Automotive Electronics and Software Market Size, Share, Trends, Growth 2032

Automotive Electronics and Software Industry Prospective:

The global automotive electronics and software market size was evaluated at $280 billion in 2023 and is slated to hit $490 billion by the end of 2032 with a CAGR of nearly 6.1% between 2024 and 2032.

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Automotive Electronics and Software Market: Overview

Swift breakthroughs in automotive electronics and software systems have proliferated the expansion of the automotive sector in recent years.

Moreover, the escalating demand for autonomous cars & electric mobility has steered the demand for automotive electronics & software. Key parts of automotive electronics & software include embedded systems, software, and sensors.

Key Insights

• As per the analysis shared by our research analyst, the global automotive electronics and software market is projected to expand annually at the annual growth rate of around 6.1% over the forecast timespan (2024-2032)
• In terms of revenue, the global automotive electronics and software market size was evaluated at nearly $280 billion in 2023 and is expected to reach $490 billion by 2032.
• The global automotive electronics and software market is anticipated to grow rapidly over the forecast timeline, owing to an increase in the use of electric vehicles and breakthroughs in autonomous driving systems.
• In terms of component, the software segment is slated to register the highest CAGR over the forecast period.
• Based on vehicle type, the passenger car segment is predicted to contribute majorly towards segmental space in the upcoming years.
• Based on end-user, the advanced driver assistance systems segment is set to dominate the segmental growth in the ensuing years.
• Region-wise, the Asia-Pacific automotive electronics and software market is projected to register the fastest CAGR during the projected timespan.

Automotive Electronics and Software Market: Growth Factors

Altering customer demand for vehicle products to proliferate the growth of the global market

Technological breakthroughs and changing customer trends will drive the expansion of the global automotive electronics and software market.

Furthermore, an increase in the use of electric vehicles and breakthroughs in autonomous driving systems will foster the market space across the globe.

In addition, the escalating popularity of advanced driver assistance systems will prompt global market expansion. Moreover, the rapid use of IoT in the automotive sector, along with the embedding of infotainment systems in vehicles, will promulgate the scope of the global market.

Surging popularity of automatic emergency braking systems and electronic stability control systems will proliferate the expansion of the global market.

Automotive Electronics and Software Market: Restraints

Surging infrastructure development prices can obstruct the global industry expansion over 2024-2032

Escalating deployment prices and cyber-security risks can inhibit the expansion of the global automotive electronics and software industry. Moreover, rise in the infrastructural costs can further diminish the expansion of the global industry.

Automotive Electronics and Software Market: Opportunities

Huge popularity of software-based automotive can open new growth facets for the global market

Innovations in self-driven systems and enhanced connectivity will create new growth facets for the global automotive electronics and software market. Apart from this, large-scale use of software-defined vehicles will promulgate the expansion of the global market.  

Automotive Electronics and Software Market: Challenges

Surge in the raw component prices due to supply chain fluctuations can challenge the global industry surge

Supply chain oscillations and regulatory hiccups can challenge the progression of the global automotive electronics and software industry.

Moreover, the scarcity of semiconductor chips, resulting in delays in the production of automotive electronics & software parts, can impede the global industry growth.

Automotive Electronics and Software Market: Segmentation

The global automotive electronics and software market is divided into component, vehicle type, application, and region.

In terms of component, the automotive electronics and software market across the globe is segmented into software and hardware segments.

Moreover, the software segment, which accumulated nearly 60% of the global market earnings in 2023, is slated to account for the highest CAGR in the coming eight years owing to the rise in the complicatedness of vehicle systems and the surging significance of software-defined software products.

Rise in the use of V2X communication systems, ADAS tools, infotainment systems, and autonomous driving tools will spur the segmental surge.

Based on the vehicle type, the global automotive electronics and software industry is segmented into passenger cars, electric vehicles, commercial vehicles, and autonomous vehicles segments.

Apparently, the passenger cars segment, which dominated the global industry size in 2023, is anticipated to contribute majorly towards the segmental elevation in the upcoming years. This can be owing to a rise in the production of passenger cars across the globe.   

On the basis of application, the global automotive electronics and software market is sectored into advanced driver assistance systems, telematics, infotainment systems, and powertrain control segments.

Moreover, the advanced driver assistant systems segment, which led the application segment in 2023, is likely to lead the segmental space in the forecast timespan.

Additionally, the segmental expansion can be subject to the growing focus of countries on road safety and breakthroughs in software & sensor technologies.

Automotive Electronics and Software Market: Report Scope

Automotive Electronics and Software Market: Regional Insights

Asia-Pacific is likely to maintain leading status in the global market over the analysis timeline

Asia-Pacific, which accounted for about 57% of the global automotive electronics and software market size in 2023, is predicted to record the fastest compound growth rate annually in the analysis period.

In addition to this, the regional market expansion in the next decade can be credited to the presence of a strong automotive manufacturing base in countries such as Malaysia, Thailand, Indonesia, India, Japan, South Korea, and China. Supportive government policies and the use of electric vehicles will augment the regional market sphere.

North America, which dominated the global automotive electronics and software industry share in 2023, is likely to establish a leading position in the global industry in the upcoming years.

The elevation of the industry in North America can be a result of easy access to high-end vehicles and the availability of advanced automotive technologies in Canada and the U.S. Furthermore, demand for self-driven vehicles and electric cars will bolster the industry growth in the region.

Automotive Electronics and Software Market: Competitive Space

The global automotive electronics and software market profiles key players such as:

• STMicroelectronics N.V.
• Renesas Electronics Corporation
• NXP Semiconductors N.V.
• Robert Bosch GmbH
• Aptiv PLC
• NVIDIA Corporation
• Continental AG
• Denso Corporation
• Infineon Technologies AG
• Valeo SA
• BlackBerry Limited
• Harman International Industries Incorporated
• HERE Technologies
• Microsoft Corporation
• Texas Instruments Incorporated.

The global automotive electronics and software market is segmented as follows:

By Component

• Hardware
• Software

By Vehicle Type

• Passenger Cars
• Electric Vehicles
• Commercial Vehicles
• Autonomous Vehicles

By Application

• Advanced Driver Assistance Systems
• Telematics
• Infotainment Systems
• Powertrain Control

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa