In the past few decades, the world’s electronics and software industries have witnessed a revolution in their development. According to the McKinsey report, the market for automobile software is predicted to be approximately $462 billion (CAGR of 5.5 percent). A massive shift is taking place towards digitally-driven design for automobiles and manufacturing; the entire industry of automotive industry is undergoing technological revolutions in every aspect.
But investing in automobile software development is crucial because it is dependent on a variety of variables. With all the auto software costs, it can be difficult to quantify if you do not have the proper understanding and strategy. Let’s look at and analyze the costs associated with custom software for your vehicle. Let’s get started.
Table of Contents
What Factors Influence Automotive Software Development Costs?
The price of developing automotive software varies between $60,000 and $300,000. The cost of developing software is in accordance with a range of variables, including complexity, UI/UX features and functions, selection of the development platform, the developer’s expertise hours, rates for hourly work, geographic areas, and so on. Here’s an estimate of the cost breakdown for various stages of development for software:
Planning stage
The planning stage plays a significant part in the development of automotive software because it requires research on market trends, competitor analysis, feasibility studies, assessing the preferences of the user, etc. The cost of the planning stage typically ranges from $10,000 to $220,000.
UI/UX design
UX/UI involves designing intuitive interfaces for users, creating prototypes, systems architecture, and more. The cost of user interface design varies between $10,000 and $30,000. Prototyping is an essential element in the design of software since it allows for the validation of the design before proceeding to the final design and development. Designing also helps in the early identification of any potential problems.
Development phase
The development of software involves numerous tasks such as coding, programming, testing, quality assurance, and so on. Other activities include optimization of code and software integration, as well as rigorous testing, and so on. The price of software development for automobiles typically starts at $40,000 and increases to $150,000 based on the complexity level.
Tools and hardware
According to auto software companies, the price for making hardware tools ranges between $15,000-$80,000. Technically, this is the case for the various elements of software development, such as hardware debuggers, hardware testing compilers, and debuggers.
Certification and compliance
Certification, compliance, along industry standardization are vital for the successful development of automotive software. Costs for certification typically start at $10,000 and increase to $80,000. It could also include software testing as well as audits, approvals, and testing of various safety standards and automotive industry rules. The certified software systems are becoming increasingly used in models of business that are based on fleets like taxi-sharing services, which rely on road-ready, fully integrated hybrid and electric vehicles. These services demonstrate how software-enabled and compliant vehicles are becoming essential for urban transport, specifically for drivers who use platforms such as Uber and Amazon Flex.
Software deployment
Making automotive software requires setting up cloud services. This is among the most crucial steps that guarantee the software can be accessed and effectively operate across various platforms. The cost of software deployment is between $10,000 and $30,000. It also requires creating the crucial infrastructure and streamlining distribution channels to ensure an effortless deployment.
Maintenance and support
Maintenance and support on an ongoing basis keep the software system operating smoothly after installation. According to auto software developers, the price of maintaining software can range from $10,000 to $80,000 annually. This expense covers many options, including support for customers’ software updates, bug fixes, etc.
Cost Breakdown Based On Development Phases
The total price of automotive software has been covered in the past, but if you want to consider investing in the development of automotive software strategies strategically, it is important to understand the different costs associated with software development and the way developers charge per hour. This will enable you to obtain a precise and accurate estimate before the implementation of your project.
The development stages of software are classified into four main areas: teams of developers, tools, hardware, and compliance. Each one of them has its own costs. Below is a table that provides a comprehensive overview of the costs that could be associated with developing automotive software.
Final Words
The evolution of the automobile industry towards software-integrated vehicles calls for sophisticated cost management. Cost estimation that is transparent and clear allows automakers, developers, and other stakeholders to comprehend the project’s requirements, including post-launch maintenance, vendor negotiations and maintenance, etc. Additionally, you must choose the right software development company that will employ industry-leading practices and the latest technologies to offer specific software development solutions that are according to your project goals and budget.
