Commercial Vehicle

Automotive software market to amass hefty proceeds from autonomous driving software, rising deployment of in-vehicle infotainment systems to define the industry growth

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Growing automobile sales coupled with the increasing penetration of software in vehicles has led to the global automotive software market emerging as a lucrative hotspot worldwide. Today, the incorporation of automotive software components in any given automobile is rather commonplace, providing a positive impetus to the overall automotive software industry outlook.

Canada Automotive Software Market Revenue, By End Use, 2018 & 2025 (USD Million)
Canada Automotive Software Market Revenue, By End Use, 2018 & 2025 (USD Million)

Over the past decade, the automobile has evolved from a mechanical & electrical set-up to a sophisticated software-driven machine. The discipline of automotive software development is further slated to make the vehicle of the future easier & more enjoyable to drive while making the ride safer for the drivers. Moreover, owing to significant advancements in automotive Artificial Intelligence and the Internet of Things (IoT), automobiles of the future are projected to become smarter and more connected.

In fact, according to the World Economic Forum, automotive software development is increasingly moving towards complete connectivity between automobiles, municipal services & traffic through sensor-embedded infrastructure & roads. This will allow for more efficient traffic management or automated driving, paving the way toward proliferating automotive software market trends.

Impact of autonomous driving on automotive software market size

The Potential: Autonomous driving technology holds the potential of completely transforming the global automotive industry. A number of automotive software companies are increasingly making significant inroads in the field of self-driving, wherein vehicle drivers aren’t required to take control of the steering to drive the vehicle, which would be further elevating automotive software market outlook to new heights.

The Projection: While there have been substantial developments in autonomous driving, owing to the unforeseen nature of the technology, there are no laws that dictate & regulate the use of fully-automated vehicles across the world.

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According to the Union of Concerned Scientists, the benefits of this novel and rapidly updating technology are still largely undiscovered as it has yet to witness widespread deployment.

However, the technology’s potential, such as significantly improving road safety and making transport more accessible, is estimated to bring in substantial growth opportunities to the global automotive software market contenders. Indeed, the Victoria Transport Policy Institute predicts that automated driving would be replacing most of human driving by 2030. As per estimates, autonomous driving software market is projected to record a CAGR of 17% over 2019-2025.

The MVP: The most prominent automated driving software company is Alphabet Inc’s Waymo. According to Bloomberg Hyperdrive, the Google sibling, through its capabilities which have enabled it to lead the launch of driverless cars, has placed itself in a lucrative position to capitalize on the business opportunities automated driving would be bringing forth in the years to come. In fact, the company in 2018, was valued to be a $175 billion startup.

Role of in-vehicle infotainment technology on automotive software market share

The most glaring noticeable change in newer automobile models as opposed to the older ones is the in-vehicle infotainment system.

The Potential: The automotive infotainment technology has witnessed significant advancements in recent years, wherein it has transformed into the vehicle’s centralized controlling unit which could control several vehicular features such as selecting driving modes, ride suspension and select a radio station or pick up an incoming call on your cellphone.

The Projection: The sub-segment of the in-vehicle infotainment system, owing to growing customer demands, is further slated to become a common feature of a majority of automobiles in the forthcoming years. In fact, according to Intel, driven by the demand for more features the overall share of an in-vehicle infotainment industry is slated to reach a considerable billion-dollar remuneration by 2022.

Additionally, the World Economic Forum estimated that advancements in the infotainment technology would be adding $65 billion worth of operating profits to the global automotive industry value chain.

Fueled by significant technological advancements in the sub-domains of automated driving & in-vehicle infotainment systems, the global automotive software market size is expected to depict substantial growth over 2019-2025. According a research report by Global Market Insights, Inc., automotive software industry size will surpass the $52 billion renumeration mark by 2025.

