Unveiling Tomorrow's Ride

Industry Insights

December 2023

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When asked What elements are included in your vision of an SDV? Here's what data was collected:

Vision of an Software-Defined Vehicle (SDV)

Key Findings

Unveiling Tomorrow’s Ride:

Form Goes Here

Top Three Elements Included in Your Vision of an SDV

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A Deep Dive Into Software-Defined Vehicles

12% Don't Know

10% 2026-2027

20% 2028-2029

31% 2030-2031

11% 2032-2033

17% 2034 or beyond

When will more than 50% of new vehicles sold annually be software-defined?

The majority of respondents anticipate that over half of new vehicles sold will be software-defined by 2031.

50%+

A third of respondents rate their firm’s client facing technology very positively (top-two box). Next Generation advisors are slightly more positive about their client facing technology are Established advisors.

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This report unveils valuable insights derived from a meticulous methodology employed by Wards Intelligence on behalf of NXP Software, encompassing data collection from October 23 to November 8, 2023. The research adheres to established marketing research methods and practices. Having garnered 121 completed responses from Wards Auto active users, the findings offer a profound understanding of the subject at hand. We invite you to download the complete report to delve into these compelling insights and leverage the knowledge uncovered. Gain a strategic edge by clicking the link below to access the full report and stay ahead in the ever-evolving landscape.

Unveiling Tomorrow’s Ride: A Deep Dive Into Software-Defined Vehicles

Insights Report

Vehicle management capabilities (41%)

Software and firmware OTA updates (41%)

Centralized & integrated vehicle data infrastructure (38%)

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The automotive industry acknowledges three primary hurdles in SDV implementation: complexity of integration, legacy systems, operations, and mindset and cost optimization. However, there are interesting regional disparities. Respondents in North America seem more burdened by the existing ICE vehicle base, while API and data format fragmentation and a shortage of expertise are more pressing obstacles for respondents in Europe. Interestingly, respondents outside North America and Europe highlight optimization and profitability as the most critical hurdles. This emphasis likely stems from the higher presence of new entrants unencumbered by legacy constraints. Lastly, the survey underscores that the scope of the SDV concept extends beyond luxury EVs, BEV disruptors, or premium OEMs. Furthermore, while there's certainty about ICE vehicles transitioning to SDVs, the findings reveal a lack of agreement on the favored ICE platforms for SDV integration.

SDV Implementation Hurdles

Insights Report

The automotive industry evolves amidst a whirlwind of challenges and transformations catalyzing a paradigm shift. SDV emerges as a pivotal strategy for innovation and long-term competitiveness in this dynamic landscape. Yet, the industry grapples with varying SDV perspectives and strategies, particularly across regions, impacting priorities and timelines. Concurrently, OEMs confront urgent challenges related to legacy systems, integration complexities, cost optimization and profitability. Given the vast scope and intricacies of this transition, a more cohesive and collaborative approach becomes paramount for overcoming hurdles and successfully navigating this transformative phase.

Overview

Insights Report

The varied viewpoints on SDV definition and execution underscore differing priorities across automotive sectors, indicating why a unified definition for SDVs or a single strategic path forward has not emerged yet. Respondents in North America show a stronger focus on data and vertical integration and, possibly because of the latter, are more pessimistic about SDV timelines. In contrast, European counterparts prioritize software and cloud technologies and anticipate faster completion of SDV stages within this decade. Europe-based respondents are more bullish on collaboration and are more optimistic about the progress of collaborative organizations promoting the standardization of SDV middle layers as well as timelines. They also anticipate a more pronounced decrease in vehicle development times than their counterparts in North America. Concerning processing headroom allocation, the findings indicate that cost sensitivity will persist in entry-level vehicles. There's a stronger tendency towards increased hardware provision in mid-range and luxury vehicles, although European respondents notably exhibit a more conservative stance compared to the overall average. Regarding E/E architecture, OEMs are pursuing diverse strategies to consolidate vehicle ECUs. The data suggests that a definitive prevailing architecture may not emerge until the decade's end. OEMs are actively evaluating the optimal vehicle architecture configuration for their upcoming models.