The global automotive software market size is projected to grow from USD 16.9 billion in 2020 to USD 37.0 million by 2025, at a CAGR of 16.9%
NEW YORK, June 3, 2020 /PRNewswire/ -- The increasing adoption of ADAS and safety features is driving the growth of the automotive software market.
Read the full report: https://www.reportlinker.com/p05676492/?utm_source=PRN The global automotive software market size is projected to grow from USD 16.9 billion in 2020 to USD 37.0 million by 2025, 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.The increasing concerns regarding the safety of vehicles and passengers on-road have led to the adoption of intelligent transportation systems in the region.In addition, the European countries have a strong network infrastructure capable of providing seamless connectivity to support automotive software.
Hence, Europe presents a major growth opportunity for automotive software services and its applications.
Leading German manufacturers and global players shut down the majority of their production in Europe because of the outbreak of COVID-19.Car sales in Europe were resilient until February, but the outbreak has negatively affected the market.
With the increasing COVID-19 cases and a rising number of quarantine measures, demand is expected to decline further in March & April in all parts of Europe. As the automotive software market is directly linked with the automotive industry, and the decline in automobile sales will have an adverse effect on the automotive software market in 2020.
• By Company Type: OEMs - 21%, Tier 1 – 47%, and Tier 2 - 32%,
• By Designation: CXOs - 39%, Directors - 34%, and Others* - 27%
• By Region: North America - 37%, Europe - 32%, Asia Pacific - 23%, LATAM - 5%, and Rest of the World- 3%
*Others include sales, marketing, and product managers.
The automotive software market comprises major key players such as Robert Bosch (Germany), NXP Semiconductors (Netherland), Renesas Electronics (Japan), BlackBerry Limited (Canada), and NVIDIA (US).
Research Coverage: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 application, software layer, EV application, vehicle type, and region.
The study also includes an in-depth competitive analysis of key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and acquisitions.
Key Benefits of Buying the Report:The report will help leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall automotive software market.This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
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