ADAS L0 software market tracker - May 2022

ADAS L0 software market tracker - May 2022

Publication Date: 11-May-2022

This report provides quantitative software market insights against Advanced Driver Assistance (ADAS) Level zero (L0) applications. The report assesses software development spending against all applicable SAE level software. The report also highlights the key software components’ (software perception stack and sensor fusion software) revenue and forecasted growth up to 2027.

Key highlights:

The market is witnessing a mixed picture regarding the cost of ADAS L0 software application development, while development spending in many of the mature and commoditized software applications is showing a downward trend in the short to medium term, others are showing the opposite and spending growth are evident from IHS Markit market research. Therefore, taking all application software development into account, the market will witness a nominal growth in ADAS L0 applications software development costs (CAGR of 2%).

With a compound annual growth rate of 2.6%, perception software stack and sensor fusion software spending show a marginal growth, which will correlate with vehicle EE architecture evolution. This in turn will influence the revenue growth of the software, i.e., ADAS L0 perception software will see a downward trend in revenue growth. In the short-term, software revenue will be realized through sales and maintenance of off-the-shelf design, however, in the midterm, especially from 2023/24 onwards, design changes will push higher revenue to support new consolidated domain hardware design. The Service-Oriented-Architecture (SOA) will facilitate OEM’s own development and/or customization in the area of software perceptions and controlling functions. The market will witness an acceleration towards SOA from 2025 onwards.

This report is useful for:

  • Automotive OEMs
  • Automotive parts suppliers (tier-1s)
  • Automotive semiconductor manufacturers
  • Automotive software component developing suppliers
  • Investment community

Key benefits:

Planners, marketing, purchasing, and strategists can use this report to:

  • Gain market understanding – evaluate future ADAS L0 software development cost growth paths, assess target cost settings, and product customizing.
  • Derive strategies – analyze and communicate potential regional and global business opportunities to internal decision-makers and evaluate automotive manufacturers’ software purchasing strategies.

Chapter 1: Introduction

Definitions of attributes and terminologies

Research methodologies

Analyst commentaries

Application definitions

Light Vehicle production overview

Vehicle autonomy overview (L0)

Chapter 2: ADAS L0 application software development overview

Automatic High Beam

Automated Evasive Steering

Blind Spot Information

Mirror Camera

Collision Warning & Avoidance

Lane Assistance application category

Night Vision

Park Assist

Surround View Park Assist

Traffic Sign Recognition

Driver Facial Monitoring

Chapter 3: Software component development and revenue overview

Perception and sensor fusion software customisation

Software revenue overview

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