Software-Defined Vehicles: More than Smartphones on Wheels

Your vehicle is much smarter than ever. Today’s vehicles are being called software-defined vehicles because of the integrated technology included in them.

The automotive industry is undergoing a fundamental transformation as software-defined vehicles (SDVs) replace traditional cars defined by their physical attributes with vehicles that can evolve through over-the-air updates. Beyond simply activating pre-installed features for a fee, SDVs represent an entirely new business model for manufacturers who anticipate generating up to $720 million annually within five years by monetizing data and on-demand features throughout a vehicle’s lifecycle.

How can SDVs improve your driving pleasure?

Instead of the physical and mechanical functions of some vehicle features, these items have been integrated into the software. Something as simple as heated seats now has a software component that could be important to you. In an SDV, you might pay a monthly subscription for your heated seats to function, but you could end that subscription when it’s warm out and you no longer need or want heated seats. This is only one minor example of what you’ll find in an SDV.

Basically, vehicles with software-driven functions allow drivers to choose the features they want to use and pay for those features, which could save some drivers money when purchasing their vehicle at the dealership.

Regular updates can keep things going

Over-the-air (OTA) updates aren’t anything brand new, but not all automakers offer these updates in all vehicles. That will likely change as software-defined vehicles become more widespread and part of our driving culture. OTA updates are exactly what they sound like, enabling the software of a vehicle to be updated without the need to visit a dealership. This allows automakers to provide continuous innovation and improvements to current drivers, which can improve customer experiences and strengthen brand loyalty over time.

Tech companies must be involved

The complexity of SDVs calls for open innovation and collaboration with tech companies. These vehicles require a web of software and hardware components along with signaling capability to receive and upload information to cloud-based servers. This means tech companies will be a huge part of this initiative, making it possible for automotive manufacturers to leverage technology and address challenges.

Will there be some bumps in the road? Sure. As with any new tech or product, there are kinks to work out and hurdles to jump over to get to a place in which SDVs are widely adopted and utilized. The foundation for this development will be digital platforms that will deliver OTA updates, gather data, and facilitate communication between the vehicle, the user, and the OEM.

Does this leave your future vehicle more vulnerable?

Digital security and privacy are always at the forefront of concerns when speaking about advanced technology. The movement toward software-defined vehicles opens these conversations. Ensuring safety and security while the vehicle’s software is being updated remotely is a major concern for automakers and is the first priority to ensure vehicles don’t become targets for potential hackers.

Does this mean SDVs can’t be hacked? Not at all. But it means automakers are taking every step necessary to ensure the security of private information and vehicle systems to ensure a vehicle can’t be hacked into and taken over remotely by hackers. This still could be a problem, but many automakers now employ white-hat hackers to help them find any software leaks and plug them before rolling the software out to the public.

More than a trend

SDVs represent a seismic shift in the automotive world that could become part of widespread changes across multiple industries. The technology required for this shift can influence software development, cyber security, and data analytics. This evolution is essential for business leaders, and it’s a good chance for innovation and growth in many industries that are part of the automotive world.

What are some benefits of software-defined vehicles?

New vehicles with the tech to be called SDVs could make a real and lasting difference on the road.

Safer streets

The continuous improvements to software will ensure the most advanced versions of important safety features such as collision avoidance and lane departure warning will be available trough OTA updates. Improved safety features makes the road safer.

Better vehicle performance

SDVs can receive performance enhancements through software updates. These updates might be subscription-based, but some drivers will likely sign up for them to unlock the most impressive performance figures for their SDVs.

Connected future

The future of driving is part of a connected world. Software-defined vehicles will receive real-time traffic updates, find the right gas station before your tank runs out, and enable you to control your smart home functions from your driver’s seat.