Global Automotive Software Market By Product (Application Software, Middleware and Operating System), By Application (Safety System, Infotainment & Telematics, Powertrain and Chassis), By Vehicle Type (ICE Passenger Car, ICE Light Commercial Vehicle, Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, ICE Heavy Commercial Vehicle, Hybrid Electric Vehicle and Autonomous Vehicles), By Region, Industry Analysis and Forecast, 2020 - 2026

Analysis of Market Size & Trends

The Global Automotive Software Market size is expected to reach $41.9 billion by 2026, rising at a market growth of 16.3% CAGR during the forecast period. The automotive software is composed of programmable data instruction used for executing operations of computer-based in-vehicle applications. Automotive software is used for in-vehicle embedded systems. Computer-based in-vehicle applications include infotainment, body control and comfort, telematics, advanced driver assistance systems (ADAS), powertrain, communication and safety. The automotive industry is leading towards an era where cars can communicate with each other and to drivers.

There is an increasing demand for automotive software on account of increasing demand for advanced driver assistance system, rising demand for automated and electrified vehicles and increasing demand for vehicle application like automatic crash notification, remote vehicle diagnostics and emergency assistance. Although, the rising complexity in software architecture leads to high production cost for OEMs & suppliers that act as a restraint for the market growth. Additionally, the required installation of the e-call systems and the installation of rearview cameras in all the vehicles to reduce back-over accidents will boost the growth of the market in the near future.

By Product

Based on Product, the market is segmented into Application Software, Middleware and Operating System. The application software category accounted for the highest revenue in 2019, due to the huge adoption of software with different features in vehicles. Although, the operating system category is predicted to witness the highest growth rate during the forecast period, due to the increased implementation of advanced software in vehicles.

By Application

Based on Application, the market is segmented into Safety System, Infotainment & Telematics, Powertrain and Chassis. The infotainment & telematics system in vehicles is expected to record a remarkable growth rate during the forecast period due to its applications in vehicles in the nearby future.

By Vehicle Type

Based on Vehicle Type, the market is segmented into ICE Passenger Car, ICE Light Commercial Vehicle, Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, ICE Heavy Commercial Vehicle, Hybrid Electric Vehicle and Autonomous Vehicles. The ICE passenger car counted for the major market share in 2019 due to the increased engine-based software installed in it.

Automotive Software Market Report Coverage

Report Attribute	Details
Market size value in 2019	USD 18 Billion
Market size forecast in 2026	USD 41.9 Billion
Base Year	2019
Historical Period	2016 to 2018
Forecast Period	2020 to 2026
Revenue Growth Rate	CAGR of 16.3% from 2020 to 2026
Number of Pages	278
Number of Tables	403
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling, Competitive Landscape
Segments covered	Product, Application, Vehicle Type, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Increasing developments in semi-autonomous and autonomous vehicles Rising adoption of connected car service
Restraints	Shortage of connected infrastructure

By Region

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In terms of revenue, Europe dominated the market followed by Asia-Pacific, North America, and LAMEA. Asia Pacific would showcase prominent growth during the forecast year.

The major strategies followed by the market participants are Product Launches and Partnerships. Based on the Analysis presented in the Cardinal matrix; Intel Corporation and Microsoft Corporation are the forerunners in the Automotive Software Market. Companies such as NXP Semiconductors N.V., Renesas Electronics Corporation, BlackBerry Limited, Robert Bosch GmbH, Airbiquity, Inc., NVIDIA Corporation, PTC, Inc., and Adobe, Inc. are some of the key innovators in the market.

Free Valuable Insights: Global Automotive Software Market to reach a market size of $41.9 Billion by 2026

KBV Cardinal Matrix - Automotive Software Market Competition Analysis

The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Robert Bosch GmbH, NVIDIA Corporation, Renesas Electronics Corporation, Microsoft Corporation, Intel Corporation, Adobe, Inc., BlackBerry Limited, PTC, Inc. (Atego Systems, Inc.), NXP Semiconductors N.V. and Airbiquity, Inc.

Recent Strategies Deployed in Automotive Software Market

» Partnerships, Collaborations, and Agreements:

