by With advanced driver-assistance systems and infotainment systems becoming standard features in modern vehicles, cars are becoming more software-defined than ever before. Automotive software is powering everything from cruise control and lane keep assist to navigation, Bluetooth connectivity, and live traffic updates. In fact, the average new vehicle today contains over 100 million lines of code, and that figure is expected to double by 2030 as autonomous capabilities continue to develop. The growth of software content in automobiles has transformed the industry and enabled new levels of safety, convenience and innovation.
Growing Importance of Over-the-Air Updates
As software plays an increasingly critical role in vehicle systems, the ability to remotely update this code is becoming mission-critical for automakers. Over-the-air (OTA) updates allow manufacturers to fix bugs, patch security vulnerabilities, and roll out new features without recalls or service center visits. This helps improve the customer experience through ongoing feature enhancements. OTA updates also help address functional or regulatory issues quickly through remote deployment. With Automotive Software-defined features continually evolving, the ability to wirelessly update vehicle software securely and seamlessly is a huge advantage for automakers and a necessity for fully autonomous vehicles.
Cybersecurity Challenges of Connected Vehicles
However, the rise of automotive software and connectivity creates new cybersecurity challenges that auto companies are working hard to address. As vehicles become more connected and software-defined, they represent a larger attack surface that bad actors may try to exploit for things like getting access to personal rider data, manipulating advanced driver assistance systems to cause accidents, or launching distributed denial-of-service attacks. Ensuring proper security measures and practices are in place to protect vehicles from hackers becomes paramount. This requires close collaboration between automakers, suppliers, regulators and ethical hackers to both prevent intrusions and respond quickly should any occur. Standards like those from SAE International help guide security best practices, but the challenges will continue to evolve along with emerging threats.
Rapid Changes in the Software Development Process
To keep pace with technology advancements, the Automotive Software development process itself is also undergoing rapid transformation. Traditional hardware-focused development cycles are giving way to more agile processes adapted from industries like consumer electronics and mobile apps. This includes practices like continuous integration/delivery, devops integration, beta testing, and user feedback loops to rapidly develop, deploy and refine new features via iterative updates. Autonomous driving software in particular requires even more fluid development approaches as the technology progresses rapidly through testing and deployment. In the future, automotive “software as a service” models may even allow features and capabilities to continually develop post-purchase through ongoing data collection and AI improvements.
New Skills and Tools Required
The rise of automotive software is also driving workforce changes as new skillsets are required. While mechanical, electrical and electronics engineering remain relevant, expertise in software, data science, cybersecurity and machine learning have become essential for automotive careers. For software developers specifically, proficiency in languages like C, C++, Python, Java and vehicle networking protocols like CAN, Ethernet and MOST is standard. Development tools are also transitioning, with many automakers adopting mainstream technologies like Android Studio, AWS and Azure in addition to proprietary solutions. Strong systems engineering skills are still vital to integrate hardware and software seamlessly. The new talent needs created by software-defined vehicles represent both a challenge and opportunity for automotive companies, suppliers and universities to evolve curriculums and attract top technical talent.
Opportunities for Startups
The significant growth of automotive software has also opened the door for startups in this sector. Areas attracting early-stage companies include connected services, cybersecurity, advanced driver assist systems, autonomous vehicle software platforms, big data/AI analytics, and various infotainment/HMI applications. Larger automakers are increasingly partnering with or acquiring startups bringing innovative new software concepts. This gives smaller companies opportunities to have real commercial and technical impact far beyond their size by addressing important problems through agile development. It also provides established OEMs access to cutting-edge ideas, fresh talent and technology adoption curves far shorter than their traditional product cycles. As software becomes the differentiator in vehicles, startups play an increasingly central role in driving innovation.
Monetizing In-Car Software and Features
Finally, as software capabilities define more of the vehicle experience and feature set post-sale, automakers have a huge opportunity to generate recurring revenue through new business models. This includes OTA feature unlocks, subscription services, downloadable apps/packages, targeted ads and ecommerce. Some premium brands have already started introducing in-car app stores and subscriptions to services like satellite maps/traffic. As autonomous vehicle capabilities advance, software-enabled transportation on demand is projected to become a multi-billion dollar annual business. These and other creative monetization strategies will help offset high software/AV development costs while delivering more value to customers through ongoing innovation – a win-win approach automakers are eager to embrace.
Software is revolutionizing the automotive industry and transforming vehicles into technology platforms. This sea change creates both challenges and opportunities that require new skills, processes and partnerships. For automakers focused on leading this software-defined future, the benefits of increased functionality, safety capabilities and recurring revenue far outweigh the risks if properly addressed. Overall, the rise of automotive software is set to drive continuous innovation in vehicles for many years to come.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
