

The turn of the year is a perfect time for summaries, planning future activities, and market research. It is no different in the automotive industry, which is subject to dynamic changes. Their direction is obviously determined by software development. It seems that in the next few years this will be a crucial competence of each vehicle manufacturer. Maybe equally as important as producing the engine!
If you listen to CARIAD, Stellantis, Tesla, Audi, and others, you will learn that each and every one of these companies believes that the future of the automotive industry is software-centric . As the name says, if you want to achieve that, you have to learn how to build software and this may be a bumpy road for most of the OEM’s. How to align a legacy, waterfall approach of building cars with the lean, agile software development paradigms, or modern, disruptive cloud and AI technologies? CARIAD already seems to know, Stellantis says they have a plan, Porsche is at full speed, and Tesla was born that way. Exciting times. And it will only get more interesting!
If you are a car geek and digitalization fan, you probably know what were the hottest car premieres in 2021. But do you know what all these cars have in common?
All of them are electric – because electricity is here to stay! They are all smartphones on wheels because software is the new V8! And all of them take advantage of the hottest trend in connectivity: OTA (over-the-air updates), which means the possibility of adding new features through updates without visiting the dealership. Straight from the cloud. It, at the same time, builds a highway for the creation of new revenue streams and a completely new level of customer care provided by vehicle manufacturers.
It means all the predictions and all the trends we have seen in recent years are here to stay, but now all OEMs are on board, and the trends will play a much more significant role.
Let’s take a look at those that we think are worth highlighting as the automotive trends for 2022 and above.

There is no escape from electricity - mainly due to the challenges facing zero emissions. All data indicate that 2021 will end up as the year with the highest sales of these vehicles (EV and PHEV combined), reaching 6.4 million units worldwide [EV Volumes]. This would be a 98% increase compared to the previous year. It is likely that the EV sector will face changes in the next 10 years, comparable to what happened in the internal combustion engine vehicles during the first 100 years of development!
What influences (and will continue to influence) the increasing consumer interest in electrics? There are numerous factors. Let's list the most significant ones.
Urban scooters, bicycles, and electric mopeds are no longer a surprise and are increasingly becoming the dominant mode of transport in congested city centers. With the spread of the shared mobility trend, which makes it easy to rent out vehicles for a flexible period of time, consumers are gaining confidence in them and begin to notice the advantages of this solution, which is reflected in their future purchasing decisions when it comes to new cars.
The UK, France, Norway, and Germany are implementing laws to ban the sale of new petrol cars by 2025. California wants to reach this goal in 2035 and replace its entire fleet of diesel buses with electric ones as early as 2029. Changes in legislation inevitably trigger changes in vehicle production and affect other sectors. For instance, the construction industry, which will be obliged to equip buildings with sockets and an electrical grid that will allow the charging of electrics in their own homes, which is already done in the USA.
The range of electric vehicles has always been a challenge compared to petrol vehicles. The problem was not just the short life of the battery itself, but also the limited network of available chargers. With the development of new technologies for extracting minerals necessary for making batteries and ways of power storage, these factors will gradually become marginalized.

OK, 5G is the thing! In China all their biggest cities already have 5G coverage, now the USA and Europe must and will follow. 5G takes internet connectivity to another level . This is and will be a complete game-changer in several areas:
You can read more on this topic here and here .
Cockpits of modern vehicles are filled with screens. Pushing all controls, buttons, and knobs to touchscreens decreases production costs and makes the vehicle look more premium. At the same time, customers report that the vehicle interfaces are increasingly harder to operate. Also, the old, slow, or stuttering infotainment makes the whole look & feel of the vehicle worse.
This forces manufacturers to put more effort into the UI/UX design, as well as improving other, safer ways to interact with vehicles. A great example of this are solutions already familiar to consumers in other market sectors - voice assistants and gesture recognition, as well as the most developing technology in this field, i.e. augmented reality.
