Automotive Software Market by Application (Infotainment, Powertrain, ADAS & Safety), Vehicle Type (Passenger Vehicle, Commercial Vehicle), EV Type (BEV, HEV, PHEV), and Region (Asia Pacific, Europe, North America, and RoW) - Global Forecast to 2025
[159 Pages Report] The automotive software market is estimated to be USD 18.7 billion in 2018 and is projected to reach USD 60.0 billion by 2025, at a CAGR of 18.12% during the forecast period. Increasing focus on R&D activities for connected and autonomous vehicles and increasing use of electronic content are projected to drive the automotive software market.
Communication systems segment to grow at the highest rate during the forecast period.
The communication systems segment of the automotive software market is projected to grow at the highest CAGR during the forecast period. Vehicle electronics functions are increasing day by day. For better operations, they are communicated with high-performance protocols such as LIN, CAN, FlexRay, MOST, and Ethernet. Increasing number of ECUs and electronically operated systems are likely to drive the market for communication systems.
The passenger vehicle segment is expected to be the largest contributor in the automotive software market, by vehicle type, during the forecast period.
Automotive software finds plenty of applications in in-vehicle electronics system. Passenger vehicles contain more amount of electronic systems as compared to other vehicles. Passenger vehicles are equipped with various types of ECUs for the in-vehicle systems such as powertrain, safety, power steering, and start-stop system. The more the number of ECUs, the more amount of programming need for performing operation properly. Hence, the increasing number of passenger vehicle production and the use of complex electronic content will be driving the automotive software market for passenger vehicles.
Asia Pacific is expected to account for the largest market size during the forecast period.
Asia Pacific is expected to be the largest region in the automotive software market during the forecast period. Asia Pacific comprises emerging economies such as China and India, along with developed nations, such as Japan, and is the largest market for automobiles. In recent years, the region has emerged as a hub for automobile production. Infrastructural developments and industrialization in the emerging economies have opened new avenues, creating several opportunities for the automotive OEMs. To gain a competitive advantage in the market, OEMs are offering advanced applications such as HMI, keyless entry, and auto-park assist, which create the demand for advanced software to be used in new automotive systems. This, in turn, is expected to drive the growth of the automotive software market in the region. Moreover, the different governments in the region are set to introduce stringent environmental regulations on OEMs by 2020 compelling manufacturers to change designs according to the new standards. All these factors are expected to fuel the growth of the automotive software market in Asia Pacific.
Key Market Players
The key players in the automotive software market are NXP (Netherlands), BlackBerry (Canada), Renesas (Japan), Elektrobit (Germany), NVIDIA (US), Microsoft (US), Airbiquity (US), Green Hills Software (US), and Wind River (US). NXP is expected to be a dominant player in the automotive software market. NXP adopted the strategies of new product development, partnership, and merger & acquisition to retain its leading position in the automotive software market. NXP, BlackBerry, and Elektrobit are also anticipated to be the dominant players in the automotive software market. New product developments, expansions, collaborations, and supply contracts are the key strategies adopted by these players to gain traction in the automotive software market.
Recent Developments
- In June 2018, BlackBerry QNX announced 3 new safety-certified automotive software products that alleviate the challenges of building sophisticated automotive systems to be compliant with ISO 26262, the automotive industry’s functional safety standard. BlackBerry’s QNX Hypervisor for Safety, QNX Platform for ADAS 2.0, and QNX OS for Safety 2.0 provide the software foundation upon which secure and safety-certified systems can be built, enabling automakers to accelerate development timelines and reduce cost in moving projects from research to production and on to roads.
- In January 2017, BlackBerry QNX launched its most advanced and secure embedded software platform for autonomous drive and connected cars. QNX SDP 7.0 provided high performance and enhanced kernel-level security through an array of features, including microkernel architecture, file encryption, adaptive time partitioning, a high availability framework, anomaly detection, and multi-level policy-based access control.
- In June 2017, NXP expanded its software solutions for MPC56 and MPC57 MCUs based on power architecture technology. With the software solutions for NXP’s MPC56xx and MPC57xx families of microcontrollers, customers may significantly reduce cost, development effort, and time in a broad range of automotive applications such as gateway, functional safety, advanced motor control, engine control, radar, braking, steering, and suspension.
