In the fast-paced world of technology, the automotive software industry plays a crucial role in shaping the future of transportation. Understanding the latest statistics and trends in this dynamic sector is essential for industry professionals, businesses, and consumers alike. In this blog post, we will delve into the fascinating world of automotive software industry statistics, shedding light on key insights and developments that are driving innovation in the automotive sector.
The Latest Automotive Software Industry Statistics Explained
The global automotive software market size was valued at USD 24.61 billion in 2020.
The statistic indicates that the overall market size for automotive software worldwide amounted to USD 24.61 billion in the year 2020. This figure encompasses all software solutions and applications used in the automotive industry, including those related to vehicle performance, driver assistance, connectivity, infotainment, and other technological advancements. The value reflects the significant role that software plays in modern vehicles, transforming them into advanced and interconnected systems. The growth of the automotive software market is driven by increasing consumer demand for smart and connected vehicles, as well as the innovation and development of new software technologies by automotive manufacturers and tech companies.
This market is projected to expand at a CAGR of 10.5% from 2021 to 2028.
This statistic indicates that the market in question is expected to grow steadily over the specified time period, with a Compound Annual Growth Rate (CAGR) of 10.5%. CAGR is a measure used to represent the mean annual growth rate of an investment or market over a specified period of time, assuming the growth happens steadily. In this case, a CAGR of 10.5% means that the market is projected to increase by an average of 10.5% each year from 2021 to 2028. This suggests a positive and consistent growth trajectory for the market, providing valuable insights for stakeholders and investors looking to understand the market’s potential future performance.
The safety systems segment held the largest share, accounting for over 34.0% share of the global revenue in 2020.
In 2020, the safety systems segment was the dominant sector within the industry, holding the largest portion of the global revenue at over 34.0%. This statistic suggests that there was a significant demand for safety systems, such as airbags, seat belts, anti-lock braking systems, and other technologies designed to enhance the safety of vehicles. The high market share indicates that consumers and manufacturers prioritized safety features in vehicles, likely driven by increasing awareness of road safety and regulatory requirements. The strong performance of the safety systems segment underscores its importance in the automotive industry and highlights its role in shaping market trends and influencing consumer preferences.
North America accounted for the largest share of over 35.0% in 2020 in the global automotive software market.
The statistic indicates that in 2020, North America held the highest proportion of market share, representing over 35.0% of the global automotive software market. This suggests that North America was a significant player in the automotive software industry compared to other regions worldwide during that year. Factors such as technological advancements, strong presence of key industry players, and favorable market conditions in North America likely contributed to its leading position in the market share. It highlights the region’s importance in the automotive software market and signifies a strong presence and growth potential for automotive software companies operating in North America.
Autonomous vehicles are projected to amount to approximately 54 million units globally by 2030.
The statistic indicates that there is a projected rapid increase in the number of autonomous vehicles worldwide, with the estimated total reaching about 54 million units by 2030. This forecast suggests a significant growth in the adoption and deployment of autonomous vehicles over the next decade. The surge in the popularity of autonomous vehicles can be attributed to advancements in technology, increased consumer acceptance, and potential benefits such as improved road safety, reduced traffic congestion, and enhanced transportation efficiency. As this trend continues, it is likely to have far-reaching implications for various industries, urban planning, and transportation systems globally.
Sensor data processing will be a key application segment with a high CAGR of 11.5% from 2021 to 2028.
This statistic indicates that the processing of sensor data is expected to be a significant area of growth in terms of revenue or usage, with a Compound Annual Growth Rate (CAGR) of 11.5% projected between 2021 and 2028. As sensor technology continues to advance and become more prevalent in various industries such as healthcare, automotive, and manufacturing, the demand for processing this data efficiently and effectively is expected to increase rapidly. Businesses and organizations are likely to invest in sensor data processing technologies to extract valuable insights, improve decision-making processes, and enhance overall operational efficiency, driving the high growth rate predicted in this application segment over the specified time period.
The automotive software for EVs is expected to reach a market size of 4.72 billion USD by 2025.
