Automotive Software Development Trends To Watch In 2021

As public transit came to a standstill in 2020, the dynamics changed in automobile markets worldwide. The fear of the coronavirus made consumers more inclined to commuting in private vehicles. At the same time, car owners also became more aware of the technological capabilities of their vehicles. Some tech-driven automakers, in fact, scaled up their plans and production amid the pandemic. The electric car company Tesla, for example, delivered a record number of cars in 2020.

Automobile industry analysts believe that automotive software development and other technologies will play a more crucial role in this decade. With car owners getting more tech-savvy than ever, automakers need to rapidly evolve to keep up with the demands. From navigation and driving assistance to safety enhancements, software is changing in-vehicle experiences. In this blog post, we’ll discuss some of the most striking automotive software trends out there. Read on to know them all.

Increasing use of vehicle data

Automakers are incorporating sensors in vehicles for tracking all kinds of activities. The sensors rely on a connected network to share data faster and in real-time. With the rapid evolution of wireless technologies like 5G, car owners can seamlessly share and track vehicle data.

Besides, advanced analytics and predictive maintenance enable vehicle owners to reduce the risks of facing breakdowns. These software-enabled capabilities also dramatically enhance traffic safety and fuel efficiency, among other things.

Functional enhancements


Amid soaring competition in the industry, automotive software companies are helping carmakers stand out with unique capabilities. Whether it’s giving traffic alerts, fuel status, or insights into the car’s health, software solutions are redefining automobile driving and ownership. Such technologies have also made sure that the safety of both the driver and rider is guaranteed even in high-risk situations.

Open-source automobile software

The use of open-source automobile software development has surged among OEMs around the world. Automakers have used Linux for their software capabilities for a long time now. Other operating systems are evolving rapidly to accommodate the needs of carmakers. Open-source systems enable OEMs to enhance vehicles’ safety and other capabilities at low costs. Experts believe that the new decade will see a remarkable growth of open-source automotive software.

Consolidated electronic control units

Software-enabled automobile design allows carmakers to reimagine the vehicle architecture. The increased collaboration of automotive software companies and care makers are shaping a new era in auto manufacturing. Automotive engineers now have the flexibility to consolidate the electronic control units that were separate before. It has enabled real-time data transfer and better management of the ECUs in software-powered vehicles. With the help of advanced software solutions, carmakers are introducing innovative ECU capabilities.

Enhanced vehicle data security

Cars are more connected than ever. From navigation software to IoT sensors and more, a torrent of data collected and stored. That means that streams of data also need more security measures. Providers of automotive IT services have ramped up their offerings to ensure robust data security. Privacy-aware car owners want their personal and vehicle data to be protected from all kinds of security threats. Data breaches might lead to severe consequences like vehicle theft and accidents, among other things. Carmakers must ensure that their customer can trust the vehicle’s software system.

Electric and hybrid vehicle solutions

Electric vehicles are seeing a surge in demands in the developed and emerging markets alike. China, the world’s largest consumer of electric vehicles, has reported a new wave of demands for electric and hybrid cars. That means carmakers will also need to focus on upgrading its automotive software development to meet these demands.

Electric and hybrid vehicles need a more sophisticated software system than fuel cars. From charging status to speed control and safety, electric car software demands more functionality. In 2021, OEMs are likely to focus more on innovating in these areas.

Wrapping up

Like all other major industries, software capabilities will play a larger role in shaping the future of auto manufacturing. Every major carmaker — from Toyota to Tesla — has already ramped up their software deployment plans to address the changing market demands. Likewise, automotive software companies, too, are focusing more on building next-gen solutions. Whether you’re an auto industry exec, a dealer, or a car owner, these trends would impact you in one way or another. Technological trends like these will also significantly improve automobile driving experiences.