• Dec-2020: BlackBerry signed a collaboration agreement with Amazon Web Services (AWS), a cloud computing service provider. They introduced the IVY, a new intelligent vehicle data platform that compresses the time to construct, deploy, and monetize in-vehicle applications and connected services over multiple brands and models.
• Nov-2020: NXP partnered with GuardKnox, the automotive industry's first Cybertech Tier supplier of high-performance computing solutions. The partnership aimed to develop a safe automotive platform that targets next-generation zonal E/E architecture, enabling commercial deployment for software and service-oriented vehicles.
• Nov-2020: NVIDIA teamed up with Hyundai Motor Group, an automotive manufacturing company. Following the collaboration, the entire lineup of Hyundai, Kia, and Genesis models come standard with NVIDIA DRIVE in-vehicle infotainment (IVI) systems begin from 2022. NVIDIA DRIVE helped Hyundai to feature AI-enhanced connected car services with audio, video, navigation, and connectivity.
• Nov-2020: Airbiquity partnered with AUTOSAR, a worldwide development partnership of automotive interested parties. The partnership enhanced over-the-air (OTA) software of Airbiquity and data management to offer with AUTOSAR based devices and systems. Airbiquity is a member of the Update and Configuration Management working group and contributes to the future standard releases, including software development for the Adaptive Platform Demonstrator.
• Oct-2020: Adobe collaborated with Microsoft to launch a new customer-relations management software program. The collaboration used the blend of artificial intelligence tools by Microsoft and Adobe’s marketing and customer-targeting cloud.
• Sep-2020: Bosch came into partnership with SAP. The partnership was focused on simplifying digital corporate processes and developing a digital industrial standard that controls it. The partnership offers a special benefit to the global automotive industry that connects the supply chain and many production houses on a different location, which is managed individually.
• Sep-2020: NVIDIA announced its collaboration with Li Auto. This collaboration aims to help Li Auto to deliver advanced driving and fully autonomous driving solutions to the market, using the technology of NVIDIA.
• Sep-2020: BlackBerry came into an agreement with StradVision, an industry leader in AI-based camera perception technology. Under this agreement, BlackBerry gives a license of its BlackBerry QNX technology to StradVision that includes QNX Software Development Platform (SDP) 7.0 and an AI-based camera perception software tool.
• Jul-2020: Intel collaborated with Ford, an automotive company. This collaboration was focused on developing improved camera-based collision warning, detecting vehicles and pedestrians, and lane-keeping features for its vehicles.
• Jul-2020: Airbiquity came into partnership with YESWAY, a leading Chinese automotive service operator, and integrated solution provider. This partnership added the OTAmatic software and data management solutions of Airbiquity to the YESWAY Automotive Platform. The partnership represented and supported Airbiquity OTAmatic in the Chinese automotive marketplace.
• Jun-2020: NVIDIA came into collaboration with Mercedes-Benz. This collaboration helped the companies to develop the most sophisticated and advanced computing design ever deployed in an automobile.
• Feb-2020: Microsoft collaborated with CDK Global, a leading retail automotive technology company. The collaboration was focused on constructing capabilities dealers and developers can build different solutions and enhanced integration within existing dealership systems.
• Jan-2020: BlackBerry teamed up with Renovo, a Global automotive software company. The collaboration aimed to develop and market a safety-critical data management system for the next generation of connected and autonomous vehicles.

» Acquisition and Mergers:

• May-2019: NXP acquired Marvell’s Wireless Connectivity portfolio. This acquisition allowed the firm to distribute complete, scalable process and connectivity solutions to the customers.
• Mar-2019: Renesas acquired Integrated Device Technology (IDT), a leading supplier of analog mixed-signal products, including sensors, connectivity, and wireless power. This acquisition helped Renesas in delivering a wide range of leading-edge technology and embedded solutions.
• Feb-2019: Bosch acquired LAWA Solutions, a start-up based in Giessen. The acquisition broadened Bosch's product portfolio in the field of networked products and services.
• Sep-2018: NXP took over OmniPHY, a provider of automotive Ethernet subsystem technology. This acquisition helped NXP to deliver the next generation of data to transform solutions to carmakers.
• Aug-2017: Intel acquired Mobileye, a company that develops advanced driver assistance systems. The acquisition aimed to use Mobileye's offerings to create a fast pace of autonomous innovation, industry-leading artificial intelligence for complicated decision-making, and persisting revenue stream opportunities.
• Feb-2017: Renesas took over Intersil Corporation. This acquisition strengthened Renesas’ position as a leading global supplier to deliver advanced embedded systems to customers. It helped Renesas to transform into an industry powerhouse with the most comprehensive set of advanced embedded solutions.

» Product Launches and Product Expansions:

• Nov-2020: NXP introduced the S32K3 microcontroller. The product was designed for automotive body electronics, battery management, and emerging zone controllers. It simplified software development and enhanced package that improved security, functional safety, and low-level drivers.
• Oct-2020: Airbiquity unveiled the OTAmatic Vehicle Configurator. It is a tool for defining and managing connected vehicle software. The tool gave automakers insight into the hardware and software configurations within a vehicle and manages the combinations of electronic control units (ECUs) and software versions of vehicles that meet the government requirements for type certified vehicle systems.
• Jul-2020: Bosch introduced a new category, Cross-Domain Computing Solutions that merged all areas related to automotive electronics and software by 2021. The main task of the new category will control the complexity of electronic systems.
• Apr-2020: BlackBerry introduced the QNX Black Channel communications Technology. This software is used to ensure safe data transformation within their safety-critical systems.
• Jan-2020: NXP launched S32G vehicle network processors. It enables the automotive industry to change to high-performance domain-based vehicle design and reduced complexity of the software and enhanced security and safety.

Scope of the Study

Market Segments Covered in the Report:

By Product

• Application Software
• Middleware
• Operating System

By Application

• Safety System
• Infotainment & Telematics
• Powertrain
• Chassis

By Vehicle Type

• ICE Passenger Car
• ICE Light Commercial Vehicle
• Battery Electric Vehicle
• Plug-In Hybrid Electric Vehicle
• ICE Heavy Commercial Vehicle
• Hybrid Electric Vehicle
• Autonomous Vehicles

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Companies Profiled

• Robert Bosch GmbH
• NVIDIA Corporation
• Renesas Electronics Corporation
• Microsoft Corporation
• Intel Corporation
• Adobe, Inc.
• BlackBerry Limited
• PTC, Inc. (Atego Systems, Inc.)
• NXP Semiconductors N.V.
• Airbiquity, Inc.