The Future of Mobility - Unlocking the Power of Software in Modern Vehicles
Viewpoint

5 Nov 2024
by Nishant Udupa, Agnivesh Tripathy

The automotive industry is significantly transitioning due to shifting consumer expectations. Vehicles are evolving from being mere utilities to offering connected features, advanced safety, and personalized experiences. This shift has driven OEMs to rethink their approach to vehicle engineering and revenue channels and led to the emergence of Software-defined Vehicles (SDVs), where software acts as the vehicle's central control unit, controlling functionalities, analyzing data, and providing an enriched user experience.

While OEMs are making strong inroads in capitalizing on the demand drivers and introducing SDV features, developing SDVs is a daunting task faced with challenges such as software development complexity, dynamic regulatory environment, and research and development ramp-up and monetization. All these challenges can lead OEMs to stray away from their course of action, incur cost overruns, and improperly prioritize applications from a monetization standpoint.

In this viewpoint, we provide an overview of the North American SDV market and propose a framework that OEMs can utilize to assess their success in navigating these challenges, building SDV competencies, and monetizing their offerings. The framework will help them understand their current state of maturity and identify areas that they need to actively focus on.

Scope

  • Industry: automotive
  • Geography: North America

Contents

In this viewpoint, we:

  • Define SDVs and how they differ from traditional vehicles
  • Give an overview of the North American SDV market dynamics
  • Explain the challenges faced by OEMs in developing SDVs
  • Provide a framework on how OEMs can assess their maturity in developing SDVs and driving market success
  • Role of providers in supporting OEMs in their SDV journey

Memberships

Engineering Research and Development

Sourcing and Vendor Management

 

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