Industry Voices | The Car of the Future: A Software-Driven ExperienceIndustry Voices | The Car of the Future: A Software-Driven Experience

Software-defined vehicles could transcend their initial functionalities from the time they roll off the manufacturing line to the 5-year ownership mark, provided the vehicle has the proper hardware baseline to accommodate the notion of “continual upgradability.”

Stavros Stefanis, Automotive Product Engineering and Development lead, Deloitte

December 17, 2024

4 Min Read
Software transforming automotive industry.

In today’s rapidly evolving automotive landscape, software isn’t just shaping the way we drive – it’s defining it. Every app added and every update downloaded via over-the-air updates represents an opportunity to enhance the vehicle’s performance and user experience. Software-defined vehicles (SDVs) represent a leap from static, hardware-centric experiences to a dynamic digital interface that redefines what it means to own a car.

As we approach a software-driven future, SDVs have the opportunity to personalize every aspect of the driving and passenger experience. From infotainment and seating to cockpit control, every element could adapt in real-time to whoever steps inside.

Moreover, vehicles could transcend their initial functionalities from the time they roll off the manufacturing line to the 5-year ownership mark as software and OTA deployment is designed to enrich the ownership experience, provided the vehicle has the proper hardware baseline to accommodate the notion of “continual upgradability.”

Redefining ‘Personal’ Transport

Imagine a car that functions as a digital assistant, providing a bespoke morning news roundup while commuting to work, or engaging curious young minds in the back seat with interactive media during the daily school run. Or fully automated mobility experiences based on the number of occupants detected while traveling.

These vehicles can become intuitive extensions of our digital lives, instantly responding to our evolving needs. Feeling stressed? The car might change ambient lighting, play calming music or even adjust the cabin’s scent. Driving a long distance? The seat might vibrate as a gentle nudge to stay alert, with an option to trigger additional audio alarms or an autonomous override to enable a safe and controlled slowdown of the vehicle.

This level of predictive optimization could extend to the vehicle’s mechanical components as well, further refining advanced driver-assistance systems with next-gen diagnostic software and OTA enablement. The benefits of a software-defined approach might also extend to early fault detection as algorithms can be deployed to detect mechanical wear better, boost performance (e.g., EV battery range), and perform certain recalibrations without the need for a physical service visit.

New Car, New Culture

However, the software-defined vehicle era is expected to require a massive cultural and operational change in the auto industry. The automobile’s history has been largely mechanical, built around frames, axles, engines, drivetrains, bodies and wheels, with electronics serving as the proverbial “cherry on top.”

The shift to software-driven architectures redefines what it means to build and maintain a vehicle, regardless of its propulsion. By consolidating processing power, moving from dozens of electronic control units to a handful of powerful, consolidated chips, automakers can streamline and reduce typical interface complexity found in today’s vehicle platforms, which can contain upwards of 70-plus controllers. Ironically, this shift to simplify ECU architectures can also make the task of ensuring backward compatibility very complicated.

As this transition unfolds, sensors and data processing could bring unprecedented insights, optimizing everything from the vehicle’s performance to how the user interacts with the platform. This shift isn’t just technological; it’s cultural.

Automotive companies may need to consider adopting an agile, iterative approach more commonly found among start-up companies – a quality that has been relatively absent save for a few smaller market disruptors. 

Priorities for Automakers: Educate, Innovate, Partner and Attract Talent

  1. Education: Those in the industry should acquire deep knowledge about the software-defined-vehicle revolution, and leaders should make education a strategic priority and continuous process. Software developers and manufacturing engineers should learn all they can about each other’s processes from both a technical and conceptual perspective. Software can no longer be regarded as a subordinate function. Employees in the organization can think differently to help enable continuous revenue generation while making sure compliance, safety and backward compatibility are also addressed.

  2. Technology mastery: Leaders should also focus on technology mastery. Not only should they dive deeply into today’s technology, but also understand what it might look like three, five, 10 years down the road. They should consider how might electronics, chips, logic and big data evolve, and then “skate to where the puck is going.” 

  3. Strategic partnerships: Leading organizations can consider making significant investments in not only their own software division, but also the cross-industry software ecosystem, to better understand where the technology is headed. A supplier of advanced chips will likely need to be a strategic partner going forward. The nature of the partnership should reflect the complexity of software creation, delivery and integration.

  4. Talent transformation: Finally, leaders should focus on talent. Consider looking beyond software engineers to create modules for a particular subsystem in a particular vehicle. Instead, help them see that software is a business ecosystem – sometimes competitive, other times collaborative – that will do for transportation what’s been seen in the smartphone industry. Talent should be released from maintaining disparate legacy software platforms to focus on creating more innovative features and capabilities for the ecosystem while helping to drive revenue from them.Companies looking to harness the transformative potential of SDVs face a challenge of tackling multiple matters evolving in parallel, including ECU consolidation and a shifting regulatory landscape. Having said that, SDVs are rapidly reshaping everything from vehicle functionality to the driving experience itself. The impact this revolution is expected to have on the automotive industry could rival the way in which software completely redefined the telephone, transforming the way we interact with the world around us.

About the Author

Stavros Stefanis

Automotive Product Engineering and Development lead, Deloitte, Deloitte

Stavros Stefanis leads Deloitte's automotive Product Engineering and Development practice and brings 25 years of experience in digital product transformation, with a focus on software-defined products. He regularly works with clients on embedded software, feature-led product development and design for manufacturing with a focus on automotive, broader mobility and semiconductor industries.

Subscribe to a WardsAuto newsletter today!
Get the latest automotive news delivered daily or weekly. With 6 newsletters to choose from, each curated by our Editors, you can decide what matters to you most.

You May Also Like