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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
02-Nov-2022
North America
Market Research
PD97-01-00-00-00
AU02413-GL-MT_26952
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
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)
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