The latter is increasingly used in vehicles in the form of a Heads-Up Display on the windshield. The following applications can be listed in the vehicles entering the market:
You can read more on this topic here
The connected car operates in a V2X ecosystem consisting of data networks, road infrastructure, other vehicles, and third-party applications. In such an environment, the threat level of cyberattacks is at a very high level. Hence, in the coming years, those involved in the automotive industry must make the utmost efforts to protect not only consumers' sensitive data but also their lives and health.
That cyber attacks will occur is more than certain. The industry's task is to adapt current technology and regulations so that potential threats are minimized at the point a vehicle leaves the factory.
Cyber security should be at the heart of every SVD vehicle leaving the factory. Especially since we're not just talking about the sensors that will be programmed but entire production chains, which can also become potential targets for attack.
In order to prevent such activities, as of 2018, more than 80 organizations from around the world, have created the ISO/SAE 21434: "Road vehicles - Cybersecurity engineering" standard, which encompasses a set of guidelines for securing vehicle design, manufacturing, maintenance and decommissioning processes. These guidelines define cybersecurity processes for different phases of vehicle development, specifically:
The software industry, however, which supplies software to OEMs, must be prepared for the European Commission's regulations on AI-related rules . The regulations are expected to cover:
In the interim period, the regulation may be effective in the second half of 2022. The second half of 2024 is the earliest period of application of the regulation to AI application operators.
The transition from a vehicle company to a company dealing with software on four wheels is a complex and challenging process. Such a transformation inevitably awaits all automotive companies in the coming years. It is worth noting a few factors that are critical to the success of this endeavor.
Changes related to the reduction of CO2, the development of the Internet of Things, or automation will affect most industries in the coming years. However, the automotive sector , where technological, social, ecological, and consumer trends meet, may become a litmus test for the upcoming developments.
Just as new technologies took the telecommunications or smart building industry by storm a few years ago, they will now begin to change the way we use vehicles. Can we set a date when we can say with a high degree of certainty: this year will be the year of the connected car ? Unlikely.
Just as the marketing specs failed, who claimed each year: that this year will definitely be the year of mobile.
These changes grow exponentially, remaining unnoticed for a long time, but suddenly we realize that they are already with us. We live in a world where they have already become commonplace and everyone benefits from them. Companies working at the intersection of the automotive industry should not let this moment slip by. There comes a time when the car will become our second phone.

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Just a few years ago, artificial intelligence stirred our imagination via the voice of Arnold Schwarzenegger from "Terminator" or agent Smith from "The Matrix". It wasn't long before the rebellious robots' film dialogue replaced the actual chats we have with Siri or Alexa over our morning cup of coffee. Nowadays, artificial intelligence is more and more boldly entering new areas of our lives. The automotive industry is one of those that are predicted to speed up in the coming years. By 2030, 95-98% of new vehicles are likely to use this technology.
What will you learn from this article?
Looking at the application of AI in various industries, we can name five stages of implementation of such solutions. Today, companies from the Communication Technology (ICT) and Financial Services ("Matured Industries") sectors are taking the lead. Healthcare, Retail, Life Science ("Aspirational Industries") are following closely behind. Food & Beverages and Agriculture ("Strugglers") and companies from the Chemicals and Oil and Gas sectors ("Beginners") are bringing up the rear. The middle of the bunch is the domain of Automotive and, partly related to it, Industrial Machinery.

Although these days we choose a car mainly for its engine or design, it is estimated that over the next ten years, its software will be an equally significant factor that will impact our purchasing decision.
AI will not only change the way we use our vehicles, but also how we select, design, and manufacture them. Even now, leading brands avail of this type of technology at every stage of the product life cycle - from production through use, to maintenance and aftermarket.
Let's have a closer look at the benefits a vehicle manufacturing company can get when implementing AI in its operations.

An average passenger car consists of around 30,000 separate parts, which interestingly enough, are usually ordered from various manufacturers in different regions of the world. If, on top of that, we add a complicated manufacturing process, increasingly difficult access to skilled workers and market dependencies, it becomes clear that potential delays or problems in the supply chain result in companies losing millions. Artificial intelligence can predict these complex interactions, automate processes, and prevent possible failures and mishaps
For years, companies from the automotive industry have been trying to find ways to enhance work on the production line and increase efficiency in areas where people would get tired easily or be exposed to danger. Industrial robots have been present in car factories for a long time, but only artificial intelligence has allowed us to introduce a new generation of devices and their work in direct contact with people. AI-controlled co-bots move materials, perform tests, and package products making production much more effective.
