Automotive Software: A Global Strategic Business Report
San Jose, California (PRWEB) April 13, 2012
Follow us on LinkedIn – Modern automobiles are more than just mechanical machines, they currently bristle with electronics ranging from on-board electronic devices that control, monitor and trouble shoot the car's mechanical systems to electronic chipsets that provide on-demand infotainment to drivers like music, traffic reports, satellite navigation, route-mapping and connectivity to emergency services, to “back-seat” pure play entertainment to passengers, such as, digital movies and online interactive games. In an era where the modern automobile industry is being driven almost exclusively by innovations in electronic gadgetry, software is currently at the core of most functions, and systems in an average vehicle. The importance of software in the auto industry can be thrown into sharp relief by the fact that in the future consumer purchasing decisions will likely be influenced solely by the ability of cars to support mobile applications and address consumer demands for the latest mobile apps. Software will continue to gain in popularity as the auto industry advances to the next level of connectivity between the vehicle and mobile devices and finally to the all pervasive clouds. As automakers continue to focus on creating convenient connectivity user experiences for drivers, its opportunities galore for automotive software.
Currently available premium-class automobile typically contains over 100 million lines of software codes all designed and executed by 70 to 100 microprocessor-based electronic control units (ECUs). The increase in software content per car can also be thrown into sharp relief by the fact that cost of electronics as a % of vehicle costs has risen from a low of 9% during the 1970s to over 30% in 2011. Over the next decade, the same is forecast to rise to over 60% in a standard car and to over 85% in hybrid vehicles. The numbers lay bare the potential in store for automotive software.
Software is rapidly changing the engineering dynamics in powertrain. Auto manufacturers are closely working with electronic/software developers to improve the performance of powertrain (engine and gearbox combination). The growing consumer emphasis on fuel efficiency, compounded by government push towards reducing vehicular emissions throws the spotlight on intelligent software modules that can aid in controlling fuel flow (rate of fuel injection), valve timing, ignition timing, and thereby consumption. An electronic control Unit (ECUs) in this regard helps increase the vehicle’s torque and power. Environmental regulations have and will continue to drive the use of software algorithms in engine control. The need to optimize powertrain performance to increase fuel efficiency and reduce emissions will continue to drive demand for intelligent engine management software. Electronic components are additionally easier to install and are lighter than hydraulic, and mechanical systems and therefore aid in reducing fuel consumption making automobiles fuel-efficient.
In addition, shift from passive safety technologies to active safety technologies is expected to create demand for automotive software designed to support these technologies. Automobile manufacturers, insurance companies, legislators, and the customer are all poised to take safety to a higher ground and with it automotive software. The future will very likely witness demand for intelligent software capable of operating safety enhancing systems, such as, navigational aids, radar and satellite-guided electronic instrumentation. Opportunities for automotive software is also largely dictated by the market adoption of intelligent active safety technologies, such as, driver assistance systems (DAS) comprising of collision warning system, lane departure warning system, night vision system, blind spot detection, tire pressure monitoring systems (TPMS) and adaptive cruise control, among others. Initiatives being taken by various governments across the globe to address road terrors are propelling sales of DAS systems, which in turn is helping the automotive software market to expand.
The development of electric cars and hybrid cars bodes well for the growth of the market in the longer-term as these vehicles promise higher volumes of software deployments. On an average, software content in hybrid cars are higher than in conventional diesel, and gasoline powered cars. The volume of software needed for engine control alone is typically twice higher than a standard car. This is primarily because hybrid cars require high-level supervisory control software, and are characterized by complex electrical and mechanical systems. Technologies in alternate drive trains, such as those used in hybrid cars are complex, and this is especially so for plug-in hybrid vehicles. Hybrid cars often use software algorithms to govern use of stored battery power to reduce battery wear and tear without compromising on fuel efficiency. Sales of eco-friendly automobiles, which qualify as next-generation alternative-energy powered vehicles critical to meet carbon reduction goals, will remain important for the automotive industry’s long term growth. Flex-fuel and hybrid vehicles especially represent a bridge that connects to the lower carbon future envisaged by most governments worldwide. The strong growth potential of hybrid cars therefore augurs well for automotive software in this space.
While the automotive industry the world over is recovering from the 2007-2009 recession, the industry in Europe is running into fresh set of challenges. The industry in the region currently continues to vacillate between optimism and fear, marring sentiments in an otherwise recovering market. Nervous over the play out of the sovereign debt crisis drama, the domestic industry is facing immediate hurdles, such as, credit restriction, consumer indecisiveness, fears of slowing vehicle sales, high labor costs, and possible collapse of consumer confidence in the event of escalation in the severity of the debt crisis. Currently however, despite all the economic risks carried by the debt crisis and the numerous potential outcomes of the crisis, immediate term outlook remains positive, mirroring the guarded optimism prevailing over the financial bailout strategies designed to restore market confidence. Against this backdrop, consumer spending which continues to remain a key pillar of growth in the automotive & automotive related industries, which although currently jittery and sensitive to vacillating market sentiments, is nevertheless expected to hold up in the year 2012. Immediate production cutbacks in the region are not seen as likely, given the yet patchy slowdown in auto sales.
As stated by the new market research report on Automotive Software, Europe represents the largest market worldwide. Asia-Pacific is forecast to grow the fastest trailing a projected CAGR of 9.5% over the analysis period 2009 through 2017.
Major players in the marketplace include Access Co. Ltd., Adobe Systems Incorporated, Airbiquity Inc., ALT Software Inc., Atego, Broadcom Corporation, DivX Inc., ETAS Group, Freescale Semiconductor Inc., Green Hills Software Inc., International Business Machines Corporation, Lectronix Inc, The MathWorks Inc., Mecel AB, Microsoft Corporation, NAVTEQ Corporation, Nuance Communications Inc., ProSyst Software GmbH, QNX Software Systems, Renesas Electronics Corporation Inc, Standard Microsystems Corporation, Texas Instruments Incorporated, Vector Informatik GmbH, Wind River Systems, Inc among others.
The research report titled “Automotive Software: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, and key strategic industry activities. The report analyzes the global automotive software market in key application areas such as Safety & Security Systems, Body Electronics/Comfort Systems and Infotainment/Telematics among others. Market estimates and projections are presented for all major geographic markets including US, Canada, Japan, Europe (France, Germany, Italy, UK and Rest of Europe), Asia-Pacific and Rest of World. The US market is further analyzed by following product segments - Application Software, Middleware and Operating System.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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