During The Autonomous 2023, industry stakeholders agreed that fostering a culture of safety is essential to finally move autonomous vehicles (AVs) beyond the hype. At the 2024 event on 23-24 September, discussions centered on the technological foundation of that culture: software-defined vehicles (SDVs).
Dirk Linzmeier, CEO at TTTech Auto, described the shift to SDVs and AVs as the “biggest transformation” in automotive history. He emphasized that this transition is inevitable, far-reaching, and accelerating. Goldman Sachs projects that by 2028, 28% of vehicles will feature SAE Level 2+/2++ advanced driver assistance systems (ADAS), with 90% of new cars incorporating software-defined features by 2030. Linzmeier highlighted that significant investment will be required, predicting an initial split between Eastern and Western markets, with Western automakers potentially losing ground in China to domestic companies. He stressed, however, that safety is neither a competitive issue nor a compromise—it’s about getting it right. Achieving this vision requires collaboration across the SDV value chain.
To meet customer and investor expectations, autonomous systems must outperform human drivers in safety. Testing metrics need to be rigorous, and the miles driven by current development systems are just the beginning. Ricky Hudi, Chairman of The Autonomous, noted that achieving an SDV means “no corner cutting” and more than just advanced software. The goal is to seamlessly integrate an ever-evolving suite of desirable features. However, this demands harmonization of complex technologies like sensor hardware, connectivity, and machine learning algorithms, all while prioritizing safety and scalability.
This challenge has driven a shift in vehicle architecture. Traditionally, domain-oriented designs rely on hundreds of electronic control units (ECUs) managing specific functions, but as SDVs grow more complex, this approach results in cumbersome wiring and diminished performance. Zonal architecture, which consolidates related functions into streamlined, centrally controlled units, is emerging as a superior solution. At the event, Lars Reger, CTO at NXP Semiconductors, warned that some automakers have faltered in this transition, creating “zomain” architectures—disjointed combinations of outdated hardware and software that hinder progress. “Frankensteining will not get us where we want to be,” Reger remarked.
Simplifying SDV architectures is critical. Reger presented NXP’s S32 CoreRide platform as an example of how layered, collaborative approaches can address these challenges. Semiconductor manufacturers provide foundational chips with integrated processing, networking, and power management capabilities. Software providers then contribute certified middleware and operating systems pre-integrated with this hardware. Finally, OEMs and Tier 1 suppliers add custom vehicle applications, resulting in coherent, tailored architectures. This modular approach also supports the decoupling of hardware and software, enabling automakers to manage resources more effectively. Prashant Gulati, CEO of SDVerse, argued that embracing zonal architectures is essential to unlocking the multi-trillion-dollar SDV opportunity.
Competition and growth remain viable, with initiatives like SDVerse’s B2B marketplace connecting OEMs and software developers to foster innovation. Renault and General Motors are already partners, leveraging the ecosystem to discover and commercialize compatible solutions. Ethan Sorrelgreen, Global Head of Product at Woven by Toyota, noted that standardizing hardware can reduce costs, improve quality, and enhance safety. Shared systems, like braking applications adaptable across models, demonstrate how SDVs can achieve scalability and cost efficiency.
A cultural shift is equally important. Michael Fait, Head of SDVs, Europe, at Thoughtworks, noted that software development must embrace fluidity, departing from the traditional “get it right the first time” mindset. Sorrelgreen emphasized applying principles from Toyota’s production system to software, advocating for standardization to drive cost reduction and quality improvement. Although the transition will be challenging, it is vital for unlocking the full safety potential of SDVs.
The stakes are high. In the US, road fatalities currently average 1.26 per 100 million miles driven, according to the National Highway Traffic Safety Administration. Stefan Poledna, CTO at TTTech Auto, stressed that SDVs must surpass this benchmark through diverse and redundant architectural features. Integration is key, requiring platform approaches and advanced system architecture capabilities.
Gulati underscored that software is no longer optional but a matter of survival. The global auto software market is projected to more than double from 2020 to 2030, reaching $84 billion. Nikolai Setzer, CEO of Continental, concluded that SDVs will thrive only if the industry adopts a collaborative mindset. Establishing an open and transparent ecosystem, he argued, is both the greatest challenge and the greatest opportunity for the sector.