The power of artificial intelligence lies not only in analyzing huge amounts of data but also in the ability to learn and draw conclusions. This fact can be used by finding weak points in production, controlling the quality of car bodies, metal or painted surfaces, and also by monitoring machine overload and predicting possible failures. In this way, companies can prevent defective products from leaving the factories and avoid possible production downtime.
In a competitive and excessively abundant market, selling vehicles is very difficult. Brands are constantly competing in services and technologies that are to provide buyers with new experiences and facilitate the purchasing process. Manufacturers use artificial intelligence services not only at the stage of prototyping and modeling vehicles, but also at the end of the manufacturing process, when the vehicle is eventually sold. A well-designed configurator based on AI algorithms is often the final argument, by which the customer is convinced to buy their dream vehicle. Especially when we are talking about luxury cars.
A dangerous situation on the road, vehicle in the blind spot, power steering on a slippery surface. All those situations can be supported by artificial intelligence, which will calculate the appropriate driving parameters or correct the way the driver behaves on the road. Instead of making automatic decisions - which are often emotion-imbued or lack experience - brands increasingly hand them over to machines, thus reducing the number of accidents and protecting people's lives.
Car journeys may be exhausting. But not for artificial intelligence. The biggest brands are increasingly equipping vehicles with solutions aimed at monitoring fatigue and driver reaction time. By combining intelligent software with appropriate sensors, the manufacturer can fit the car with features that will significantly reduce the number of accidents on the road and discomfort from driving in difficult conditions.
Cars that we are driving today are already pretty smart. They can alert you whenever something needs your attention and they can pretty precisely say what they actually need – oil, checking the engine, lights etc. The Connected Car era however equipped with the possibilities given by AI brings a whole lot more – predictive maintenance. In this case AI monitors all the sensors within the car and is set to detect any potential problems even before they occur.
AI can easily spot any changes, which may indicate failure, long before it could affect the vehicle’s performance. To go even further with this idea, thanks to the Over-The-Air Update feature, after finding a bug that can be easily fixed by a system patch, such solution can be sent to the car Over-The-Air directly by the manufacturer without the need for the customer to visit the dealership.
Driving a car is not only about operating costs and repairs, but also insurance that each of us is required to purchase. In this respect, AI can be useful not only for insurance companies ( see how AI can improve the claims handling process ), but also for drivers themselves. Thanks to the appropriate software, we will remember about expiring insurance or even buy it directly from the comfort of our car, without having to visit the insurer's website or a stationary point.
In 2015, it is estimated that only 5-10% of cars had some form of AI installed. The last five years have brought the dissemination of solutions such as parking assistance, driver assistance and cruise control. However, the real boom is likely to occur within the next 8-10 years.
From now on, artificial intelligence in the automotive industry will no longer be a novelty or wealthy buyers’ whims. The spread of the Internet of Things, consumer preferences and finding ways of saving money in the manufacturing process will simply force manufacturers to do this - not only in the vehicle cockpits, but also on the production and service lines.
To this end, they will be made to cooperate with manufacturers of sensors and ultrasonic solutions (cooperation between BMW and Mobileye, Daimler from Bosch or VW and Ford with Aurora) and IT companies providing software for AI. A dependable partner who understands the potential of AI and knows how to use its power to create the car of the future is the key to success for companies in this industry.
Generative AI is quickly emerging as one of the key drivers of automotive innovation. This shift is not just a future possibility; it's already happening. In 2023, the generative AI market in the automotive sector was valued at approximately USD 387.54 million . Looking ahead, it's projected to surge to about USD 2,691.92 million by 2032 , demonstrating a robust Compound Annual Growth Rate (CAGR) of 24.03% from 2023 to 2032. Major Original Equipment Manufacturers (OEMs) are integrating sophisticated AI algorithms into various aspects of the industry, from vehicle design to enhancing customer interactions.
