Automotive Software Market Scope
The global automotive software market size is projected to expand at high CAGR. MRFR’s report on the automotive software market comprises growth drivers, challenges, and trends on the industry for the forecast period. The COVID-19 pandemic and its implications are explored in depth in the market.
The global automotive software market is driven by improvement in four-wheelers and integration of information technology to enhance their features. Rise in sales of automobiles, adoption of driver assistance safety system, and demand for fuel-efficient vehicles. The use of software and its continuous improvement through feedback can lead to efficient systems.
Adoption of software solutions and services in the automotive sector, rise in purchasing power of customers in APAC and the Middle East, and the growing population can drive market demand significantly. Focus on development of automotive infotainment systems and declining prices of software can bode well for the market.
Connected services can allow car owners, fleet owners, and carriers to communicate through a common platform. Presence of Alibaba and Baidu coupled with a platform for connected cars can bode well for the market. Rising support for 5G and development of infrastructure to support connected vehicles in the APAC region coupled with measures to curb rising pollution levels can augur favorably for the market. Smart mobility projects and stringent emission norms can lead to demand of software for powertrain, infotainment, and other vehicle technologies.
Airbiquity Inc. (US), Renesas Electronics Corporation (Japan), BlackBerry (Canada), Green Hills Software (US), Autonet Mobile, Inc. (US), NXP Semiconductors (Netherlands), NVIDIA Corporation (US), Microsoft Corporation (US), Elektrobit (Germany), and Wind River Systems (US) are key players in the global automotive software market. Development of new features and collaborations are to be witnessed in the market. Partnerships between chip manufacturers and car makers for product and service integration can culminate in development of new capabilities.
Qualcomm has signed an agreement with Renault for supplying semiconductors for powering the digital dashboard and vehicle infotainment system
Players in the automotive industry are likely to invest in various digital technologies such as cloud, IoT, and AI to leverage on large volume of data generated and its potential in delivering customer experience. Automotive players are teaming with software developers for creating compatible solutions with associated hardware for ensuring customer excellence. Implementation of digital models for driving sales of cars is an instance of the potential of leaders offering software and solutions to auto makers.
Passenger Cars to Dominate Market Demand
Passenger cars are expected to dominate market demand over the forecast period owing to focus on fuel-efficient vehicles, development of V2X technology, adoption of electric and electronic components, and vehicle safety mandates. Rise in per capita income, demand for personal transportation, and surge in expendable income levels of customers are factors to drive the segment growth.
APAC to Lead in Global Automotive Software Market Share
Asia-Pacific (APAC) is expected to take the lead in the global automotive software market owing to rise of automotive hubs in developing economies and increasing sales of connected vehicles. Rising production of electric vehicles, integration of safety features in EVs, and investments by public and private players for developing ICT infrastructure can drive market demand significantly.