Global Automotive Software market growth 2024, Forecast To 2033

The automotive software market size has undergone rapid growth in recent years, surging from $26.32 billion in 2023 to$30.79 billion in 2024 at a compound annual growth rate (CAGR) of 17.0%. The growth in the historic period is attributed to consumer demand for connectivity, regulatory requirements for emissions and safety, evolution of in-car infotainment, demand for fuel efficiency, globalization of automotive supply chains, and increased complexity of vehicle systems. Looking ahead, the market size is anticipated to see rapid growth, reaching $54.62 billion in 2028 at a compound annual growth rate (CAGR) of 15.4%. This growth in the forecast period is driven by evolving business models in mobility services, demand for personalization and user experience, increased emphasis on data security and privacy, enhanced predictive maintenance, and continued upgrades and retrofitting. Major trends in the forecast period include software-defined vehicles, increasing complexity of in-car infotainment systems, cybersecurity for connected vehicles, adoption of over-the-air (OTA) updates, and focus on user experience (UX) design.