Global Automotive Software and Electronics Industry Trends In 2023 – Market Study Outlook 2023 to 2033
RELEASE DATE: Feb 2024 Author: Spherical Insights Request Free Sample
Global Automotive Software and Electronics Industry Trends In 2023 – Market Synopsis:
The Global Automotive Software and Electronics Market Trends In 2023 Outlook offers a summary of the global automotive software and electronics market using historical data sets (Shared mobility, electrification of the drivetrain, networked cars, and autonomous driving, preliminary estimates from 2020–2021, 2022, and 2023) and projections for the global automotive software and electronics market for global regions in the years 2024 and 2025. This data-driven research provides users with an industry-wide perspective of new technologies and innovation insights to support business strategic decision-making. Businesses have expedited the mobility of the future, which has a significant impact on consumer preferences, technological uptake, and regulatory frameworks. The market for automotive software and electronics is still being entered by new players, many of whom are valued higher than the leading OEMs. Software and electrification are major areas of investment for automakers and their suppliers.
Global Automotive Software and Electronics Market Insights Forecasts to 2033.
- The Global Automotive Software and Electronics Market Size was Valued at USD 274 Billion in 2023.
- The Market Size is Growing at a CAGR of 5.5% From 2023 to 2033.
- The Worldwide Automotive Software and Electronics Market Size is Expected to Reach USD 469 Billion by 2033.
- North America is Expected to Grow the Fastest during the Forecast period.
Global Automotive Software and Electronics Industry Trends:
- Automotive Software:
A specialized application of tools created specially to expand and improve the overall functions of cars and other vehicles is known as automotive software or auto software. These consist of marketing, invoicing, client relationship management, inventory management, and more. Car dealerships can benefit from software solutions that are specially designed to meet their particular needs. These solutions can boost customer happiness, increase profitability, and improve productivity. They offer cutting-edge technologies for operations management, like as ERP and CRM systems for cars.
- Automotive Electronics:
Electronic systems found in cars, such as those for engine control, ignition, radios, car computers, telematics, and in-car entertainment systems, are referred to as automotive electronics. In addition to internal combustion-powered equipment like forklifts, tractors, and excavators, trucks, motorbikes, and off-road vehicles also have ignition, engine, and transmission electronics. Both electric and hybrid cars have similar components for controlling pertinent electrical systems.
Automotive software and electronics are growing rapidly, which facilitates these disruptions. The global automotive software and electronics industry size is anticipated to grow at a compound annual growth rate (CAGR) of 5.5% from 2023 to 2033, reaching USD 469 billion.
Sales of vehicles equipped with advanced driver assistance systems (ADAS) and autonomous driving capabilities will rise rapidly due to consumer demand
The goal of advanced driver assistance systems is to lessen human error-related car accidents. It can function actively, halting and/or guiding the vehicle, or passively, alerting the driver to an impending collision. By warning the driver to adjust the steering wheel and automatically applying the emergency brake, ADAS seeks to save lives. Driver assistance and autonomous driving (AD) will become more common due to several factors, including evolving consumer preferences, safety-focused regulations that permit more autonomous driving, and technological advancements like the development of high-end computers, sophisticated software, or light detection and ranging (LiDAR) sensors. For instance, through 2025, we project a robust yearly growth of up to 29% for Level 2 advanced driver assistance systems (ADAS), primarily due to rules requiring these sensors to be included in new cars. We project that 12% of cars will have Levels 3 and 4 AD capabilities by 2033, up from just 1.5% in 2025.
Through 2033, the automotive software industry is projected to expand at a rate of 15% annually.
The automotive software market is expected to grow at a compound annual growth rate (CAGR) of more than 15%, from USD 35.8 billion in 2023 to almost USD 144.8 billion in 2033. By 2033, over half of the software industry will consist of ADAS and AD software, which will be largely responsible for this rise. Another factor is timing: several years will pass before higher-level autonomous driving (urban AD) software is introduced to the market.
By 2033, the market for linked services, entertainment, connection, security, and other related factors will develop at a rate that keeps up with the whole software market, making it the second largest. The large percentage of connected cars and the need for features like in-car payments, location-based services, and music streaming are the main drivers of this rise. The market for body and energy software is anticipated to expand at a CAGR (compound annual growth rate) of 13% because to the increasing amount of premium comfort facilities in lower vehicle classifications and the tougher energy management standards for EVs.
Infotainment and autonomous cars will be the first to use domain control units.
The market for ECUs and DCUs is expected to reach USD 147 billion by 2033, primarily due to the expansion of DCUs. Less than 0.9% of the ECU/DCU market was composed of DCUs in 2023. By 2025, this percentage should rise to 19%, and by 2033, it should reach 46%. However, the consolidation of ECUs into DCUs and declining unit costs in particular domain types might restrain the growth of the ECU/DCU market. Demand for more sophisticated and potent DCUs will continue to outpace that of conventional ECUs due to the centralization of the E/E architecture. The entertainment and AD domains will have the highest DCU adoption rates; by 2033, both are predicted to surpass 73% adoption.
Autonomous driving (AD) and advanced driver assistance systems (ADAS) will propel the growth of the automotive sensor industry as a whole.
The need for ADAS and AD sensors, particularly for LiDAR, cameras, and radars, is projected to be the main driver of the automotive sensor market's growth, which is projected to reach USD 49 billion in 2033 from USD 26 billion in 2023. During this time, traditional powertrain sensors will marginally decrease in line with the ICE vehicle market. Since ICE vehicles have more sensors per vehicle than electric drives, the growth of new sensors for electric drives will not be able to balance the declining demand for sensors in ICE vehicles. The market for body sensors is expanding as a result of both new and increased demand for comfort features, particularly in smaller vehicle segments and from nonpremium OEMs.
