Automation and a software-first approach to vehicles have become hot topics among OEMs and Tier 1&2 companies in the automotive industry. And while the specifics and potential implications of this approach are up for the debate, today we would like to initiate a first round of discussions about the concept of software defined vehicle and how it may change the automotive world as we know it.
For this, we invited Dmytro Humennyi, a Ph.D. in robotics and automatic control systems and an automotive consultant at N-iX, for an interview.
What is a software defined vehicle, and why is this concept important?
Software defined vehicle or SDV is essentially a new approach to vehicle systems.
In the traditional approach, the vehicle's functions depend on specific physical components. For example, if you need to upgrade an infotainment system of a traditional vehicle, you'd need to replace specific hardware components, such as the head unit or display screen.
In contrast, software defined approach to vehicle manufacturing suggests that you can manage these functions with the software. Instead of changing the hardware, you'll need to change and deploy the code. New features like improved navigation, voice control, or streaming apps can be added without changing any physical components, making the upgrade process more efficient and cost-effective-that's assuming the hardware allows it.
In other words, more and more vehicle functions are defined by what's "built-in" through software rather than hardware.
How does this concept work in practice?
In a traditional vehicle, if you want to fix a component, update it, or add new functionality, you must do it separately from other systems.
Meanwhile, SDV offers a unified central computing block that controls most functions, such as navigation, driver assistance systems, and multimedia. By updating the central software, each function gets fixed and receives updates and new features. This is the same approach we see in smartphone updates.
For example, Tesla has been doing this for quite some time in the automotive world. It offers over-the-air (OTA) updates to enhance features like Autopilot, battery management, and navigation systems.
What are the benefits of a software defined vehicle from this perspective?
The concept of a software defined vehicle benefits both drivers and manufacturers. Here are a few examples.
First, it gives you more flexibility. You don't need to change the hardware each time. You simply update the software and install the new features.
This brings us to the second advantage-cost and time efficiency. The manufacturers don't have to redesign the hardware parts to offer new features, and the drivers don't have to wait weeks at the service shops to implement them. It saves maintenance costs for both parties.
Finally, fewer physical components mean fewer problems with weight, efficiency, and reliability.
So, is this about a different architectural design?
Yes, it is. Software defined vehicle architecture is based on the principle that most vehicle functions are controlled by software. Everything operates through a central computing unit, from sensor data processing to multimedia systems, instead of distributing tasks among many ECUs.
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What are the component requirements for SDV?
A software defined vehicle features a few essential components: powerful processors, sensors for accurate data collection, modular software, and robust cybersecurity systems. It is essential for SDV that all these components work together in a unified system.
How is the architecture of a software defined vehicle beneficial for manufacturers and drivers?
SDV architecture allows vehicles to adapt quickly to new needs without changes in the physical components. Your hardware remains the same, but its software provides more capabilities in terms of new features. Again, Tesla's updates are a great example of such flexibility. In addition to software updates, you can add entirely new capabilities, such as self-driving and entertainment options, without physically changing the vehicle.
The specifics of SDV architecture also help manufacturers save costs, optimize resources, and adopt a more sustainable approach to car production.
If we go back to the roots of SDV, what factors contributed to its origin?
The concept of software defined vehicle results from technological advancements, especially in microelectronics, sensors, and data processing domains. What has become possible for smartphones and laptops has migrated to and been applied in the automotive industry.
Another critical factor that played a role was the availability of cheaper and more precise sensors, like cameras and radars. Let's not forget that OEMs are businesses, and as a business, you should think of a more cost-efficient approach to manufacturing. So, when sensors have become common, and their cost has decreased compared to the last decade, you now have more reasons to adopt the technologies that depend on them (IoT, computer vision, etc.).
Will any old approaches lose relevance with the rise of software defined vehicles?
Since most functions in this type of vehicle are centralized, I think we will see a decrease in multiple ECUs within one vehicle. We will also see the transformation of service centers as the updates will take place over the air. It's also possible that car dealerships will change their approach to car selling, where it won't be more about the look but the vehicle's capabilities.
Are there new technologies that will gain popularity thanks to SDV?
Yes, there are a few. It's a safe bet to say that everything related to near real-time data processing and data transmission will become very popular in the industry.