Key Questions addressed by the report
- How will disruptive areas like the autonomy of level 4 & level 5, connected car, and mobility-as-a-service be using automotive software?
- How will automotive software development quality standards affect the development of automotive software?
- Software-defined cars offer the opportunity to traditional Tier II electronics suppliers to engage with OEMs as Tier I suppliers by leveraging software development for their electronics. Which are the priority applications within a car?
- OEMs expect ~$100-120 cost benefit per car from their suppliers through E/E architecture consolidation. Which Tier I suppliers are closest to fulfilling this demand? What are they doing right?
- Can open-source software (OSS) satisfy critical functionalities required in the future modern vehicles?
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
Table of Contents
1 Introduction (Page No. - 16)
1.1 Objectives of The Study
1.2 Product and Market Definition
1.3 Market Scope
1.3.1 Years Considered for The Study
1.4 Currency Exchange Rates
1.5 Package Size
1.6 Limitations
1.7 Stakeholders
2 Research Methodology (Page No. - 19)
2.1 Research Data
2.2 Secondary Data
2.2.1 Key Secondary Sources
2.2.2 Key Data From Secondary Sources
2.3 Primary Data
2.3.1 Sampling Techniques & Data Collection Methods
2.3.2 Primary Participants
2.4 Market Size Estimation
2.4.1 Bottom-Up Approach
2.4.2 Market Breakdown and Data Triangulation
2.4.3 Assumptions
2.4.4 Limitations
3 Executive Summary (Page No. - 26)
4 Premium Insights (Page No. - 30)
4.1 Automotive Software Market, 2018 vs. 2025 (USD Billion)
4.2 Automotive Software Market, By Region
4.3 Automotive Software Market, By Country
4.4 Automotive Software Market, By Application
4.5 Automotive Software Market, By Vehicle Type
4.6 Automotive Software Market, By Electric Vehicle
5 Industry Trends (Page No. - 34)
5.1 Technology Overview
5.1.1 Introduction
5.1.2 Automotive Software Development
5.1.2.1 Requirements Analysis
5.1.2.2 System Design
5.1.2.3 Component Design
5.1.2.4 Implementation
5.1.2.5 Unit Testing
5.1.2.6 Integration Testing
5.1.2.7 System Testing
5.2 Automotive Software Consortiums
5.2.1 Autosar
5.2.1.1 Basic Software (BSW)
5.2.1.2 Autosar Runtime Environment (RTE)
5.2.1.3 Application Layer
5.2.2 Genivi Alliance
5.2.2.1 Major Benefits of Genivi Compliance Program
5.2.2.2 Genivi Compliant Software Platforms
5.2.3 International Standards for Automotive Software Quality
5.2.3.1 Systems and Software Engineering: ISO/IEC 12207
5.2.3.2 Automotive Spice: ISO/IEC 15504 and ISO/IEC 33001
5.2.3.3 Software Engineering-Product Quality: ISO/IEC 9126 and ISO/IEC 25010:2011
5.2.3.4 Functional Safety Road Vehicles: ISO 26262 and IEC 61508
5.3 Automotive Software: Trends
5.3.1 Consolidation of ECU and Domain-Controller Functionality
5.3.2 Over-The-Air (OTA) Updates
5.3.3 Artificial Intelligence (AI) in Automotive
5.3.4 Cybersecurity for In-Vehicle Software
5.3.5 Need for Software in Autonomous Driving
5.3.6 Changing Automotive Industry With Application Program Interface (API)
5.3.7 Use of Open Source Software (OSS) in Automotive
5.4 Regulatory Overview
5.5 Porter’s Five Forces
5.5.1 Rivalry Among Existing Competitors: High
5.5.2 Threat of New Entrants: High
5.5.3 Threat of Substitutes: Low
5.5.4 Bargaining Power of Suppliers: Medium
5.5.5 Bargaining Power of Buyers: High
6 Market Overview (Page No. - 50)
