Auto Repair Software Market

Market Study on Auto Repair Software: Growing Need for Driver Safety and Technological Breakthroughs to Fuel the Market Expansion

Auto Repair Software Market Segmented By Passenger vehicle, Commercial vehicle in Autonomous driving software, Safety & security software, Vehicle management software, Infotainment software

Auto Repair Software Market Outlook

The auto repair software market is anticipated to maintain its hold in the global market at a stable CAGR of 14.8% between 2022 and 2032.

The auto repair software market is valued at US$ 28.4 Bn in 2022 and is projected to reach US$ 112.9 Bn by 2032. Historically, the market was thriving at a higher CAGR of 16.4% (2015-2021), resulting in a market size of US$ 24.4 Bn in 2021.

“The adoption of ADAS features in vehicles has prompted the need for effective repair solutions, driving up demand for auto repair software.”

Manufacturers are increasing their R&D efforts in the creation of autonomous vehicles. As a result, the sales of auto repair software are rising rapidly.

The growing adoption of electrified and connected cars is anticipated to provide growth opportunities for the auto repair software market.

Attributes

Details

Auto Repair Software Market CAGR (2022-2032)

14.8%

Auto Repair Software Market Value (2022)

US$ 28.4 Bn

Auto Repair Software Market Value (2032)

US$ 112.9 Bn

Find Out More about the Report Coverage

Companies

  • Ansys Inc.
  • Autodesk, Inc.
  • Bosch Software Innovations GmbH
  • CDK Global LLC
  • Cox Automotive
  • Daimler AG
  • Dassault Systèmes SE
  • DealerTrack Holdings, Inc.
  • Delphi Technologies
  • Ford Motor Company

What is the COVID-19 Impact on the Auto Repair Software Market?

COVID-19 had a negative impact on auto repair software market share. However, no major auto repair software companies have declared a service suspension.

Furthermore, due to the COVID-19 outbreak, demand for auto repair software solutions dropped in the first half of 2020 as manufacturing was disrupted. Output is likely to be adjusted to avoid bottlenecks, and production would be planned according to the demand for auto repair software in OEM and Tier I.

Multiple auto repair software firms experienced supply chain disruptions due to the spread of COVID-19, as countries around the world implemented lockdown precautions. As a result, the automotive software market size is expected to decline.

For example, NXP's first-quarter revenue fell by 3% compared to the same period last year. The company's trading is significantly harmed by the restrictions placed in countries, particularly India, which is a major revenue source for the corporation in various industries.

However, with the resumption of trade activity, the auto repair software market is expected to see a stable increase in the sales of auto repair software during the forecast period.

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What Factors Contributes to the Growth of the Auto Repair Software Market?

The primary driving factors influencing the growth of the global auto repair software market share are increasing vehicle production and the expansion of top OEMs.

Furthermore, the sales of auto repair software are growing due to the adoption of advanced driver assistance technologies in automobiles, which provide higher levels of safety, comfort, and luxury.

ADAS and safety features are being mandated by governments in both developed and developing countries. By 2026, both the United States and the European Union require all automobiles to have autonomous emergency braking and forward-collision warning.

This factor is anticipated to have a significant impact on the demand for auto repair software during the forecast period. Auto repair software's primary goal is to provide effective repair solutions.

As a result, demand for auto repair software is increasing as it aids in establishing communication between the driver and the car. Safety features are rapidly evolving in the vehicle industry and are likely to aid in the auto repair software market growth.

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What Limits the Growth of the Auto Repair Software Market?

The auto repair software market growth is likely to be hampered by the cost of maintaining and debugging the software, as well as increased cybersecurity concerns. Passenger and commercial vehicles are now equipped with powerful auto repair software to conduct a variety of tasks, keeping up with technological breakthroughs and innovations.

The auto repair software uses a variety of interfaces, platforms, technologies, and protocols to communicate. As these communication interfaces and protocols are not standardized, incorrect data may arise. The lack of technological standardization affects system integration and impedes the seamless flow of information.

Software, platform, and user interface have no specific standards. As a result, one of the most significant restraints in the auto repair software market is the absence of software standards. However, automakers are working together to remedy the problem. For example, the Daimler-BMW partnership aims to standardize technologies for self-driving cars.

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What are the Opportunities Prevailing in the Auto Repair Software Market?