I'd like to highlight Artificial Intelligence and Machine Learning as the key components. For example, in autonomous driving, these technologies allow vehicles to adapt to road conditions in real-time. However, for that, they will need a set of reliable sensors powered with computer vision and on-device AI to process data in near real-time without relying on the cloud. IoT, in this case, will play an important role as well. Additionally, integrating vehicles with infrastructure through V2X (Vehicle-to-Everything) is essential.
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How will the software defined vehicle features and new vehicle architecture impact service provision, business models, and the economy of the automotive sector?
Reducing the number of physical components will lower production and maintenance costs, which will, in turn, increase the demand for more affordable options.
Moreover, automotive will adopt subscription models for additional features or services, as we have now for many software products in business. So, it will be tiered services and plans. It will change the automotive business model.
I'd also expect higher demand for semiconductors. I think these manufacturers and enablers will have a lot of work to do in the future.
So, we've discussed the new business models. What about the novelties on the tech side? What new technologies and solutions can SDV bring?
The wider adoption of software defined vehicles will pave the way for the development and improvement of many solutions and technologies. SDV needs robust processors for data processing, AI algorithms for decision-making, modular software architectures, and cybersecurity systems.
For example, the SDVs must have adaptive algorithms for data processing, especially in the context of autonomous driving.
We will also see more advancements in creating better sensor systems. The industry will also lean more toward modular software architectures. Cybersecurity technologies will become even more important since integrating different systems increases the risk of attacks.
However, that's not all. With the broader adoption of SDV, we will have new safety standards that will impact integration with existing systems and production.
Speaking of standards, what will the future of AUTOSAR and ISO 26262 be?
These standards are tailored to the hardware-first approach of car manufacturing. They will be adapted to new requirements or supplemented to support new functions. AUTOSAR, for example, will continue to play an important role in standardizing the modular architectures that SDV needs.
More on topic: Will RISC-V adoption in automotive challenge traditional paradigms?
Will classic approaches become obsolete?
Some might. Traditional approaches may remain relevant in certain market segments. For example, not every driver can afford Tesla, and to make it affordable, its price should be two or three times lower. At this time, it can't be achieved because the production costs of this car are still high.
However, a software-first concept offers new opportunities that will be actively implemented in the premium segment. And with time, it will gradually spread to other market segments just like it was with cars and computers.
What should we expect after the full switch to SDV?
On the global scale, the broader adoption of software defined vehicle will lead to new business models and significant resource redistribution in the market. We will see new services, including subscription-based updates or on-demand services such as enhanced driver-assistance capabilities or entertainment packages. Moreover, this will take personalization to the next level.
At the same time, it will increase the demand for cybersecurity. Since a software defined vehicle has plenty of interconnected programs and data, it should have a robust cybersecurity system to protect it against potential hacking and data breaches. This will push this domain to come up with reliable solutions that can be standardized.
What are the main challenges of SDV implementation for the automotive market?
I suppose there will be two major software defined vehicle challenges: adapting the existing systems to new standards and integrating SDV with existing infrastructure. This will require significant investments and modernization on various levels, including government, OEMs, software suppliers, and other stakeholders.
What services can N-iX offer in the SDV domain?
N-iX can boast a lot of services that are necessary for the production of this type of vehicle. From software development for autonomous control systems to cybersecurity solutions, predictive maintenance, and the integration of new components and full-cycle automotive testing-anything related to the software side of the car. We have an excellent team of experts in robotics, IoT and embedded, computer vision, data analytics, AI, and ML, making us a reliable software partner for Tier 1 and Tier 2 automotive companies and OEMs.
What sets us apart from the competition is that we already have experience developing software solutions for different automotive industry segments.
For example, we have developed solutions for the UK's leading car dealership to improve its inventory, business, and warranty management. We have also modernized legacy systems and developed a fleet management system to help our client provide EV-charging services to expand its market share.
Moreover, we have hands-on experience developing mobile apps to streamline the operation of clients' Bluetooth headsets for motorcycle helmets and improve communication between multiple riders over long distances. Just last month I presented our newest development-an energy management solution, AMPERE, for predicting and optimizing energy consumption.
Besides software development, we also provide consulting services for companies looking to implement SDV and needing tech advice on where to start. N-iX has plenty of service and solution options for any automotive company to start a smooth transition to a new era of software defined vehicle.
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