AVL Focus - Issue 2023

THE AVL MOBILITY TREND MAGAZINE - No. 1 2023

N O . 1 2 0 2 3

4 1

S P E C I A L : S O F T W A R E

interview

focus: What about testing and sim-

ulation?

Deichmann: That’s a huge driver and

stands for roughly 40 % of the mar-

ket. The paradox: the better the car

industry manages – by testing, sim-

ulating and validating in advance to

create good products before they

are integrated into the car – the

smaller the overall market for au-

tomotive software.

focus: Is ADAS/AD still a major

driver? After the big projections

a couple of years ago it seems qui-

eter now.

Deichmann: Yes, ADAS and AD

together with OTA updates are

a crucial driver, when it comes to

centralization of control units, sep-

aration of hardware and software

etc. Though infotainment and user

experience are more visible to the

customer, they are not that compli-

cated from a technology point of

view. And there is safety and secu-

rity, the “mean brother” of ADAS,

OTA and co., which requires a lot

of attention and innovation. The

most secure vehicle in recent years

was probably the VW Golf 1, be-

cause it had hardly any code inside.

focus: We talk about cars as smart-

phones on wheels. But how ma-

ny operating systems for cars will

be left at the end of the transfor-

mation?

Deichmann: I would distinguish be-

tween three types. With In-Vehi-

cle-Infotainment (IVI) domains,

there is a clear trend to Android

platforms – except in China. Sec-

ond, in the field of so-called high-

performance operating systems

where you got a lot of AI, high-

speed combination of sensors, etc.

I think that we will have two or

three dominant operating systems.

And the third type is classical au-

tomotive: control units, powertrain

and much more, where we will have

four or five platforms that partially

already exist today.

focus: What is the relationship be-

tween OEMs, automotive suppli-

ers and genuine software firms in

this development? Will there be a

“winning model“ that everyone

else tries to copy?

Deichmann: There will not be “one”

model, it will be a variety of mod-

els. A volume car maker whose cus-

tomer wants user experience, but is

not very much into ADAS, needs a

completely different strategy than a

premium car maker who claims to

be at the forefront of technology. 

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Automotive software market expected to grow by +9.2 % p.a.

Total automotive software1 market

USD billions

Total ——————————————— +9.2%

Powertrain & Chassis ———————— +0.8%

Body & Energy ——————————— +9.5%

CAGR

2019-2030

ADAS & Highly automated driving——— +11.1%

Operating system & Middleware — —— +11.6%

1) Software incl. function development, integration and verification/validation

Source: McKinsey Center for Future Mobility

Infotainment, Connectivity,—————— +8.9%

Security, Connected services

231

2019

25

2030

323

427

12

26

38

33

49

2019

31

63

82

14

18

41

32

13

25

2030