Author NameAkshay Kedari

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North America usage-based insurance market to witness augmented growth over 2018-2024, commercial vehicle segment to augment global industry revenues

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Rising number of automobiles on roads and surging insurance premiums have significantly propelled the global usage-based insurance (UBI) market expansion, in conjunction with rapidly developing supportive technologies. The ability to track aspects such as how a car is driven, behavior of the driver and the amount of distance travelled has enabled insurers to use UBI for predicting premium earnings, while vehicle owners are saving on insurance costs. The usage-based insurance industry has grown leaps and bounds as instruments like dashcams, Blackbox, on-board diagnostic tools and smartphone-based telematics solutions have experienced massive consumption over the last few years.

U.S. Usage-based Insurance (UBI) Market Revenue, By Technology, 2017 & 2024 (USD Million)
 U.S. Usage-based Insurance (UBI) Market Revenue, By Technology, 2017 & 2024 (USD Million)

One can easily argue that when the number of cars being driven increases, the probability of accidents also go up, depending on the general area trends. The importance of insurance can be surmised from the fact that in 2017, around 309,000 car accidents occurred in New York state, indicating considerable losses in terms of liability and property. Derived from the alarming frequency of mishaps in New York, the average car insurance rates in state ranged from US$2,428.24 to US$6,540.73 during the year. UBI can help safer drivers in such areas to take advantage of their favorable driving behavior and record to enjoy suitably lower premiums, underscoring the effectiveness of the usage-based insurance market.

Commercial insurance has been a major spending area for not only individual truck owners but also for fleet managers, dealerships and for services like taxi or ride-sharing. Fortuitously for the usage-based insurance industry, worldwide estimates suggest there would be tremendous growth in the commercial sector over the next few years, promising a large target segment. Commercial vehicle premiums for trucks could go quite high due to the vehicle’s value as well as greater risk and severity of damages. Although tightened rules regarding driver qualification and safety training have lowered the rate of accidents, trucks still contribute a large number to road-related deaths in North America.

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According to the Federal Motor Carrier Safety Administration, U.S., nearly 4,440 large trucks and busses had been involved in fatal accidents in 2016, while in total over 475,000 crashes involving large trucks in the year had been reported by the police. Essentially, these numbers represent the enormous amounts of insurance claims that may have been registered during the time, indirectly pushing the overall insurance market premiums higher. The North America usage-based insurance market can garner immense remunerations from commercial vehicle policies, as swelling premiums encourage customers to adopt relevant devices or telematics.

Citing a key example showcasing the usage-based insurance market penetration in North America, Intelligent Mechatronic Systems Inc., headquartered in Canada, offers effective UBI solution for commercial lines. Its telematics product helps fleet owners provide insights into the crucial vehicle data, assisting insurers in calculating premiums and retain customers. Such technology improves driver awareness and overall road safety, while insurers are able to know accurate behavior and causes of any accidents that happen. With numerous technology companies and start-ups based out of U.S. and Canada, the North America usage-based insurance industry is expected to witness remarkable growth in the imminent future, accounting for almost 35% of the global share by 2024.

A report unveiled by U.S. firm Aite Group suggests that about 2.5 million commercial insurance-related telematics devices were present in cars globally by 2017 end, and this number will reach 120 million by 2021. Fleets are significantly benefited by the usage-based insurance market, as they often consist of half a dozen to hundreds of vehicles. Progressive, one of the biggest motor insurers in the U.S., offers an UBI solution based on electronic logging device (ELD), which shaves of 3% of the premium at the time of signing up itself, and even more later on during the cover period. Consider these savings multiplied for a greater number of vehicles in the fleet, leading to huge improvements for the fleet’s bottom line.

All in all, with the continuously growing efforts by insurers to boost the adoption of telematics in commercial vehicles worldwide, the commercial vehicle segment in the global usage-based insurance market is anticipated to grow with a rate of 18% from 2018 to 2024. Allstate, Allianz, Axa, Generalli, Tom Tom, Liberty Mutual, Progressive, Nationwide and IMS are some key players constituting the competitive landscape of the usage-based insurance industry.

