Automotive Software Market Growth & Forecast Analysis | 2023-2028

Market Insights

The automotive software market was estimated at USD 22.56 billion in 2022 and is likely to grow at a CAGR of 13.24% during 2023-2028 to reach USD 47.88 billion in 2028.

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What is automotive software?

Automotive software is designed to support and enhance the experience of operating a motor vehicle. New developments and integrations in the automotive technology world are progressively being implemented as the industry realizes the position of data to a vehicle operator.

COVID-19 Impact

The automotive industry was severely hit by the pandemic in the year 2020. The industry experienced a downshift in global demand. This impact was also felt in the automotive software market directly and the market experienced a decline in sales in the year 2020.

Market Dynamics

The growing demand for automotive software is mainly due to stringent government regulations focusing on the vehicle's safety coupled with the fast adoption of AI and IoT in vehicles to assist better drivers, which is likely to drive the market during the forecast period.

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Segment Analysis

By Software Type

Based on the software type, the market is segmented as autonomous driving software, safety & security software, vehicle management software, and infotainment software. The vehicle management software segment held the largest share of the market in 2022 and is expected to remain dominant during the forecast period. This system provides accident tracking, vehicle self-diagnosis, driver fatigue management, and fuel management. All of these systems assist drivers by giving information regarding vehicle maintenance and regular checkup.

By Application Type

Based on the application type, the market is segmented as engine management system (EMS), anti-lock braking system (ABS), airbag control, car navigation system, infotainment system, and mobility service. The engine management system segment is expected to remain dominant during the forecast period owing to stringent government regulations in relation to fuel emission. For an instance, the Euro 5 and BS IV regulations state the mandatory usage of electronic engine management systems in vehicles, driving the growth of the segment during the forecast period.

Regional Insights

In terms of regions, North America is estimated to be the largest market for automotive software during the forecast period, with the USA, Canada, and Mexico being the major countries offering lucrative growth opportunities. The growth of the North American region can be attributed to the extensive growth in the production of passenger vehicles in the region and the presence of a large number of automotive software manufacturers in countries, such as the USA, Canada, and Mexico. Further, the North American automotive software market is mainly driven by favorable government policies. On the other hand, Europe and Asia-Pacific are also expected to offer sizeable growth opportunities over the forecast period.

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Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories.

By Software Type

• Autonomous Driving Software
• Safety & Security Software
• Vehicle Management Software
• Infotainment Software

By Application Type

• Engine Management System (EMS)
• Anti-Lock Braking System (ABS)
• Airbag Control
• Car Navigation System
• Infotainment System 
• Mobility Service

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

By End-Use Type

• Manufacturer Retail Store
• Automotive Dealer
• Automotive Repair Store
• Auto Part Wholesaler & Agent

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Key Players

Some of the major automotive software manufacturers are-

• Ansys Inc.
• Autodesk, Inc.
• Bosch Software Innovations GmbH
• CDK Global LLC
• Cox Automotive
• Daimler AG
• Dassault Systèmes SE
• DealerTrack Holdings, Inc.
• Delphi Technologies
• Ford Motor Company.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the software types by vehicle type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.