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Software defines the role and mission of digital service providers in the automotive Era
Source: | Author: Anna Qu | Publish date: 2022-07-05 | 808 views | Share:
Software defines the role and mission of digital service providers in the automotive Era

Soaring oil prices have suddenly made electric vehicles, which were originally disliked, popular.

In fact, compared with electrification, the intelligence of automobile is the general trend. Both traditional fuel vehicles and emerging electric vehicles are accelerating the pace of intellectualization and automation. Even the most conservative drivers can now feel the charm of lane keeping, cruise control, automatic parking and parking.

Further extension, the digital wave of production and operation of automobile enterprises has already started. After all, this is the foundation of the digitalization of the automobile industry and the prerequisite for the intellectualization of automobiles.

From this, it is not difficult for us to see that the era of software defining cars has come in an all-round way. In this historic process, digital service providers are playing an increasingly important role.

Chenliming, senior vice president of softcom power, a leading digital technology service provider in China, revealed that its smart car business has maintained a trend of rapid development in recent years. Relying on the precise positioning of key links in the automotive industry in the past decade, the company has gradually accumulated a large number of service capabilities and industry solutions in the field of intelligent vehicles, and exported key capabilities to traditional brand manufacturers, new forces in vehicle manufacturing, and upstream and downstream component suppliers.

Software will become the anchor point of vehicle value

Looking around the world, the intellectualization and networking of cars are the general trend, and they have entered the stage of accelerated development. Yiou think tank predicts that the global sales of intelligent connected vehicles will reach 78.5 million by 2025.

The Chinese market is in the forefront of the world. In 2020, the sales volume of intelligent vehicles in China has reached 3.032 million, with a year-on-year increase of 107% and a penetration rate of 12%. By 2025, the sales volume of smart cars in China will reach 14.487 million, with a penetration rate of 47.5%.

The rapid increase in the proportion of intelligent vehicles also means that software is becoming more and more important in the automotive industry. Europe billion think tank predicts that China's automotive software market will grow from 1.85 trillion yuan in 2020 to 3.44 trillion yuan in 2030, with a compound annual growth rate of 7%. The proportion of Automotive Software in the value of the whole vehicle is expected to reach 65% by 2030. By then, the car will truly become a "driving mobile phone".

The increase in the proportion of software in the overall value of automobiles will inevitably bring greater market opportunities to software service enterprises. Chen Liming said that as a leading software and information technology service provider in China, softcom power fully recognizes the overall development trend of the automotive industry and the service opportunities in this field, and believes that software will become more and more important in the field of intelligent vehicles, the application of new technologies will continue to rise, and the size of the software market will grow rapidly.

It is precisely because of the huge market potential that softcom power, on the basis of long-term cultivation in the automotive field, has been more determined to layout and expand its smart car business in recent years to meet the arrival of the era of "software defined cars".

Automobile industry from informatization to Digitalization

Almost all domestic digital service providers start from industry informatization and provide software and hardware solutions for all walks of life. Softcom power is no exception, and is one of the earliest service providers engaged in the informatization business of the automotive industry in China.

At the beginning of its establishment, softcom power began to serve domestic complete vehicle enterprises and core component suppliers, and has a history of 15 years. At present, softcom power has provided a series of end-to-end enterprise services for more than a dozen large automobile manufacturers and leading suppliers, from consulting to solutions, to delivery, implementation and subsequent operations. The rich industry experience thus accumulated has also become the basis for it to dare to deeply participate in today's smart car business.