Author NamePankaj Singh

Passenger-vehicle based automotive HMI market to amass substantial returns by 2024, surging use of digital technology in newly developed vehicles to fuel the product demand

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Automotive human-machine interface (HMI) market has lately emerged as one of the massive revenue generating spheres in the automotive sector with the shifting trends toward the adoption of smart vehicles. Traditionally, pertaining to the lack of advanced infotainment and digitalized internal car design, drivers had been unable to operate the vehicle efficiently. However, with the advent of new technology trends, the overall design structure of automobiles has changed considerably, paving the way for integrated human-machine interface in vehicles. The development of connected cars for decreasing the chances of accidents and enhancing the operability of vehicles has also helped propel automotive human machine interface industry share.

Europe Automotive HMI Market Size, By Product, 2017 & 2024 (USD Million)

Europe Automotive HMI Market Size, By Product, 2017 & 2024 (USD Million)

One of the most pivotal driving forces of automotive human-machine interface market is the emergence of smartphones, artificial intelligence, IoT (Internet of Things), and machine learning technologies that have substantially encouraged automakers to carry out product development activities for transforming the existing infotainment system of the vehicle. Validating the aforementioned fact, recently, the American automotive electronics supplier Visteon Corporation developed a next-generation cockpit controller, SmartCore that has been deployed in Daimler’s upcoming Mercedes-Benz A-Class vehicles. These will be the world’s first vehicles integrated with intelligent cockpit controllers with multiple central processing units. The deployment of such features in the interior design enhances a vehicle’s infotainment display and instrument cluster. Moreover, it also helps drivers personalize their experience by simply operating touchscreen and touchpad on the steering wheel.

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Increasing awareness among the regulators and regional governments about the surging need for vehicle security and safety has been driving the requirement of the instrument clusters and digital infotainment systems. The policymakers claim that the implementation of a human-machine interface will help the driver collect accurate information about the surrounding environment. In order to comply with the stringent regulatory compliances, most of the automakers, technology companies, manufacturers, and designers have been striving to innovate advanced solutions for passenger vehicles and connected cars. Indeed, passenger vehicles are expected to account for nearly 80% share of automotive human machine interface market by the end of 2024.

Speaking beyond the conventional vehicular systems, the increasing popularity of autonomous vehicles will have a notable influence on the automotive HMI market trends over the years ahead. Focusing on the shifting trends toward the growing adoption of autonomous vehicles across the globe, companies involved in the development of human-machine interfaces have been developing innovative software packages. For instance, a few days before, leading supplier of advanced semiconductor solutions, Renesas Electronics Corporation has introduced a new microprocessor unit to accelerate and simplify the development of modernized HMI and camera-based applications. The newly developed software interface can be used for operating video surveillance systems, fingerprint access control, information communication technology applications that have been deployed in automobiles. The growing popularity of HMI for managing vehicular systems in a highly sophisticated way is poised to stimulate the future product demand.

As of now, motorcycle manufacturers have also been integrating HMI technology in the vehicle for improving performance, driving experience, and safety. Few weeks before, the British electric motorbike manufacturer had launched a fully electric motorcycle with human-machine interface. The evolution of e-bikes for promoting high performance and energy security is poised to have a considerable impact on the demand for HMI. In addition, considering the future energy benefits and depleting fossil fuel resources, most of the regional governments have been implementing a supportive regulatory framework to enhance the deployment of e-vehicles that also will fuel the product demand.

The surging use of digital technology in vehicles for achieving better performance and sustainability will transform the future of the automotive industry. The extensive utilization of software for enabling numerous operational packages comprising functional safety, cybersecurity, and infotainment system will also stimulate industry trends. For the record, by the of 2024, automotive human machine interface (HMI) market will surpass a revenue collection of USD 27 billion.

Author NameSunil Hebbalkar

APAC gasoline direct injection (GDI) systems market to register maximum gains over 2016-2024, India and China to be the potential growth avenues

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The deployment of technological innovations such as integration of valve operation systemss & drive systemss will spur GDI systems market. This incorporation will bring about optimized fuel efficiency and increased fuel economy, which is the need of the hour, especially for price-sensitive consumers. Strict norms mandated by regulatory bodies to reduce the base lines of the fuel efficiency and carbon dioxide emissions will stimulate the growth of Gasoline Direct Injection (GDI) Systems Market.

