Automotive Software Market Demand, Trends and Growth Forecast 2034
Automotive Software Market Growth, Size, Trends Analysis - By Product, By Vehicle Type, By Propulsion Type, By Application - Regional Outlook, Competitive Strategies and Segment Forecast to 2034
| Published: Jul-2025 | Report ID: AMIN2535 | Pages: 1 - 231 | Formats*: |
| Category : Automotive & Transportation | |||
Automotive Software Market Introduction and Overview
According to SPER Market Research, the Global Automotive Software Market is estimated to reach USD 118.57 billion by 2034 with a CAGR of 15.15%.
The report includes an in-depth analysis of the Global Automotive Software Market, including market size and trends, product mix, Applications, and supplier analysis. The global automotive software market was valued at approximately USD 28.93 billion in 2024 and is anticipated to experience a compound annual growth rate (CAGR) of 15.15% from 2025 to 2034. The rise of connected vehicles and an increasing emphasis on vehicle autonomy are crucial factors driving market growth. Additionally, the incorporation of various software applications into automotive systems, including infotainment and powertrain management systems, further contributes to the market's expansion.
By Product Insights
In 2024, the software application segment dominated the automotive software market. These applications are vital for vehicle connectivity and telematics, providing services like remote diagnostics and real-time traffic information. Modern vehicles, with complex integrations of Electronic Control Units (ECUs) and sensors, rely on software applications for managing features such as infotainment, navigation, and ADAS. The operating system (OS) segment is forecasted to experience the fastest growth rate as automotive OS is crucial for managing various vehicle functions and ensuring reliability in safety-critical tasks, including autonomous driving.
By Vehicle Type Insights
In 2024, passenger cars made up the largest share of the market. These cars typically include advanced software services, infotainment systems, and driver assistance technologies, leading to greater demand in mature automotive markets. Consumers are increasingly looking for vehicles equipped with ADAS for enhanced safety and convenience. The commercial vehicle sector is expected to see the highest growth rate during the forecast period due to stringent regulations regarding safety, emissions, and driver hours. Software solutions assist commercial operators in compliance tracking, reducing fuel use, maintenance expenses, and downtime, thereby promoting the adoption of such solutions.
By Propulsion Type Insights
The internal combustion engine (ICE) segment led the market in 2024, as many current vehicles still rely on ICE technology for critical functions. Despite the industry moving towards electrification, numerous developing economies continue to depend on ICE vehicles. Conversely, the electric vehicle (EV) segment is projected to grow rapidly due to rising environmental awareness and advancements in battery technology, making EVs more viable and attractive to a broader audience.
By Application Insights
The ADAS and safety segment led the global automotive software industry in 2024, capturing the largest revenue share. There is a rising emphasis on safety from both customers and regulators, driving the demand for safer vehicles. ADAS technologies, which include features such as lane-keeping assistance, adaptive cruise control, and collision avoidance, are crucial for enhancing vehicle safety and are becoming integral in autonomous vehicles. Connectivity is anticipated to grow the fastest from 2025 to 2034, as it plays an essential role in various electronic devices, including cars. Connectivity services help automotive dealers, fleet operators, and drivers improve resource use, enhance safety, automate driving functions, and collect valuable data regarding vehicle performance and road conditions.
Regional Insights
In 2024, the North American automotive software market led the global sector and is expected to witness substantial growth at a significant CAGR throughout the forecast period. This region boasts a well-established and robust automotive industry, characterized by a multitude of automakers, suppliers, and technology firms. The strength of this industry fosters innovation and the creation of software solutions for vehicles. Moreover, North America represents a key market for electric vehicles (EVs) and autonomous vehicles, both of which heavily depend on software for powertrain control, battery management, autonomous driving capabilities, and connectivity, thereby driving market growth in the region.
Market Competitive Landscape
Prominent companies within the automotive software sector include Robert Bosch GmbH and Continental AG, among others. These two firms are pivotal in the automotive software landscape, focusing on the development of advanced driver assistance systems (ADAS), autonomous driving technologies, and connected vehicle software. Robert Bosch GmbH provides one of the most extensive automotive software portfolios, encompassing a wide array of solutions from powertrain management to telematics, safety, and cybersecurity. Its diverse offerings cater to a broad spectrum of automotive requirements, establishing it as a comprehensive resource for original equipment manufacturers (OEMs).
Recent Developments:
- In December 2024, Accenture aimed to enhance its software capabilities by acquiring AOX, a German software subsidiary dedicated to supporting automotive manufacturers and suppliers in embedded software under the Accenture umbrella. This initiative is a response to the automotive sector's realization of the extensive challenges associated with Embedded Software Defined Vehicles.
