Trends in Automotive Software that Will Transform Industry

Automotive Software development is helping the automotive industry reinvent itself. The four biggest upheavals in recent years—autonomous vehicles, shared mobility, electrification, and connectivity—all rely significantly on cutting-edge software. In this new software-driven value chain, OEMs, suppliers, and industry entrants are vying for control points. In this blog, we discussed some major developments in vehicle software that have revolutionized the transportation sector.

The dominance of software in the automobile sector

By 2035, the linked transportation market will be valued at more than $550 billion, predicts AT Kearney. While Boston Consulting Group (BCG) estimates that by 2030, shared autonomous electric vehicles may account for 25% of all US driving miles,

The software layer will manage several aspects of a car, including driving. Additionally, it will offer services and conveniences to customers to enhance their travel experience. The development of software is positive for the auto industry. Automakers and speech-tech start-ups probably collaborate more frequently to incorporate voice assistants and other SaaS goods into automobiles.

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

As traditional automobile growth rates gradually decrease, the non-software-driven car industry will stall for another ten years. OEMs will need to make some choices in this position if they want to remain competitive in the automotive sector.

Software stacks and the vehicle interface must work flawlessly together. OEMs should work closely with technology companies to create solutions like AI-driven voice assistants that can manage automobiles and link to other cars.

The business field of automotive software

The Asia-Pacific area became the most important regional market for the automobile sector in 2021, accounting for 36.4 percent of the market and generating 0.53 billion in revenue. The greatest market over the predicted period may be in the Asia-Pacific region.

The expanding demand for automobiles in developing economies is essential to the industry’s expansion. China, the largest manufacturer in the world, aims to lower carbon emissions by increasing fuel efficiency. The Chinese market is changing toward the production of cutting-edge vehicles.

The major companies in the world market for automotive software, according to BrainyInsights, are as follows:

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

Automotive software industry innovation

Software for automobiles and connected vehicles

Automakers frequently employ Wireless Local Area Networks (WLAN) to link their vehicles to the internet. A connected car can share data through the internet with any other device or service, both inside and outside. Connected cars can always access the internet to carry out tasks or download data at the user’s request.

Self-driving cars will also profit from connected car technology and be able to interface with the road network and cloud systems in addition to conventional cars. Connected cars are currently disrupting Automotive Software Companies.

Consumers are increasingly drawn to linked cars as more smart automobiles reach the market. In the upcoming years, connected technology will establish new safety and accident prevention benchmarks.

Cloud computing and software for automobiles

The automotive cloud can enhance already available services like emergency help or remote car access while setting the framework for future ones like automatic driving, smart parking, and intelligent navigation.

The Automotive cloud might be powered by an electric vehicle’s in-car navigation system, which provides information on charging stations and suggests stops to alleviate range anxiety.

In addition, the cloud might use the data provided by electric vehicles to improve and create batteries with greater performance and range.

Microsoft and Volkswagen jointly established a strategic alliance in 2018 to hasten the development of the Volkswagen Automotive Cloud. One of the biggest and most committed companies in the automobile sector is called VW.  AC.

Beginning in 2022, VW.AC will manage data from millions of vehicles daily to provide connected experiences to customers worldwide—an essential component of the Volkswagen Group’s plan to become the industry’s top developer in automotive software.

Autonomous vehicle

Autonomous driving refers to moving a vehicle or a transportation system without a human driver’s assistance. The J3016 standard, which SAE International (Society of Automotive Engineers) released in 2014, outlines the various development stages leading up to fully autonomous vehicles. Independent driving autonomy levels vary from 0 (no automation) to 5 (complete vehicle autonomy).

Advanced driver-aid technology examples include front crash prevention systems, blind spot recognition, lane departure, and rear crash prevention systems.

According to the Insurance Institute for Highway Safety, “Forward collision warning alone reduces rear-end collisions by 27%, whereas automated braking systems reduce them by 50%. Additionally, auto brake systems greatly lessen rear-end incidents that result in injuries.

Technology enabling automobiles to self-park by spotting an open space and automatically navigating it may make parking cars easier. The driver would then need to use the accelerator and brakes to move the vehicle.

With Drive Pilot, Mercedes-Benz took things a step further by allowing the driver to occasionally give up direct control of the steering and speed while still keeping an eye on the car.

Special Mention: Tesla’s Cybertruck

The stainless steel exterior of Tesla’s all-electric truck has sharp edges and is resistant to scratches and dents. The Cybertruck has a driving range of at least 500 miles and a towing capacity of up to 14,000 pounds.

This strength, speed, and versatility are only possible with an all-electric design. With a low center of gravity and a strong drivetrain, the car can accelerate from 0 to 60 mph in under 2.9 seconds and have a range of up to 500 miles.

Tesla has previously postponed the truck’s production multiple times, but CEO Elon Musk recently stated that the truck might be available in 2023.

Complex technology requires sophisticated sensor technologies, clever control systems, and intelligent actuators for everything from automated to autonomous driving. It does not, however, concern the ability of automated vehicles to start themselves. Future developments will place even more emphasis on passenger comfort while maintaining safety as the primary priority.


Numerous automakers have taken extreme action to boost performance after realizing the advantages of vehicle software development.

Some businesses intend to increase their software capabilities and hire thousands of engineers over the coming years. Others develop global centers of excellence, partner with other organizations, and reinvent their governance models.

Automakers need to update the fundamental operating paradigms for software development.

Most automakers still haven’t advanced their software engineering methods as much as leaders in other industries have. Concerns exist about automated testing, agile methodologies, and continuous integration.

The industry will be won by the automotive leaders who draw in the best personnel and organize their businesses to foster innovation. So, finding and managing personnel well is crucial for success. You may construct the ideal engineering team with Turing by clicking the Recruit Developers button below if you want to hire skilled software developers to create flawless automotive software.


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