Emphasis on Component (Software, ECUs/DCUs, Sensors, Power electronics (excl. battery cells), Other electronic components); Software domain (OS and middleware, Body and energy, Powertrain and chassis, Infotainment, ADAS and AD); ECU/DCU domain (AD (Autonomous driving), Chassis, Infotainment, ADAS, Body, Powertrain); Sensor domain (Body, Chassis, Powertrain, ADAS/AD); Power electronics domain (BMS (Battery management system), DC/DC converter, CMC (Cell management controller), On-board charger, BJB (battery junction boxes), E-motor, Inverter); Other electronic components domain (Harness, others); Vehicle Type (Volume car, with ICE powertrain, Purpose-built Robo-taxi as BEV, Premium car as PHEV); Regions/Country
Automotive Software and Electronics Market is anticipated display a CAGR of around 8% over the forecast period (2021-2027). Internet of Things (IoT) has come of age, and now complex solutions can be implemented seamlessly within urban governance and management frameworks and processes. Autonomous driving (AD), connected cars, electrification of powertrain, and shared mobility (ACES) are the major trends that are mutually reinforcing developments in the automotive industry. These trends combined, are not only disrupting the automotive value chain, and impacting all stakeholders but are also major driver for the automotive software and electronic component market. Significant deviation is expected across the market segments. Power electronics is expected to witness highest CAGR growth. Electric vehicle (EV) platforms will evolve as a new market for high-voltage (HV) harnesses, whereas the overall demand for low-voltage (LV) harnesses is expected to shrink, resulting in the harness segment grow at the slowest rate. Looking at the available opportunity all players in the market are expected to be benefited from building their Software delivery and electronic and electrical architecture capabilities, embracing latest technology innovation including UI, UX, analytics.
Vehicle Automation Levels
Insights Presented in the Report
“Amongst Component, ECUs/DCUs segment dominated the market with more than 35% share in 2020”
Based on Component, the Automotive Software and Electronics Market is segmented into Software, ECUs/DCUs, Sensors, Power electronics (excl. battery cells), Other electronic components. In 2020, ECUs/DCUs dominated the market, followed by Other electronic components (harnesses, controls, switches, displays) segment. ECUs/DCUs segment are expected to dominate the market on account of ever-growing vehicle market due to rising disposable income.
“Amongst Software domain, ADAS and AD segment dominated the market”
Based on Software domain, the market is bifurcated into OS and middleware, Body and energy, Powertrain and chassis, Infotainment, ADAS and AD. Based on estimate software for ADAS and AD segment dominated the market accounting for around 40% share in 2020. Infotainment, segment is expected to witness significant growth during the forecast period.
“Amongst ECU/DCU domain, Powertrain segment dominated the market”
Based on ECU/DCU domain, the market is segmented into AD (Autonomous driving), Chassis, Infotainment, ADAS, Body, Powertrain. In 2020, ECU/DCU for Powertrain segment dominated the market. It is expected that convergence of Electronic control units would open new market for domain controllers. ECUs within the vehicle are responsible for controlling the electrical subsystems of the vehicle, whereas DCUs is considered as the next level of evolution of ECUs, consolidating the functionality of several individual ECUs into a single, more cost-efficient system.
“Amongst Sensor domain, sale of sensor for ADAS/AD segment dominated the market”
Based on Sensor domain, the market is segmented into Body, Chassis, Powertrain, ADAS/AD. Currently, sale of sensor for ADAS/AD segment dominated the market, followed by Powertrain segment. Autonomous driving trend is the major factor driving the demand for sensor in the automotive sector. Hence, increasing adoption of ADAS and AD is expected to help the automotive sensor segment to growth at a moderate rate during the forecast period.
