Description

According to the Market Statsville Group (MSG), the global autonomous driving software market size is expected to grow at a CAGR of 29.5% from 2022 to 2030.

Increased use of advanced technologies and the advent of emerging solutions with advanced user interfaces are expected to aid market growth in the coming years. The rising use of the ADAS functionality will also help this software market grow in the coming years. During the forecast period, the escalating use of artificial intelligence will be a boon to market growth. Further, the introduction of 5G technology is expected to increase the market's potential for growth during the forthcoming period.

Global Autonomous Driving Software Market Definition

Self-driving automobiles include cars or trucks in which car drivers are never needed to take control in order for the vehicle to operate safely. Google, Tesla, Uber, Nissan, and other major automakers and technology providers have all developed self-driving technologies.

While design details differ, most self-driving systems generate and maintain an underlying map of their surroundings using a variety of sensors, such as radar. The inputs are then processed by the software, which plots a path and sends commands to the vehicle's "actuators," which control braking, acceleration, and steering. Hard-coded rules, predictive modeling, obstacle avoidance algorithms, and "smart" object discrimination (e.g., distinguishing between a bicycle and a motorcycle) assist the software in following traffic rules and navigating obstacles. If the system encounters uncertainty, a human driver may be required to intervene; fully-autonomous vehicles may not even have a steering wheel. Self-driving cars can also be classified as "connected" or "unconnected," indicating their capabilities to communicate with other automobiles or infrastructure, such as next-generation traffic lights. Currently, most prototypes lack this capability.

COVID-19 Impact on the Global Autonomous Driving Software Market

The automotive industry has suffered a devastating decline in vehicle production and sales. As a result of the COVID-19 outbreak, the automotive software market experienced a significant drop in 2020, as it disrupted market testing and development of new software technologies. Asia-Pacific is the most affected region in the world as China is the largest producer of vehicles, and the entire manufacturing process has been halted due to the Coronavirus pandemic.

The pandemic is bound to bring new market trends such as increased digitalization, automation, widespread adoption of e-commerce, and reduced reliance on human labor. The COVID-19 pandemic has forced automakers to reconsider their short-term strategy for redefining mobility in the present and future. Indeed, the crisis has placed tremendous pressure on automobile manufacturers to release cash through cost-cutting and rationalizing measures across the complete value chain and prioritize investments that have the best chance of generating returns.

Furthermore, automotive companies will need to continue to invest in smarter mobility. It is expected, for example, that innovative technologies such as artificial intelligence (AI) and 5G telecommunications will be integrated into vehicles. While the concept of fully autonomous vehicles (AVs) has captured our imaginations — and headlines — it's important to note that automakers are rapidly integrating smart, connected technologies into their current models, including both traditional internal combustion engine (ICE) vehicles and electric vehicles (EVs).

Global Autonomous Driving Software Market Dynamics

Drivers: Huge demand for connected cars

Connected cars have obvious advantages, such as being completely safe and less environmentally harmful. They also provide the auto industry with an unprecedented opportunity to innovate and develop better customer relationships. 5G connectivity is the beginning of the automotive market and will change the way we think about mobility. The use of 'vehicle-to-everything' communications allows for a more direct flow of data between vehicles, pedestrians, and road infrastructure. This signifies that drivers will be warned of nearby hazards such as broken-down vehicles, lowering the likelihood of an accident. It holds the potential to improve global road safety significantly. 5G also presents a significant revenue opportunity for automakers that extends beyond the point of sale. It will enable manufacturers to build long-term relationships with customers by providing features such as remote diagnostics, predictive maintenance, and online service scheduling, which would not be feasible without embedded connectivity. Such benefits and demand for connected cars across the globe have fostered the market’s growth.

Restraints: Lack of infrastructure advancements and limited connectivity

Infrastructure development is moving at a much slower pace than that of the automotive industry. This is causing a schism between the two sectors, which should work together to maximize benefits from the current economy. Smart technology and systems necessitate a better infrastructure that intelligently connects with the system to offer flawless end user service. The lack of advanced facilities significantly impedes market growth.

The key market players have introduced advanced navigation systems and applications in response to the market's increasing demand. These advancements must be supported by a reliable Internet connection, which allows the system to run smoothly. The lack of advancement in Internet connectivity in emerging countries has severely hampered the growth of the autonomous driving software market. These factors have emerged as the market's most difficult challenges.

