Government mandates and increasing awareness about vehicle safety are expected to fuel the growth of ADAS & safety systems across the globe, which will eventually fuel the global automotive software market size to grow at a CAGR of 13.1% till 2027.
According to the recent report - 'Automotive Software Market by Application (ADAS & Safety, Connected Services, Autonomous Driving, HMI, V2X, Infotainment), Software Layer (OS, Middleware, Application), EV Application (Charging, Battery, V2G), Vehicle and Region - Global Forecast to 2027,' published by ResearchAndMarkets.com, the market is estimated to be growing from $21.7 billion in 2022 to $40.1 billion by 2027.
The report further added that the ADAS & safety systems segment has the largest market share among all the applications in the automotive software market.
According to the report, the implementation of regulations regarding the safety of vehicles, such as the UN Regulation on Advanced Emergency Braking Systems (AEBS) for cars, significantly improves road safety.
The intervention of innovative technologies for advanced UI is likely to drive the growth of the automotive software market during the forecast period.
Earlier, the industry focused on optimising the internal functioning of vehicles, but now the trend is shifting toward better and enhanced connectivity solutions. Automotive software allows for optimising 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 consumers' automobile buying and ownership behaviour. 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.
The report noted that 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 provides 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 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 the stringent emission norms.
The growing trend of downsizing engines and the rising demand for automated transmission are some key factors driving the demand for powertrain systems, the report noted.
Courtesy:ResearchAndMarkets.com. Photo is representational; courtesy: Elektrobit.