China’s automotive software market worth $4.09 billion in 2022: CSIA

Beijing (Gasgoo)– China’s automotive software market size will see a growth of 23.4% in worth as the market is rapidly expanding with great development potential, an association in China said in a report.

photo credit: Li Auto

According to the White Paper on the development of China's automotive software industry, issued by the China Software Industry Association (CSIA), the automotive software market in China is expected to be worth RMB26.4 billion ($4.09 billion) in 2022, jumping from RMB21.4 billion ($3.31 billion) in 2020.

The deputy secretary of the CSIA, Fu Xiaoyu said, as the auto industry is transitioning from machinery to electronics, the software is crucial to future automobiles. In 2023, the size of the global automotive software market is expected to reach $28 billion, when the software will account for 60% of the vehicle’s total worth.

A premium vehicle has much more lines of software code than PC or smartphone operation systems. The code used in a premium vehicle can amount to 100 million lines, compared to Windows Vista’s 50 million or a typical Android phone’s 130 thousand lines. The deputy secretary said the estimated autonomous vehicle software would possess 500 million lines of code in the future.

Moreover, the Chinese automotive software market is of great potential. According to the white paper, from 2020 to 2030, China’s automotive software market, including operating system, mid-ware and functional software, will see a compound annual growth rate (CAGR) of 30%. The software application is expected to lead the reformation of vehicle integration and testing industry, resulting in a CAGR of 25% of the said industry between 2020 and 2030.