Chapter 7 - How Are Software-Defined Vehicles (SDVs) Affecting Developers?

Vehicles Are Becoming More Software-Defined

The automotive industry has been expanding and evolving to include electric, semi-autonomous, fully autonomous, and connected vehicles, which all rely on software. Many vehicles nowadays are software-defined vehicles (SDVs), meaning that their core features and functionalities are primarily driven by software, rather than the mechanical and hardware components, to operate. With changes in electric and autonomous vehicle adoption, market volatility, new legislation, and AI being introduced to the design and development process, development teams will face unfamiliar challenges and opportunities for innovation in 2026 and beyond.

Most survey respondents are currently working on SDV architectures (57%), while as many as 81% consider electric vehicle architecture as part of the organization’s broader SDV strategy. More respondents from North America are currently developing SDV architectures — but we could see regional shifts in the near future.

For example, as more regions move into the automotive space, countries that are working on EVs from the start have the advantage of not dealing with older systems or legacy software. Companies that start with more modern systems from the beginning will be able to move much faster into developing SDVs.