Automotive Software Market worth $40.1 billion in 2027

 

Automotive Software Market worth $40.1 billion in 2027

The automotive software market was valued at USD 21.7 billion in 2022 and is expected to reach USD 40.1 billion by 2027, at a CAGR of 13.1 % during the forecast period 2022-2027. Compliance towards fuel efficiency standards, comfort, and convenience, and need for reducing vehicle downtime will drive the automotive software market. The market is driven by factors such as the rising adoption of ADAS features in automobile, demand for advance application, and the high adoption of connected car services. In addition, increasing adoption of regulation for safety by the governments in various region is driving the market. Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=200707066 Opportinities: Future potential of 5G and AI will create in automotive software market Rapid evolution in design requirements as well as architectures are impacting requirement of software. The user experience of automotive software depends on wireless connectivity. To find the solution, different telecom company companies are focusing on development of 5G to increase the safety as well as efficiency of automotive software. automobiles are becoming network aware, software defined and ultra-connected data transmitting vehicles and this needs high tech connectivity platform. Understanding these implication as well as challenges for the automotive sector can speed up the adoption of connected cars. 5G will be a key enabler for autonomous vehicles as well as automotive software as they will be able to communicate instantaneously. For example, South Korea and EU have signed a deal for working together on 5G development, both invest USD 1.5 billion and USD 782 million, respectively in funding the local 5G projects. In the United Kingdom, USD 78 million of funding has been approved for 5G research facility 5GIC Heavy commercial vehicle segment will be the fastest-growing market in the automotive software market during the forecast period Heavy commercial vehicles are expected to use IoT services in the future. Hence, software-based electronics applications will be largely used. Therefore, it is important that they are also equipped with software solutions like passenger cars. The demand of the future is the ever-expanding range of built-in software functions that allow performing functions with ease. Fleets are high-cost assets, so maximizing their value is crucial for optimal fleet and vehicle management. The software provides operational and financial expertise to help achieve fleet and vehicle management goals. “The Asia Pacific automotive software market is expected to hold the largest share during the forecast period.” Asia pacific automotive software market is driven by increased demand for connected services, particularly in Japan, China, and South Korea. It is the largest market as it has majority of vehicle production. Although automotive software penetration is very low in the region as compared to Europe and North America, the market size is larger due to larger vehicle production. Key automotive manufacturers in this region, along with the software providers and system integrators, are focusing on developing and innovating advanced software solutions to support reliable, safe, and performance-oriented automotive applications. Key Market Players The automotive software market is dominated by a few global players and comprises several regional players. Some of the key players in the automotive software industry are Robert Bosch (Germany), NVIDIA (US), NXP (Netherlands), BlackBerry (Canada), Elektrobit (US), Renesas Electronics (Japan), Airbiquity (US), Wind River Systems (US)and Green Hills Software (US).