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Automotive Software Market Size is Projected to Reach USD 18600 Million by 2025 – Valuates Reports

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Chander Sood
Chander Sood
Digital marketing professional.

BANGALORE, India | 19th August 2020: The growing demand for Automotive Software is due to a steady increase in the use of computer components to expand different vehicle technologies such as ADAS and infotainment systems. The rising automotive industry, combined with technical advances, improves the experience of diving and ensures drivers’ safety. These advantages are, in turn, expected to increase the Automotive Software Market size during the forecast period.

In 2018, the global Automotive Software market size was USD 8660 Million, and it is expected to reach USD 18600 Million by the end of 2025, with a CAGR of 10.1% during 2019-2025.

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  • The global automotive software market is expanding exponentially, and the automotive embedded computing has become a core area for advancement with the increasing popularity of connected and autonomous vehicle technology. 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.
  • Strict government regulations relating to vehicle safety and collaboration between the government and automotive software developers are expected to accelerate the growth of Automotive Software market size. 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 rapid adoption of connected vehicles is expected to fuel the demand for Automotive Software Market size. Technologies such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) increase the use of electronic products in automotive software.
  • Because of the COVID-19 outbreak, the Automotive software market showed a significant dip in 2020, as it interrupted the market testing and development of new software technologies. 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 market is expected to have a short-term effect and register a high again in 2021 because of the passenger’s inclination to use high-end technology and connectivity solutions in their vehicle.

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  • Based in the region, North America has held the largest Automotive Software Market share (about 60%) during the forecast period.
  • Europe is expected to hold a significant Automotive Software Market share. The growing concern regarding vehicle & passenger safety has led to the adoption of smart transport systems in Europe.
  • Asia Pacific region is expected to witness the highest growth due to the increasing adoption of connected cars and the presence of major companies like Baidu, Alibaba, etc.
  • The vehicle management software is projected to have an Automotive Software Market share of more than 30 percent by 2025. This high market share is attributed to the growing demand and awareness to eliminate road accidents that are caused due to human errors. The vehicle management software provides self-diagnosis, fuel management, driver fatigue management, and tracking of accidents, helping passengers to keep track of vehicles.
  • During the forecast period, the autonomous driving software segment is projected to witness the highest growth at a rate of around 18%. The growth of the autonomous driving software segment is driven by the rising demand for comfortable & safe driving regulations. Automotive manufactures are rapidly implementing emerging technology, such as AI, VR, and AR, to help drivers identify objects while driving and parking.
  • The engine management system ( EMS) holds a 25 percent of Automotive market share. This growth in market share is due to the increasing need to boost vehicle performance and quality. Government authorities are making strict fuel emission regulations, which, in turn, is fueling the adoption of EMS.

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  • Dealer Management System
  • F&I Solution
  • Electronic Vehicle Registration
  • Inventory Solutions
  • Digital Marketing Solution
  • Others


  • Manufacturer Retail Store
  • Automotive Dealer
  • Automotive Repair Store
  • Auto Part Wholesaler & Agent


  • United States
  • Europe
  • China
  • Japan
  • Southeast Asia
  • India
  • Central & South America


  • CDK Global
  • Cox Automotive
  • Reynolds and Reynolds
  • Dealertrack
  • Dominion Enterprise
  • Wipro Limited
  • Infomedia
  • TeleTech
  • Epicor
  • Auto – IT
  • MAM Software
  • Internet Brands
  • NEC
  • ARI
  • Auto/Mate
  • RouteOne
  • WHI Solutions
  • Yonyou
  • Shenzhen Lianyou
  • Kingdee
  • Qiming Information
  • Checking – On – Tech
  • Guangzhou Surpass
  • Shoujia Software
  • Others.

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  • Automotive Dealer Management Systems (DMS) Market

The global Automotive Dealer Management Systems (DMS) market size will reach USD 5577.01 Million in 2026, from USD 3444.56 Million in 2019, with a CAGR of 6.78% during the forecast period.

Top Automotive dealer groups in Europe and North America believe in a more comprehensive approach rather than supporting a variety of separate supplementary systems. Automotive retail is shifting from a product-driven approach to a customer-centric approach, and it has become crucial for dealers to accommodate changing customer expectations. Yet dealerships are struggling to collect consumer data across various online retail platforms, ensure information is actionable, and achieve a consolidated view of consumers across all stores. OEMs are replacing conventional dealerships with virtual showrooms with Europe allowing the use of direct distribution channels.

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  • COVID-19 Impact on Global Automotive Retail Software Market

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  • Auto Dealer Software Market

In 2018, the global Auto Dealer Software market size was 12900 Million USD, and it is expected to reach 21700 Million USD by the end of 2025, with a CAGR of 7.7% between 2019 and 2025.

The North America region took up about 44.23% of the Auto Dealer Software Market share in 2017, followed by Europe with about 29.19%. Asian countries, especially China, will witness a higher growth rate during the forecast period.

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  • Embedded Systems in Automobile Market

The global Embedded Systems in Automobile market size is projected to reach USD 4991.2 Million by 2026, from USD 4770.1 Million in 2020.

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  • Auto Parts Inventory Management Software Market

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  • COVID-19 Impact on Global Auto Repair Software Market

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  • COVID-19 Impact on Global Automotive Marketing Software Market

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  • COVID-19 Impact on Global Automotive Embedded Software Market

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