Automotive

What are software-defined vehicles (SDVs) and how are they different?

Here's an overview of SDVs and how they differ from traditional vehicles.

SDVs manage features and functions primarily through computer software. (Image source: Adobe Stock.)

The proliferation of computers in automobiles has been progressing since the 1970s, with more recent advancements bringing a relatively new term to the forefront: software-defined vehicles (SDVs). In short, an SDV is a vehicle that manages features and functions primarily through computer software. Traditional vehicles rely more on hardware — mechanical or electrical systems — than software to control the vehicle.

SDV benefits

SDVs offer numerous benefits, such as real-time access to new features, improved diagnostic capabilities, enhanced safety features, enriched entertainment and information systems and reduced emissions. In addition, the capability of integrating upgrades on an ongoing basis can provide various economic benefits, helping vehicles retain value longer and helping manufacturers gain efficiency and reduce warranty claims.

With real-time access to new features, an SDV can be upgraded as new and improved features become available. Features introduced after vehicle manufacturing can be incorporated remotely via software rather than removing and replacing mechanical or electrical systems.


Diagnostics capabilities have also advanced with the advent of SDVs, though this is somewhat of a double-edged sword. As more software is integrated into vehicles, diagnostic capabilities expand; however, existing diagnostic approaches and codes are not always equipped to handle ever-changing, more complex systems. Organizations worldwide are exploring how to adapt current approaches for future vehicle diagnostic systems. Amateur mechanics, meanwhile, will likely encounter even more obstacles when working on their own vehicles.

Safety enhancements are achievable largely due to the massive amount of data collected from SDVs, along with more advanced sensors and computing power. Working in conjunction with onboard cameras, sensors and artificial intelligence, SDV technology can aid the detection of pedestrians or roadside obstacles. Advanced imaging software can enhance images during poor weather conditions. Onboard systems can detect wear and tear of vehicle components in real time to guide repairs or maintenance. Real-time updates can apply the latest technology in these and numerous other areas.

Automobile safety devices are often categorized as active — those that assist the driver in avoiding an accident (such as object detection or electronic stability control) — or passive — those that help minimize injury once an accident occurs (such as seat belts or airbags). Both types of devices can benefit from the SDV approach, though automakers are sometimes hesitant to remotely update safety features given the complexity of adhering to new standards.

Entertainment and information systems have been advancing steadily since the 1990s. These systems connect the driver and passengers to a wide variety of information sources, including mobile devices, satellite radio and cloud resources, and they also play a key role in coordinating over-the-air (OTA) updates.

As SDVs enable more efficient transportation solutions, environmental benefits can also be achieved. For example, SDV and smart infrastructure can work in tandem to alert drivers of accidents, traffic jams, and alternate routes in real time, reducing congestion and vehicle emissions. Key to success in this area will be collaboration among infrastructure and automotive designers to design systems that detect issues and alert drivers in real time.  

The economic benefits of SDVs are multi-faceted. A greater reliance on software can lead to manufacturing efficiencies, improved quality via real-time feedback and reduced occurrence of warranty claims. From a customer standpoint, vehicles can retain value longer, as updates are provided on an ongoing basis. SDVs can also add value with customizable settings and individual customer profiles for operating shared vehicles.

How SDVs work

While vehicles have been incorporating an increasing number of electronic control units (ECUs) and an electric and electronics (E/E) architecture for decades, an SDV features a centralized approach, where the various ECUs communicate with each other. An SDV generally features a central computer with more power than the car needs at rollout. This enables the computer to process massive amounts of data collected by sensors and accommodate software updates over the life of the vehicle. The SDV also has a dedicated operating system akin to that of a personal computer or smartphone but adapted to the vehicle.

The centralized approach makes it possible to analyze the operation of different vehicle components, as well as user behavior. The latter raises questions about security and protection of users’ personal data. To address these concerns, manufacturers are developing various protective measures such as digital signatures and encrypted security protocols.

Updates can be handled via OTA systems, enabling real-time improvements and patches to onboard systems. Flexible and scalable architectures will allow faster development and integration of new features throughout the vehicle lifecycle, interacting with cloud data storage.

SDV updates can be handled via over-the-air (OTA) systems, enabling real-time improvements and patches to onboard systems. (Image source: Adobe Stock.)

While hardware remains an integral part of SDVs, the larger role of software distinguishes SDVs from traditional vehicles is the role of software. While more powerful than software in previous vehicles, SDV software is also being designed for less overall complexity to foster efficient product development while also allowing updates and innovation. This may lead to an overall reduction in ECUs, which currently exceed 100 in many vehicles.

An SDV is not necessarily a self-driving or autonomous vehicle (AV), though it certainly could be. Because AVs rely heavily on software, they are generally considered SDVs.

Regulatory requirements

New regulations, standards and guidelines for SDVs are still evolving, with rules varying around the world. In 2020, the United Nations’ World Forum for Harmonization of Vehicle Regulations introduced an automotive regulatory framework that mandates cybersecurity management system audits for automakers and suppliers. The framework also requires automakers to obtain “vehicle type approval,” where auditors conduct tests on vehicle products sharing the same electrical architecture.

The European Commission’s Directorate-General for Communications Networks, Content, and Technology established the “Software Defined Vehicle of the Future (SDVoF) initiative” that emphasizes collaboration across European original equipment manufacturers (OEMs) and suppliers. The EuroNCAP 2026’s new rating scheme will incentivize the integration of direct-sensing, such as camera-based, driver monitoring systems with autonomous driving and advanced driver assistance systems (ADAS) features to provide adequate vehicle responses to different levels of driver disengagement.

A host of other organizations have developed standards or regulations related to SDVs. Among the more notable organizations are:

Looking ahead

The SDV landscape has been changing rapidly and will likely continue to do so. More and more vehicle features and functions will shift from hardware- to software-focused. It should be an interesting ride (pun intended).