DUBLIN--(BUSINESS WIRE)--The "Automotive Software Market by Application (ADAS & Safety, Connected Services, Autonomous Driving, HMI, V2X, Infotainment), Software Layer (OS, Middleware, Application), EV Application (Charging, Battery, V2G), Vehicle and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The automotive software market is projected to reach USD 37.0 billion by 2025 from USD 16.9 billion in 2020, 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.
- Adoption of Adas Features in Vehicles
- Increasing Adoption of Connected Car Services
- Intervention of Innovative Technologies for Advanced Ui
- Lack of Standard Protocols to Develop Software Platforms
- Lack of Connected Infrastructure
- Troubleshooting and Maintenance of Automotive Software
- Future Potential of 5G and Ai
- Growing Developments in Semi-Autonomous and Autonomous Vehicles
- Data Monetization in Extended Automotive Ecosystem
- Sota Updates to Reduce Vehicle Recalls
- Risk of Cybersecurity
- Robert Bosch Gmbh
- NXP Semiconductor
- Renesas Electronics
- Microsoft Corporation
- Green Hills Software
- Wind River System
- Intel Corporation
- KPIT Technologies
- Autonet Mobile
- Siemens Industry Software Inc.
- Vector Informatik
- Sigma Software Group
- Aptiv Plc
- Saferide Technologies Ltd
For more information about this report visit https://www.researchandmarkets.com/r/ndqnbm
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