Application software market tracker

Application software market tracker

Publication Date: 01-Nov-2021

An in-depth market analysis and forecast of in-vehicle-infotainment application software, including, design and development costs by application type.

The application software within the vehicle Infotainment Head Unit primarily consists of smartphone projection technologies, cloud-based voice assistant, GPS navigation, Bluetooth telephony and connectivity, and radio tuner technologies.

While the latter have been available in-vehicle entertainment for decades, smartphone projection technologies are gaining huge market attraction.

The market for all smartphone projection technologies including Carplay, Android Auto (not to be confused with AAOS), CarLife, and others is projected to be USD249 million by 2026 and growing at a rate of 9.2%.

In the coming years, almost all European and North American OEM brands are providing some sort of smartphone projection technologies as standard factory fitment options in their vehicles. In China, CarLife is growing at a rate of 5.1%, with luxury* segments vehicles (both local and foreign brands) are leading the adoption rate.

In terms of software development spending, OEM brands primarily in Europe and North America are spending a higher ratio of D&D (Design & Development) against Apple Carplay (cumulative global D&D spending between 2019 and 2026 is USD869 million) compared to Android Auto (cumulative D&D spending between 2019 and 2026 is USD433 million).

Alexa cloud voice assistant is gaining momentum in virtual personal assistant (VPA) technologies. This was also highlighted in recent IHS Markit reports and insights. As a result, OEM brands started to spend their development money to integrate this software technology.

Compared to other software application D&D, the spending is still on the lower side, however, in coming years the spending growth will increase significantly as more and more brands are adopting this. The current trend of Alexa software integration is primarily led by European and North American premium* and mid* segment vehicles.

Example of brand segments (used in the tracker):

* Luxury: Aston Martin DBX, Rolls-Royce Cullinan, Porsche Macan
* Premium: BMW 1 Series, Alfa Romeo Giulia, Chevrolet Silverado
* Mid: Ford Everest, BYD T3, Hyundai Accent
* Standard: Mini Clubman, Smart Fortwo, Chrysler Pacifica
* Entry: Chevrolet Colorado, Chery Exeed LX, Toyota Yaris

Release notes
Change notes
Light vehicle sales forecast
IVI head unit sales forecast

Head unit application software market
IVI application D&D cost forecast - vehicle segment price class and region
Android Auto application D&D spending revenue forecast
CarPlay application D&D spending revenue forecast
CarLife application D&D spending revenue forecast
Alexa application D&D spending revenue forecast
Bluetooth software enabled head unit volume forecast
GPS software enabled head unit volume forecast
Bluetooth and GPS software enabled head unit volume forecast

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