{"id":14235,"date":"2020-07-28T12:35:38","date_gmt":"2020-07-28T12:35:38","guid":{"rendered":"https:\/\/www.arobs.com\/?p=14235"},"modified":"2023-08-03T13:15:12","modified_gmt":"2023-08-03T13:15:12","slug":"software-only-in-the-automotive-industry","status":"publish","type":"post","link":"https:\/\/arobs.com\/en\/blog\/software-only-in-the-automotive-industry\/","title":{"rendered":"Software-only in the automotive industry"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

<\/p>\n

Software-only companies in the automotive industry<\/h1>\n
\u00a0<\/div>\n

Software-only companies are entering the automotive industry. Is this the automotive future?\u00a0<\/em>However, there are some barriers to entry. Here are the key takeaways from Deloitte\u2019s automotive software vision.<\/em><\/p>\n

<\/p>\n

Amid the Covid-pandemic there has been an increase of possible scenarios about the future of the automotive industry. An industry that is so important that certain countries link a significant part of their GDP to it.<\/p>\n

<\/p>\n

When it comes to imagining the future of the automotive industry and software engineering services<\/a>, experts agree on at least three forces of evolution. The first is autonomous driving. The second, emission regulation and a shift towards electric vehicles. The third is the need for standardization and security.<\/p>\n

<\/p>\n

The recent Deloitte article <\/a><\/span>is analyzing future strategic options for software-only automotive companies.<\/i> What changes for these companies, where is their role, and what barriers to entry do they face in the near future? Especially, now that the automotive industry is at a turning point.<\/p>\n

<\/p>\n

The future of the automotive industry – Key takeaways<\/strong><\/span><\/h2>\n

<\/p>\n

Technology companies entered the automotive industry and changed its course<\/em><\/strong><\/span><\/h3>\n

<\/p>\n

The course of classic automotive player\u2019s strategy has changes when big technology companies entered the industry. These companies introduced the concept of software-driven E\/E (electric and electronic) vehicle architecture. And now the whole market is evolving with this concept soon at its core. Also, these technology companies pave the way for automotive software-only companies around the world, like software outsourcing companies, that support the biggest players in this shift. There is a\u00a0need for more standardization and highly qualified talent.<\/i><\/p>\n

<\/p>\n

Standardization is not a new concept in the automotive industry. However, keeping up with the pace of change in this competition-based industry is difficult. But the necessity is simple. Players in the industry<\/i>, whether hardware or software, need to create pieces that will fit in many puzzles<\/i>. This means independent applications, increased scalability, and outsourcing for third parties that have strong software engineering skills<\/a>.<\/p>\n

<\/p>\n

Ever-increasing on-board processing power and data flow capacity<\/em><\/span><\/strong><\/h3>\n

<\/p>\n

New software features and products need increasing processing power<\/i>. Advanced driver assistance systems, infotainment systems, head-up displays, and battery management systems all require a lot of processing power.<\/p>\n

<\/p>\n

Furthermore, vehicle-connectivity increases as well. Plus, as vehicles level-up with autonomous driving, there is even more need for processing power.<\/p>\n

<\/p>\n

From ECU to DCU to VC<\/em><\/span><\/strong><\/h3>\n

<\/p>\n

It all started with a closed system, based on function-specific ECUs. Then their number grew with the required processing power. Now a modern vehicle has around 100 ECUs. These evolve into a few DCUs (domain-specific control units) and in the future the electronic architecture shifts toward a central or just a few domain-independent vehicle computers (VCs).<\/p>\n

<\/p>\n

Challenges that software-only companies are facing<\/em><\/span><\/strong><\/h3>\n

<\/p>\n