The impact of generative AI in the automotive sector is already evident. For instance, NVIDIA's generative AI models empower designers to swiftly transform 2D sketches into intricate 3D models, significantly speeding up the design process and opening up new avenues for creativity and efficiency. Meanwhile, automotive manufacturing companies are exploring collaborations with tech giants to integrate advanced AI language models into their vehicles, enhancing the driving experience.

This article will explore how leading automotive players are leveraging generative AI to not only keep pace with the evolving demands of the market but also redefine mobility and automotive excellence.
The introduction of software-defined vehicles (SDVs) represents a significant shift in the automotive industry, moving beyond traditional performance metrics such as horsepower and chassis design to focus on software and digital capabilities. By 2025, it is estimated that vehicles could require as much as 650 million lines of code each. These vehicles heavily rely on software for critical operations such as driving assistance, navigation, and in-car entertainment systems.
The integration of generative AI in this domain further amplifies these capabilities. Generative AI is known for its ability to create and optimize designs and solutions, which is beneficial in improving both the software and hardware aspects of SDVs. It helps in generating efficient algorithms for vehicle control systems, contributes to the development of more effective and adaptive software solutions, and even assists in designing vehicle components for better performance and efficiency.
However, bringing generative AI into this landscape presents both unique opportunities and significant challenges.
Integrating advanced AI systems into modern vehicles is a complex and multifaceted task that demands technical expertise and careful attention to data security and privacy , particularly with the increasing reliance on data-driven functionalities in vehicles.
The automotive industry is facing a complex regulatory environment. With the growing importance of AI and data in-vehicle systems, it has become crucial to comply with various international regulations and standards , covering areas such as data protection, safety, and environmental impact.
One significant challenge for OEMs is the lack of standardization within the software-defined vehicles industry, which can complicate the development and integration of new technologies as there are no universal norms or protocols to guide these processes.
Internal transformation is also a critical aspect of this integration. OEMs may need to revamp their internal capabilities, processes, and technological infrastructure to use generative AI effectively.
Integrating generative AI technology allows for more creative and efficient vehicle design , resulting in quicker prototypes and more innovative models .
It also allows for creating personalized vehicles that cater to individual user preferences like never before. In manufacturing, generative AI promotes more efficient and streamlined production processes , which optimizes resources and reduces waste.
Let's explore how automotive manufacturers already use gen AI to boost their operations.
Generative AI's integration into the automotive industry revolutionizes multiple facets of vehicle design, manufacturing, and user experience. Let's explore these areas:
Toyota Research Institute has introduced a generative AI technique to optimize the vehicle design process to produce more efficient and innovative vehicles. This approach allows designers to explore a wider range of design possibilities, including aerodynamic shapes and new material compositions.
BMW's use of NVIDIA Omniverse is a significant step in design improvement. The company uses this platform to create digital twins of their manufacturing facilities, integrating generative AI to enhance production efficiency and design processes.
BMW has implemented generative AI in a unique way to improve the scheduling of their manufacturing plant. In partnership with Zapata AI, BMW utilized a quantum-inspired generative model to optimize their plant scheduling, resulting in more efficient production. This process, known as Generator-Enhanced Optimization (GEO), has significantly improved BMW's production planning, demonstrating the potential of generative AI in industrial applications.
Traditionally, predictive maintenance relies on historical data to forecast equipment failures, but generative AI enhances this process by creating detailed, simulated data environments. This technology generates realistic yet hypothetical scenarios, encompassing a vast array of potential machine failures or system inefficiencies that might not be present in existing data sets.
The generative aspect of this AI technology is particularly valuable in situations where real-world failure data is limited or non-existent. By synthesizing new data points, generative AI models can extrapolate from known conditions to predict how machinery will behave under various untested scenarios.
In modeling, generative AI goes a step further. It not only predicts when and how equipment might fail but also suggests optimal maintenance schedules, anticipates the impact of different environmental conditions, and proposes design improvements.
