Strategic Insights and Growth Opportunities for Software-defined Vehicles

Strategic Insights and Growth Opportunities for Software-defined Vehicles

Future Growth Potential in the Automotive Industry Hinges on a Service-oriented Architecture with Repeatable Avenues of Revenue Generation

RELEASE DATE
02-Nov-2022
REGION
North America
Deliverable Type
Market Research
Research Code: PD97-01-00-00-00
SKU: AU02413-GL-MT_26952
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Description

Original equipment manufacturers (OEMs) used to differentiate their products based on mechanical features. Today, however, consumers are increasingly looking for features defined by software, such as driver assistance, connectivity, and comfort-convenience services. The convergence of technologies including electrification, autonomous driving, shared mobility, and connectivity is causing OEMs to migrate from the traditional hardpoint-defined architecture to a software-oriented architecture. Meanwhile, 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. The traditional business models of generating revenue cyclically are being challenged by continuous cash flow generation throughout the vehicle life cycle. Beyond unlocking new safety, comfort, and convenience features, software-defined vehicle (SDVs) have several advantages compared to their hardware-defined counterpart. SDVs allow customers over-the-air (OTA) updates that cover firmware patches; infotainment to receive improvements; monitoring and tuning of core functional capabilities, such as powertrain and vehicle dynamics; and feature-on-demand comfort-convenience services. This allows OEMs the opportunity to improve and upgrade vehicles on the go throughout their life cycle while generating revenue from feature-on-demand services, which culminates in deeper, more connected relationships with customers.

SDVs, therefore, are at the forefront of monumental changes in the automotive industry. This research service aims to provide an overview of trends impacting SDVs. It discusses the impact of these trends on the growth and deployment strategies of different OEMs and suppliers in the market.

Key Issues Addressed

  • What are the technological advancements shaping SDVs?
  • What change in development approach did SDVs cause?
  • What are software platforms? Will software players elevate from a Tier 2/3 supplier space to Tier 0.5?
  • What are the opportunities for OEMs and other stakeholders in the value chain?
  • How are OEMs transitioning from a hardware-centric to a software-centric approach?

Author: Manish Menon

RESEARCH: INFOGRAPHIC

This infographic presents a brief overview of the research, and highlights the key topics discussed in it.
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Table of Contents

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Software-defined Vehicle (SDV) Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Scope of Analysis

What is an SDV?

Characteristics of SDVs

Major Trends Leading to SDVs

Growth Drivers

Growth Drivers (continued)

Growth Restraints

Life Cycle of an SDV

Building Blocks of SDVs

Approaches to SDVs

Evolution of E/E Architecture

Characteristics of Different E/E Architecture

Pathways to E/E Architecture Evolution

Centralized Architecture Allowing HW and SW Decoupling

Select OEM Activity in the HW Module

Case Study: Snapdragon Digital Chassis

Case Study: Tesla Partial Zonal Architecture to Full Zonal Architecture

Case Study: STLA BRAIN Platform

Major Trends

OS Migration for SDV

OS Overview

High-level Structure of an Automotive OS

Automotive OS Requirements

Strategies for Vehicle OS Development

OS Valuechain

OEM Activity

OEM Activity (continued)

OEM Activity (continued)

OS Benchmarking

Case Study: The Ascent of Android

Case Study: Android Automotive OS

Case Study: VW.OS

Case Study: MB.OS

Case Study: Blackberry In-vehicle OS Components

Automotive Middleware

Automotive Middleware Protocol Comparison

Case Study: Middleware Requirement for Autonomous Driving

Case Study: ZF Middleware

Evolution of Vehicle Connectivity

Embedded Connectivity by Region

Importance of Auto Cloud Strategies

Snapshot of OEMs’ Cloud Strategy

OTA Update Allowing Features on Demand

Primary Cloud Players in Cloud Networking and Offerings

OEM Partnerships and Activity in Cloud Networking

OEM Partnerships and Activity in Cloud Networking (continued)

