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Global Automotive Software Providers and Business Models Research Report 2022: Conventional Suppliers Transform the Development Model from Turnkey Solution into Bilateral In-depth Cooperation

DUBLIN, Dec. 28, 2022 -- The "Automotive Software Providers and Business Models Research Report, 2022" report has been added to's offering.

Research on software business models: Four business forms and charging models of automotive software providers.

In an age of software-defined vehicles, automotive software booms, and providers step up their efforts to deploy various layers of software for a place in the software market.

From the current layout of automotive software products and solutions, it can be seen that intelligent vehicle software business models include IP, solutions and technical services, and charging models are led by non-recurring engineering (NRE), software authorization/license, and royalty.

Through the lens of the product and solution layout of automotive software providers, currently their typical business forms are custom software development and design, technical services, software license/authorization, and system integration, varying slightly in charging models.

As software and hardware tend to be decoupled and layered, software becomes an independent core component product, and the automotive software industry chain is reshaped. The boundaries between Tier 1 and Tier 2 suppliers thus become ever more blurred, and even OEMs will develop their own hardware and software. Automotive software providers are transforming from Tier 2 into Tier 1 or even Tier 0.5 suppliers, with an increasingly high position in the industry chain.

The supply relationships between suppliers and automakers are changing as well. The conventional automotive supply chain has been broken, and the original chain-type `supply` model turns into a flat `cooperation` model. Players that have the ability to develop and integrate software and hardware are expected to become super suppliers, driving innovations and technology upgrades in the automotive industry.

Basic software layer: In the trend for modularization, standardization and platformization, suppliers and OEMs build closer relationships and more flexible cooperation models.

In service-oriented architecture (SOA), automotive basic software is an embedded software platform used to enable decoupling of software and hardware for automotive systems, and providing software and hardware support for automotive system services. It is the key to realization of vehicle intelligence.

In addition to chip and hardware, basic software is the most basic underlying capability in the entire industry chain. Major suppliers double down on development and innovation of automotive basic software products such as operating system and middleware.

As well as large foreign providers such as Vector, ETAS and EB, quite a few local software providers in China like Neusoft Reach, ThunderSoft, Jingwei Hirain, and iSoft Infrastructure Software under China Electronics Technology Group Corporation are also working to deploy automotive basic software products, especially middleware products, most of which are AUTOSAR standard-compliant products, and hybrid platform software solutions based on CP and AP architectures.

To meet the market demand in the trend for SDVs, iSoft Infrastructure Software provides AUTOSAR CP+AP integrated solution for the two scenarios, security domain and high-performance computing domain, and combines it with iSoft Cloud System to enable landing of intelligent connectivity.

This solution is applicable to intelligent cockpit domain, vehicle control system domain and ADAS/AD domain. By standardizing the interfaces and architectures of different operating systems, underlying hardware, protocol software, etc., it enables service-oriented architecture. Meanwhile, for intelligent cockpit and ADAS/AD domains, iSoft Infrastructure Software is developing corresponding operating system kernels for a comprehensive layout of automotive basic software platform.

As concerns business model, iSoft Infrastructure Software positions itself as a Tier 2 supplier that adopts a model similar to VECTOR and concentrates on developing and applying basic software and tool chains. The `neutral` position allows the company to focus more on the R&D and application of vehicle basic software technology.

In 2018, Neusoft Reach introduced NeuSAR, China's first self-developed automotive basic software platform product which complies with the latest AUTOSAR release. NeuSAR not only supports conventional ECU development but provides a wealth of basic software, middleware and development tools for software development based on domain control systems in new-generation E/E architectures.

It is widely used in domain control systems such as autonomous driving, intelligent driving, chassis power, and body control in new-generation architectures, providing underlying software support for more personalized and intelligent application of the next-generation intelligent vehicles.

NeuSAR is composed of NeuSAR cCore, NeuSAR aCore, NeuSAR middleware, NeuSAR DS and NeuSAR tool chain. NeuSAR cCore subject to the latest AutoSAR Classic standard finds broad application in mass-produced ECUs of OEMs and many Tier 1 suppliers; NeuSAR aCore, the world's first commercialized AutoSAR Adaptive product, has been spawned and used in multiple autonomous driving domain controllers. The high compliance with the existing standards and the stability built through wide application make NeuSAR the preferred local AutoSAR product in the industry.

In 2020, under the guidance of Ministry of Industry and Information Technology, Neusoft Reach led the establishment of China Automotive Basic Software Ecosystem Committee (AUTOSEMO), aiming to help to create an independent controllable automotive basic software ecosystem.

In the trend for `software-defined vehicles`, automotive software industry will usher in layering and modularization, and a number of professional middleware module suppliers will be born. It is hard for automakers to complete R&D of full-chain software modules. OEMs will purchase software and hardware separately, and select hardware (chips) according to vehicle model position and price planning. They will also partner with basic software companies, mainly operating system and middleware providers, to build software architecture and adapt to chips.

Key Topics Covered:

1 Analysis of Automotive Software Business Model
1.1 Overview of Intelligent Vehicle Software Industry Chain
1.2 Summary of Business Models of Intelligent Vehicle Software Related Suppliers
1.3 Development Trend of Smart Vehicle Software Business Model

2 Analysis of Automotive Basic Software Layer Suppliers and Business Models
2.1 Development Status and Trend of Basic Software Business Model
2.2 Intelligent Vehicle Operating System
2.3 Hypervisor Virtual Machine Management System
2.4 Middleware
2.5 AutoSAR

3 Automotive Application Software Layer Suppliers and Business Models
3.1 Status Quo and Trend
3.2 Smart Cockpit Software System
3.3 HMI software
3.4 Voice Interaction
3.5 HUD Software
3.6 Autonomous Driving Software System
3.7 HD Map
3.8 Parking Software
3.9 DMS Software
3.10 Acoustic Software
3.11 Simulation Software

4 Automotive Cloud Platform Layer Supplier and Business Model Analysis
4.1 Status Quo and Trends of Business Models of Cloud Platform Layer-related Software
4.2 Cloud as a Service Platform
4.3 OTA
4.4 Vehicles to Everything Safety Solutions

5 Research on Business Model of Typical Automotive Software Suppliers
5.1 Neusoft Intelligent Vehicle Connection
5.2 i-Soft
5.3 ThunderSoft
5.4 Jingwei HiRain
5.5 Kotei
5.6 E-Planet
5.7 Megatronix Technology

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