Automotive Software Market Size to hit $37.68 billion & Growing at a CAGR of 12.9% by 2031, says Coherent Market Insights

The automotive software market is estimated to be valued at US$ 16.08 Bn in 2024 and is expected to exhibit a CAGR of 12.9% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights. Companies covered: ATEGO SYSTEMS INC., Autonet, Blackberry, Wind River, Microsoft, ACCESS, Broadcom, Google, Green Hills Software, MontaVista Software, Mentor Graphics, Airbiquity, Texas Instruments, Adobe Systems, PTC Inc., NXP Semiconductors, Renesas Electronics, Dassault Systems, and Intellias Ltd.

/EIN News/ -- Burlingame, July 24, 2024 (GLOBE NEWSWIRE) -- The global Automotive Software Market is projected to grow from USD 16.08 billion in 2024 to USD 37.68 billion by 2031, with a compound annual growth rate (CAGR) of 12.9% from 2024 to 2031, as per a recent report by Coherent Market Insights.This significant growth is driven by the rapid adoption of electronic systems in vehicles, which enhance advanced driver-assistance, in-car connectivity, and automation. Rising demand for connected vehicles that offer advanced driver-assistance systems, navigation, entertainment, and telematics features. As more electronic components and sensors are being integrated into modern vehicles, the dependence on software is growing tremendously. Vehicle manufacturers are focusing on developing software platforms that can securely and seamlessly connect different electronic control units and facilitate rapid updating of vehicle systems over-the-air. This is allowing automakers to introduce new features and functionalities on a regular basis via software upgrades.

Get Sample Pages: https://www.coherentmarketinsights.com/insight/request-sample/6985

Market Dynamics:

The growth of the global automotive software market is attributed to the increasing adoption of connected vehicles and advanced telematics by OEMs globally. Connected vehicles rely heavily on integrated software and technology systems for features such as navigation, infotainment, vehicle diagnosis, and remote connectivity. Additionally, surging demand for embedded systems and software solutions for driver assistance, autonomous driving, and electrification of vehicles is also contributing to the market growth.

Market Trends:

Integration of advanced technologies: Major automotive companies are focusing on integrating advanced technologies such as artificial intelligence, Internet of Things, 5G connectivity, and cloud computing into vehicle software. This is expected to enhance driving experience, safety, and over-the-air updates.

Adoption of agile methodology: Many software developers in the automotive industry have shifted from traditional waterfall methodology to agile methodology to enhance productivity, quality, and quicker resolution of issues. This transition helps meet changing requirements and shorten development cycles.

Automotive Software Market Report Coverage

Report Coverage	Details
Market Revenue in 2024	$16.08 billion
Estimated Value by 2031	$37.68 billion
Growth Rate	Poised to grow at a CAGR of 12.9%
Historical Data	2019–2023
Forecast Period	2024–2031
Forecast Units	Value (USD Million/Billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Vehicle Type, By Software Layer, By EV Application, By Offering, By Application, By Organization Size
Geographies Covered	North America, Europe, Asia Pacific, and Rest of World
Growth Drivers	• Increasing Vehicle Connectivity and Autonomous Features • Increasing Electronic Content and Software-Defined Vehicles
Restraints & Challenges	• High Investment Cost • Complex Software Architecture

Market Opportunities:

The safety and security segment accounts for the largest share of the automotive software market. Advanced driver assistance systems (ADAS) have become critical for vehicle safety. ADAS technologies such as adaptive cruise control, automatic emergency braking, and lane departure warnings use software algorithms for collision avoidance. Governments are also mandating the inclusion of safety features such as automatic emergency call systems that use cellular networks and GPS for emergency response. The need for safety features and regulatory compliance will drive the adoption of automotive safety and security software.

To Purchase a Comprehensive Report Analysis: https://www.coherentmarketinsights.com/insight/buy-now/6985

Infotainment and digital instrument cluster systems require sophisticated software for applications such as navigation, telematics, gesture control, and heads-up display. As vehicles evolve into mobility hubs, the demand for connected infotainment services will rise. Features such as over-the-air updates and integrated voice assistants improve the user experience. Software is crucial for seamless integration of the instrument cluster with other vehicle systems. The growing demand for customizable experience and connectivity will support growth in this segment.

Key Market Takeaways:

The automotive software market is anticipated to witness a CAGR of 12.9% during the forecast period 2024-2031, owing to stringent safety regulations and the growing demand for connected vehicles.

