Software-defined vehicles herald a new age of mobility.
Advancements in connected car technologies and over-the-air updates
drive this shift, with Level 3 automation another milestone toward
fully autonomous vehicles.
Software-defined vehicles (SDVs) are revolutionizing the driving
experience. The trifecta of autonomous driving with connected car
capabilities and over-the-air (OTA) updates enhance vehicles'
operability and functionality. How can OEMs and suppliers
capitalize? More importantly, what role will they play in
autonomous driving?
Automakers have offered relatively simple Level 2 systems for
more than a decade, but it was the advent of Level 2+ that really
moved the industry from ADAS to Automated Driving. By integrating
advanced sensors and vehicle software into a more holistic system
design, L2+ vehicles from Tesla to Cadillac could achieve new
functionality combining steering and acceleration and more—but
this partial automation still requires the driver to remain
engaged. Today, BMW, Mercedes, and more are joined by a host of
tech-forward Chinese brands from NIO to Huawei that are actively
developing Level 3 automated vehicles to manage more complex
driving scenarios and to relieve the driver of constant
supervision.
While the vast majority of the industry is focused on L2+ and
some on L3, Levels 4 and 5 automation, i.e., fully self-driving
cars, remain a long-term industry goal and a near-term focus for a
select few. If fully developed and safely implemented, the
technology's potential is tantalizing. Tech giants like Alphabet's
Google and Amazon are backing innovative startups such as Waymo and
Zoox to push the boundaries of Level 4 autonomy. At this level,
vehicles are fully autonomous and operate independently in
geofenced areas. They integrate advanced software—evolving from
machine learning algorithms to full stack training using Large
Visual Models—with the latest sensor technologies to navigate
without human input. The industry envisions a future where cars are
not just vehicles but sophisticated mobility solutions—for
instance, driverless robo-taxis navigating city streets and
transporting passengers without human intervention.
Across the industry, Advanced Driver Assistance Systems (ADAS)
are rapidly developing in both safety and driving efficiency.
System capabilities like hands-free driving with the support of
Driver Facial Monitoring systems are increasingly sophisticated.
Tesla, a leader in this field, has improved its software to handle
dense urban driving and intersections as well as more traditional
highway cruising functions that are the early focus of other
automakers.
Another transformative aspect of SDVs is the ability to improve
and upgrade continuously through remote OTA updates. Manufacturers
can update software, fix bugs, enhance functionalities, and even
add new features without requiring physical modifications to the
vehicle. Tesla delivers frequent updates in select groups of
vehicles in phases through the infotainment or app. This approach
has caught on with other OEMs like Rivian, which adopt similar
strategies.
The new age EV manufacturers focus on vertical integration and
advanced technology that gives them the advantage of systems
compatibility. Integrating OTA updates comes with challenges.
Managing software across various hardware components, often from
different suppliers, requires a sophisticated coordination and
testing process to ensure compatibility and performance. Despite
this, the benefits of OTA updates are immense. It eases the burden
of recalls and enables manufacturers to swiftly respond to user
feedback and emerging technologies, while also opening up a new
revenue stream.
As vehicles become more software-centric, connected car
technologies are increasingly critical. Connected car technologies
refer to integrating advanced communication and information systems
within vehicles. They enhance vehicle functionality by providing
safety features, entertainment options, and real-time diagnostics.
The industry's push towards using telematics and
vehicle-to-everything (V2X) communication enables vehicles to
interact with the city infrastructure and other vehicles to enhance
road safety and traffic management.
Efficiencies in software architecture are necessary to support
modern cars' growing interconnectivity and advanced
functionalities. Developing this standardized architecture is a
crucial priority for OEMs and suppliers. Investments and strategic
partnerships from chipmaker Qualcomm and software giant Microsoft,
will improve on connected vehicle technology by defining digital
cockpit, providing advanced systems enabled by gen AI and equipped
with latest sets of connect features and advanced driver assistance
systems for the industry.
Despite these advancements, there are obstacles to widespread
adoption of autonomous vehicles. Legislation and infrastructure
vary significantly across different regions, creating a patchwork
of regulations that manufacturers must navigate carefully.
Deployment of Level 3 and Level 4 vehicles will be extremely
localized so the fragmented regulatory landscape and harmonization
across global markets is a challenge but it's not a non-starter.
Vehicle-based perception and planning is also being developed to be
infrastructure-agnostic, but connectivity and network coverage do
represent more headwinds, especially as automakers seek to achieve
global scale and simpler supply chains.
The shift towards software-defined vehicles is one enabler of
growing vehicle autonomy and increased connectivity. OEM, supplier,
and industry innovations will redefine our relationship with cars,
making them more adaptable, safer, and more attuned to the needs of
their users.
This article is part of a series featuring highlights from
S&P Global Mobility's 2024 Solutions Webinar Series. Unveiling
the Latest Trends in Autonomous Driving, Connectivity and Over The
Air Updates webinar occurred on April 25, 2024.
Register for additional webinar sessions.
