Global Automotive Software Market to Reach $9.80 Billion by 2017, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on automotive software market. Although the prolonged severity of the economic slowdown and depressed automotive industry have elicited decline in automotive software sales in 2008 & 2009, the market nevertheless staged a recovery in 2010, and is projected further to record $9.80 billion by 2017. Growth in the market will be essentially driven by increase in automobile production as a result of post recession resurgence in consumer demand for new cars, and scheduled development and roll out of new feature-rich vehicle models. Government safety initiatives for automotive industry, and the latter’s emphasis on addressing safety issues, also augur well for the automotive software market.

Automotive Software: A Global Strategic Business Report

While decline in vehicle production hurt demand for automotive software in the OEM market, especially those revolving around transmission control and engine management systems, postponements of aftermarket purchases of safety systems, infotainment solutions and products resulted in decline in demand for related software, such as car navigation software. Expensive aftermarket electronic installations have been especially impacted by the recession. With the passion for luxury cars and SUVs cooling, and with consumers trading down to inexpensive, low and mid-tier economy cars with limited features, software for comfort systems, and other intelligent driver assistance systems witnessed softening of business opportunities. Under the hood software although hurt, weathered the downturn with a relatively shallow dip, since these products tend to enhance the functional value of vehicle systems, unlike the crash witnessed in software for in-vehicle entertainment systems, which turned extremely unattractive among target vehicle users, given the tight financial conditions.

The automobile industry has been one of the worst hit industries by the recession, as the demand for cars witnessed hurting declines, exacerbating the already existing woes of excess production capacities. With vehicle sales nose-diving resulting in plant shutdowns, shockwaves that ripped through the automobile industry was faithfully transmitted to the automotive software market. The trickle down impact of the depressing business climate in the automotive industry on the global Automotive Software market is reflected in notable declines in growth rates during 2008 and 2009. Factors that have brought down the automotive industry, such as restricted access to credit, rising levels of unemployment, decline in purchasing power, reduction in household wealth, falling consumer confidence, and postponement of new car purchases, among others have also played instrumental roles in dragging down growth in the automotive software segment of the auto industry.

With recession having played out its part in full proportions and the automotive industry emerging from the previous lows, the worst is now over for automotive software market, as evident from the recovery in revenue growth during 2010. As vehicle production stages a comeback, thanks to increasing consumer demand for new cars as a result of resurgence in growth fundamentals such as recovery in GDP growth, improvements in employment rates, incomes levels and discretionary incomes, and rise in consumer confidence, the demand for automotive software too is on the rise, especially within the OEM segment. With companies waking up to the fact that undeterred focus on long-term plans is critical in warding off the impact of the economic slowdown, creative designs and technology specifications will continue to come to the market, thereby creating demand for automotive technologies. Given the industry’s focus on developing innovative designs, and technology specifications, most cars scheduled for roll out in the upcoming years will come high on technology quotient, thus driving the demand for enabling technologies such as automotive software.

Growing popularity of in-vehicle communication and infotainment technologies, which serve modern day digital lifestyles of urban population especially augurs well for the future of automotive software market. With adoption of these technologies reaching mainstream mass market, demand is forecast to be especially strong for software platforms that offer seamless integration of communication, entertainment, navigation and information. Given the automotive industry’s focus on improving safety, reducing driver distraction and improving user experience, features such as, hands-free Bluetooth communication, speech commands, and sophisticated touch input dashboard systems for easy access to maps, music/audio systems, navigation, and connectivity with other devices, such as, mobile phones, PDAs, mp3 players, iPods, laptops, among others are expected to find increased adoption. Ability to integrate other electronic devices/equipment into an automobile’s electronic system is currently being hailed as the next frontier in technology innovation. All of these requirements call for the development of complex enabling middleware, operating systems and software.

As stated by the new market research report on Automotive Software, Europe continues to remain the largest regional market for Automotive Software. Asia-Pacific represents the fastest growing regional market for automotive software, with revenue from the region growing at a CAGR of about 9.57% over the analysis period 2009-2017. Growth in the Asia-Pacific market will be especially driven by growing demand for feature-rich new cars with best of technologies and advanced systems in the region, particularly in regional powerhouses such as China and India. Infotainment/Telematics represents the fastest growing application area for automotive software, with revenues from this segment projected to grow at a CAGR of more than 8.0% over the analysis period. Safety Systems represent another key growth area for automotive software. While increasing demand for fuel efficiency, and growing popularity of in-vehicle entertainment systems will drive market prospects for software platforms in Infotainment/Telematics segment, the automotive industry’s dedicated focus on improving driver and passenger safety and resulting increase in integration of safety components in vehicles will generate increased demand for automotive software in safety systems segment.

Major players in the marketplace include Access Co. Ltd., Adobe Systems Incorporated, Airbiquity Inc., ALT Software Inc., Atego, Broadcom Corporation, DivX Inc., ETAS Group, Fonix Speech Inc., Freescale Semiconductor Inc., Green Hills Software Inc., International Business Machines Corporation, Lectronix Inc, The MathWorks Inc., Mecel AB, Microsoft Corporation, NAVTEQ Corporation, Nuance Communications Inc., ProSyst Software GmbH, QNX Software Systems, Renesas Electronics Corporation Inc, Standard Microsystems Corporation, SVOX AG, Texas Instruments Incorporated, Vector Informatik GmbH, Wind River Systems, Inc among others.

The research report titled “Automotive Software: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, and key strategic industry activities. The report analyzes the global automotive software market in key application areas such as Safety & Security Systems, Body Electronics/Comfort Systems and Infotainment/Telematics among others. Market estimates and projections are presented for all major geographic markets including US, Canada, Japan, Europe (France, Germany, Italy, UK and Rest of Europe), Asia-Pacific and Rest of World. The US market is further analyzed by following product segments - Application Software, Middleware and Operating System.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Automotive_Software_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
E-mail: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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