Embedded Software Development Costs Rise for Automotive Industry

12/22/2003 - In a recent survey of automotive embedded developers, VDC found that software development costs increased between 1999 and 2002 to exceed one-third of total automobile production costs.

Key factors driving the rise of software development costs in automotive embedded projects include:

"While the automotive industry does not reflect the highest percentage, it is above the average of 33.5% for all industries," said Stephen Balacco, Embedded Software Analyst at VDC. "Looking at future projects, the indication from developers is that neither total software development costs nor the costs of licensing commercial OSs and tools are likely to decrease. However, I expect that as technologies mature the total cost of software development should decrease."

About VDC
Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, and communications, software and power systems markets. For further information about Embedded Developers' Demand and Requirements for Commercial OSs and Software Development Tools, Volume I: Current Practices and Emerging Requirements in the Automotive Vertical Market or any other VDC service contact: Marc Regberg, Senior Vice President/COO, 508-653-9000, extension 111, msr@vdc-corp.com.

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