Rise of software-defined vehicles

Consumers are ready for software-defined vehicles

Software-defined vehicles, digital continuity, and artificial intelligence hold the key to a future of value in the automotive industry. Consumers see automobiles as more than just a means of transport. They are incrementally looking for features such as ADAS and autonomous-driving capabilities, immersive infotainment, connectivity, and vehicle data networks.

According a recent survey conducted by the Capgemini Research Institute, 56% of customers will make purchasing decisions based on whether the vehicle in question has sustainable connected services and 53% are willing to change car brands to get them. Software plays a key role in realizing consumer expectations and also addresses challenges related to road safety, traffic congestions, and sustainability.

Automakers are developing centralized software systems to control the vehicle by eliminating many embedded electronic control units. The plan is to replace several ECUs with a new electrical and electronics architecture using high-performance computers and domain controllers. Standardized software solutions and service-based offerings will uplift the adoption of software-defined vehicles. Consequently, software-defined vehicles will lead the way to autonomy and solve real-time problems and challenges.

Software defined vehicle: A smartphone on wheels?

The rise of software-defined vehicles is analogous to the smartphone revolution. Software has played a key role in the evolution of smartphones. They have become more than just a means of communication with several features that facilitate our day to day lives. It is interesting to compare and contrast the many features of smartphones in the context of software-defined vehicles. The table below illustrates a structured approach revealing a scheme of creative and ingenious ideas/features that could be incorporated in a software-defined vehicle drawing close inspiration from the smartphone revolution:

Features	Smartphone	Software-defined vehicle	Advantage
Compute	High-performance microprocessor and central operating systems	New centralized electrical and electronics architecture using high-performance computers and domain controllers	Simplified central architecture Boosts AI implementation
Operating systems	Open- and closed-source operating systems	Open-source software operating systems and service-based offerings could be a key to faster adoption	Faster adoption Software standardization Service-based offerings New revenue streams
Software Upgrades	Add-on features and security upgrades via OTA updates	Deploy new features and capabilities through OTA updates	Constant user experience improvement New revenue streams
Apps	Enable on-demand add-on features such as productivity tools, games, lifestyle, etc.	Similar add-on functions and on-demand features.	Consumer centricity Infotainment
Security	Built-in security systems, add-on security through antivirus software	Need for development of built-in security systems and provision for add-on security functions.	Cybersecurity and theft protection New revenue streams
Hands-free operation	Through advanced digital voice assistance	Hands-free operation can be taken to the next level using AR/VR tools.	Immersive user experience
Unlock	Through fingerprint scanners and facial recognition scanners	Fingerprint unlock, facial recognition technology, and other biometrics can be adopted for car unlock.	Ease of access Innovation Improved consumer experience
Customization	Option to choose between different RAM and storage options	Can offer similar features to customers to choose between various processor, ram, etc. based on functionality	Customization Modularity
Connectivity	Bluetooth, 5G, NFC, Wi-Fi, hotspot, etc.	Wireless transmission of actuation signals within the car via Bluetooth, Wifi, and 5G, etc. could reduce the complexity of the wiring harness.	Empowered edge In-vehicle data networks Connected cars
Camera	Built-in cameras for photography and video conferencing	Can adopt external camera for scenic photography	Photography User experience
Productivity	Several productivity apps and tool that help you	A future car may help you plan your day, work through the journey or may even displace your laptop while boarded.	Productivity Lifestyle
Entertainment	Games, videos, social media, etc. provide user entertainment	Incorporating similar features into a car will take infotainment features to the next level	Consumer experience Infotainment
Wireless charging	Capability to charge wireless	Wireless charging infrastructure for EVs	Ease of use

The above exercise reveals a host of innovative and engaging ways in which we can elevate the features of software-defined vehicles and make them a bigger part of our daily lives. As is the case with smart phones, software becomes the key differentiator and provides a competitive advantage that drives the automate ecosystem. Centralized software architecture, service-based software offerings, and co-developments will help the industry scale up and drive transformation to a software-defined dream car.

However, most OEMs are only at the beginning of their software transformation, with a small cohort of  “frontrunners” establishing a strong early lead. To catch up and harness the full potential of software transformation, OEMs need to:

• Build a software-focused vision and strategy
• Leverage software tool chains and agile methodology to foster greater collaboration across organizational units
• Forge long-term, strategic partnerships with software and technology service providers on key software frontiers.

To learn more about Capgemini’s approach to and experiences in helping OEMs build a software-defined dream car, please reference our CRI report Next Destination Software or, in India, contact: Roshan Batheri, Siddhardha Reddy, or Vaibhav More.

Key Contact:

Roshan Batheri
Sr. Director Automotive India Industry Platform at Capgemini
Keynote Speaker | Digital & Cloud Platforms | Innovation