Apple's (AAPL -1.62%) Worldwide Developers Conference (WWDC) on Monday featured a number of announcements, including a preview of iOS 16, a new MacBook Air, updated software for its smartwatches, and much more. But one of the most interesting announcements was a huge overhaul to CarPlay, the Apple software that integrates with a growing number of new cars.

Not only does Apple's software strengthen the overall iOS ecosystem by making its smartphones more valuable to users while they are in vehicles, but it also puts the tech company in more direct competition with the high-tech infotainment system found in Tesla vehicles. With the electric-car maker proving there is a strong appetite from consumers for more technology in their vehicles, it's good to see Apple making some ambitious moves in the market.

Here's a closer look at the latest CarPlay features.

A car dashboard displaying several digital screens of apps and information.

Apple's next-generation CarPlay is more deeply integrated into the vehicle's systems. Image source: Apple.

CarPlay: Deeply integrated into new cars

The best way to summarize the most important new aspects to CarPlay is this: The software is more deeply integrated with a car's hardware than ever.

"CarPlay will be able to provide content for multiple screens within the vehicle, creating an experience that is unified and consistent," Apple said in a press release about the overhauled software. "Deeper integration with the vehicle will allow users to do things like control the radio or change the climate directly through CarPlay, and using the vehicle data, CarPlay will seamlessly render the speed, fuel level, temperature, and more on the instrument cluster."

Importantly, Apple says CarPlay will work with all screen shapes and layouts, as long as they support next-generation CarPlay. It "feels like it was made specifically for your car," said an Apple executive during the company's keynote presentation on Monday.

Further, Apple is bringing significant personalization to CarPlay by letting users select from different gauge cluster designs and choose which widgets are displaying at-a-glance information.

But you'll have to wait to see this deeply integrated multi-screen CarPlay in action. Vehicles with Apple's next-generation CarPlay won't be announced until late next year, though Apple did list over a dozen car brands already working on bringing next-generation CarPlay to new vehicles.

Apple's foothold in the auto market

While CarPlay was initially Apple's solution for providing consumers a safer way to use their phones in their cars, it's grown into much more.

It's no surprise that Apple is doubling down on CarPlay. The Apple software for vehicles has become a must-have for many car buyers. The tech giant says that 98% of new vehicles in the U.S. are now CarPlay-capable. Even more, nearly 80% of U.S. car buyers won't even consider a car if it doesn't support CarPlay. 

Tesla's soaring sales are also a testament to the growing appetite from consumers for more sophisticated technology in their vehicles. The electric-car company remains supply constrained, even with deliveries growing at rates greater than 50% year over year in recent quarters. Apple clearly wants in on this demand for better technology in vehicles -- and CarPlay is its foothold in this important and massive market.