Rising Demand for Automotive Software with ADAS & Software-Defined Vehicles

CIOTechOutlook Team | Wednesday, 11 December 2024, 02:29 IST

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The growing emphasis on software-defined vehicles along with the rising integration of ADAS features in cars is anticipated to boost the need for automotive software solutions. Additionally, robust government backing for vehicle safety coupled with the increasing use of software-over-the-air (SOTA) updates is expected to drive the revenue growth of the automotive software market. The Automotive Software Market's size is expected to increase from USD 19.0 billion in 2023 to USD 32.3 billion by 2030, achieving a CAGR of 7.8%, according to MarketsandMarkets.

ADAS adoption is increasing swiftly in many major automotive markets worldwide, with more than 40% of all newly sold vehicles featuring ADAS in 2023, up from under 20% in 2021. This is remarkably high throughout the US, China, and Europe, with increasing vehicle safety standards mandated for vehicle sales. Additionally, the OEM intends to transition to self-driving vehicle technology, and government approval for these vehicles on roads will also boost demand. Waymo, for example, has grown throughout the US to offer autonomous vehicle service.

The field of automotive computing is growing swiftly within vehicles across diverse types of devices, including off-board data processing systems (hybrid cloud and edge), in-vehicle systems (IoT and edge systems), and in-vehicle network systems that focus on security. The transition to software-defined vehicles has resulted in enhanced software development via collaboration among the automotive, IoT, cloud, and cybersecurity sectors.

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