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Automotive Software Market By Software Type (Autopilot Software, Navigation Software, Entertainment Software, Car Safety Software, Connectivity Software, Auto Mechanical Software), By Vehicle Type (Passenger Vehicle, Commercial Vehicle), By Electric Vehicle Type (Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV)) - Growth, Future Prospects & Competitive Analysis, 2018 - 2026

Increasing Use of Electronic Content in Vehicles: Aiding the Automotive Software Market's Growth Positively

The automotive software market was valued at US$ 16.24 billion in 2017 and is expected to grow at a CAGR of 19.2% from 2017 to 2026, reaching US$ 78.62 billion in 2026. Automobiles have evolved from hardware-driven machines to software-driven electronic devices in recent years. The content of software and electronics per vehicle is increasing rapidly. By 2030, the average share of software is expected to reach 30% of overall vehicle content.

One of the most prominent factors driving the automotive software market's growth can be attributed to the increasing use of electronic content in vehicles. The rising demand for electric vehicles is another important factor supporting the market's growth. Moreover, by 2020, it is expected that there will be 250 million connected vehicles on the road, a factor further complementing the automotive software market's growth. In the future, cars are expected to be designed in such a way as to take advantage of a wide range of digital technologies in order to improve fuel efficiency, road safety, and vehicle reliability, alleviate traffic congestion, and enhance the experience of both the driver and passengers.

Market Synopsis

The passenger vehicle segment stood out as the largest segment in 2017.

In terms of vehicle type, the passenger car segment stood as the largest segment in 2017. The fact that passenger vehicles use a higher number of electronic components as compared to commercial vehicles would help the passenger vehicle segment continue its dominance throughout the forecast period.

For instance, recently, Mercedes-Benz integrated Houndify by SoundHound, Inc. into its latest infotainment system, the Mercedes-Benz User Experience (MBUX), in the U.S. This would enable customized voice control with natural language understanding. Similarly, Volvo entered into a partnership with Google to power its Sensus infotainment systems.

This will allow Volvo car owners to use Google Maps, Google Voice Assistant, the Google Play Store, etc. Furthermore, starting in 2020, all cars manufactured will include all Google services out of the box. These factors are expected to positively influence the integration of software in passenger vehicles.

Asia Pacific will continue to be the most profitable market for automotive software manufacturers.

In 2017, Asia Pacific accounted for the largest share of the global automotive software market. The fact that some of the leading automobile manufacturers, such as Toyota, Hyundai, Nissan, Honda, and Suzuki, have headquarters in the region further supports the automotive software market's growth in the region. Moreover, the countries in the region, such as China, India, Malaysia, and other developing markets in Southeast Asia, have witnessed fast GDP growth in recent years. This has led to an increase in highly aspirational consumers who are willing to invest in automotive software, such as navigation software, entertainment software, and connectivity software, among others.

Report Scope by Segments

The report elucidates the detailed outline of the global automotive software market by categorizing the market in terms of software type, vehicle type, electric vehicle type, and geography.

Key players profiled in the report include NXP, Renesas, BlackBerry, Elektrobit, Microsoft, NVIDIA, Airbiquity, Green Hills Software, Wind River, and Aricent, Inc., among others.

Key questions are answered in this report.

  • What was the size of the global automotive software market in 2017, and what is the forecast for 2026?
  • What are the current trends in the automotive software market?
  • What are the various valuable opportunities for the players in the market?
  • Which is the largest regional market for automotive software?
  • Which region is expected to have the fastest growth and why?
  • What are the future prospects for the automotive software market?
  • What are the major drivers and restraints influencing the market's growth?
  • What are the new innovations by the leading players?
  • What are the key strategies adopted by the leading players in the market?

Frequently Asked Question:

The market for Automotive Software Market is expected to reach USD$ 78.62 Bn in 2026.

The Automotive Software Market is expected to see significant CAGR growth over the coming years, at 19.2%.

The report is forecasted from 2018 -2026.

The base year of this report is 2017.

NXP, Renesas, BlackBerry, Elektrobit, Microsoft, NVIDIA, Airbiquity, Green Hills Software, Wind River, and Aricent, Inc. are some of the major players in the global market.

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Godaddy
Published Date:  Jan 2019
Category:  Automotive & Transportation
Report ID:   59544
Report Format:   PDF
Pages:   120
Rating:    4.2 (58)
Delivery Time: 24 Hours to 48 Hours   
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