The outbreak of AI in the auto repair software industry is due to the generation of massive data while working with auto repair software.

Speech and gesture recognition, better HMI, driver monitoring, virtual assistance, radar-based detection units, and engine control units are all examples of future trends in the auto repair software market. Deep learning, which is used to apply AI, is expected to increase at a faster rate than other automotive technologies, which is likely to boost the auto repair software market outlook.

The demand for auto repair software is being influenced by rapidly changing vehicle design requirements and architectures. Wireless connectivity is required for any automotive application to provide a better user experience. Furthermore, the demand for software over-the-air (SOTA) upgrades necessitates fast connectivity.

What are the Challenges in the Auto Repair Software Market?

Despite significant developments in auto repair software technology, cybersecurity continues to be a significant concern. Cyberattacks can greatly impact auto repair software. There have been numerous situations where cybersecurity has caused problems. As a result, the auto repair software market is likely to face cybersecurity challenges that might hinder its growth.

For example, two researchers were able to hack into a Jeep, resulting in the software being upgraded to 1.4 million vehicles. Similarly, the potential of cyberattacks on auto repair software systems can be seen in the Tesla S and Nissan Leaf.

Comparative View of Adjacent Auto Repair Software Market

Attributes

Auto Repair Software Market

CAGR (2022-2032)

14.8%

Market Value (2026)

US$ 49.33 Bn

Growth Factor

Increasing vehicle production and the expansion of top OEMs are the primary factors driving the global auto repair software market share.

Opportunity

Deep learning is predicted to grow at a quicker rate than other automotive technologies, providing lucrative opportunities for the market.

Key Trends

Better HMI, driver monitoring, virtual assistance, radar-based detection devices, and engine control units 

Comparative View of Adjacent Automotive Artificial Intelligence Market

Attributes

Automotive Artificial Intelligence Market

CAGR (2022-2032)

38.46%

Market Value (2026)

US$ 14.6Bn

Growth Factor

The growing demand for improved user experience and increasing government rules for vehicle safety are driving the growth of the automotive AI market.

Opportunity

Rising investments by major market players are further expected to provide growth opportunities for market.

Key Trends

There is a rising demand for luxury vehicles with advanced software and systems to improve the operation efficiency and user interface.

Comparative View of Adjacent Autonomous (Driverless) Car Market

Attributes

Autonomous (Driverless) Car Market

CAGR (2022-2032)

22.75%

Market Value (2026)

US$ 61.92 Bn

Growth Factor

Several technological breakthroughs have aided in creating a positive environment for market expansion.

Opportunity

More autonomous cars are being produced with highly advanced technologies coupled with smartphones, offering opportunities for market players to attract customers.

Key Trends

To attract customers, automakers throughout the world are introducing new semi-autonomous vehicle models.

The sales of auto repair software are anticipated to grow as they enable automobile dealers, fleet operators, and drivers to achieve optimal use, increase safety, and automate certain driving responsibilities while also collecting valuable data such as vehicle performance and road conditions.

The auto repair software market share is projected to grow as embedded, integrated, cloud, or tethered connection options can be used to provide connected car services in a vehicle. To execute their duties, many connected automobile services require auto repair software.

The demand for auto repair software rises as it aids in the configuration, management, and monitoring of internet of things (IoT) devices in automobiles.

Furthermore, the rise in demand for connected car services is mostly due to increased safety and security concerns, the increased demand for a better driving experience, and the advent of the internet of things (IoT) in auto repair software.

As a result, tier 1 manufacturers are investing substantially to include these services in modern vehicles in order to meet the rising demand for auto repair software. As a result, the expansion of auto repair software for connected services is attributed to the increasing number of advanced services supplied in connected cars.

What is the Segmentation Outlook for the Auto Repair Software Market?

Due to rising demand for customer luxury lifestyle experiences, the passenger car category is predicted to dominate the auto repair software market, with a CAGR of 14.8% through 2032. Major auto repair software corporations are supporting the segment by purchasing cars in large quantities. 

Commercial vehicles, on the other hand, are anticipated to rise steadily in the anticipated period due to the adoption of smart logistics in the transportation industry. Due to the increased environmental awareness provided by commercial cars, consumers are anticipated to be drawn to the auto repair software market.

