The automotive software and electronic market across the world are expected to grow to $469 billion by 2030, from the current $238 billion, forecasts a study by McKinsey & Company. Also, the study forecasts that the automotive software market will grow to $362 billion by the end of 2025.
The technologies that are driving this transformation include autonomous vehicles, connectivity, electrification, and shared mobility (ACES), offering new opportunities for growth and disruption.
The study also claims that overall automotive market across the world will grow to $3,800 billion by 2030, from current $2,755 billion, at a compound annual growth rate (CAGR) of 3 per cent. The market volume will be $3,027 billion by the end of 2025, claims the study.
According to the research these automotive softwares include verification and validation software, ECUs, sensors, power electronics etc. According to the research, the software market will grow $50 billion by the end of 2030, from the current $20 billion, at a CAGR of 9 per cent.
The ECU market is expected to grow to $156 billion from the current $92 billion at a CAGR of 5 per cent. On the other hand, power electronics segment is expected to grow to $81 billion in the same timeframe from current $20 billion, at a CAGR of 15 per cent. With the rise of self-driving and new driving aid technologies, the sensor market is likely to grow to $63 billion from current $30 billion, at a CAGR of 8 per cent, claims the research.
Besides forecasting the market growth, the research firm also indicates the sector where the automakers and their suppliers need to improve for the efficient supply chain. It says, the traditional automakers and supplier relations are about to change with the arrival and increasing rate of software used in the automotive supply chain, as the complexity in the system is growing fast.
As Original Equipment Manufacturers (OEM) have specified their requirements for the control units, they must do the same for the software components as well. The research claims the OEM's attempts to integrate software systems with suppliers often lack depth and rigorous management, resulting in missing an efficient defect tracking method.
The findings of the company say that to set up an effective, shared launch-management approach for embedded-software-system solutions between manufacturers and suppliers, companies need to understand the requirements for launch readiness.