6.1 Introduction
6.2 Market Dynamics
6.2.1 Drivers
6.2.1.1 Increasing Number of Connected Cars
6.2.1.2 Intervention of Innovative Technologies for Advanced User Interface
6.2.1.3 Increase in Electronic Applications in Vehicles
6.2.1.4 Rising Demand for Electric Vehicles
6.2.2 Restraints
6.2.2.1 Lack of Standard Protocols to Develop Software Platforms
6.2.2.2 Troubleshooting and Maintenance of Automotive Software
6.2.3 Opportunities
6.2.3.1 Software is The Ultimate Key for Semi-Autonomous and Autonomous Cars
6.2.3.2 Data Monetization in Extended Automotive Ecosystem
6.2.3.3 Over-The-Air (OTA) Software Updates to Reduce Vehicle Recalls
6.2.4 Challenges
6.2.4.1 Consolidation of ECUs
6.2.4.2 Cybersecurity Threats Due to Increasing Software Platforms in Vehicles
7 Automotive Software Market, By Application (Page No. - 60)
7.1 Introduction
7.2 ADAS & Safety Systems
7.2.1 Software Market is Expected to Witness an Expansion Along With The Growth of ADAS & Safety Systems
7.3 Body Control & Comfort Systems
7.3.1 Increasing Awareness About High Level of Comfort is Expected to Drive The Body Control & Comfort Systems Market
7.4 Powertrain Systems
7.4.1 Increasing Electronic Control of Vehicle Powertrain is Driving The Automotive Software Market
7.5 Infotainment Systems
7.5.1 Increasing Use of Infotainment Systems in Vehicles is Expected to Drive Automotive Software Market
7.6 Communication Systems
7.6.1 Increasing Electronic Architecture and In-Vehicle Communication Systems are Expected to Drive The Market for Automotive Software
7.7 Telematics Systems
7.7.1 Increasing Awareness of Road Safety, Driving Behavior, and Usage-Based Insurance (UBI) are Expected to Drive The Market for Telematics Systems
8 Automotive Software Market, By Vehicle Type (Page No. - 67)
8.1 Introduction
8.2 Passenger Vehicles
8.2.1 A Segment: Passenger Vehicles
8.2.1.1 Asia Pacific to Dominate The A Segment Passenger Vehicles Market
8.2.2 B Segment: Passenger Vehicles
8.2.2.1 Europe to Dominate The B Segment Passenger Vehicles Market
8.2.3 C Segment: Passenger Vehicles
8.2.3.1 Asia Pacific to Dominate The C Segment Passenger Vehicles Market
8.2.4 D Segment: Passenger Vehicles
8.2.4.1 The Market for D Segment Passenger Vehicles Segment is Driven By Large Sales of D Segment in The Asia Pacific Region
8.2.5 E Segment: Passenger Vehicles
8.2.5.1 Use of Modern Technologies in The European E Segment Passenger Vehicles is Expected to Drive The Automotive Software Market
8.2.6 F Segment: Passenger Vehicles
8.2.6.1 Improving Purchasing Power of People is Expected to Drive The F Segment Passenger Vehicles Market
8.3 Commercial Vehicles
8.3.1 Light Commercial Vehicles
8.3.1.1 Increasing Sales of Light Commercial Vehicles in North America are Expected to Drive The Automotive Software Market
8.3.2 Heavy Commercial Vehicles
8.3.2.1 Improved Powertrain, Communication, and Safety System to Drive The Heavy Commercial Vehicles Market
9 Automotive Software Market, By Electric Vehicle (Page No. - 76)
9.1 Introduction
9.2 Battery Electric Vehicle (BEV)
9.2.1 Adoption of Strict Emissions Norms By The Governments of Various Countries is Expected to Drive The Battery Electric Vehicle (BEV) Market
9.3 Hybrid Electric Vehicle (HEV)
9.3.1 Increasing Electronic Content for The Operations of Hybrid Powertrain is Expected to Drive Automotive Software Market
9.4 Plug-In Hybrid Electric Vehicle (PHEV)
