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12-10-2023 | Automotive Electronics + Software | Infographic | Article

Spending on Automotive Software Increases

Author: Christiane Köllner

30 sec reading time

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The automotive industry needs to invest more in software. The expenditures for this are high. To keep automotive software costs in check, a software-defined design approach is needed.

In view of increasing electrification and connectivity, the automotive industry will have to spend more and more money on software. While global spending by car manufacturers on automotive software is estimated to be USD 25.5 billion in 2021, it could more than double by the end of the decade. According to a forecast by Roland Berger, spending could rise to 59 billion US dollars by 2030.

The way out: new design concepts in which the vehicle is built around a software platform from the outset. With the software-defined vehicle (SDV) concept, spending is expected to increase by only 70 % to $43 billion. This would save almost 16 billion US dollars a year from 2030.

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