

India is estimated to be fastest-growing automotive software market in Asia Pacific during the forecast period
The automotive software market in India is in a growing stage. Integrated connectivity is expected to be the major driver for the automotive software market in India. The launch of 4G connectivity and over 100 smart cities initiative that includes smart transportation are the major factors supporting the automotive software market growth in the country.

Various technologies such as telematics systems, connected services, infotainment systems, and communication systems are becoming an integral part of high-end automobiles. Additionally, with improved infrastructure and connectivity solutions, India is providing platforms for vehicle interaction, thereby supporting the sharing of useful information such as fuel economy, roadblocks, shortest routes, traffic congestion, and driving habits.

Growing disposable will allow Indian customers to spend more on luxury and comfort. Software for engine and powertrain management covers the second-largest share in the Indian market. The need for high-tech powertrains has greatly increased to meet the stringent emission norms.

The growing trend of downsizing engines and the rising demand for automated transmission are some of the key factors driving the demand for powertrain systems.

Market Dynamics
Drivers

Adoption of ADAS Features in Vehicles
Increasing Adoption of Connected Car Services
Intervention of Innovative Technologies for Advanced UI

Restraints

Lack of Standard Protocols to Develop Software Platforms
Lack of Connected Infrastructure
Troubleshooting and Maintenance of Automotive Software

Opportunities

Future Potential of 5G and AI
Growing Developments in Semi-Autonomous and Autonomous Vehicles
Data Monetization in Extended Automotive Ecosystem
SOTA Updates to Reduce Vehicle Recalls

Challenges

Risk of Cybersecurity

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights

5 Market Overview

6 Industry Trends

7 COVID-19 Impact

8 Automotive Software Market, by Autonomous Car

9 Automotive Software Market, by Application

10 Automotive Software Market, by Software Layer

11 Automotive Software Market, by Vehicle Type

12 Automotive Software Market, by Ev Application

13 Automotive Software Market, by Region

14 Analyst's Recommendations

15 Competitive Landscape

16 Company Profiles

17 Appendix

Companies Mentioned