{"id":58505,"date":"2023-04-21T15:24:16","date_gmt":"2023-04-21T15:24:16","guid":{"rendered":"https:\/\/expleo.com\/global\/en\/?post_type=insights&p=58505"},"modified":"2026-01-20T10:19:04","modified_gmt":"2026-01-20T10:19:04","slug":"software-defined-vehicles-success","status":"publish","type":"insights","link":"https:\/\/expleo.com\/global\/en\/insights\/blog\/software-defined-vehicles-success\/","title":{"rendered":"Four success factors for software-defined vehicle initiatives"},"content":{"rendered":"\t\t
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Boston Consulting Group<\/a> forecasts that OEM revenues from automotive software and electronics will grow nearly three-fold between 2023 and 2030, from $87 billion to $248 billion. This rapid growth reflects both the strategic importance OEMs are placing on th<\/span>ese<\/span>\u00a0innovation<\/span>s<\/span>\u00a0and the relative immaturity of the space today.<\/span>\u00a0<\/span><\/p>

This immaturity is due to the difficulty of transitioning from hardware- to software-defined product lines. Doing so requires automotive companies to transform long-established and entrenched operating models in four ways.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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For more than a hundred years, the hardware used to build a vehicle was the primary factor that defined its performance and the driving experience it offered. This is no longer the case. Engines, brakes, <\/span>suspension<\/span> and the like will always be central to what a vehicle can do, but software-defined vehicles augment this with digital systems to fundamentally reimagine driver experiences and provide new functionality to customers.<\/span>\u00a0<\/span><\/p>

This shift is enabling automotive companies to reimagine their product lines and create vehicles with new capabilities, such as smart assistants, predictive maintenance functionality, and autonomous driving systems. It\u2019s also empowering them to move towards operating models that provide vehicle owners with software upgrades on an ongoing basis, creating new revenue streams and enhancing driver experiences.<\/span>\u00a0<\/span><\/p>

As a leading engineering and technology company and business transformation consultancy, Expleo is helping many of the world\u2019s top <\/span>vehicle <\/span>companies accelerate their software-defined vehicle initiatives. For most, however, there\u2019s still a way to go. Through our research and client work, we\u2019ve identified <\/span>several <\/span>key hurdles <\/span>these <\/span>companies must overcome to turn their visions for software-defined vehicles into a reality.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The road to software-defined vehicle maturity<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Software-defined vehicles are redefining the future of mobility.\u00a0But automotive companies must overcome 4 key challenges to unlock their promise.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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1. Accommodating greater operational complexity <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Incorporating more \u2013 and more complex \u2013 software into vehicle design and manufacturing processes adds a new layer of operational complexity to automotive value chains. This is true from R&D to testing, to supply chain management, to quality assurance and beyond.<\/span><\/p>

Dealing with this complexity means creating new processes or workflows and recruiting the right talent to build mature software development functions. This transformation may include ensuring the IT applications or platforms deployed within a vehicle are all interoperable and remotely updatable.<\/span>\u00a0<\/span>It also means partnering with forward-thinking industry leaders to accelerate innovation, define consistent software development standards, and help ensure interoperability between key systems and devices.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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2. Enabling cross-functional collaboration <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The functionalities available in software-defined vehicles will be delivered primarily via applications run on dedicated microprocessors. Technology embedded into these vehicles will be connected to offboard IT platforms that support access to third-party services to enhance driving experiences.\u00a0<\/span>Close collaboration between software and mechanical<\/span>\u00a0engineering teams is needed to make the required changes in automotive engineering to support this. But historically, these teams have been siloed.\u00a0<\/span>To address this challenge, automotive leaders must shift from a function-focused mindset to a product-focused one. <\/span><\/p>