Case Study: Amazon’s Connected Vehicle Ecosystem

Automotive Cybersecurity: Possible Attacks Scenarios and Impact

Cyberattack Scenarios in SDVs

Layered Cybersecurity Approach

Vehicle SW and System Cyberrisk Assessment

Automotive Cybersecurity Value Chain

Different Types of Cybersecurity Solutions in Vehicles

Overview of Cybersecurity Threats in an SDV

Overview of OEM Cybersecurity Partnerships and Strategies

Overview of OEM Cybersecurity Partnerships and Strategies (continued)

Automotive Cybersecurity Companies: Comparative Analysis

Automotive Cybersecurity Companies: Comparative Analysis (continued)

Semiconductor and Chip Manufacturers: Comparative Analysis

Automotive Tier I Suppliers: Comparative Analysis

Automotive Tier I Suppliers: Comparative Analysis (continued)

Case Study: Bosch Cybersecurity

Case Study: Cybellum Digital Twins™ Platform

Case Study: Harman Cybersecurity and WP.29 Compliance Services

Traditional Automotive Value Chain

SDV Ecosystem, Threats, and Opportunities

Value Creation Throughout the Life Cycle of an SDV

SDVs Lead to New Business Models 

Opportunities and New Value Chain in SDV

Emergence of Tier 0.5

Role of Tier I

Emergence of the Digital Car and Features on Demand

OEM Benchmarking

The Last Word

Growth Opportunity 1: SDVs Opening New Avenues for Repeatable Revenue Generation

Growth Opportunity 1: SDVs Opening New Avenues for Repeatable Revenue Generation (continued)

Growth Opportunity 1: SDVs Opening New Avenues for Repeatable Revenue Generation (continued)

Growth Opportunity 2: Software Players to Find Prominence in New Value Chain

Growth Opportunity 2: Software Players to Find Prominence in New Value Chain(continued)

Growth Opportunity 3: IT Companies Assisting Automakers to Develop Technology Know-how

Growth Opportunity 3: IT Companies Assisting Automakers to Develop Technology Know-how (continued)

Your Next Steps

Why Frost, Why Now?

Legal Disclaimer

Original equipment manufacturers (OEMs) used to differentiate their products based on mechanical features. Today, however, consumers are increasingly looking for features defined by software, such as driver assistance, connectivity, and comfort-convenience services. The convergence of technologies including electrification, autonomous driving, shared mobility, and connectivity is causing OEMs to migrate from the traditional hardpoint-defined architecture to a software-oriented architecture. Meanwhile, 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. The traditional business models of generating revenue cyclically are being challenged by continuous cash flow generation throughout the vehicle life cycle. Beyond unlocking new safety, comfort, and convenience features, software-defined vehicle (SDVs) have several advantages compared to their hardware-defined counterpart. SDVs allow customers over-the-air (OTA) updates that cover firmware patches; infotainment to receive improvements; monitoring and tuning of core functional capabilities, such as powertrain and vehicle dynamics; and feature-on-demand comfort-convenience services. This allows OEMs the opportunity to improve and upgrade vehicles on the go throughout their life cycle while generating revenue from feature-on-demand services, which culminates in deeper, more connected relationships with customers. SDVs, therefore, are at the forefront of monumental changes in the automotive industry. This research service aims to provide an overview of trends impacting SDVs. It discusses the impact of these trends on the growth and deployment strategies of different OEMs and suppliers in the market.--BEGIN PROMO--

Key Issues Addressed

  • What are the technological advancements shaping SDVs
  • What change in development approach did SDVs cause
  • What are software platforms Will software players elevate from a Tier 2/3 supplier space to Tier 0.5
  • What are the opportunities for OEMs and other stakeholders in the value chain
  • How are OEMs transitioning from a hardware-centric to a software-centric approach

Author: Manish Menon

More Information
Deliverable Type Market Research
Author Manish Menon
Industries Automotive
No Index No
Is Prebook No
Podcast No
WIP Number PD97-01-00-00-00