ADAS L0 application software market tracker - April 2023 update

This market tracker summarizes the growth and forecasted software development spending against Advanced Driver Assistance System (ADAS) - L0 application software. It also illustrates regional and global analytics against development spending. The forecast period is between 2021 and 2028.

What is the key summary of changes within the 2023 OS tracker?

Comparing 2022 ADAS L0 vehicle application volume with 2023: data indicated that there is a change in the volume of applications that are forecasted by the S&P Mobility Autonomy component forecast hardware team. Software spend data is therefore mapped across changed volume which will illustrate changes, i.e., spend reduces where application volume has reduced and increases where volume has increased. In software spending calculation and mapping there is a direct correlation between spending and the volume of applications meaning each and every vehicle has software spend attached to it.

Key takeaways

Development costs of the ADAS L0 software will gradually slowdown in the mid-term due to a lack of innovation in these applications, as such, the software will become a commodity, and development costs cascaded down to the lower end of vehicle segments. However, as the industry witnesses a shift in EE architecture evolution, the costs will increase due to the re-validation of these applications.

Amongst the top 10 OEM parent organizations, only Suzuki (6.2% CAGR) shows positive growth in development spending. This confirms the market prediction that in short and midterm volume OEM brands will lead ADAS L0 application development and integration.

What are the new additions and adjustments to this tracker?

A new summary dashboard has been developed for user ease of use and high-level understanding. Users can develop scenarios based on summary data. Furthermore, all software categories of ADAS L0 software applications are placed into a summary data sheet so users can visualize the complete global spending profiles.

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 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.