1、Computer on Wheels:The Missing MarketREPORTHow software commercialization will accelerate the advancement of software defined vehicles24_358_MKT_SoftwareCommercialization_02.indd 124_358_MKT_SoftwareCommercialization_02.indd 102/10/2024 17:4902/10/2024 17:49Large,luxurious,with a 403-cubic-inch V8 e

2、ngine,the Oldsmobile Toronado holds a special place in the hearts of car enthusiasts.But while many fans think of it as marking the end of an era,few people know that it was the beginning of another:the 1977 Toronado was the first production vehicle to incorporate embedded software.The General Motor

3、s engineers who wrote those seven lines of code used to control the spark timing would be astonished to learn that todays typical vehicle leaves the factory with 100+million lines of code under the hoodthe equivalent of 1.8 billion pages of information.From the perspective of 2024,however,it is perh

4、aps equally surprising that most of those lines are still being custom-written in-house by the original equipment manufacturers(OEMs)or Tier 1 suppliers.From Roland Berger automotive software market study,only 10%of automobile software is sold separately from hardware,at a clear price,and with a lic

5、ense agreement.If the system were cost-efficient,that wouldnt matter.However,since 2021,OEM in-vehicle software costs have risen 14%per year,from USD 26 billion in 2021 to USD 38 billion today,according to Roland Berger projections.If current trends continue,the total could reach USD 59 billion by 2

6、030,and at the same time,decelerate the fulfillment of the industrys next audacious goal,the software-defined vehicle(SDV).Fortunately,we know from a variety of other industries that there is a better way:the formation of an ecosystem of externally produced software products sold through a competiti