"Increasing Use of Electronic Content in Vehicles Aiding the Automotive Software Market Growth Positively"

The automotive software market stood at US$ 16.24 Bn in 2017 and expected to grow at a CAGR of 19.2% during the forecast period from 2017 to 2026 and reach US$ 78.62 Bn in 2026. In recent years, automobiles are transitioning from hardware-driven machine to a software-driven electronics device. The content of software and electronics per vehicle is increasing rapidly. By 2033, 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 growth can be attributed to the increasing use of electronic content in vehicles. Rising demand for electric vehicles is another important factor supporting the market growth. Moreover, by 2020, it is expected that there will 250 million connected vehicles on the road, a factor further complimenting the automotive software market growth. In the future, cars are expected to be designed in a way as to take advantage of a wide range of digital technologies in order to improve fuel efficiency, road safety, vehicle reliability, alleviate traffic congestion and enhance the experience of both driver and passengers.

"The Passenger Vehicle Segment Stood 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 commercial vehicles, would help the passenger vehicles segment to continue its dominance throughout the forecast period. For instance, recently, Mercedes-Benz integrated Houndify by SoundHound, Inc. into its latest infotainment system 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, Google Play Store, etc. Moreover, all the cars manufactured from 2020 onwards will feature all the Google services straight out of the factory. These factors are expected to positively influence the integration of software in passenger vehicles.

"Asia Pacific to Remain the Most Lucrative Market for Investment for Automotive Software Manufacturers"

In 2017, Asia Pacific held the largest market share of the overall automotive software in 2017. The fact that some of the leading automobile manufacturers such as Toyota, Hyundai, Nissan, Honda and Suzuki headquartered in the region further supports the automotive software market growth in the region. Moreover, the countries in the region such as China, India, Malaysia and other developing markets in Southeast Asia have witnessed a 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 navigation software, entertainment software and connectivity software among others.

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

Historical & Forecast Period

This study report represents analysis of each segment from 2023 to 2033 considering 2024 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2025 to 2033.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Software market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Software market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Software market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2033.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Software market?
• Which is the largest regional market for Automotive Software market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Software market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Software market worldwide?