According to the latest Valuated Report, the software market in the automotive sector is expected to touch $18,600 million by the end of 2025, with a CAGR of 10.1 per cent during 2019-2025. During 2018, the same was valued at $8,660 million. As per the report, advanced technologies such as Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) will increase the usage of electronic products in the automotive sector as first reported by the Economic Times.
Off late, with the expansion of various technologies such as advanced driver assistance systems(ADAS) and advancements in the infotainment systems of new vehicles being launched, there has been a huge demand for SAS. SAS is also improving the vehicle's technical advances providing better driving experiences and elevating passengers safety. This is projected to grow and give a boom to this sector in the coming years' world over.
"The increasing number of advanced services offered in connected cars is increasing the growth of Automotive Software Market size. These services allow drivers, carriers, shippers, fleet operators, dealers, service stations, insurance companies, and other authorities to connect with each other in real-time through cloud platforms," the report said.
Consumers are preferring more features that are software-centric in their cars which bring reality closer than ever claims the report. Embedded computing in the auto sector has become a core area for advancement and this is said to drive the global automotive software market, the report said.
The report also highlights that this segment will be highly regulated and looked in to by the government relating to vehicle safety. The collaboration between the automotive software developers and the government is also expected to result in the growth of this market.
"The rapid adoption of IoT sensors in the automotive industry and rising internet penetration will help in viewing objects and obstacles & other vehicles on the road to avoid collision and keep a safe distance by either alerting the driver or automatically applying the brake," the Valuates report added.
The report also suggests advanced technologies such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) increase the use of electronic products in automotive software. "Asia-Pacific is the most affected country, as China is the largest producer, and because of the pandemic, the entire manufacturing cycle has halted," the report pointed out.
But there is a silver lining as the market is expected to stabilize by 2021. The report concluded that consumers are preferring cars with high-end technology.