9.4.1 Increasing Sales of PHEVs are Expected to Have A Significant Impact on The Automotive Software Market
10 Automotive Software Market, By Region (Page No. - 82)
10.1 Introduction
10.2 Asia Pacific
10.2.1 China
10.2.1.1 Rise in Vehicle Production to Drive The Chinese Market for Automotive Software
10.2.2 India
10.2.2.1 Increasing Vehicle Sales to Drive The Indian Market for Automotive Software
10.2.3 Japan
10.2.3.1 Significant Technology Adoption for Vehicle to Drive The Japanese Market for Automotive Software
10.2.4 South Korea
10.2.4.1 Development in The Field of Autonomous Vehicle to Drive The South Korean Automotive Software Market
10.2.5 Thailand
10.2.5.1 Largest Automotive Production Capacity Among The South-East Asian Countries
10.2.6 Rest of Asia Pacific
10.2.6.1 Increasing Sales of Premium Vehicle to Drive The Rest of Asia Pacific Market for Automotive Software
10.3 Europe
10.3.1 Germany
10.3.1.1 Rising Adoption of Modern Technologies Inside The Vehicle to Drive The Market for Automotive Software in Germany
10.3.2 France
10.3.2.1 Rising Safety Concerns Among Vehicle Occupants to Drive The Market for Automotive Software in France
10.3.3 UK
10.3.3.1 Heavy Investments By Oems are Expected to Drive The Automotive Software Market in The UK
10.3.4 Spain
10.3.4.1 Increasing Production of D, E, and F Passenger Vehicle to Drive The Spanish Market for Automotive Software
10.3.5 Russia
10.3.5.1 Continuous Rise in Vehicle Sales to Drive The Market for Automotive Software in Russia
10.3.6 Turkey
10.3.6.1 Increasing Automotive Investment in Recent Years to Drive The Turkish Market for Automotive Software
10.3.7 Rest of Europe
10.3.7.1 Continuous Growth of Automotive Industry in Eastern Europe to Drive The Market for Automotive Software in Rest of Europe
10.4 North America
10.4.1 Canada
10.4.1.1 Increasing Use of Light Commercial Vehicles Equipped With Modern Electronic Architecture to Drive The Canadian Market for Automotive
10.4.2 Mexico
10.4.2.1 Growth of Us-Mexico Trade to Drive The Mexican Market for Automotive Software
10.4.3 US
10.4.3.1 Development in The Field of Connected Car and Autonomous Vehicle Infrastructure to Drive The Us Automotive Software Market
10.5 Rest of The World (RoW)
10.5.1 Brazil
10.5.1.1 Increasing Demand for Light Vehicle to Drive The Brazilian Automotive Software Market
10.5.2 Iran
10.5.2.1 Increasing Sales of Luxury Vehicle to Drive The Iran Automotive Software Market
10.5.3 Others
10.5.3.1 Adoption of Modern Safety, Comfort, and Communication Technology Inside The Vehicle to Drive The Market for Automotive Software in 99
11 Competitive Landscape (Page No. - 100)
11.1 Overview
11.2 Market Ranking Analysis
11.3 Competitive Situations & Trends
11.3.1 New Product Developments
11.3.2 Expansions
11.3.3 Partnerships/Supply Contracts/Collaborations/
12 Company Profiles (Page No. - 107)
(Overview, Products Offered, Recent Developments & SWOT Analysis)*
12.1 NXP
12.2 Robert Bosch
12.3 Renesas Electronics
12.4 Blackberry
12.5 NVIDIA
12.6 Microsoft Corporation
12.7 Airbiquity
12.8 Elektrobit
12.9 Green Hills Software
12.10 Wind River System
12.11 Google
12.12 Vector Informatik
12.13 Apple
12.14 Rightware
12.15 Sigma Software Group
12.16 Luxoft
12.17 Autonet Mobile
12.18 Aimotive
12.19 Kpit Technologies
12.20 Saferide Technologies Ltd
*Details on Overview, Products Offered, Recent Developments & SWOT Analysis View Might Not Be Captured in Case of Unlisted Companies.
