Global Automotive Software Markets 2023-2028 with Robert Bosch, NXP Semiconductors, NVIDIA, BlackBerry, and Continental Dominating

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Dec 29, 2023, 11:45 ET

DUBLIN, Dec. 29, 2023 /PRNewswire/ -- The "Global Automotive Software Market by ICE Application (ADAS, Autonomous Driving, Infotainment, Body Control & Comfort, Telematics), Software Layer (OS, Middleware, Application), Vehicle Type (PCs, LCVs, HCVs), EV Application and Region - Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.

The global automotive software market is projected to grow from USD 19 billion in 2023 to USD 32.3 billion by 2030, at a CAGR of 7.8%

The study covers the automotive software market across various segments. It aims at estimating the market size and future growth potential of this market across different segments such as ICE application, EV application, software layer, vehicle type, and region. The study also includes an in-depth competitive analysis of key market players, their company profiles, key observations related to product and business offerings, recent developments, and acquisitions.

The demand for automotive software solutions is anticipated to increase owing to the increasing adoption of ADAS features in vehicle across several countries. Also, anticipated rise in number of ECUs/domain controllers in vehicles paired with growing developments in semi-autonomous and autonomous vehicles are expected to bolster the revenue growth of the automotive software market.

The usage of software has increased in various automotive applications such as telematics, infotainment & communications systems, powertrain, body control & comfort, and ADAS & safety. These applications have resulted in increased lines of code over the last decade. For example, the software lines of code have become 15 times longer than in the last decade.

It is estimated to grow further at a high rate due to major developments in the applications of vehicles, especially in the autonomous vehicle space, in terms of over-the-air (OTA) updates, use of hypervisors, ADAS, and V2X, among others. Accordingly, automotive players are focusing on the safety, quality, reliability, and security of vehicle software. This will raise the demand for automotive software for efficient functioning, thereby boosting revenue growth during the forecast period.

The automotive software market comprises major manufacturers such as Robert Bosch GmbH (Germany), NXP Semiconductors (Netherlands), NVIDIA Corporation (US), BlackBerry Limited (Canada), and Continental AG (Germany), etc.

The passenger cars segment is expected to have significant opportunities during the forecast period

The passenger cars segment is expected to dominate the automotive software market during the forecast period as software services have a higher penetration in passenger cars than commercial vehicles.

The major factor accelerating the demand for automotive software in passenger cars in developed countries is a strong demand for advanced applications such as ADAS and connected car services. The rise in demand for advanced applications for the automotive sector led the major players to adopt the strategy.

For example, in February 2022, Harman International (US) acquired Apostera (Germany) to focus on connected technologies for automotive, consumer, and enterprise markets. Apostera's augmented reality (AR) and mixed reality (MR) software solutions will expand HARMAN's automotive product offerings. All these factors are expected to boost the revenue growth for passenger cars segment in the automotive software market.

Battery management systems segment is likely have noticeable grow in the automotive software market during the forecast period

The battery management systems segment, by EV application, is expected to hold a significant market share in the automotive software market during the forecast period. Battery management systems play a critical role in enhancing the battery's performance and useful lifespan.

These systems monitor operational parameters such as the current, voltage, and internal temperature and reduce the stress on the battery by delivering adequate power to the electric vehicle's motor. The increase in sales of BEVs is likely to support the revenue growth of the battery management systems segment in the automotive software market.

For instance, in June 2023, Toyota Motor Corporation (Japan) announced that they will launch next-generation BEVs globally and full lineup to be launched by 2026. Such development of BEVs will increase the demand for battery management systems, and automotive software plays a critical role in it as it enables the system to perform its essential functions such as controlling the charging and discharging of the battery, and optimizing power, among others.

Europe shows noticeable growth potential for automotive software market

Europe is expected to register the noticeable growth in the automotive software market during the forecast period. Europe covers France, Germany, Italy, the UK, Spain, Russia, Turkey, and the Rest of Europe for market analysis. The region is home to the top Tier I suppliers in the automotive sector, such as Continental AG (Germany), Robert Bosch GmbH (Germany), and ZF Friedrichshafen AG (Germany).

The presence of these companies would contribute to the growth of European automotive software during the forecast period. The region is among the largest markets for passenger cars, particularly premium cars (C segment and above). The high volume of premium car sales can be attributed to the high purchasing power of European buyers.

The presence of automotive OEMs such as Volkswagen (Germany), Mercedes-Benz Group AG (Germany), Renault (France), Stellantis NV (Netherlands), and AB Volvo (Sweden) further offers lucrative opportunities for the automotive software market in the region.

Premium Insights

Increase in Demand for Safety and Driving Assistance Features
Asia-Pacific to Dominate Market During Forecast Period
ADAS & Safety Systems Segment to Hold Largest Market Share in 2030
Application Software Segment to Acquire Maximum Market Share in 2030
Autonomous Driving to be Fastest-Growing Segment in EV Software Market During Forecast Period
Passenger Cars to Surpass Other Segments During Forecast Period

Case Studies

Green Hills Software Delivers Safety and Security for Mahindra Racing's All-Electric Formula E Race Car
Green Hills Software's Integrity Multivisor Powers Advancements in Multi-OS Cockpit Platforms for Marelli
Wind River and Airbiquity Collaborate on Vehicle-To-Cloud Ota Solutions for Connected and Autonomous Cars
Green Hills Software and Excelfore Collaborate to Offer Automotive In-Vehicle Networking Products for Advanced Vehicle Gateway Platforms

Market Dynamics

Drivers

Rapid Integration of ADAS Features in Vehicles
Increasing Adoption of Connected Car Services
Advancements in Infotainment Systems
Rising Deployment of Ecus and Domain Controllers in Vehicles
Growing Collaborations Between OEMs and Software Providers

Restraints

Lack of Standard Protocols for Development of Software Platforms
Absence of Connected Infrastructure and Seamless Connectivity
Troubleshooting and Maintenance Constraints for Automotive Software

Opportunities

Untapped Potential of 5G and AI
Advent of Software-Defined Vehicles
Developments in Semi-Autonomous and Autonomous Vehicles
Booming Sales of Premium Passenger Cars
Adoption of Software-Over-The-Air (SOTA) Updates

Challenges

Risk of Cyberattacks
Complexity of Vehicle Architecture
Impact of Market Dynamics

Ecosystem Mapping

Tier I Suppliers
Automotive Software Developers
Automotive OEMs
Automotive Ecu Manufacturers

Technology Analysis

Automotive Software Development
Requirements Analysis
System Design
Component Design
Implementation
Unit Testing
Integration Testing
System Testing
Consolidation of Ecu and Domain-Controller
Over-The-Air Updates
Automotive AI
Cybersecurity for In-Vehicle Software
Need for Software in Autonomous Driving
Application Program Interface
Open-Source Software (OSS)

Automotive Software Consortiums

Autosar
Basic Software (BSW)
Autosar Runtime Environment (RTE)
Application Layer
Patent Analysis
Introduction
Legal Status of Patents, 2012-2022
Top Patent Applicants, 2012-2022

Company Profiles

Key Players

Robert Bosch GmbH
NXP Semiconductors
NVIDIA Corporation
Blackberry Limited
Continental AG
Alphabet Inc.
Automotive Grade Linux
Green Hills Software
Aptiv
Mobileye

Other Players

Airbiquity Inc.
KPIT
TomTom International Bv
Sigma Software
Siemens
ZF Friedrichshafen AG
DCX Technology
Red Hat, Inc.
Montavista Software, LLC
AImotive

For more information about this report visit https://www.researchandmarkets.com/r/fiaxib

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