Automotive Software Market To Reach $66.18 Billion By 2030

December 2024 | Report Format: Electronic (PDF)

Automotive Software Market Growth & Trends

The global automotive software market size is estimated to reach USD 66.18 billion by 2030, registering a CAGR of 15.0% from 2025 to 2030, according to a new report by Grand View Research, Inc. This growth is fueled by several factors, including the widespread adoption of Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies, rising demand for electric vehicles, and the increasing popularity of connected cars and infotainment systems. The need to comply with stringent fuel efficiency and safety regulations plays a crucial role in the market's expansion. The rise of over-the-air (OTA) updates, enabling automakers to deliver new features and bug fixes to vehicles wirelessly, is gaining prominence as the automotive industry shifts toward more software-defined vehicles.

The increasing adoption of connected car services is a significant driver of market growth. These services enable vehicles to communicate with other vehicles, infrastructure, and cloud-based applications. The connected car services offer a more convenient and enjoyable driving experience by providing real-time traffic updates, navigation assistance, and remote vehicle control, such as starting the car, locking or unlocking doors, and checking fuel levels using smartphones. Additionally, these services create new revenue opportunities for automakers and other industry players, further driving the growth of the market.

The escalating adoption of autonomous and semi-autonomous vehicles drives the growth of the automotive software industry. These vehicles heavily depend on complex software for navigation, perception, and planning systems, necessitating substantial investments in development and maintenance. This increasing integration of autonomous driving features amplifies the demand for automotive software. In August 2023, Oxa Autonomy Limited, a UK-based autonomous software developer, partnered with Beep, a U.S.-based provider of autonomous shared mobility solutions. This collaboration allows Oxa Autonomy Limited to enter the US autonomous vehicle market and provide Beep with access to Oxa Autonomy Limited's advanced self-driving software.

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Automotive Software Market Report Highlights

Based on application, the ADAS & safety segment led the market in 2024, accounting for over 20% share of the global revenue. The growth is attributed to the increasing demand for safety features in vehicles, as well as government regulations that mandate the use of certain ADAS technologies
Based on vehicle type, passenger cars led the market in 2024, as passenger cars are the most common type of vehicles on the road, and consumers are increasingly demanding autonomous features in their vehicles
Based on propulsion type, the ICE segment accounted for a sizable share of the global market in 2024, due to the substantial existing ICE vehicle base, rising demand for ADAS and self-driving features, and the cost advantage over EVs in developing and deploying autonomous software
North America dominated the market in 2024, primarily driven by the early adoption of autonomous technologies by major automakers like General Motors, Ford Motor Company, and Tesla.

Automotive Software Market Segmentation

Grand View Research has segmented the global automotive software market report based on application, vehicle type, product, propulsion type, and region:

Automotive Software Application Outlook (Revenue, USD Million, 2017 - 2030)