13 Appendix (Page No. - 142)
13.1 Insights From Industry Experts
13.2 Discussion Guide
13.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
13.4 Available Customizations
13.4.1 Additional Company Profiles
13.4.1.1 Business Overview
13.4.1.2 SWOT Analysis
13.4.1.3 Recent Developments
13.4.1.4 MnM View
13.4.1.5 Who–Supplies–Whom Data
13.4.2 Detailed Analysis of Automotive Cybersecurity Software
13.4.3 Detailed Analysis of Automotive Operating System
13.5 Related Reports
13.6 Author Details
List of Tables (54 Tables)
Table 1 Currency Exchange Rates (Wrt USD)
Table 2 Major Software Recalls: 2014–2017
Table 3 Benefits of Autosar for Consortiums
Table 4 Genivi Compliant Products
Table 5 Automotive Software Standards
Table 6 Automotive Software Market, By Application, 2016–2025 (USD Million)
Table 7 Adas & Safety Systems: Market, By Region, 2016–2025 (USD Million)
Table 8 Body Control & Comfort Systems: Market, By Region, 2016–2025 (USD Million)
Table 9 Powertrain Systems: Market, By Region, 2016–2025 (USD Million)
Table 10 Infotainment Systems: Market, By Region, 2016–2025 (USD Million)
Table 11 Communication Systems: Market, By Region, 2016–2025 (USD Million)
Table 12 Telematics Systems: Market, By Region, 2016–2025 (USD Million)
Table 13 Automotive Software Market, By Vehicle Type, 2016–2025 (USD Million)
Table 14 Passenger Vehicles: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 15 Passenger Vehicles: Automotive Software Market, By Segment, 2016–2025 (USD Million)
Table 16 A Segment Passenger Vehicles: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 17 B Segment Passenger Vehicles: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 18 C Segment Passenger Vehicles: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 19 D Segment-Passenger Vehicles: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 20 E Segment Passenger Vehicles: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 21 F Segment Passenger Vehicles: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 22 Light Commercial Vehicles: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 23 Heavy Commercial Vehicles: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 24 Automotive Software Market, By Electric Vehicle, 2018–2025 (USD Million)
Table 25 Battery Electric Vehicle (BEV): Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 26 HEV: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 27 PHEV: Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 28 Automotive Software Market, By Region, 2016–2025 (USD Million)
Table 29 Asia Pacific: Automotive Software Market, By Country, 2016–2025 (USD Million)
Table 30 China: Automotive Software Market, By Application, 2016–2025 (USD Million)
Table 31 India: Automotive Software Market, By Application, 2016–2025 (USD Million)
Table 32 Japan: Automotive Software Market, By Application, 2016–2025 (USD Million)
Table 33 South Korea: Market, By Application, 2016–2025 (USD Million)
Table 34 Thailand: Automotive Software Market, By Application, 2016–2025 (USD Million)
Table 35 Rest of Asia Pacific: Automotive Software Market, By Application, 2016–2025 (USD Million)
Table 36 Europe: Automotive Software Market, By Country, 2016–2025 (USD Million)
Table 37 Germany: Market, By Application, 2016–2025 (USD Million)
Table 38 France: Market, By Application, 2016–2025 (USD Million)
Table 39 UK: Market, By Application, 2016–2025 (USD Million)
Table 40 Spain: Market, By Application, 2016–2025 (USD Million)
Table 41 Russia: Market, By Application, 2016–2025 (USD Million)
Table 42 Turkey: Market, By Application, 2016–2025 (USD Million)
Table 43 Rest of Europe: Market, By Application, 2016–2025 (USD Million)
Table 44 North America: Market, By Country, 2016–2025 (USD Million)
Table 45 Canada: Market, By Application, 2016–2025 (USD Million)
Table 46 Mexico: Market, By Application, 2016–2025 (USD Million)
Table 47 US: Market, By Application, 2016–2025 (USD Million)
Table 48 RoW: Market, By Country, 2016–2025 (USD Million)
Table 49 Brazil: Market, By Application, 2016–2025 (USD Million)
Table 50 Iran: Market, By Application, 2016–2025 (USD Million)
Table 51 Others: Market, By Application, 2016–2025 (USD Million)
Table 52 New Product Developments, 2017–2018
Table 53 Expansions, 2015–2018
Table 54 Partnerships/Supply Contracts/Collaborations/Joint Ventures/ Agreements/Mergers & Acquisitions, 2015–2018
List of Figures (51 Figures)
Figure 1 Automotive Software Market: Market Segmentation
Figure 2 Automotive Software Market: Research Design
Figure 3 Research Design Model
Figure 4 Breakdown of Primary Interviews
Figure 5 Automotive Software Market: Bottom-Up Approach
Figure 6 Data Triangulation
Figure 7 Automotive Software Market: Market Dynamics
