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What are Software-Defined Vehicles?
What are Software-Defined Vehicles?

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Over the last few years, in the automotive sector, we have primarily witnessed disruptions with respect to connectivity, electrification, autonomous way of driving the vehicles. One key element of disruption has been the heavy dependence of the automotive industry on software and digital technologies, thus giving rise to Software-defined vehicles, which are already the next revolution in the automotive industry.

In the wake of the semiconductor crisis, many industries re-assessed their supply chain networks to counter any issues related to such shortages. Hence the need for software defined vehicles has increased in the recent times.

 

What are Software-defined vehicles?

According to a Deloitte Study1) Software-defined vehicles are the new breed of automotive vehicles in which the quantity and value of software (including electronic hardware) in a vehicle exceeds that of the mechanical hardware.

It showcases the transformation of the vehicles from electromechanical terminals to intelligent, expandable mobile electronic terminals that can be continuously upgraded1). These vehicles are able to manage their operations, functionalities and enable new features primarily or entirely through software, similar to our smartphones.

 

Benefits of Software defined vehicles

Software defined vehicle

 

  • Upgradation – Easier to upgrade and add more features through over-the-air (OTA) software updates and features as per the driver’s needs. The upgrades are also independent of the vehicle model year, adding agility and speed to traditional automotive development.
  • Safety - Improved safety via features such as anti-collision systems and driver assistance
  • Comfort and value - Increased comfort through onboard infotainment systems as well increased value of the vehicle over time
  • Connectivity – Connectivity between vehicle and smartphone, collect data in real time, allowing drivers and passengers to interact with their cars in new ways
  • Maintenance - Deeper insights into vehicle performance through telematics and diagnostics, allowing for more effective preventative maintenance.
  • Experience optimisation - Driver experience optimisation and vehicle performance enhancement through continuous development through software. The capacity for automotive manufacturers to add new features and functionality with over-the-air updates. This enables automotive OEMs to maintain a lifetime relationship with the drivers.
  • Savings – Continued savings to the consumer
  • Accelerating automation and connectedness – Concepts such as automated driving, connected driving, autonomous driving etc. are accelerated due to software-defined vehicles.
  • Revenue increase – Auto OEMs are expected to access to newer sources of revenues. With services expected to form 30% of overall revenues for an auto OEM in the near future, software defined vehicles provide an opportunity to do just that.
  • Lower operating costs – Through software defined vehicles, auto OEMs will have lower operating costs, thereby increasing their profitability

Increasingly, now more and more electric vehicles are also software -defined, and hence are further contributing to the environment.

Software defined vehicles play a key role or rather are a consequence of the key mega trends of mobility – connectivity, autonomous, software and services, electrification, and personalisation. The software-defined vehicle provides the perfect platform for all of these trends. With the growing need to integrate both software and hardware system in automotive vehicles, need for more personalised features and maximisation of personal driving experience, the classic automobile is reaching its limits. The future of mobility is very much software inclined.

 

Sources -

  1. Deloitte – Software Defined Vehicles – A Forthcoming Industrial Evolution
  2. India's ER&D potential in a software-defined automotive industry

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Vandhna Babu
Principal Analyst - Research

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