- In November 2024, Arm and Panasonic forged a partnership with the objective of developing a specific automotive framework standard centered on the Software-Defined Vehicle Architecture. This collaboration promotes the expansion of the VirtIO Framework beyond device and operating system virtualization, facilitating rapid decoupling of automotive software from hardware to ensure improved TTM throughout the industry.
Scope of the report:
| Report Metric | Details |
| Market size available for years | 2021-2034 |
| Base year considered | 2024 |
| Forecast period | 2025-2034 |
| Segments covered | By Product, By Vehicle Type, By Propulsion Type, By Application |
| Regions covered | North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa |
| Companies Covered | Amazon Web Services, Inc, Aptiv, BlackBerry Limited, Continental AG, Cox Automotive, Dassault Systemes, NVIDIA Corporation, Robert Bosch GmbH, Siemens, Sonatus, Inc. |
Key Topics Covered in the Report
- Global Automotive Software Market Size (FY’2021-FY’2034)
- Overview of Global Automotive Software Market
- Segmentation of Global Automotive Software Market By Product (OS, Middleware, Software Application)
- Segmentation of Global Automotive Software Market By Vehicle Type (Passenger Vehicles, Commercial Vehicles)
- Segmentation of Global Automotive Software Market By Propulsion Type (ICE, EV)
- Segmentation of Global Automotive Software Market By Application (ADAS & Safety, Infotainment, Navigation, Autonomous Driving, Engine & Transmission, Smart Diagnostics & Predictive Maintenance, In-car Voice Assistance, Connectivity, Others)
- Statistical Snap of Global Automotive Software Market
- Expansion Analysis of Global Automotive Software Market
- Problems and Obstacles in Global Automotive Software Market
- Competitive Landscape in the Global Automotive Software Market
- Details on Current Investment in Global Automotive Software Market
- Competitive Analysis of Global Automotive Software Market
- Prominent Players in the Global Automotive Software Market
- SWOT Analysis of Global Automotive Software Market
- Global Automotive Software Market Future Outlook and Projections (FY’2025-FY’2034)
- Recommendations from Analyst
1. Introduction
- 1.1. Scope of the report
- 1.2. Market segment analysis
2. Research Methodology
- 2.1. Research data source
- 2.1.1. Secondary Data
- 2.1.2. Primary Data
- 2.1.3. SPERs internal database
- 2.1.4. Premium insight from KOLs
- 2.2. Market size estimation
- 2.2.1. Top-down and Bottom-up approach
- 2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
- 4.1. Driver, Restraint, Opportunity and Challenges analysis
- 4.1.1. Drivers
- 4.1.2. Restraints
- 4.1.3. Opportunities
- 4.1.4. Challenges
5. Market variable and outlook
- 5.1. SWOT Analysis
- 5.1.1. Strengths
- 5.1.2. Weaknesses
- 5.1.3. Opportunities
- 5.1.4. Threats
- 5.2. PESTEL Analysis
- 5.2.1. Political Landscape
- 5.2.2. Economic Landscape
- 5.2.3. Social Landscape
- 5.2.4. Technological Landscape
- 5.2.5. Environmental Landscape
- 5.2.6. Legal Landscape
- 5.3. PORTERs Five Forces
- 5.3.1. Bargaining power of suppliers
- 5.3.2. Bargaining power of buyers
- 5.3.3. Threat of Substitute
- 5.3.4. Threat of new entrant
- 5.3.5. Competitive rivalry
- 5.4. Heat Map Analysis
6. Competitive Landscape
- 6.1. Global Automotive Software Market Manufacturing Base Distribution, Sales Area, Product Type
- 6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in Global Automotive Software Market
7. Global Automotive Software Market, By Product (USD Million) 2021-2034
- 7.1. OS
- 7.2. Middleware
- 7.3. Software Application
8. Global Automotive Software Market, By Vehicle Type (USD Million) 2021-2034
- 8.1. Passenger Vehicles
- 8.2. Commercial Vehicles
9. Global Automotive Software Market, By Propulsion Type (USD Million) 2021-2034
- 9.1. ICE
- 9.2. EV
10. Global Automotive Software Market, By Application (USD Million) 2021-2034
- 10.1. ADAS & Safety