One of the challenges in using generative AI, particularly in customer interaction, is the accuracy of AI-generated responses. An example of this was an error by ChatGPT, where it was tricked into suggestion of buying a Chevy for a dollar . This incident underlines the potential risks of misinformation in AI-driven communication, emphasizing the need for regular updates, accuracy checks, and human oversight in AI systems. Nevertheless, this technology offers many opportunities for improving the customer experience:
For instance, in collaboration with Microsoft, General Motors is exploring the use of AI-powered virtual assistants that offer drivers a more interactive and informative experience. These assistants can potentially provide detailed insights into vehicle features and performance metrics and offer personalized recommendations based on driving patterns.
Also, Mercedes-Benz is exploring the integration of generative AI through voice-activated functionalities in collaboration with Microsoft. This includes leveraging the OpenAI Service plugin ecosystem, which could allow for a range of in-car services like restaurant reservations and movie ticket bookings through natural speech commands.
Grape Up has developed an innovative voice-driven car manual that allows drivers to interact with their vehicle manual through voice commands, making it more accessible and user-friendly. With this technology, drivers no longer have to navigate through a traditional manual. Still, they can easily ask questions and receive instant verbal responses, streamlining the process of finding information about their vehicle.
As the automotive industry accelerates towards a more AI-integrated future, the role of expert partners like Grape Up becomes increasingly crucial. Our expertise in navigating the intricacies of AI implementation can help automotive companies unlock the full potential of this technology. If you want to stay ahead in this dynamic landscape, now is the time to embrace the power of generative AI. For more information or to collaborate with Grape Up, contact our experts today.
The driving properties or the external appearance of cars, which used to serve as a differentiator between manufacturers, no longer play a key marketing role today. It is the car's software that has become the new growth engine for the automotive industry. Yet, the question remains where this software should come from and whether it pays to use a free-access license. Here we compare the most popular automotive open-source solutions.
Most of the software developed by the major automotive companies is copyrighted to other players in the market. Does this mean that being a less well-resourced player, it is impossible to thrive in the SDV sector? Not necessarily, and one of the solutions may be to take advantage of open-source software (OSS).
A characteristic of such access is that the source code is freely available to programmers under certain licensing conditions.
It is important to know that OSS does not necessarily entail that a given vehicle manufacturer is "doomed" to certain functionalities. After all, the operating system, even if based on publicly available code, can then be developed manually.
The programmer is therefore authorized to benefit from free libraries, and cut and paste individual values into the code at will, modifying the content of the whole .
According to Flexera's research, more than 50% of all code written globally today runs on open source. That's a large percentage, which reflects the popularity of free software.
The OSS trend has also gained importance in the automotive industry in recent years, with OEMs trying with all their might to keep up with technological advances and new consumer demands. According to the same study, between 50% and 70% of the automotive software stack today comes from open source.
In contrast, Black Duck software audits of commercial applications demonstrate that open-source components are predicted to account for 23% of automotive applications.

Why is the mentioned solution so popular nowadays? In fact, there are several reasons.
Clearly, these arguments are quite strong. Yet, to be able to talk about a revolution and a complete transition to OSS in the automotive industry, it will still take some more time. After all, at present, this is applied mainly to selected vehicle functions, such as entertainment.
Nevertheless, some companies are already embracing free licensing, seeing it as a new business model. The potential is certainly substantial, although not yet fully harnessed. For instance, it is said to be very difficult to meet all the requirements of SDV, including those related to digital security issues, as we write later in the article.
The Linux operating system is a prime example of the power of an open-source solution. The base of this tech giant ranks among the top operating systems worldwide, especially when talking about automotive.
The Automotive Grade Linux (AGL) project is particularly noteworthy here, as it brings together manufacturers, suppliers, and representatives of technology companies. AGL platform, with Linux at its core, develops an open software platform from the ground up that can serve as the de facto industry standard, enabling the rapid development of the connected car market. Automotive companies, including Toyota, already leverage Linux open-source for automotive.
As of today, AGL (hosted by the Linux Foundation, the world's) is the only organization that seeks to fully aggregate all the functionalities of modern vehicles into Open-Source software. This includes such areas as:
The founders of the project assume that in the current reality it is becoming obvious that the amount of code needed to support autonomous driving is too large for any one company to develop it independently. That's why they are the first in the world aiming to create a coherent OSS ecosystem for the automotive industry.