The statistic indicates that the market for automotive software designed for Electric Vehicles (EVs) is projected to grow significantly and reach a total value of 4.72 billion USD by the year 2025. This growth is likely driven by the increasing popularity and adoption of EVs globally, leading to a greater demand for software solutions that can enhance the performance, efficiency, and overall user experience of electric vehicles. The substantial market size forecast suggests that there is substantial opportunity for companies operating in the automotive software sector to capitalize on the growing EV market and develop innovative solutions to meet the evolving needs of consumers and manufacturers in the electric vehicle industry.
Asia Pacific automotive software market is expected to register a CAGR of 12.6% from 2021 to 2028.
This statistic indicates that the Asia Pacific automotive software market is projected to experience a Compound Annual Growth Rate (CAGR) of 12.6% from the year 2021 to 2028. This means that the market’s value is expected to increase by an average of 12.6% annually during this period. A high CAGR suggests that the market for automotive software in the Asia Pacific region is likely to grow significantly over the specified time frame, driven by factors such as technological advancements, increasing adoption of connected cars, and the overall growth of the automotive industry in the region.
Increasing automotive software complexity is giving rise to automotive software recalls. There was approximately a six-fold increase from 2011 to 2019.
The statistic indicates that there has been a significant rise in automotive software recalls due to the increasing complexity of software in vehicles. Specifically, the data shows that the number of recalls related to automotive software increased six-fold from 2011 to 2019. This trend suggests that as vehicles become more reliant on software for various functions such as safety features, entertainment systems, and autonomous driving capabilities, there is a greater risk of software-related issues emerging. The substantial increase in recalls over the eight-year period underscores the importance of thorough testing, quality control, and monitoring of automotive software to ensure the safety and reliability of vehicles on the road.
By 2030, electronics and software will account for 50% of the cost of a car, up from about 30% in 2020.
This statistic indicates a significant increase in the portion of a car’s cost that will be attributed to electronics and software by the year 2030 compared to 2020. The projected rise from 30% to 50% suggests a growing reliance on advanced technology within the automotive industry. This trend likely reflects the increasing integration of digital features such as infotainment systems, autonomous driving capabilities, and connectivity solutions in modern vehicles. The shift underscores the key role that electronics and software are playing in shaping the future of automotive design and functionality, highlighting the importance of innovation in this sector to meet evolving consumer demands and regulatory standards.
There will be a global revenue opportunity of $5 billion from automotive software by the year 2025.
The statistic “There will be a global revenue opportunity of $5 billion from automotive software by the year 2025” suggests a significant financial opportunity within the automotive software industry. This forecasted revenue represents the potential earnings that can be generated from the development, sale, and implementation of software solutions specifically tailored for the automotive sector. As technology continues to advance, automakers are increasingly incorporating software-driven features and services into their vehicles, creating a growing market for innovative software solutions. The projected revenue figure of $5 billion by the year 2025 indicates the expected scale of this market opportunity, signaling promising prospects for companies operating in the automotive software space.
Autonomous cars will make up 25% of the global car market by 2030.
This statistic suggests that by the year 2030, autonomous cars are expected to constitute a significant portion of the global car market, accounting for a quarter (25%) of all vehicles on the road. This prediction indicates a substantial shift towards autonomous vehicle technology in the coming decade, with advancements in self-driving capabilities and increasing consumer acceptance driving the growth of this market segment. Factors such as improved safety features, convenience, and potential cost savings associated with autonomous cars may contribute to their increased adoption and market penetration over the forecast period, positioning them as a prominent player in the automotive industry.
Approximately 40% of customers are willing to switch car brands for better connected services.
The statistic stating that approximately 40% of customers are willing to switch car brands for better connected services suggests that a significant portion of the market values technology and connectivity features in their vehicles enough to consider changing brands. This indicates a growing trend where consumers prioritize advanced digital capabilities, such as smartphone integration, navigation systems, and remote vehicle monitoring, when making purchasing decisions. Automotive manufacturers and dealerships should take note of this trend and prioritize investing in and marketing these connected services to cater to the evolving preferences of the customer base and remain competitive in the ever-changing automotive industry.
By 2030, profit pools from data-enabled services could contribute to about $1.5 trillion in the auto industry.