Germany GDI system market size, by application, 2012-2024 (USD Million)
Germany GDI system market size, by application, 2012-2024 (USD Million)

GDI systemss contribute to the reduction of pollutant emissions via turbocharging and are estimated to reduce around 15% of carbon emissions and fuel consumption. These benefits coupled with the rising vehicle demand and the introduction of next gen fuel saving technologies will push gasoline direct injection systems industry, slated to cross USD 10 billion by 2024, with a CAGR estimation of 12% over 2016-2024.

Leading corporations have been trying to diversify their product offering by means of incorporating advanced technologies in order to gain an edge over their competitors. For instance, Denso, in 2014, declared that it planned to invest around USD 10 million at DIAM (DENSO International America) with an aim to develop GDI systems components for improving the overall product performance. These initiatives will subsequently lead to an increased consumer base, thereby propelling gasoline direct injection systems market.

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Industry players fiercely compete with each other on the grounds of product quality, deployed technologies, and product costs, to sustain their business position. Gasoline direct injection systems market is quite consolidated with the presence of selected companies such as Continental, MSR-Jebsen Technologies, Mitsubishi Electric Corp., Magneti Marelli, Bosch, Denso, Bajaj Auto Ltd., Stanadyne, Eaton Corporation, Delphi, and Hitachi. These companies have been making efforts to manufacture high quality and high performance exhibiting GDI systems components at lower prices to deal with their rivals.

GDI systemss incorporate four major components, namely fuel injectors, sensors, electronic control units, and fuel pumps. Electronic control units accounted for the largest share in gasoline direct injection systems market in 2015, subject to the high product demand for regulated equipment control. Fuel pumps and injectors are also expected to propel GDI systems industry, owing to their extensive application across the automotive sector.

APAC has been predicted to emerge as one of most lucrative growth avenues for gasoline direct injection systems market, pertaining to the extensive expansion of the automotive sector and surging demand for fuel efficient vehicles in the region. Countries such as India, Indonesia, and China are slated to be the major revenue pocket, subject to the increasing awareness regarding GHG emissions in the region.

The rapid increase in the spending capabilities of consumers has led to a significant increase in the sales of automobiles across the globe. As per estimates, the United States and China are the top two nations that have the largest customer pool of passenger vehicles, which is likely to drive GDI systems industry from this application segment.

Commercial vehicles accounted for more than 30% of the gasoline direct injection systems market share in the year 2015 and is estimated to grow at a CAGR of 12% over 2016-2024. This growth can be credited to the increasing demand for commercial vehicles across myriad sectors such as logistics and transportation.

Europe held more than 40% of the global gasoline direct injection systems industry share in the year 2015 and is anticipated to register significant growth in the years ahead. The enforcement of Euro 5, one of the many vehicle emission standards by the European Union coupled with other stringent regulations mandates related to vehicular emissions will impel Europe GDI systems market. Automobile companies have been striving to manufacture products that comply with GHG emission standards and the Federal norms related to fuel efficiency, thereby driving gasoline direct injection systems industry.

Companies have also been integrating innovative technologies in GDI systems components to improve the operational efficiency, reliability, network capability, and the overall vehicular efficiency. High initial equipment costs are likely to pose a constraint to GDI systems market over the next few years. Besides, as reported by automotive servicing personnel, the equipment depicts an increase in the carbon content, leading to blockage in fuel systemss, which will eventually increase the maintenance costs. To combat these restraints, GDI component manufacturers have been adopting laser-drilled holes that will help reduce emissions, achieve efficient fuel combustion, and eliminate unnecessary costs. Laser-based manufacturing technology apparently helps to save around 20% of the fuel consumption. The deployment of this technology will undeniably drive gasoline direct injection systems industry.

The increasing rate of automobile repair and maintenance will also fuel GDI systems market over the next few years. In addition, the characteristics such as optimized fuel consumption, light weight, high efficiency, and compactness in vehicles will lead to an expanding consumer base across the globe, driving worldwide gasoline direct injection systems market.

Author Name :Saipriya Iyer