The automotive software market is witnessing growth, and this growth of the market can be credited to the rising need for connected cars, increasing research and development activities, and the launch of innovative techs for progressive user interfaces.
In the recent years, on the basis of the software segment, the ADAS and AD category, produced the highest revenue in the industry for automotive software. Progressive technologies such as lane assist, ADAS, and automatic braking advance the driving experience and surge vehicular security. Such techs also aid in decreasing the possibility of road accidents by lowering the occurrence of traffic rule abuses. Moreover, numerous software businesses are working on the research and development of such autonomous technology.
Within the function segment of the automotive software market, the development category is projected to experience the most rapid growth during the projection period. Advanced software solutions enhance the functionality of various products, delivering enhanced value to consumers.
In recent times, automotive manufacturers have increasingly integrated a greater number of software features into vehicles. Consequently, there has been a heightened reliance on software in automobiles to oversee a spectrum of components, spanning from infotainment systems to sophisticated drivetrains.
In recent years, the passenger car category held the larger share in the vehicle type segment of the industry for automotive software, because of the rising need for connected cars and rising per-capita income of customers.
Apart from the higher customer base for passenger cars, the commands for vehicle security are contributing to the development of this category. Numerous automakers are proactively working on the installation of different autonomy levels in passenger cars, which has made enhanced software a requirement here.
In the recent years, the APAC region held a significant industry share because of the existence of the largest automobile industry, prosperous economy, and mounting buying power of clientele. Credited to economic growth, the region is witnessing a high demand for advanced features in cars.
In response to this demand, car manufacturers are introducing sophisticated applications like human-machine interfaces (HMI), auto-park assist, and keyless entry, expanding the customer base in the automotive software market.
Additionally, the prominent role of the Asia-Pacific (APAC) region in the electric vehicle (EV) market further drives the demand for automotive software. Within APAC, China stands out with the highest sales of EVs, reaching nearly 1.1 million plug-in electric cars sold in recent years.
The rising sales of connected cars are driving the automotive software industry growth, as such vehicles boast an array of sensors and IoT devices that which cannot work without modern software.
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