the future of driving: how SDVs are transforming the industry.
Driving a software-defined vehicle (SDV) already feels like a journey into the future. An SDV can recognize your presence and automatically adjust the seat and mirror settings, climate, and music to your preferences. With a simple voice command, it can effortlessly speed you to your destination as you relax and enjoy the onboard infotainment. Along the way, the car detects and responds to obstacles and traffic conditions in real time, getting you to your destination safely and quickly, where the SDV expertly maneuvers itself into a tight parking spot. Capabilities that seemed futuristic only a few years ago are already here. It’s no wonder that SDVs, which are primarily managed, enhanced, and customized through software, are creating a transformative shift in the automotive industry. As vehicles become more connected and intelligent, SDVs are redefining the automotive landscape and reshaping how vehicles are designed, manufactured, and experienced.
With SDVs set to define and drive the automotive market for the foreseeable future, auto manufacturers, Tier 1 suppliers, and original equipment manufacturers (OEMs) are at a critical inflection point. Those that quickly adapt to these changes are likely to gain a competitive advantage, while those that fail to do so may struggle to remain relevant as consumers demand more sophisticated, personalized, and adaptable driving experiences.
As cars transform into intelligent, connected electronic devices on wheels, automotive industry players should keep an eye on the following trends for the future.
end-users drive innovation.
User demands for software-driven innovations in safety, convenience, and comfort are the driving force behind the astounding growth of the SDV market. Leading automotive manufacturers like Tesla, Volkswagen, BMW, and Renault, are on the cutting edge with SDV innovations, setting the pace for the rest of the industry to keep up with consumer expectations.
The ability to make driving innovations available as over-the-air (OTA) software updates is revolutionizing the competitive landscape and disrupting business models. The leading SDV makers already offer premium features and invite customers to opt in for monthly subscriptions to advanced functionalities.
Consumers are primed to seek out features that deliver safer, more enjoyable driving experiences. Research shows that customers consider safety and security — and some comfort and infotainment features — table stakes for SDVs, but 40 to 60 percent are still willing to pay a premium for features such as autonomous driving and software-boosted performance as well as enhanced infotainment and comfort features such as intelligent in-car ambiance and customizable interiors.
To stay relevant, automakers will need to differentiate by continuously delivering new, more personalized, and adaptive premium features. While today, drivers typically replace their vehicles every 5-7 years, the availability of OTA updates combined with longer-lasting solid-state vehicle components may considerably lengthen that time frame — in essence turning the vehicle into a smartphone on wheels that only needs to be replaced when the hardware components wear out.
To keep pace with industry leaders, auto manufacturers, Tier 1 suppliers, and OEMs can seek out partners to help them deliver on current customer demands and also see beyond today's demands to lead the innovations of the future. Such partnerships expand the ability to attract and retain customers, enhance competitiveness, and capitalize on the business opportunities of the SDV era.
success with software requires transformation.
The consumer-driven evolution of the SDV market is creating unprecedented business opportunities but also increasing complexity. Capitalizing on these new opportunities will require OEMs and Tier 1s to transform and add new capabilities to meet user demands.
For example, software-driven innovations delivered via OTA upgrades will eventually drive efficiency for automakers by reducing the need for lengthy and costly hardware development. However, the rapid iterations of embedded software add a new layer of complexity to an already intricate ecosystem, necessitating substantial updates to supporting infrastructure, hardware, and systems integration.
As another example, SDVs can provide diverse, data-driven revenue opportunities outside of the automaker’s own software subscriptions. Features such as connected services, in-vehicle advertising, insurance telematics, and mobility-as-a-service models could enable new revenue streams from third-party providers via a digital marketplace. However, these opportunities also add complexity, as the automaker would need to manage integration, compatibility, security, and customer support for the third-party software, increasing overall system complexity and requiring more resources to maintain quality and customer satisfaction.
Again, strategic partnerships can help automakers identify and capitalize on these opportunities for new as-a-service revenue streams while reducing both the complexity and the resources required to keep up with future trends.
transformation calls for strategic partnerships.
To keep up with the industry leaders as the SDV revolution unfolds, auto manufacturers, Tier 1 suppliers, and OEMs will need a diverse range of skills to drive innovation and ensure effective implementation. Essential capabilities include proficiency in areas such as advanced driver-assistance systems (ADAS), AUTomotive Open System Architecture (AUTOSAR), Android Automotive Operating System (OS), Connected Services, cybersecurity, and FuSA — to name a few. Industry partners with extensive automotive experience can help augment these capabilities with proven solutions and expertise.
In addition, the collective expertise and resources of the open-source community can help foster innovation, standardization, and interoperability across the automotive industry to smooth the transition to SDV ecosystems. For example, Qualcomm collaborates with industry leaders via several consortia that promote open standards and interoperable software building blocks for SDV platforms. Likewise, Google is driving SDV innovation through various partnerships and initiatives, such as working with Renault Group and other industry players to foster open standards and interoperability within the SDV ecosystem.
keep up with the SDV industry innovations.
As technology progresses, the possibilities for the future of driving are both exciting and seemingly limitless, with software driving enhanced safety, increased efficiency, and transformative customer experiences. However, achieving success with SDVs requires access to a flexible and scalable source of expertise and solutions that can give you the edge in this highly competitive field.
Choosing Randstad Digital for your SDV needs gives you a trusted partner with unparalleled automotive industry expertise, a comprehensive solutions approach, a global footprint, and an intense focus on innovation. We can help you get to market faster, reduce development costs, drive innovation, and ultimately enhance your competitiveness.
With more than 30 years of experience in the automotive industry, Randstad Digital has a profound understanding of the unique challenges and opportunities associated with SDVs. We can help you augment your capabilities with solutions and expertise in critical areas such as ADAS, cybersecurity, connectivity, infotainment, vehicle dynamics and control, human-machine interface, AI and machine learning, testing and validation, and more. Check out our PoV set the pace with software-defined vehicles.
Reach out to Randstad Digital to discover how partnering with us can accelerate your SDV future.