Electronica 2024: Five Takeaways

MUNICH, GERMANY – Electronica 2024, a 5-day conference held here in mid-November, included considerable focus on the automotive technology ecosystem. Here are five takeaways from Omdia and Wards Intelligence analysts at this year’s show. The full report is available for free here (registration required).

Scope of Technologies for Software-Defined Vehicles Expanding

SDV innovation, particularly in consolidating vehicle E/E architecture, has largely focused on high-performance computing-based systems that deliver exceptional processing capabilities to support centralized, multi-domain functions, including the cockpit, ADAS and autonomous driving. Meanwhile, core vehicle functionalities around sensing and actuation – such as propulsion, braking and steering,often powered by MCUs, have been largely overlooked.

However, as with many trends in automotive, Chinese automakers have started driving innovation in this area, and the broader ecosystem is beginning to adapt. STMicroelectronics’ Stellar platform and NXP’s S32 CoreRide platform were just a few of the solutions demonstrated at Electronica 2024 aimed at streamlining vehicle architecture by consolidating multiple real-time functions into a single system.

Pipeline Between Industrial and Automotive Applications Growing

In many meetings, particularly with semiconductor firms, products and solutions were more likely to be designed with multiple end markets in mind, with automotive and industrial in particular showing significant crossover. This is due to two main factors: First, automotive and industrial share many similar requirements, particularly regarding safety and security. Second, both segments have similar needs for hardening against rugged conditions.

Among semiconductor vendors at Electronica, STMicroelectronics, Renesas, Infineon and NXP were all actively promoting solutions aimed at both industrial and automotive applications, while some firms were even looking beyond that crossover, with consumer devices entering the mix as well. This fits into a larger effort to simplify the often excessively complex catalogues held by many semiconductor players. A reduction in product numbers achieved through making designs more versatile serves to ease supply line stresses by streamlining processes.

Supply Concerns Weigh Heavily on Industry

Several attendees confirmed that the “just in time” supply model is truly dead and buried; the supply chain’s disruption in 2021 and 2022 has resulted in a seismic shift as to how ordering and product planning are accomplished. One distributor, Sourceability, summed it up as “customers don’t trust their order book, they trust their inventory.”

OEMs and Tier 1s are focusing first on the chips they have in stock or are otherwise certain to have access to, even repurposing or cannibalizing earlier designs. This shows the extent to which supply chain considerations are still driving major decisions in the automotive technology market.

China Part of Every Conversation

China was never far as a topic. Western OEMs and suppliers are concerned about losing market share. This concern arises not only from competition with Chinese companies in their home markets but also from the potential of these companies competing in the massive Chinese consumer market.

It was noted more than once that China is bigger than the U.S. and European vehicle markets combined, suggesting that both OEMs and tier suppliers must learn to compete to survive. There is increasing consensus that a market-driven strategy is required, not just a defensive strategy.

Increased involvement from companies based in China in the global automotive ecosystem is also already having an effect beyond just the supply chain and development time considerations outlined above.

Industry Looking to ‘Shift Left’

The rise of “shift-left” initiatives, combined with advancements in cloud-based simulations and digital twins, is transforming SDV development in particular, by shortening development cycles – which is already known to be essential to compete with and within China. However, progress has so far been hampered as OEMs increasingly rely on existing architectures and hybrid solutions, complicating the integration of electronic control units into virtual simulators due to proprietary software constraints.

These challenges stem both from contractual barriers and uncertainties surrounding the readiness of software for external use, as this often requires detailed documentation. To address this, AI firm Drive has introduced a platform capable of automating code documentation. For example, their tool documented 2.2 million lines of code in a matter of hours – an effort that traditionally required six months of manual labor. This highlights the potential for shift-left methodologies to improve efficiency and transparency in software validation.