Market Overview

The research and development of software-defined vehicles (SDVs) has transformed automobiles from a mere means of transportation into sources of information and functionality for drivers and passengers. Automotive applications, or software that runs in cars, are poised to create excitement in driving experiences.

This research defines the automotive application and platform market as the total value of automotive applications and in-vehicle platforms. Automotive applications consist of information-based applications, body-related applications, vehicle control applications and applications related to advanced driver assistance systems (ADAS). In-vehicle platforms consist of middleware, a vehicle operating system (OS), and a hardware abstraction layer (HAL).
The market size steadily increased, reaching 10.3 billion yen in 2022, marking a 98.1% increase from the previous year. It then reached 29.4 billion yen in 2023, which was 185.4% larger than the previous year. In 2024, the market size grew to 56.8 billion yen, a 93.2% increase from the previous year. As automotive original equipment manufacturers (OEMs) continuously develop their own platforms, in-vehicle platforms accounted for 75% of the market in 2024, while automotive applications accounted for the remaining 25%.

Noteworthy Topics

Changes in Architecture of In-Vehicle Platforms and Applications

The research forecasts the architecture of automotive applications for the years 2025, 2028, and 2030.
“The Evolution of the Architecture for In-Vehicle Platforms and Applications” illustrates that, by 2025, many automotive OEMs will have adopted a domain-based electrical/electronic (E/E) architecture that divides functions per electronic control unit (ECU). However, in-vehicle platforms remain functionally siloed, resulting in fragmentation and poor interoperability. Technologies such as over-the-air (OTA) wireless application updates remain immature.

By 2028, hardware abstraction layers (HALs), which facilitate alignments among domains, are expected to expand their coverage from body-related and information I/O to include advanced driver-assistance systems (ADAS). Because ADAS involves vehicle control systems, it requires the automotive safety integrity levels (ASILs) “C” or “D”, with "D" requiring the most stringent level of safety measures. Meeting these safety requirements will necessitate middleware implementation, requiring collaboration with software development vendors. As part of this effort, the use of technologies like System on a Chip (SoC) is also expected to emerge.

By 2030, the architecture of body-related hardware will shift from a traditional domain-based structure to a zonal structure, marking a dramatic change. Currently, embedding system-on-a-chip (SoC) technology is cost-prohibitive. However, SoC costs are expected to decline by 2030, allowing for embedding in four locations on a vehicle, i.e., front right, front left, rear right, and rear left. This will enable ECUs to function as zonal controllers.

Future Outlook

The automotive application and platform market is projected to reach 106.8 billion yen by 2025, which is an 88.0% increase from the previous year. This makes the market consist of 30% automotive applications and 70% in-vehicle platforms.  
As “the Diagram of 2025 Architecture” shows, the scope of in-vehicle platforms (middleware, vehicle OS, and HAL) currently extends to information I/O and body control systems. Despite remaining immature, this demonstrates that automotive OEMs are continuing to develop their platforms toward completion. In parallel, OEMs are developing a range of automotive applications centered on Member and Public API utilization (*), actively working to expand their app portfolio.

While these trends are likely to continue, by 2028, the coverage of HALs is expected to expand beyond information applications and body control systems to include ADAS applications. This, combined with the integration of middleware, will bring the structure closer to its final form.
While R&D for in-vehicle platforms stabilizes, the need to advance the development of automotive applications utilizing various APIs will increase, narrowing the market share gap between in-vehicle platforms and automotive applications. This strategic shift in R&D focus—from platform consolidation to application diversification—is expected to drive substantial market expansion. By 2030, the composition is expected to be nearly equal, with in-vehicle platforms accounting for 51% and automotive applications accounting for 49%. Consequently, the total market for automotive applications and platforms is projected to reach 601.2 billion yen by 2030.

*API Classification:
Private API: Used by OEMs and Tier 1/2 suppliers for software updates.
Member API: Available to OEMs, Tier 1/2 suppliers, and authorized third-party operators for software updates.
Public API: Available to all parties (OEMs, Tier 1/2 suppliers, and any third-party operators) for software updates.

Research Outline