Automotive Software Market Poised to Reach $40.1 Billion by 2027
The global Automotive Software Market size is projected to reach USD 40.1 billion by 2027 from USD 21.7 billion in 2022, at a CAGR of 13.1%. The growth of the market is driven upcoming mandates such as for regarding collision avoidance to drive market.
Governments in European countries as well as in the United States have mandated the use of AEB in vehicles. In May 2018, the European Commission published a list of 11 new safety features it wants to be mandated on new cars by 2021. The list includes several existing ADAS functions, specifically autonomous emergency braking, lane keeping assistance, intelligent speed assistance system, and a reversing camera/rear detection system. These specifications are expected to lay the foundation of vehicle-to-vehicle and vehicle-to-pedestrian advanced emergency braking system (AEBS). Such developments would surge the demand for automotive software for advanced electronics during the forecast period. More than 20 countries worldwide are planning to standardize forward collision warning (FCW) by 2022. According to The National Highway Traffic Safety Administration In 2020, out of total 38,824 fatalities in motor vehicle traffic in the US, 11, 654 were alcohol impaired. Distraction affected fatalities reached 3,142 in the US in 2020, accounting for 8% of the total casualties for the year. These ADAS & safety mandates would further fuel the Automotive Software Market.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=200707066
V2X (Vehicle-to-Everything will be a key focus area of automotive software player for electric vehicle. V2X (Vehicle-to-Everything) is a communication technology that allows a vehicle to communicate with other vehicles, road users, and infrastructure. With the help of software and algorithms, V2X has become a reality. The software helps V2X technology improve traffic safety, fuel economy, and traffic congestion. These functions include V2G (Vehicle-to-Grid), V2P (Vehicle-to-Pedestrians), V2I (Vehicle-to-Infrastructure), V2V (Vehicle-to-Vehicle), and V2D (Vehicle-to-Devices). Two standards are used for V2X communication—IEEE 802.11p and C-V2X (Cellular V2X). Increasing vehicle safety concerns among the public and government, advancements in technology, and reduced cost of V2X technology are expected to drive the Automotive Software Market for V2X. The governments of various countries are working on the development of the V2X system. In April 2022, the US Department of Energy signed the Vehicle to Everything MOU, which brings together resources from the Department of Energy, Department of Energy, national labs, local and state governments, utilities as well as private entities for the evaluation of technical and economic feasibility of bidirectional charging into infrastructure.
Market Dynamics:
Drivers: Increasing adoption of connected car services will drive the automotive software market
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 and autonomous driving to leverage the opportunity of earning revenues. Today’s vehicles are no more hardware-based moving machines. Today, they comprise almost40% 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 code 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 codes, which, in turn, increases the need for embedded software. Thus, the increasing number of connected cars is driving the automotive software market.
Opportinities: Future potential of 5G and AI will create in automotive software market
Rapid evolution in design requirements as well as architectures are impacting requirement of software. The user experience of automotive software depends on wireless connectivity. To find the solution, different telecom company companies are focusing on development of 5G to increase the safety as well as efficiency of automotive software. automobiles are becoming network aware, software defined and ultra-connected data transmitting vehicles and this needs high tech connectivity platform. Understanding these implication as well as challenges for the automotive sector can speed up the adoption of connected cars. 5G will be a key enabler for autonomous vehicles as well as automotive software as they will be able to communicate instantaneously. For example, South Korea and EU have signed a deal for working together on 5G development, both invest USD 1.5 billion and USD 782 million, respectively in funding the local 5G projects. In the United Kingdom, USD 78 million of funding has been approved for 5G research facility 5GIC
Key Market Players
The major players in Automotive Software Market includes Robert Bosch (Germany), NXP Semiconductors (Netherland), Renesas Electronics (Japan), BlackBerry Limited (Canada), and NVIDIA (US).
Inquiry Before Buying @ https://www.marketsandmarkets.com/Purchase/purchase_reportNew.asp?id=200707066
Media Contact
Company Name: MarketsandMarkets™ Research Private Ltd.
Contact Person: Mr. Aashish Mehra
Email: Send Email
Phone: 18886006441
Address:630 Dundee Road Suite 430
City: Northbrook
State: IL 60062
Country: United States
Website: https://www.marketsandmarkets.com/Market-Reports/automotive-software-market-200707066.html