A competitive approach is being adopted by Red Hat, which has also mushroomed into a group of free software innovators in connected cars. Their proprietary solution, Red Hat In-Vehicle Operating System, is designed to help automakers integrate software-defined vehicle technology into their production line faster than ever.
General Motors and Qualcomm Technologies Inc. have already declared their interest in such an approach.
Part of the mission of the above-mentioned company is to develop certified functional safety systems built on Linux with functional safety certification (ASIL-B) to support critical in-vehicle applications. IVOS from Red Hat is currently (Fall 2022) being tested on the Snapdragon® Digital Chassis™ . This is a set of cloud-connected platforms for telematics and connectivity, digital cockpit, and advanced driver assistance systems. This collaboration is intended to provide:
Great opportunities are also offered by the software based on a system featuring a distinctive green robot in its logo.
Android Automotive OS (AAOS), as its name is known, is earning increasing recognition across the globe. This is no coincidence, as it allows car companies to provide customers with the most tailor-made experience. Polestar and Volvo were among the first to introduce Android Automotive OS to their Polestar 2 and XC40 Recharge, andrecently Renault has done this with Megane E-Tech.
Other brands have followed suit. Manufacturers such as PSA, Ford, Honda, and GM have already declared their intention to incorporate AAOS into the vehicles they develop.
Part of the implementations come with Google Automotive Services (GAS): Play Store, Google Maps, Google Assistant, and other parts without, their own app stores, and assistants.
Here are selected capabilities of the above-mentioned software:
Regrettably, though Android has a lot of potential, it still has limitations in terms of functionality and capabilities. Hence, it cannot be described as an ideal solution at this point. We wrote more about these issues and possible solutions to AAOS .
Meanwhile, if you are interested in automotive implementation using Android read this guide.
The embedded Android Automotive system in vehicles requires proper integration with existing software and with other systems found in the car (for safety, car data, etc.). The Android Automotive SIG project, led by GENIVI, was created with large-scale rollouts in mind.
The premise of the AASIG Android Development Platform is that OEMs, their suppliers, and the broader cockpit software ecosystem can easily and successfully identify both the shortcomings and requirements. This is intended to be done in close collaboration with Google's Android Automotive team.
Among the issues addressed are the following:
As can be seen, in the case of Android, there are a number of hot spots that need to be properly dealt with.
Ensuring a high level of security in safety-critical automotive environments has always posed a major challenge for Open-Source Software. This is because you have to reconcile customer expectations while also ensuring data protection.
Certainly, open-source software has more vulnerabilities than dedicated software and thus is more susceptible to hacker attacks. Even a single exploit can be used to compromise hundreds of thousands of applications and websites. Obviously, static and dynamic application security testing (SAST and DAST) can be implemented to identify coding errors. However, such testers do not perform particularly well in identifying vulnerabilities in third-party code.
So if you plan to use connected car technology , you need to examine the ecosystem of software used to deliver these functions. It is also critical to properly manage open-source software in your overall security strategy.
All told, until some time ago, OSS was mainly focused on entertainment. Besides, OEMs have historically been forced to choose between only a few software stacks and technologies. But today they are faced with a rapidly growing number of OSS proposals, APIs, and other solutions.
On top of that, they have a growing number of partners and tech companies to collaborate with. And initiatives such as Autoware and Apollo shift their focus toward applications relevant to the safety and comfort of autonomous vehicles. Of course, these opportunities are also coupled with challenges, such as those related to security or license compliance . On the other hand, this still does not negate the enormous potential of open-source software.
It can be hypothesized that in the long term, a complete transition to SDV will require manufacturers to make optimal use of open-source software. And this will include an increasing range of vehicle functionality. This is an obvious consequence of the rapidly changing automotive market (which in a way forces the search for agile solutions) and growing consumer and infrastructure demands.
Sooner or later, major OEMs and the automotive community will have to face a decision and choose: either proprietary comfort (such as CARIAD from Volkswagen) or the flexibility offered by OSS projects.
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