Growth Opportunities for In-Vehicle Software Spending

Description

Industry Convergence between Consumer Electronics, IT, and Automotive Players to Create Major Value Add for Nearly Half of All Vehicle Software in Use

Original equipment manufacturers (OEMs) used to differentiate their products based on mechanical features. Today, however, consumers increasingly want features defined by software, such as driver assistance, connectivity, and comfort-convenience services. The convergence of technology areas including electrification, autonomous driving, shared mobility, and connectivity is causing OEMs to migrate from the traditional hardpoint-defined architecture to a software-oriented architecture. These trends are reshaping customer expectations and forcing OEMs to address them in new-generation vehicles, thereby turning vehicles into software on wheels.

Similar to the mobile phone industry, the automotive industry is experiencing a sort of rebirth. Increasingly, industry participants are spending more R&D budget on software development and turning themselves into software companies. OEMs will deploy different strategies to develop proprietary software based on their capabilities, some developed in-house and others co-developed with partners.

This study includes research, analysis, forecasts, and an overview of industry spending on in-vehicle software development. It aims to provide an overview of trends impacting software development and a discussion on the impact these trends have on the growth, deployment, and R&D strategies of different OEMs, suppliers, and industry stakeholders.

Product Code: PF1D-46

Strategic Imperatives

Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
Impact of the Top 3 Strategic Imperatives on the In-vehicle Software (SW) Industry
Growth Opportunities Fuel the Growth Pipeline Engine™

Growth Environment

Scope of Analysis
Key Competitors
Segmentation
Major Trends Impacting SW Development in the Automotive Industry
SW Development Trends in the Automotive Industry
The SW Life Cycle in the Automotive Industry
SW Development Value Chain and Ecosystem
SW Categorization by Value Creation
Automotive R&D and In-vehicle SW Spending Market Snapshot
Comparative Analysis of OEM SW Development Strategies
OEM Benchmarking
SW Development Takeaways for OEMs
Comparative Analysis of Tier I Suppliers
Main Takeaways for Tier I and SW Engineering Players
Key Takeaways

Industry SW Development Strategies

OEM Approaches to SW Development
Strategy 1: Outsourced/Co-developed SW Development
Strategy 2: In-house SW Development
Tier I Approach to SW Development
Cooperative SW Development Consortia
Shift in Value Chain

In-Vehicle SW Spending Market Sizing

Key Growth Metrics
Global Automotive Revenue and Unit Shipment Forecast
Global Automotive R&D Spending & In-Vehicle SW Spending Forecast
Global In-vehicle SW Spending by Domain
Global In-vehicle SW Spending: Powertrain
Global In-vehicle SW Spending: ADAS and AD
Global In-vehicle SW Spending: Connectivity (Plus Cybersecurity)
Global In-vehicle SW Spending: Body, Comfort, and Convenience
Global In-vehicle SW Spending: Others
Global Average In-vehicle SW Spending per Vehicle

OEM Profiles

In-vehicle SW Strategy and Spending: BMW Group
In-vehicle SW Strategy and Spending: Ford Motor Company
In-vehicle SW Strategy and Spending: GM
In-vehicle SW Strategy and Spending: Honda Motor Co., Ltd.
In-vehicle SW Strategy and Spending: Hyundai Motor Group
In-vehicle SW Strategy and Spending: Mercedes-Benz Group
Case Study: Mercedes-Benz MBition
In-vehicle SW Strategy and Spending: RNM Alliance
In-vehicle SW Strategy and Spending: Stellantis
Case Study: Stellantis SW Center
In-vehicle SW Strategy and Spending: Toyota Motor Corp.
Case Study: Woven
In-vehicle SW Strategy and Spending: VW Group
Case Study: VW Group's CARIAD Division
In-vehicle SW Strategy and Spending: Volvo Cars

Tier I Profiles

In-vehicle SW Strategy and Spending: Aptiv PLC
In-vehicle SW Strategy and Spending: Bosch
In-vehicle SW Strategy and Spending: Continental AG
In-vehicle SW Strategy and Spending: DENSO Corporation
In-vehicle SW Strategy and Spending: Hyundai Mobis
In-vehicle SW Strategy and Spending: Magna International
In-vehicle SW Strategy and Spending: ZF Friedrichshafen AG

SW Engineering Company Profiles

SW Engineering Players: BlackBerry Ltd.
SW Engineering Players: EB
SW Engineering Players: Green Hills Software
SW Engineering Players: Red Hat Inc.
SW Engineering Players: Wind River Systems

Growth Opportunity Universe

Growth Opportunity 1: OEMs Becoming SW Organizations
Growth Opportunity 2: Pure-play SW Companies Helping Automakers Develop Technological Expertise
Growth Opportunity 3: Decoupling HW and SW for Recurring Revenue Generation

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