Figure 8 Asia Pacific Dominates The Automotive Software Market, 2018
Figure 9 Communication System Market to Grow at The Highest CAGR From 2018 to 2025
Figure 10 Increasing Number of Connected Vehicles to Drive The Automotive Software Market During The Forecast Period
Figure 11 Asia Pacific Leads The Automotive Software Market, 2018 (USD Billion)
Figure 12 Turkey to Witness The Highest Growth During The Forecast Period
Figure 13 Adas & Safety System is Estimated to Lead The Automotive Software Market, By Application, 2018 vs. 2025 (USD Billion)
Figure 14 Passenger Vehicle is Estimated to Lead The Automotive Software Market, By Vehicle Type, 2018 vs. 2025 (USD Billion)
Figure 15 HEV is Estimated to Lead The Automotive Software Market, 2018 vs. 2025 (USD Billion)
Figure 16 Software Recalls Trend, 2008–2017
Figure 17 V-Model of Automotive Software Development
Figure 18 3-Layered Autosar Software Architecture
Figure 19 Genivi Compliant Software Platform
Figure 20 Evolution of The Domain Centralization Architecture
Figure 21 ECU Consolidation and Resulting Implications
Figure 22 Porter’s Five Forces: Automotive Software Market
Figure 23 Automotive Software: Market Dynamics
Figure 24 Connected Car Market By 2025
Figure 25 Growth Rate Comparison of Human Machine Interface and Gesture Recognition System
Figure 26 Average Number of ECU Per Vehicle, By Country (2018–25)
Figure 27 Electric Vehicle Sales 2010–2016
Figure 28 Global Semi-Autonomous Vehicle Market Size, 2017 vs 2022 (Thousand Units)
Figure 29 Global Autonomous Vehicle Market Size, 2023 vs 2030 (Thousand Units)
Figure 30 Global Automotive Over-The-Air Update Market Size, 2017 vs. 2022 (USD Million)
Figure 31 Types of Cyberattacks Occurred (2016 vs. 2017)
Figure 32 ADAS & Safety Systems Segment is Expected to Dominate The Automotive Software Market By 2025, 2018 vs. 2025 (USD Million)
Figure 33 Passenger Vehicles Segment is Expected to Dominate The Automotive Software Market By 2025, 2018 vs. 2025 (USD Million)
Figure 34 C Segment of Passenger Vehicles is Expected to Dominate The Automotive Software Market By 2025, 2018 vs. 2025 (USD Million)
Figure 35 HEV is Expected to Dominate The Automotive Software Market By 2025, 2018 vs. 2025 (USD Million)
Figure 36 Automotive Software Market: Europe is Estimated to Grow at the Highest CAGR (2018–2025)
Figure 37 Asia Pacific: Automotive Software Market Snapshot
Figure 38 Europe: Automotive Software Market Snapshot
Figure 39 Key Developments By Leading Players in The Automotive Software Market for 2015–2018
Figure 40 NXP Led The Automotive Software Market in 2017
Figure 41 NXP: Company Snapshot (2017)
Figure 42 NXP Semiconductor: SWOT Analysis
Figure 43 Robert Bosch: Company Snapshot (2017)
Figure 44 Robert Bosch: SWOT Analysis
Figure 45 Renesas Electronics: Company Snapshot (2017)
Figure 46 Renesas Electronics: SWOT Analysis
Figure 47 Blackberry: Company Snapshot (2017)
Figure 48 Blackberry: SWOT Analysis
Figure 49 NVIDIA: Company Snapshot (2017)
Figure 50 NVIDIA: SWOT Analysis
Figure 51 Microsoft Corporation: Company Snapshot (2017)
The study involves 4 main activities to estimate the current size of the automotive software market. Exhaustive secondary research was done to collect information on the market such as the use of software in various applications and by various end users. The next step was to validate these findings, assumptions, and market analysis with industry experts across value chains through primary research. A bottom-up approach was employed to estimate the complete market size of different segments considered in this study.
Secondary Research
The secondary sources referred to in this research study include automotive industry organizations such as the Organisation Internationale des Constructeurs d'Automobiles (OICA); corporate filings (such as annual reports, investor presentations, and financial statements); and trade, business, and automotive associations. Secondary data has been collected and analyzed to arrive at the overall market size, which is further validated by multiple industry experts.
Primary Research
Extensive primary research was conducted after acquiring an understanding of the scenario of the automotive software market through secondary research. Several primary interviews were conducted with the market experts from both demand- side (end market) and supply-side (software providers) across 4 major regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW). Primary data was collected through questionnaires, emails, and telephonic interviews. In our canvassing of primaries, we strived to cover various departments within organizations, which included sales, operations, and administration, to provide a holistic viewpoint of the automotive software market in our report.