On the basis of application, the safety and security segment is expected to hold a dominant position, accounting for over 30% of the market share due to mandatory inclusion of ADAS technologies. The infotainment and instrument cluster segment is expected to be the fastest growing segment during the forecast period.

On the basis of vehicle type, passenger cars segment is expected to hold a dominant position over the forecast period, with rising demand for advanced safety, infotainment and telematics features in personal vehicles. The commercial vehicles segment is also gaining traction with fleet management solutions.

Regionally, North America is expected to hold a dominant position over the forecast period, due to the rapid adoption of advanced driver assistance systems and growing investments in autonomous vehicles technologies in the region.

Key players operating in the automotive software market include Google, Microsoft Corporation, Airbiquity, NVIDIA, Renesas Electronics Corporation, NXP, BlackBerry QNX, Elektrobit, Green Hills Software, and Luxoft. Strategic collaborations between automakers and technology companies are contributing to innovation.

Recent Developments:

In March 2023, Honda Motor signed a basic agreement for a software development relationship with KPIT Technologies Ltd (KPIT Technologies), one of the major software integration partners for the automotive and mobility industries. Through this collaboration, the two companies will pool their respective strengths, particularly Honda's software architecture, control and safety technologies, and KPIT Technologies' software development capabilities, to generate new value through software.

In January 2023, Luxoft and Microsoft announced a partnership to join the Connected Fleets project, an ecosystem of composable partner solutions that accelerate the value produced from vehicle data. Through this participation, Luxoft will increase its capacity to provide high value to its automotive clients while also accelerating the transition to software-defined cars.

Request For Customization: https://www.coherentmarketinsights.com/insight/request-customization/6985

Market Segmentation

By Vehicle Type:

• Passenger car
• LCV
• HCV
  

 By Software Layer:

• Operating System
• Middleware
• Application software
  
  

By EV Application:

• Charging Management
• Battery Management
• V2G
  

By Offering:

• Solutions
• Services

By Application:

• ADAS & Safety Systems
• Body Control & Comfort System
• Powertrain System
• Infotainment System
• Communication System
• Vehicle Management & Telematics
• Connected Services
• Autonomous Driving
• HMI Application
• Biometrics
• Remote Monitoring
• V2X System

By Organization Size:

• Large Scale Organizations
• Medium Scale Organization
• Small Scale Organization
  

By Regional:

North America:

• U.S.
• Canada

Latin America:

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Europe:

• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
  

Asia Pacific:

• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
  

Middle East:

• GCC Countries
• Israel
• Rest of Middle East
  

Africa:

• South Africa
• North Africa
• Central Africa
  

Browse More Trending Reports:

Face Recognition Ai Camera Market: Global face recognition AI camera market is estimated to be valued at USD 3.08 Bn in 2024 and is expected to reach USD 12.71 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 22.4% from 2024 to 2031.

Accountable Care Solutions Market: Global accountable care solutions market is estimated to be valued at US$ 21.50 Bn in 2024 and is expected to reach US$ 42.54 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 10.2% from 2024 to 2031.

B2B Payments Transaction Market: The B2B payments transaction market is estimated to be valued at US$ 1,576.61 Bn in 2024 and is expected to reach US$ 3,021.25 Bn by 2031, growing at a compound annual growth rate (CAGR) of 9.7% from 2024 to 2031.

Agricultural Drones Market: Global agricultural drones market is estimated to be valued at US$ 4.80 Bn in 2024 and is expected to reach US$ 19.24 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 21.9% from 2024 to 2031

About Us:

Coherent Market Insights is a global market intelligence and consulting organization that provides syndicated research reports, customized research reports, and consulting services. We are known for our actionable insights and authentic reports in various domains including aerospace and defense, agriculture, food and beverages, automotive, chemicals and materials, and virtually all domains and an exhaustive list of sub-domains under the sun. We create value for clients through our highly reliable and accurate reports. We are also committed in playing a leading role in offering insights in various sectors post-COVID-19 and continue to deliver measurable, sustainable results for our clients.

Follow Us: LinkedIn | Twitter

Mr. Shah
                    Senior Client Partner – Business Development
                    Coherent Market Insights
                    
                    Phone:
                    US: +1-206-701-6702
                    UK: +44-020-8133-4027
                    Japan: +81-050-5539-1737
                    India: +91-848-285-0837
                    Email: sales@coherentmarketinsights.com
                    
                    Website: https://www.coherentmarketinsights.com