PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1034029
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1034029
The global automotive software market is valued at USD 10.7 Billion in 2020 and is expected to reach USD 29.3 Billion by 2026 registering a CAGR of 5.11%, during the forecast period, 2021-2026.
The automotive industry is experiencing unprecedented challenges and uncertainty due to the COVID-19 pandemic. The outbreak has had a swift and severe impact on the globally integrated automotive industry. This is placing intense pressure on an industry with a downshift in global demand. With declining demand in view, automotive companies are examining their strategies and operational plans for the post-pandemic period. As economies are recovering slowly, it is expected that the market grows positively during the forecast period.
The utilization of open-source platforms and the improved product offerings focused on user experience boosted the entire market for automotive software. Consumers and OEMs are increasingly focusing on automobile infotainment systems, and manufacturers are competing primarily on the software or operating system that these systems utilize. Furthermore, manufacturers are emphasising smart capabilities in these infotainment systems, as well as the deployment of software that will set their products apart from their competitors.
However high cost of automotive software solutions and the vehicles these software is incorporated has been a restarining factor for the market growth.
Due to the increasing adoption of a few ADAS technologies as a standard option even in mid-size vehicles in the coming years, the safety & security category is expected to acquire a considerable part of the market studied during the forecast period. Consumer interest and regulatory demands in safety applications that help safeguard drivers and decrease accidents are predicted to drive demand for advanced driver assistance systems (ADAS) to expand significantly over the forecast period.
The Federal Motor Vehicle Safety Standards (FMVSS) are a set of standards issued by the United States that outline the safety criteria for all motor vehicles. While the EU's standards are mostly based on UN studies and recommendations, the FMVSS was formed within the context of US regulatory organizations. Both the United States and the European Union are framing mandates to see that all vehicles are equipped with forward-collision warning systems and emergency-braking systems by 2020. FWVSS specifies three domains of testing for meeting their regulatory requirements, including crash avoidance crashworthiness and post-crash survivability
For instance, 2021 Kia Carnival comes with the 'safe exit warning' and 'safe exit assist' systems that will use sensors located near the tail lights to detect potential approaching hazards when the car is travelling less than 3km/ h and avoid crashes.Such launches of safety and security features in vehicles are likely to drive the demand for reliable software solutions from the suppliers in the market studied, during the forecast period.
North America is expected to dominate the market in the forecast period. Owing to factors like strong and established automotive company clusters and also being the home for the world's biggest technology companies like Google, Microsoft, etc the region has been pioneer regard to autonomous vehicles. Particularly in the United States, self-driving cars have already been tested and used in California, Texas, Arizona, Washington, Michigan, and other states of the United States. The United States covers the largest market share of more than 65% in the North American automotive software market.
The country has been significantly increasing the number of launches of autonomous car models, as well as the development of vehicle autonomous systems among the players in the automotive industry, over the past two years. Furthermore, it is expected to continue its growth rate during the forecast period.
In June 2021, General Motors Co. announced investments in electric and autonomous vehicles June, with a plan to spend USD 35 billion by 2025.
Such above-mentioned developments in vehicle systems are likely to drive the demand for advanced software solutions in the country, during the forecast period.
Some of the major players in the market includes BlackBerry Limited, KPIT Technologies Limited, Microsoft Corporation, Google, Airbiquity Inc., etc. Many OEM's are teaming up with the technology companies to introduce new features. For instance,