The Software-defined Vehicle and Its Engineering Evolution: Balancing Issues and Challenges in a New Paradigm of Product Development EPR2024007

The automobile is undergoing the biggest transformation of its 100-year history. Motivated by consumer desire for automobiles to integrate with their digital life and inspired by new electric vehicles (EVs) that routinely receive over-the-air software updates, traditional automakers are embarking on a journey to re-engineer the vehicle as a platform defined by software. The foundation of the shift is a complete re-design from a mechanical hardware-centric system to a cloud-connected, software-centric ecosystem where each function is executed via a service-oriented architecture. This is the basis of the software-defined vehicle (SDV).

The Software-defined Vehicle and its Engineering Evolution: Balancing Issues and Challenges in a New Paradigm of Product Development examines the complex journey ahead for traditional manufacturers as they transition to this new software-defined system. The shift will literally impact every facet of the industry, from organizational culture, tools, and processes to supply chain management, skill development, and more. This report covers the state of the industry, explores key facets and challenges of SDVs, and provides recommendations as to how to embrace the change. It also considers the balance between vertically and horizontally integrated product development.