The statistic ‘By 2030, profit pools from data-enabled services could contribute to about $1.5 trillion in the auto industry’ suggests that the emergence and growth of data-enabled services within the automotive sector is expected to significantly impact revenue generation. This projection indicates a shift towards leveraging data analytics, connected technologies, and digital platforms to innovate and offer new services to customers. The potential $1.5 trillion in profit pools signifies the increasingly important role that information and technology will play in driving business opportunities, enhancing operational efficiencies, and creating value within the auto industry over the next decade. This statistic underscores the need for companies to develop data strategies, invest in digital capabilities, and adapt their business models to capitalize on the opportunities presented by the data-driven evolution of the sector.
The adoption of ADAS in vehicles is expected to grow at a CAGR of 10.44% from 2021 to 2026.
The statistic indicates that the adoption of Advanced Driver Assistance Systems (ADAS) in vehicles is projected to increase at a compound annual growth rate (CAGR) of 10.44% from 2021 to 2026. This means that the use of ADAS technologies, such as automatic emergency braking, lane departure warning, and adaptive cruise control, is anticipated to expand steadily over the specified period. The CAGR of 10.44% suggests a consistent growth rate over the five-year period, implying a significant uptake of ADAS features in the automotive industry. This trend could be attributed to advancements in technology, increased focus on vehicle safety, regulatory initiatives, and consumer demand for enhanced driving assistance systems.
The powertrain and chassis system is projected to account for a significant share of around 32% by 2027.
The statement indicates that, based on projections, the powertrain and chassis system is expected to constitute a considerable portion of the overall market, amounting to approximately 32% by the year 2027. This suggests that this specific sector of the automotive industry is anticipated to play a vital role in the market landscape and is predicted to experience growth and prominence in the near future. Such a high projected share highlights the significance and potential impact of advancements, developments, and investments in powertrain and chassis systems within the automotive sector, signifying a key area of focus for industry stakeholders and investors.
Geographically, Europe’s automotive software market is expected to have a 9.4% CAGR over the forecast period of 2021-2026.
This statistic indicates that Europe’s automotive software market is projected to experience a Compound Annual Growth Rate (CAGR) of 9.4% during the period from 2021 to 2026. A CAGR of 9.4% implies that the market is anticipated to grow at a steady annual rate over the forecast period. This growth rate suggests a positive outlook for the automotive software industry within Europe, with factors such as technological advancements, increasing demand for connected vehicles, and focus on automation likely to be driving forces behind this growth. The projected CAGR serves as a valuable metric for investors, businesses, and policymakers to understand the potential growth trajectory of the automotive software market in Europe over the next five years.
The operating systems sub-segment is projected to reach $10,717 million by 2025, growing at a CAGR of 20.8%.
This statistic means that the revenue generated by the operating systems sub-segment is expected to increase to $10,717 million by the year 2025. The growth is projected to be at a compound annual growth rate (CAGR) of 20.8%. This indicates a significant and steady increase in revenue for operating systems over the forecast period. The high CAGR suggests a strong market demand and potential for profitability within this sub-segment, making it an attractive area for investment or strategic focus for businesses operating within the technology industry.
The passenger cars segment is expected to grow at the highest CAGR of 21.1% during the forecast period.
This statistic indicates that the passenger cars segment is projected to experience the highest Compound Annual Growth Rate (CAGR) of 21.1% during the forecast period. This suggests a rapid and significant increase in the demand, production, and sales of passenger cars compared to other segments within the industry. The high CAGR reflects a positive outlook for the passenger car market, indicating potential opportunities for manufacturers, suppliers, and other stakeholders operating within this segment. Factors such as evolving consumer preferences, advancements in technology, improving economic conditions, and changing regulations may contribute to driving this growth in the passenger cars segment during the specified forecast period.
The global market for automotive software is dominated by key players like Bosch, NXP, Renesas, BlackBerry, Nvidia, Airbiquity with a combined market share of more than 65%.
The statistic indicates that within the global market for automotive software, a handful of key players, including Bosch, NXP, Renesas, BlackBerry, Nvidia, and Airbiquity, hold significant market power, collectively accounting for more than 65% of the market share. This dominance suggests that these companies have established themselves as major industry leaders within the automotive software sector, potentially influencing market dynamics and setting industry standards. Their strong presence may also indicate high barriers to entry for smaller competitors looking to enter the market, as the key players appear to have a stronghold on a significant portion of the market. In light of this concentration of market share, the actions and strategies of these key players are likely to have a substantial impact on the overall performance and direction of the global automotive software market.
References
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6. – https://www.www.marketsandmarkets.com