After interacting with the industry participants, we conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the opinions of the in-house subject-matter experts, led us to the findings as described in this report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
A bottom-up approach has been used to estimate and forecast the size of the automotive software market. The global market size of the automotive software from supply-side has been derived by considering the revenue generated by all the industry players providing software solutions for automotive, year-on-year (Y-O-Y) growth of software industry. The market size of automotive software from demand-side has been derived by multiplying the number of automotive ECUs used in each vehicle with vehicle production. It is further multiplied with the software license cost per electronic application inside the vehicle. The forecasting is done by considering the parameters such as purchasing power parity of the country, number of OEM plants, and number of Tier I and Tier II plants. The market size and approach was further discussed with primary participants for correction and validation. Based on the primary insights and industry growth, we developed 3 scenarios (optimistic, conservative, and best fit) and the most validated scenario “best fit” has been considered to arrive at final market estimates. The global automotive software market is further segmented into regions by considering factors such as the regional development of testing and R&D centers, market size of the automotive industry (production), OEM plants, test centers and R&D centers, and primary insights. Further, the regional automotive software market, by country, has been derived by determining the penetration of different automotive software and deployment mode by considering factors such as government regulations, automotive software applications, company developments, use cases, potential use cases, and primary insights.
Data Triangulation
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified by primary sources. All parameters that are said to affect the markets covered in this research study have been accounted for, viewed in extensive detail, and analyzed to obtain the final quantitative and qualitative data. This data has been consolidated, enhanced with detailed inputs and analysis from MarketsandMarkets, and presented in the report. The data was triangulated by studying various factors and trends from both, the demand and supply sides, in the automotive software market.
Report Objectives
- To define, segment, analyze, and forecast the market size, in terms of value (USD million/billion), of the automotive software market
- To provide a detailed analysis of various factors influencing the automotive software market (drivers, restraints, opportunities, and challenges)
- To define, describe, and project the automotive software market based on source type, application, vehicle type, electric vehicle type, and region
- To project the market for automotive software in 4 key regions, namely, Asia Pacific, Europe, North America, and the Rest of the World (RoW)
- To analyze regional markets for growth trends, prospects, and their contribution to the overall market
- To analyze the opportunities for stakeholders and provide details of the competitive landscape for market leaders
- To strategically shortlist and profile key players and comprehensively analyze their market shares and core competencies
- To analyze recent developments, alliances, joint ventures, product innovations, and mergers & acquisitions in the automotive software market
Scope of the Report
Report Metric |
Details |
|
Market Size Available for Years |
2016–2025 |
|
Base Year Considered |
2017 |
|
Forecast Period |
2018–2025 |
|
Forecast Units |
Value (USD million) |
|
Segments Covered |
Application, Vehicle Type, Electric Vehicle Type, and Region |
|
Geographies Covered |
Asia Pacific, Europe, North America, and RoW |
|
Companies Covered |
NXP (Netherlands), BlackBerry (Canada), Renesas (Japan), Elektrobit (Germany), NVIDIA (US), Microsoft (US), Airbiquity (US), Green Hills Software (US), and Wind River (US) |
This research report categorizes the automotive software market based on application, vehicle type, electric vehicle (EV) type and region.
Automotive Software Market, By Application
- ADAS & Safety Systems
- Body Control & Comfort Systems
- Communication Systems
- Infotainment Systems
- Powertrain Systems
- Telematics Systems
Automotive Software Market, By Vehicle
- Passenger vehicles
- Light commercial vehicle
- Heavy commercial vehicles
Automotive Software Market, By Electric Vehicle
- Battery Electric Vehicle (BEV)
- Hybrid Electric Vehicle (HEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
Automotive Software Market, By Region
- North America
- Europe
- Asia Pacific
- RoW
Available Customizations
With the given market data, MarketsandMarkets offers customizations in accordance with company-specific needs.
The following customization options are available for the report:
Additional Company Profiles
- Business Overview
- SWOT Analysis
- Recent Developments
- MnM View
Detailed analysis of the automotive software market, by passenger vehicle segments
Detailed analysis of the automotive software market, by application
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Growth opportunities and latent adjacency in Automotive Software Market