- 10.2. Infotainment
- 10.3. Navigation
- 10.4. Autonomous Driving
- 10.5. Engine & Transmission
- 10.6. Smart Diagnostics & Predictive Maintenance
- 10.7. In-car Voice Assistance
- 10.8. Connectivity
- 10.9. Others
11. Global Automotive Software Market, (USD Million) 2021-2034
- 11.1. Global Automotive Software Market Size and Market Share
12. Global Automotive Software Market, By Region, (USD Million) 2021-2034
- 12.1. Asia-Pacific
- 12.1.1. Australia
- 12.1.2. China
- 12.1.3. India
- 12.1.4. Japan
- 12.1.5. South Korea
- 12.1.6. Rest of Asia-Pacific
- 12.2. Europe
- 12.2.1. France
- 12.2.2. Germany
- 12.2.3. Italy
- 12.2.4. Spain
- 12.2.5. United Kingdom
- 12.2.6. Rest of Europe
- 12.3. Middle East and Africa
- 12.3.1. Kingdom of Saudi Arabia
- 12.3.2. United Arab Emirates
- 12.3.3. Qatar
- 12.3.4. South Africa
- 12.3.5. Egypt
- 12.3.6. Morocco
- 12.3.7. Nigeria
- 12.3.8. Rest of Middle-East and Africa
- 12.4. North America
- 12.4.1. Canada
- 12.4.2. Mexico
- 12.4.3. United States
- 12.5. Latin America
- 12.5.1. Argentina
- 12.5.2. Brazil
- 12.5.3. Rest of Latin America
13. Company Profile
- 13.1. Amazon Web Services, Inc
- 13.1.1. Company details
- 13.1.2. Financial outlook
- 13.1.3. Product summary
- 13.1.4. Recent developments
- 13.2. Aptiv
- 13.2.1. Company details
- 13.2.2. Financial outlook
- 13.2.3. Product summary
- 13.2.4. Recent developments
- 13.3. BlackBerry Limited
- 13.3.1. Company details
- 13.3.2. Financial outlook
- 13.3.3. Product summary
- 13.3.4. Recent developments
- 13.4. Continental AG
- 13.4.1. Company details
- 13.4.2. Financial outlook
- 13.4.3. Product summary
- 13.4.4. Recent developments
- 13.5. Cox Automotive
- 13.5.1. Company details
- 13.5.2. Financial outlook
- 13.5.3. Product summary
- 13.5.4. Recent developments
- 13.6. Dassault Systemes
- 13.6.1. Company details
- 13.6.2. Financial outlook
- 13.6.3. Product summary
- 13.6.4. Recent developments
- 13.7. NVIDIA Corporation
- 13.7.1. Company details
- 13.7.2. Financial outlook
- 13.7.3. Product summary
- 13.7.4. Recent developments
- 13.8. Robert Bosch GmbH
- 13.8.1. Company details
- 13.8.2. Financial outlook
- 13.8.3. Product summary
- 13.8.4. Recent developments
- 13.9. Siemens
- 13.9.1. Company details
- 13.9.2. Financial outlook
- 13.9.3. Product summary
- 13.9.4. Recent developments
- 13.10. Sonatus, Inc
- 13.10.1. Company details
- 13.10.2. Financial outlook
- 13.10.3. Product summary
- 13.11. Others
14. Conclusion
15. List of Abbreviations
16. Reference Links
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
Frequently Asked Questions About This Report
Automotive Software Market is projected to reach USD 118.57 billion by 2034, growing at a CAGR of 15.15% during the forecast period.
Automotive Software Market grew in Market size from 2025. The Market is expected to reach USD 118.57 billion by 2034, at a CAGR of 15.15% during the forecast period.
What is the anticipated CAGR of the Automotive Software Market?
You can get the sample pages by clicking the link - Click Here
Automotive Software Market size is USD 118.57 billion from 2025 to 2034.
Automotive Software Market is covered By Product, By Vehicle Type, By Propulsion Type, By Application
North America is anticipated to have the highest Market share in the Automotive Software Market.
Amazon Web Services, Inc, Aptiv, BlackBerry Limited, Continental AG, Cox Automotive, Dassault Systemes, NVIDIA Corporation, Robert Bosch GmbH, Siemens, Sonatus, Inc.
The report includes an in-depth analysis of the Global Automotive Software Market, including market size and trends, product mix, Applications, and supplier analysis
PLACE AN ORDER
Year End Discount
Sample Report
Pre-Purchase Inquiry
NEED CUSTOMIZATION?
Request CustomizationCALL OR EMAIL US
100% Secure Payment
Related Reports
Have a glance of the Report
Our Global Clients
Our data-driven insights have influenced the strategy of 200+ reputed companies across the globe.