Opportunities: Advent of 5G technology

The adoption of 5G technology has emerged as a significant advancement for the autonomous driving software market. Growing demands for faster network connectivity in order to deliver maximum benefits to the end user have emerged as a significant opportunity for market growth. Innovative wireless connectivity options included with automotive software have provided consumers with a very premium experience, which is expected to emerge as a major market opportunity. The term "automated driving" refers to a scenario in which a highly connected and intelligent road transportation system is built as a result of 5G capabilities.  In addition to 4G capabilities, 5G provides unique features for safety-critical prerequisites, which no other wireless network could indeed match. With 5G, for instance, the car could be remotely controlled by an external operator supposed to act as a traffic controller. However, remote control via an operator is unrealistic without a 5G network, providing core aspects such as fast reaction and secured network resources.

Scope of the Global Autonomous Driving Software Market

The study categorizes the autonomous driving software market based on the level of automation, and vehicle type area at the regional and global levels.

By Level of Automation Outlook (Sales, USD Billion, 2017-2030)

• Level 1
• Level 2
• Level 3
• Level 4
• Level 5

By Vehicle Type Outlook (Sales, USD Billion, 2017-2030)

• Passenger Car
• Light Commercial Vehicles (LCV)
• Heavy Commercial Vehicles (HCV)

By Region Outlook (Sales, USD Billion, 2017-2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Heavy commercial vehicle segment accounts for the largest CAGR during the forecast period by vehicle type

Based on the vehicle type, the market is bifurcated into passenger car, light commercial vehicle (LCV), high commercial vehicle (HCV). The high commercial vehicle segment accounted for the highest CAGR during the forecast period owing to the rising global demand among potential consumers. The growing demand for this system in modern vehicles has expanded the autonomous driving software market significantly over time. Advanced vehicle features such as tracking mechanisms, container tracking, navigation systems, fleet management, and trailer tracking have emerged as major markets, boosting the demanding telematics supply chain. Potential consumers' increasing demand for new tech in the latest vehicle has encouraged key market players to conduct rapid research and development programmes to meet their needs and demands.

Asia Pacific is projected to account for the highest market share by Region

Based on the regions, the global autonomous driving software market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Asia Pacific is expected to witness the highest market share in 2021. Due to the growing usage of such vehicles and consumer demand for technologically advanced features, the region dominates the global market. Automobile manufacturers plan to expand manufacturing lines and attain technological advancement in emerging markets such as India and China. For instance, in 2017, Baidu revealed a USD 1500 million investment plan to boost R&D activities for the development of self-driving cars over the next three years. Furthermore, the Chinese government is working hard to gain a competitive edge in self-driving vehicle technology. Furthermore, various countries' governments allow self-driving car testing on public highways under certain guidelines and conditions.

Competitive Landscape - Global Autonomous Driving Software Market

The autonomous driving software market is extremely cutthroat, and significant competitors in the sector are using tactics including product development, collaborations, acquisitions, agreements, and growth to bolster their market positions. Most sector businesses focus on growing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global autonomous driving software market are:

• AutoX
• Cruise
• CARMERA
• Embark Trucks
• Magna International
• Motional
• Nauto
• NVIDIA Corp.
• Open Text Corp.
• Otonomo Technologies Ltd.
• Oxbotica
• Ridecell Inc.
• Robert Bosch GmbH
• Swift Navigation
• Siemens AG
• Sony Group Corp.
• Tesla Inc.
• Waymo
• Zoox

(Note: we include the maximum-to-maximum top/key companies in the final report with the recent development, partnership, and acquisition of the companies.)

Report Scope and Details

Recent Developments

• In October 2022, CARIAD, the Volkswagen Group's software company, partnered with Horizon Robotics to accelerate the regional development of Autonomous Driving (AD) systems and Advanced Driver Assistance Systems (ADAS) for the Chinese market. The collaboration is part of Volkswagen Group's efforts to strengthen its development competence "in China, for China" in order to improve the innovation pace, promote technological localization, and fortify its customer focus in this key market.
• In April 2022, Arriver was acquired by Qualcomm Incorporated from SSW Partners, enhancing Qualcomm Technologies' capacity to provide unlocked, fully integrated, and lucrative Advanced Driver Assistance System (ADAS) solutions to car manufacturers and Tier-1 suppliers at scale.
• In September 2021, Toyota Motor Corp. acquired Renovo, a company that develops automotive operating system software, to aid the development of fully autonomous connected vehicles.

Key Issues Addressed

• What is the market size by various segmentation of the autonomous driving software by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the autonomous driving software market?
• What are the key opportunities and trends for manufacturers involved in the autonomous driving software supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of autonomous driving software in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.