Which Segment is Likely to Lead the Auto Repair Software Market by Software?

Due to the growing demand for reducing human road fatalities, vehicle management software is likely to dominate the market with a CAGR of 14.6%. The auto repair software allows the vehicle to manage driver tiredness, self-diagnosis, and, most critically, accident navigation to keep track of the vehicles.

Due to the growing demand for safe and convenient driving practices, autonomous driving software is expected to expand at a consistent rate. Emerging technologies such as artificial intelligence, machine learning, and virtual reality are assisting drivers in recognizing things while driving or parking in order to avoid collisions and crashes.

Which Segment is Likely to Lead the Auto Repair Software Market by Application?

Among the application segment, to increase vehicle efficiency and performance, the engine management system (EMS) application is expected to have a high market growth rate.

To improve drivability and minimize emissions, EMS is anticipated to constantly improve control theory search and processor capabilities.

Which is the Leading Region in the Auto Repair Software Market?

Regions

CAGR (2022-2032)

United States

14.5%

United Kingdom

13.7%

China

14.1%

Japan

13.1%

South Korea

12.3%

With a CAGR of 14.5%, the United States is predicted to dominate the auto repair software market in the forecasted period. This is due to the existence of key industry leaders and their ability to keep up with emerging technological improvements.

The manufacturing sector has made a significant contribution by increasing car production and expanding manufacturing facilities. In addition, infrastructural development, together with rising demand for autonomous vehicles, is projected to propel the auto repair software market share forward in the near future.

China is expected to demonstrate quick growth with increasing market size and a CAGR of 14.1%. Due to the region's rapidly rising automotive industry, which is predicted to drive the auto repair software market further. Furthermore, the auto repair software market growth is likely to be aided by greater usage of advanced technologies and increased vehicle automation.

How does Competition Influence the Auto Repair Software Market?

The auto repair software market is fairly consolidated. Apart from automakers, other businesses including as hardware and software companies have begun to focus on meeting the growing demand for auto repair software in the automotive industry.

As a result, the auto repair software industry has seen a considerable surge in partnerships, collaborations, and investments aimed at developing advanced auto repair software. These activities are expected to develop during the projected period, owing to increased government and business sector backing for auto repair software in a number of nations.

  • Toyota Motor Corp. unveiled new versions of the Lexus LS and Toyota Mirai in April 2021 in Japan, both with Advanced Drive features of a Level 2 autonomous system that helps keep the car in its lane, maintain distance from other vehicles, assist with lane changes, and provide advanced-driver assistance.
  • Volvo Group and NVIDIA struck an agreement in March 2021 to collaborate on the decision-making system for autonomous commercial vehicles and machines. The final system is likely to be intended to manage completely autonomous driving on public roads and highways securely, thanks to NVIDIA's end-to-end artificial intelligence platform for training, simulation, and in-vehicle computing.

Report Scope

Attributes

Details

Forecast period

2022-2032

Historical data available for

2015-2021

Market analysis

USD Bn for Value

Key Countries Covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Germany
  • Italy
  • France
  • U.K.
  • Spain
  • Russia
  • BENELUX
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Indonesia
  • Malaysia
  • Australia and New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

By Market Segments

  • Vehicle Types
  • Software
  • Application
  • End-Use
  • Region

Key Companies Profiled

  • Ansys Inc.
  • Autodesk, Inc.
  • Bosch Software Innovations GmbH
  • CDK Global LLC
  • Cox Automotive

Pricing

Available Upon Request

Key Segments

By Vehicle Types

  • Passenger vehicles
  • Commercial vehicles

By Software

  • Autonomous driving software
  • Safety & security software
  • Vehicle management software
  • Infotainment software
  • Others

By Applications

  • Engine management systems
  • Mobility service

By End-use

  •  Manufacturer Retail store
  • Automotive dealer
  • Automotive Repair store
  • Auto part wholesaler and Agent

Media Release

- FAQs -

Auto repair software market is projected to have a CAGR of 14.8% through 2032.

United States is the leading region with an anticipated value of US$ 40 Bn by 2032.

The engine management system (EMS) application is expected to have a high market growth rate. 

Auto repair software market is predicted to grow US$ 112.9 Bn by 2032.

In the forecasted period, the manufacturer retail store segment is expected to lead the market.

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