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 by upcoming mandates such as regarding collision avoidance to drive the 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 systems (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 a total of 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.
V2X (Vehicle-to-Everything will be a key focus area of automotive software players for electric vehicles. 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.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=200707066
“The increasing adoption of ADAS and safety features is driving the growth of the automotive software market.”
The global automotive software market size is projected to grow from USD 21.7 billion in 2022 to USD 40.1 million by 2027, at a CAGR of 13.1%. ADAS & safety systems segment has the largest market share among all the applications in the automotive software market. Government mandates and increasing awareness about vehicle safety are expected to fuel the growth of ADAS & safety systems across the globe. Implementation of regulations regarding the safety of vehicles, such as the UN Regulation on Advanced Emergency Braking Systems (AEBS) for cars, to significantly improve road safety. The regulation has laid down the technical requirements for the approval of vehicle-to-vehicle (V2V) and vehicle-to-pedestrian AEBS fitted on cars. Furthermore, in March 2022, the National Highway Traffic Safety Administration (NHTSA) issued a final rule amending the Federal Motor Vehicle Safety Standards for accounting vehicles equipped with automated driving systems. The rule is limited to the crashworthiness standards. In India, all new cars are entrusted with compulsory basic features such as ABS, reverse parking sensors, airbags, speed warning systems for shielding passenger safety, and seat belts from October 2019. Considering safety as the essential factor for the passenger, driver, and pedestrian, the government provides AEB and ESC as standard on all models from 2022-2023. Thus, the rules and regulations are implemented to boost the ADAS and safety market.
“Intervention of innovative technologies for advanced UI is likely to drive the growth of the automotive software market during the forecast period.”
Earlier, the focus of the industry was on optimizing the internal functioning of vehicles, but now the trend is shifting toward better and enhanced connectivity solutions. Automotive software allows for optimizing vehicle performance along with better connectivity solutions. This increasing demand for high-end connectivity is driving the intervention of agile and innovative technologies for software.
The automotive industry is experiencing a change in the automobile buying and ownership behavior of consumers. These consumers are getting highly involved in digital solutions through smartphones, which are further changing lifestyles and increasing the comfort and convenience of vehicles. Hence, various software is required to achieve a high level of UI with machines. Technologies such as HMI and GRS are boosting the market for automotive software.
“India is estimated to be the fastest growing automotive software market in the Asia Pacific during the forecast period.”
The automotive software market in India is in a growing stage. Integrated connectivity is expected to be the major driver for the automotive software market in India. The launch of 4G connectivity and over 100 smart cities initiative that includes smart transportation are the major factors supporting the automotive software market growth in the country.
Various technologies such as telematics systems, connected services, infotainment systems, and communication systems are becoming an integral part of high-end automobiles. Additionally, with improved infrastructure and connectivity solutions, India is providing platforms for vehicle interaction, thereby supporting the sharing of useful information such as fuel economy, roadblocks, shortest routes, traffic congestion, and driving habits.
Growing disposable will allow Indian customers s to spend more on luxury and comfort. Software for engine and powertrain management covers the second-largest share in the Indian market. The need for high-tech powertrains has greatly increased to meet stringent emission norms. The growing trend of downsizing engines and the rising demand for automated transmission are some of the key factors driving the demand for powertrain systems. India has implemented the BS 6 standard that has tightened mass emission limits, particulate matter (PM), and introduction of particle number limits for HDVs and LDVs fitted with gasoline direct injection and compression ignition/diesel engines; the norm was implemented on April 1, 2020. The main reason for the switch is to reduce vehicle pollution. Meanwhile, the government of India is planning to implement Corporate Average Fuel Economy (CAFE) to meet fleet CO2 targets of 113 g/km from 2022 onwards. The demand for powertrain systems will increase as they can reduce fuel consumption and emissions while providing the required performance of a larger engine.
Request Free Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.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