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Top Trends in Automotive Software that will Transform Mobility Industry

Automotive Industry

The automobile industry is reinventing its wheel with the help of software development. Autonomous vehicles, shared mobility, electrification, and connectivity, the four most significant disruptions in recent years, are all heavily reliant on cutting-edge software. OEMs, suppliers, and newcomers from the industry hope to seize control points in this new software-driven value chain. In this blog, we explained some of the top trends in automotive software that has transformed the mobility industry.

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The software supremacy in the automotive industry

According to AT Kearney, the connected mobility market will be worth over $550 billion by 2035. While Boston Consulting Group (BCG) predicts that by 2030, 25% of all miles driven in the US could be in shared autonomous electric vehicles.

The software layer will control various car functions, including vehicle operation. It will also provide consumers with services and amenities to improve their travel experience. The emergence of software bodes well for automobile manufacturers. It is likely why automakers are increasingly collaborating with voice-tech start-ups to integrate voice assistants and other SaaS products into vehicles.

According to Morgan Stanley, software and application layers will make up nearly 60% of autonomous vehicles in the future.

The growth rates of traditional automobiles will steadily decline, and the non-software-driven vehicle segment will stagnate in another decade. OEMs that want to stay relevant in the automobile industry will have to make some decisions in this situation.

Software stacks must seamlessly integrate with the vehicle interface. OEMs should collaborate closely with technology companies to develop solutions such as AI-driven voice assistants that can control vehicles and connect to other cars.

The automotive software industry

With 36.4 percent market share and 0.53 billion in revenue, the Asia Pacific emerged as the most prominent regional market for the automotive industry in 2021. The Asia Pacific region could be the largest market during the forecast period.

The growth of the automotive relies on the rising demand for vehicles in developing economies. China is the world's largest automaker, with plans to reduce carbon emissions by improving fuel efficiency; the Chinese market is shifting toward innovative vehicle manufacturing.

According to BrainyInsights, here are the key players in the global automotive software market:

  • Robert Bosch GmbH
  • Tesla Inc.
  • BMW AG
  • Hyundai Motor Co.
  • Continental AG
  • DENSO Corporation
  • Tokai Rika Co. Ltd.

Innovation in the automotive software industry

Connected cars and automotive software

Wireless Local Area Network (WLAN) is commonly used to connect cars to the internet. A Connected car can share the internet with devices inside and outside the vehicle and data with any external device or service. When a user requests it, connected cars can always access the internet to perform functions or download data.

Besides traditional automobiles, self-driven vehicles will also benefit from connected car technology and communicate with the road infrastructure and cloud system. Connected cars are currently disrupting the automobile industry.

Buyers are gravitating toward connected cars as more smart vehicles enter the market. Connected technology will set new standards in the coming years, improving safety and reducing accidents.

Automotive software and cloud computing

Automotive cloud can improve existing services such as emergency assistance or remote vehicle access while laying the groundwork for new ones such as intelligent navigation, smart parking, and automated driving.

The Automotive cloud could power an in-car navigation system for electric vehicles, providing charging station locations and suggested stops to avoid range anxiety.

Beyond that, the cloud could use the data generated by electric vehicles to help optimize and develop batteries with better range and performance.

Volkswagen announced a strategic partnership with Microsoft in 2018 to help accelerate the development of Volkswagen Automotive Cloud. VW.AC is one of the most significant and dedicated automotive industry clouds.

VW.AC handle data from millions of vehicles per day to deliver connected experiences to customers worldwide starting in 2022 – a crucial part of the Volkswagen Group's strategy to become a leading automotive software innovator.

Autonomous driving

Self-driving vehicles or transportation systems that move without a human driver's intervention are called autonomous driving. The J3016 standard published by SAE International (Society of Automotive Engineers) in 2014 defines the various development levels up to fully autonomous vehicles. Levels of autonomy for independent driving range from 0 (no automation) to 5 (full vehicle autonomy).

Front-crash prevention systems, blind-spot detection, lane departure, and rear-crash prevention systems are advanced driver assistance technology examples.

The Insurance Institute for Highway Safety states, "Forward collision warning and automatic braking systems reduce rear-end collisions by half, while forward collision warning alone cuts them by 27%. Autobrake systems also significantly reduce injury-causing rear-end collisions."

Parking cars could be easier with technology that allows cars to self-park by sizing up a free spot and automatically steering into it, leaving the driver with only the accelerator and brake pedals to control.

Mercedes-Benz went even further with Drive Pilot, which allows the driver to relinquish direct control of steering and speed in certain situations while still monitoring the vehicle.

Special Mention: Cybertruck by Tesla

Tesla's all-electric truck is tough, with a sharp-edged exterior made of scratch- and dent-resistant stainless steel. The Cybertruck can tow up to 14,000 pounds and has a driving range of 500 miles or more.

Only an all-electric design can provide this strength, speed, and versatility. The low center of gravity and powerful drivetrain provide exceptional traction control and torque, allowing for 0-60 mph acceleration within 2.9 seconds and a range of up to 500 miles.

Tesla has already postponed the truck's production several times, but CEO Elon Musk recently confirmed that the truck could be ready in 2023.

Complex technology demands everything from automated to autonomous driving, including advanced sensor technology, smart control systems, and intelligent actuators. However, it is not about automated vehicles being able to start themselves. Safety will remain a top priority in the future, and passenger comfort will become even more critical.

Final Thoughts

Many automotive companies have realized the benefits of automotive software development and taken drastic measures to improve performance.

Over the next few years, some companies will plan to expand their software capabilities and hire thousands of software engineers. Others redefine their governance models, form partnerships, and establish global centers of excellence.

Automakers need to update the underlying operating models for software development.

While leaders in various industries have significantly improved their software engineering practices, most automakers have yet to cover more ground. Automated testing, agile practices, and continuous integration are all areas of concern.

The automotive leaders who attract the best talent and structure their organizations to maximize innovation will win in this space. Hence, effective talent sourcing and management are essential for success. If you want to hire experienced software developers to build seamless automotive software, click on the hire developers button below and spin your dream engineering team with Turing!

Frequently Asked Questions

Software solutions are now a crucial component of the mechanical sector. Automotive software comes in various forms and enhances customer satisfaction, overall performance, and safety.

Some of the software used in the automobile industry are:

  • Navigation software
  • Software for Vehicle Safety
  • Garage Software
  • Software for automotive systems (Autopilot)
  • Computer-aided design software (CAD)

Software solutions are now a crucial component of the mechanical sector. Automotive software comes in various forms and enhances customer satisfaction, overall performance, and safety.

Some of the software used in the automobile industry are:

  • Navigation software
  • Software for Vehicle Safety
  • Garage Software
  • Software for automotive systems (Autopilot)
  • Computer-aided design software (CAD)

ERP software and systems used to plan, manage, and deliver particular functionalities that support manufacturers and manufacturing business operations are referred to as manufacturing ERP.

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