The Software-Defined Vehicle

Chapter 1. Introduction

In the past, the automotive industry stood as a testament to the power of combustion engines and the prestige of owning a car with the “most exhaust pipes.” Today, this old-school paradigm is undergoing a seismic transformation. Four major innovations—electrification, automation, shared mobility, and connected mobility—are happening all at once, leading to dramatic changes in the automobile landscape. Further amplifying this complexity are industry newcomers who are not just building top-quality cars but are specifically focusing on the digital-savvy consumer with their “smartphones on wheels”—vehicles equipped with large interactive screens, seamless connectivity, and frequent updates to software features.

At the same time, customers are expressing dissatisfaction because their vehicles lack the features and user-friendliness that are commonplace in smartphones. Many are left wondering: why can’t my $50,000 car perform the same tasks as my $300 smartphone?

From this frustration emerged the idea of a software-defined vehicle (SDV), a car that’s fully programmable. New features can be developed and deployed within a matter of months, not years, and there’s extra computational capacity for future updates that can be delivered wirelessly. This is a car that keeps getting better, thanks to the continuous delivery of valuable new software features and updates throughout its lifetime.

However, the automotive industry has hurdles to overcome if it wants to achieve ...