Automotive firms throughout the value chain need to move swiftly and decisively to take advantage of the software-defined vehicle's promise now that it has become a reality. Automotive businesses can use various strategic and operational measures to adjust to the future environment, now that the market dynamics are more clearly anticipated.
Based on their resources, skills, and positions in the industry, automotive OEMs need to establish and hone their strategic perspectives. OEMs might want to consider collaborating with other OEMs to generate economies of scale, repurpose software across platforms, and streamline the E/E architecture in response to rising per-vehicle hardware and software expenses. By attracting and nurturing the best personnel and expanding their expertise throughout the entire technology stack, automakers can also improve their software development capabilities (including middleware, the OS, the hardware's interface layer, and cloud computing). Establishing an interconnected development organization and dismantling organizational silos can increase productivity and shorten time to market.
Redefining their software and E/E strategy will be necessary for Tier-one suppliers to adapt to OEMs' changing sourcing decisions and capabilities. They can collaborate to define the needs and design the future E/E architecture by presenting themselves to OEMs as thought partners. Investing in software development and integration fields can give suppliers a big edge and increase their share of the growth. Like OEMs, tier-one suppliers must dismantle domain silos and promote cross-functional cooperation to maintain their competitiveness and adapt to the shifting needs of their clientele.
Key Players of Automotive Software and Electronics Industry:
- Blackberry
- Wind River
- Microsoft
- Continental AG
- DENSO Corporation
- MontaVista Software
- Mentor Graphics
- Infineon Technologies AG
- Robert Bosch GmbH
- Valeo Inc.
- Visteon Corporation
- Xilinx, Inc.
- ZF Friedrichshafen AG
- ATEGO SYSTEMS INC.
- Autonet,
- ACCESS, Broadcom
- Green Hills Software
- Airbiquity
- Hella GmbH & Co. Kgaa
- Hitachi Automotive Systems, Ltd.
- Texas Instruments
- Adobe Systems (Adobe).
- PTC Inc.
- NXP Semiconductors
- Renesas Electronics
- Dassault Systems
- Intellias Ltd.
Recent Developments in Automotive Software and Electronics Industry:
- In September 2023, At IAA Mobility 2023, Robert Bosch Gmbh unveiled the Vehicle Dynamics Control 2.0. By interfering with the electric powertrain, electric steering system, and braking system, this software will improve vehicle handling and safety and reduce countersteering and stopping distance.
- In September 2023, Together, NXP Semiconductors and Elektrobit, a top supplier of Linux and AUTOSAR software, developed software for the next generation of vehicle battery management systems. The software will improve the use of NXP's high-voltage BMS reference design (HVBMS RD) and lower the entry-level cost of battery management system (BMS) development.
- In May 2023, With the release of QNX Software Development Platform (SDP)8.0, BlackBerry Limited allows IoT system developers and automakers to produce more powerful products at reduced costs while upholding the unmatched standards of safety, security, and dependability of QNX technology.
- In March 2023, Infineon Technologies AG deepened its inventive operations to create higher density and more efficient solutions for the expanding electric car market by expanding its relationship with Delta Electronics, Inc., an energy and power management firm. In addition to a variety of components such as discrete and modulus microcontrollers, low- and high-voltage microcontrollers, and on-board chargers, the alliance would offer EV drivetrain applications.
- In January 2023, Smart Camera 6, a contemporary camera for self-driving cars and safety systems, was introduced by ZF Friedrichshafen AG. With the aid of Image Processing Module systems, Smart Camera 6's primary goal is to meet the need for 3D surround view and interior monitoring systems.
- In January 2023, to provide a solution that combines the convolutional neural network (CNN) IP from Motovis and the Zynq system-on-chip (SoC), Xilinx, Inc. worked with an embedded AI autonomous driving provider, Motovis, to create the Xilinx Automotive (XA) platform for forward camera systems' vehicle control and perception in the automotive industry. The solution's objective is to improve customers through reliable platforms and quick development.
- In October 2022, A multi-camera 3D sensing prototype and a 360-degree stereo vision system were created by Hitachi Automotive Systems, Ltd. for driverless vehicles that are driven on public roads. The prototype's excellent accuracy, economic benefit, and high resolution are all combined into a single in-car camera system.
- In February 2022, to develop and provide its customers with next-generation automated driving technologies, as well as AI-enabled services and experiences, Jaguar Land Rover and NVIDIA Corporation have announced a multi-year strategic relationship. All new Land Rover and Jaguar automobiles will be constructed on the NVIDIA DRIVE software-defined platform beginning in 2025, offering a comprehensive range of active safety, automated driving, parking systems, and driver assistance features.
Conclusion
In conclusion, technical innovation and the need for sustainability are driving a dynamic state of change in the automotive software and electronics market. Executives in the business world need to be flexible, visionary, and willing to take on new challenges and opportunities. Based on the most recent monthly advancements, this sculpture serves as a compass pointing towards a future where the most innovative and adaptive people will thrive. To navigate the complexity of the automotive software and electronics industry and take advantage of opportunities, one must possess knowledge. Use the platform we offer to stay up to date on the latest advancements and breakthroughs in the automotive software and electronics industry, so that your firm may stay ahead of the curve. By giving you a concise but comprehensive summary of the most recent developments and trends, the Discovery Platform assists you in finding lucrative joint venture prospects and making educated investment decisions.
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