As the automotive industry transitions to software-defined vehicles (SDVs), original equipment manufacturers (OEMs) are accelerating innovation, moving beyond today’s hardware-defined models. Here’s why these cars of the future are reshaping the automotive landscape:
- Seamless Over-the-Air (OTA) Updates: SDVs offer customers OTA updates for firmware patches, ensuring their vehicles stay up-to-date.
- Enhanced Infotainment Systems: These vehicles allow continuous improvements to infotainment capabilities, elevating the in-vehicle experience.
- Powertrain and Vehicle Dynamics Optimization: Automakers can remotely monitor and fine-tune core functions such as powertrain and vehicle dynamics.
- Feature-on-Demand (FoD) Services: Software-defined vehicles enable automakers to offer comfort and convenience features remotely, unlocking new revenue streams.
- Lifecycle Upgrades: With connectivity capabilities, OEMs can upgrade and enhance vehicles performance throughout their lifecycle.
The SDV Industry Is Poised for Exponential Growth. Are You Making Your Move?
A closer look at the ecosystem and key players shaping the future of software-defined vehicles
To learn more, access our growth analyses today: [Global Mobility] [In-Vehicle OS] [Connected Vehicles] [Car Software]
WHICH ARE THE MOST PROMISING OPPORTUNITIES IN THE SDV INDUSTRY?
FoD enables automakers to create recurring revenue streams. With the shift to electrification, traditional post-sale revenue from maintenance and replacement parts has decreased. To offset this, companies like BMW, Mercedes-Benz, Volkswagen, and Tesla are expanding their on-demand feature catalogs. OEMs that haven’t yet launched FoD are expected to introduce basic on-demand features to acclimate customers to subscription models.
To learn about more innovative business models reshaping the SDV industry, view our expert analysis.
Discover more about collaborative ecosystems that can unlock SDV success in our expert analysis.
Collaborations Between OEMs and Technology Companies
OEMs often lack the skillset and capacity for in-house software development at scale. Partnerships with software development firms enable them to embrace agile development practices and roll out updates more efficiently. These collaborations are critical in delivering scalable, secure, and future-proof software-defined vehicles.
Leading automakers are investing heavily in proprietary software development, reducing reliance on third-party suppliers. Companies like Volkswagen, Mercedes-Benz, BMW, General Motors, Toyota, and Tesla are developing open-source operating systems and licensing their software to other manufacturers, generating new revenue streams and retaining control over vehicle software systems.
To explore how the transformation to software-defined vehicles is impacting the industry and how you can capitalize on it, access our expert analysis.
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