Standardisation Issues Prove Challenging for Original Equipment Manufacturers in the European Automotive Software Market
Software Components Offer Opportunities to Enhance Product Differentiation in Passenger Cars
LONDON, September 14 -- The need to stand out in a crowded market place and to offer differentiated safety, entertainment and comfort features to customers is driving the widespread incorporation of software modules in passenger cars across Europe.
The mounting complexity of electronics combined with the need for open interface standards among electronic control units (ECUs) is fuelling innovation in the European automotive software industry.
In fact, about 90.0 per cent of the innovation in the automotive industry is software related and it is estimated that the cost of software per vehicle in Europe was 5.8 per cent of the total cost of the vehicle in 2004. Propelled by the desire for more comfort and safety in cars, there is expected to be a progressive increase in the amount of software embedded in the different ECUs. Consequently, the cost of software for every vehicle is expected to form 11.0 per cent of the total cost by 2011.
"While comfort and infotainment features were the initial platforms for product differentiation in higher-segment vehicles, the inclusion of software components in safety, power train and body electronics are currently being used to differentiate models even in the lower-vehicle segments," states new research by Frost & Sullivan (http://semiconductors.frost.com).
The inability of conventional mechanical solutions to meet advanced requirements for higher levels of safety and driver information is also driving demand for software components to support intelligent features such as electronic stability programme, adaptive cruise control, lane detection, pedestrian protection, night vision and telematics.
Moreover, the ability of software to support the integration of communication systems such as mobile phones and the Internet within vehicles is a significant driver for the automotive software market in Europe.
While in-vehicle-networking and intelligence are the factors influencing the use of software in the body electronics and passive safety features, convergence of consumer electronics and wireless communication is increasing the use of software in driver infotainment platforms.
"Not only do these software modules improve the performance of existing sub systems, but they are also less bulky and faster in operation compared to hardware systems," explains the analyst.
Despite the benefits of installing software solutions in passenger cars, original equipment manufacturers (OEMs) are grappling with issues surrounding the lack of standardisation and the use of quasi-standard solutions.
"There is a lack of open standards for interfacing software systems from different suppliers and a necessity to arrive at levels of abstraction where software applications can run independent of electronic components," observes Frost & Sullivan.
Known as Open Systems, OSEK, the registered trademark of Siemens AG, is working on defining open standards for distributed ECUs and specifications for operating systems, communication systems and network management systems used in passenger vehicles.
Presently, there are also interoperability issues to cope with since system integrators provide proprietary software and hardware systems to OEMs. AUTOSAR, a consortium of 25 OEMs is working toward achieving common interface standards for communication between various ECUs to enable OEMs to use exchangeable platforms.
OEMs are working together under the common platform of AUTOSAR to establish open interface standards for introducing functional interfaces between advanced safety systems in chassis features. Moreover, the existence of open gateways between chassis and power train features is likely to increase safety levels in passenger cars.
AUTOSAR is also likely to bring standards into configurable hardware platforms, which will enable systems integrators to use off-the-shelf hardware platforms to integrate software components. From a software perspective, AUTOSAR is also developing hardware-independent application software that can run as centrally managed software components.
In the long term, the successful interfacing of software components with underlying hardware platforms is likely to require a collaborated effort and transparency in knowledge sharing among OEMs, systems integrators and semiconductor suppliers.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Strategic Analysis of European Software Market for Passenger Cars, then send an e-mail to Magdalena Oberland - Corporate Communications at magdalena.oberland@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, country and source of information. We will send you the information via email upon receipt of the above information.
Title: Strategic Analysis of European Software Market for Passenger Cars
Code: B478-26
Background
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
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List of keywords in this press release: Passenger cars, automotive software, Europe, electronic control units, ECUs, safety, power train, body electronics, electronic stability programme, adaptive cruise control, lane detection, pedestrian protection, telematics, driver infotainment, original equipment manufacturers, OEMs, systems integrators, semiconductor suppliers Open Systems, OSEK, AUTOSAR, research, information, market, trends, technology, service, forecast
Europe: Magdalena Oberland, Corporate Communications, P: +44-(0)-20-7915-7876, E: magdalena.oberland@frost.com; Americas: Tori Foster, Corporate Communications, P: +1-210-477-8448, E: tori.foster@frost.com; Asia Pacific, Donna Jeremiah, Corporate Communications, P: +603-6304-5832, E: djeremiah@frost.com; India: Surbhi Dedhia, Corporate Communications, P: +91-22-2832-4705 Ext: 131, E: sdedhia@frost.com; Australia: Sharmin Jassal, Corporate Communications, P: +61-2-8247-8900, E: sjassal@frost.com