“Amongst Power electronics domain, Inverter segment dominated the market”
Based on Power electronics domain, the market is segmented into BMS (Battery management system), DC/DC converter, CMC (Cell management controller), On-board charger, BJB (battery junction boxes), E-motor, Inverter. Based on estimate Inverter segment dominated the market. Power electronic segment is expected to witness highest CAGR growth, majorly driven by the growing adoption of electric vehicle globally, which would demand for more power electronics.
“Amongst Other electronic components domain, harness segment dominated the market”
Based on Other electronic components domain, the market is bifurcated into Harness, others. In 2020, harness segment dominated the market. Harness segment is majorly driven by the introduction of electric vehicle platforms, which has opened a strong growing market for High-voltage harnesses that connect High-voltage battery, charger, e-motor, and further High-voltage components within electric vehicle.
“Amongst Vehicle Type, software and electronics are majorly used in Purpose-built Robo-taxi as BEV”
Based on Vehicle type, the Automotive Software and Electronics Market is segmented into Volume car, with ICE powertrain, Purpose-built Robo-taxi as BEV, Premium car as PHEV. Currently, software and electronics are majorly used in Purpose-built Robo-taxi as BEV, followed by Premium car as PHEV. Electronic and software costs for Robo-taxis is expected to be significantly high in 2025, driven primarily by high costs of sensors as well as a low vehicle base.
“Asia-Pacific is expected to witness highest growth during the forecast period”
For a better understanding of the demand of Automotive Software and Electronics, the market is analyzed for major regions including North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Rest of Europe); Asia-Pacific (China, Japan, South Korea, Rest of Asia-Pacific); and Rest of World. Currently, Asia-Pacific dominates the market. Connected car market has witnessed significant growth in the Asia-Pacific region in the past few years. The growth of the segment is due to the presence of companies such as Baidu, Alibaba, and others in the region. Some of the major players operating in the market include Robert Bosch, NXP Semiconductors, Renesas Electronics, BlackBerry Limited, NVIDIA, Continental, Denso Corporation, Magna International, ZF Friedrichshafen AG, Aisin Corporation.
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1. Market Introduction
2. Research Methodology Or Assumption
3. Market Synopsis
4. Executive Summary
5. Automotive Software And Electronics Market Covid-19 Impact
6. Automotive Software And Electronics Market Revenue (usd Bn), 2019-2027f
7. Market Insights By Type Of Component
8. Software Market Insights By Domain
9. Ecu/dcu Market Insights By Domain
10. Sensor Market Insights By Domain
11. Power Electronics Market Insights By Domain
12. Other Electronic Component Market Insights By Domain
13. Market Insights By Vehicle Type
14. Market Insights By Region
15. Automotive Software And Electronics Market Dynamics
16. Automotive Software And Electronics Market Opportunities
17. Automotive Software And Electronics Market Trends
18. Legal & Regulatory Framework
19. Demand And Supply Side Analysis
20. Value Chain Analysis
21. Competitive Scenario
22. Company Profiled
23. Disclaimer
Analyzing the historical market, estimation of the current market, and forecasting the future of the Automotive Software and Electronics Market were the three major steps undertaken to create and analyze the demand and sales of Software and Electronics across automotive sector globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below.
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detailed secondary study was conducted to obtain the historical market size of the Automotive Software and Electronics through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Automotive Software and Electronics, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are Component, Software domain, ECU/DCU domain, Sensor domain, Power electronic domain, Other electronic domain, vehicle type. Further regional level analyses were conducted to evaluate the overall demand of Automotive Software and Electronics in global context.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as growing demand for premium and electric vehicle and technological advancement in the automotive sector etc. Historical trends and their year-on-year impact on the market size and share was analyzed. Demand and supply side scenario was also thoroughly studied.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Market, and market shares of the segments and company. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Automotive Software and Electronics market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of Component, Software domain, ECU/DCU domain, Sensor domain, Power electronic domain, Other electronic domain, vehicle type, and region.
The main objective of the Automotive Software and Electronics Market Study
The current & future market trends of the Automotive Software and Electronics Market are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:
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