- The consumer behaviour in the market is expected to significantly catalyzed by autonomous vehicles by the upsurge of mobility-as-a-service.
- The improvement in manufacturing facilities is expected to pave the approach for the expansion of the automotive software market.
- The surge of semi-autonomous or autonomous vehicle sales infiltration is expected to escalate steadily in the coming period.
The global Automotive Software Market is expected to witness ~20% CAGR during the period, 2018 to 2023. The integration of software has percolated in various domains of society over the years. Software integration in automobiles is a relatively new trend, although it is gaining momentum steadily with consumers demanding software integration to ease or simplify the functioning of their automobiles. The prestige quotient of automobiles has induced increased spending on the purchase of automobiles, with consumers going as far as procuring financing options to buy them.
The improvement in manufacturing facilities, along with investments in the sector of automobiles, is expected to pave the approach for the expansion of the automotive software market. The innovation rate in the market currently is unparalleled and is expected to create a high influx of opportunities in the future. For instance, the presence of technology concepts such as Advanced Driver Assistance Systems (ADAS), digital cockpit technologies, autonomous drive, and vehicle electrification is expected to create a favorable growth surge.
Connectivity: The Spark of Transformation
The inducement provided by the collective demand to work out platform prerequisites is creating a disruptive growth trend in the automotive industry. Changes in vehicle architecture globally are emphasizing the significance of functional safety and security and is projected to uplift the growth momentum of the market. The increasing surge in demand for automotive software is however leading to changes in the hierarchy of command along with that of their core competencies, with companies bringing in experienced candidates to further drive the growth of their portfolios and profits.
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The proof for this can be seen in the recent changes taken by a company, Basemark, which is a Finnish automotive software and services supplier. The hire of a new CEO by the company to take their growth ahead is in the wake of a triple hike in their sales following the strong demand for its self-driving solutions. The surge in company’s sales overlaps with the company’s establishment of a division in Munich, where a group is creating self-driving car software for a top automaker. Furthermore, the effect of powerful software, huge computing power, and cutting-edge sensors is enabling a high degree of innovation. This is expected to send ripples in the industry by ensuring connectivity, efficiency to new mobility, electrification, autonomous driving solutions.
Technology: The Future Growth Tenet
The shift to software-defined vehicles from hardware-defined vehicles is gaining momentum due to the typical software and electronics content per vehicle is speedily increasing. Participation in the automotive technology stack by shifting past features and apps into operating systems is expected to shape market growth. The surge of semi-autonomous or autonomous vehicle sales infiltration is expected to escalate steadily in the coming period. A shift in consumer behaviour is projected to lay the foundation for altering the revenue model and value chain of the industry.
Despite the fact that the automation software market is in the early period of development, market players are expected to gain considerably when the market starts achieving some serious profit levels. Hyundai has recently selected a Canada-based tech company and previous cellphone behemoth BlackBerry to aid in developing its autonomous driving software and advanced driver-assistance systems (ADAS).
Hyundai Autron will utilize BlackBerry’s QNX OS for safety system, already inserted in around 150 million cars that are on roads at present to build an inexpensive automotive and mission-critical systems in a lucrative and secure manner. The utilization of AI and IoT are primed to direct unparalleled alteration across device and vehicle connectivity. Moreover, the integration of automation software in automobiles is anticipated to create a favorable backdrop for the segments previously inaccessible to the market, such as disabled individuals, children, and the elderly, to name a few.
The Cornerstone of Automotive Development: Customers
The consumer behaviour in the market is expected to significantly catalyzed by autonomous vehicles by the upsurge of mobility-as-a-service. Besides, the presence of on-demand rides services by OLA and UBER, for example, is anticipated to offer a substantial demand surge for the development of the automotive software market. The upswing in the global automotive subscription schemes is a great indication of changing business models. Processing all the big automotive data will enable mobility companies to implement new services around predictive maintenance. The establishment of several partnerships that are strategic is expected to define the progress of the market in the forthcoming period.