It added that automotive electronics contributes 46% of outsourcing deal value in auto industry and that 'Cockpit Electronics' was found to be the major outsourced sub-vertical in the recent past.

Talking about the emerging growth opportunity in ADAS, the study highlighted that Heads-Up Display (HUD), eCall Telematics and Lane Assist were the rapid growth areas. Outsourcing in mature activities will increase and OEMs will shift their focus on to adding new features to the mature activities. It also brought to light that Indian service providers have started to develop IP/Framework in the emerging and growing areas.

Last but not the least; it added that products will continue to climb the S-curve as OEMs realise ADAS as the differentiating factor and increase their R&D spend. It also recommended an attack plan for service providers, which said the following:

• ADAS is the differentiating factor: Analysis of OEMs spending activity shows that they will continue to increase R&D spend on emerging areas of ADAS as they realise that going ahead it is going to be the differentiating factor among them.
• R&D investment lags product maturity curve: Within Driver Assistance major R&D investment by OEMs, Tier-1 suppliers and consumer electronics companies will majorly be in the products that lie in emerging and growing zone of the S-curve. 
• Building capability for emerging areas is the key: Service providers focus more on building frameworks/capabilities for the products which lie in the growing and emerging zone as outsourcing will increase in these areas as they climb the S-curve.

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