The operating model of the future is one that empowers stakeholders from across business functions to collaborate seamlessly on software-defined vehicle projects.\u00a0<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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3. Mitigating new cybersecurity risks <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Adding more software, internet-connected devices and intelligent systems into a vehicle creates new cybersecurity challenges for automotive companies.\u00a0<\/span>For example, \u201cover the air\u201d updates for in-car systems may empower <\/span>carmakers <\/span>to update <\/span>vehicles<\/span> remotely, providing new <\/span>value to their owners on an ongoing basis<\/span>. <\/span>But they also represent a new attack vector for hackers looking to break into vehicles or tamper with software-driven vehicle features.<\/span>\u00a0<\/span>Research firm <\/span>Global Market Insights<\/span><\/i> fore<\/span>c<\/span>asts that<\/span><\/a> the automotive cybersecurity market<\/a> will grow to \u20ac1.9 billion by 2030. This reflects automotive sector leaders\u2019 understanding of the urgent need for cybersecurity investment to mitigate this risk. <\/span><\/p>

Adoption of \u201csecurity by design\u201d practices will prove essential for securing new products and systems against external threats.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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4. Embracing Agile development cycles <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Consumer-centricity is a key driver behind the push for software-defined vehicles. The ability to provide regular and ongoing system<\/span> updates to enhance driver experiences will become a key differentiator for market leaders. <\/span><\/p>

Enabling these regular software updates will require a shift away from the static, model-year upgrades of the past. Automotive companies must instead embrace Agile software development practices to innovate continuously and deliver new updates and functionality for customers on a quarterly or monthly basis.<\/span>\u00a0<\/span>Success here will depend on training staff in Agile ways of working. But this training should be provided by practitioners with deep sector expertise<\/span>,<\/span> who understand how to tailor these methodologies for maximum success.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Accelerating your software-defined vehicle journey<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Developing market-leading software-defined vehicles will help your business secure its share of the $650 billion value the Boston Consulting Groups<\/a> says<\/span>\u00a0will go to the automotive companies that win the digital transformation race. But to do this, you must replace the legacy processes that are slowing your enterprise down in the four areas we\u2019ve outlined above.<\/span>\u00a0<\/span><\/p>

With more than 19,000 experts delivering value in 30 countries<\/a>, Expleo has the right combination of end-to-end expertise and industry experience to integrate all these elements and accelerate your journey to software-defined vehicle maturity. <\/span>We\u2019re already accelerating software-defined vehicle initiatives for OEMs across Europe \u2013 from helping them master Agile working practices to providing end-to-end cybersecurity services, overseeing quality assurance processes, and implementing modern software architectures.<\/span>\u00a0<\/span>With Expleo, you\u2019ll have the outside perspective and technical know-how you need to identify and eliminate the roadblocks ahead of you on the road to software-defined vehicle success.<\/span>\u00a0<\/span><\/p>

\u202f<\/span><\/span>Find out how Expleo<\/strong> can overcome your challenges<\/strong> for software-defined vehicles<\/strong><\/span><\/span>.<\/span><\/span><\/strong><\/span><\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Yusuf Erdogan, Global Domain Expert Digital at Expleo<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tcontact us<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Boston Consulting Group forecasts that OEM revenues from automotive software and electronics will grow nearly three-fold between 2023 and 2030, from $87 billion to $248 billion. This rapid growth reflects both the strategic importance OEMs are placing on these\u00a0innovations\u00a0and the relative immaturity of the space today.\u00a0 This immaturity is due to the difficulty of transitioning […]<\/p>\n","protected":false},"author":101,"featured_media":59355,"parent":0,"template":"","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_angie_page":false,"footnotes":""},"topic":[212,145,147,150],"insights-single-templates":[],"industry-taxonomy":[33],"content-type":[23],"country":[141],"service":[216,52,211],"class_list":["post-58505","insights","type-insights","status-publish","has-post-thumbnail","hentry","topic-data-science-and-cybersecurity","topic-digital-transformation","topic-innovation-and-r-and-d","topic-mobility","industry-taxonomy-automotive","content-type-blog","country-global","service-digital-transformation","service-business-analysis-transformation","service-innovation-management-solutions"],"yoast_head":"\n4 success factors for software-defined vehicle initiatives<\/title>\n<meta name=\"description\" content=\"Software-defined vehicles are redefining the future of mobility. 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