The complete guide to software-defined vehicles: transforming automotive with Siemens software 

The transformation from traditional vehicles to software-defined vehicles (SDVs) is an ongoing and unstoppable trend that will drive the development of the automotive industry over the next 5-10 years. Siemens is at the forefront of this shift, offering solutions that empower manufacturers to design, test, validate and commission SDVs more efficiently. This guide covers the essentials of SDVs, core enabling technologies, and how Siemens software uniquely supports automotive companies in leading the next generation of mobility.

I. What is a software-defined vehicle? 

Overview of software-defined vehicles 

Software-defined vehicles (SDVs) represent a paradigm shift in automotive design, where the primary value is driven by software rather than hardware. In traditional vehicles, most functions—such as acceleration, braking, or climate control—are managed by hardware components. However, SDVs use software to operate and enhance these functions, allowing vehicles to be flexible, customizable, and upgradeable. This transformation aligns with a broader trend across various industries to prioritize digital capabilities and connectivity. 

Definition and basic concept of SDVs 

SDVs are vehicles whose operations, features, and functions are primarily controlled and modified via software rather than hardware. This distinction is essential for understanding how SDVs can adapt over time to evolving customer expectations and technological advancements. Unlike conventional cars that remain static after production, SDVs can receive software updates and improvements throughout their lifecycle, offering enhanced functionality and safety, allowing you to reap the benefits of new business models with revenue derived from potentially paid upgrades and subscriptions during the life of the product. 

With SDVs, manufacturers can add new features remotely or adjust vehicle settings based on consumer feedback or performance indicators coming from vehicles in the field. This shift requires a scalable, connected, cybersecure vehicle architecture, known as an SDV development framework, a hallmark of Siemens’ automotive solutions. 

Importance in the modern automotive industry 

Modern consumers expect their vehicles to offer the same level of connectivity, adaptability, and seamless experience as their smartphones or computers. SDVs enable carmakers to meet these expectations by introducing a model that supports continuous updates, customization options, and data-driven insights. 

For manufacturers, SDVs create opportunities to extend customer engagement beyond the initial sale. Through over-the-air updates, carmakers can keep vehicles current, offer new features, and improve security. This capability not only enhances customer satisfaction but also enables brands to stand out in a competitive market, driving loyalty and long-term value. 

A brief comparison with traditional vehicle architecture 

Here is an explanation of the differences between traditional and SDV architecture.  

1. Centralized vs. distributed computing 

Traditional: Relies on a distributed network of electronic control units (ECUs). Each ECU is responsible for a specific function (e.g., engine control, brakes, windows). This leads to a complex web of connections and limited communication between systems.  

SDV: Moves towards centralized computing with fewer, more powerful domain controllers or a central vehicle computer. This consolidates processing power, allowing for more complex software functions and easier integration of new features. Modern SDV implementations often utilize zonal architectures as an intermediate step, dividing the vehicle into physical zones (front, rear, left, right) with dedicated zone controllers. These zone controllers manage multiple functions within their physical areas and connect to a central compute platform, creating a hierarchical architecture that combines the benefits of distributed and centralized approaches. This zonal approach reduces wiring complexity (up to 25% reduction in wire length), lowers manufacturing costs, improves serviceability, and enhances power distribution while enabling efficient sensor fusion and data processing within each zone before sending relevant information to the central computer. 

2. Hardware-defined vs. software-defined functionality 

Traditional: Functionality is largely fixed by the hardware. Adding new features often requires physical modifications or adding new ECUs. 

SDV: Functionality is primarily defined by software. This allows updates, upgrades, and new features to be added over-the-air (OTA), similar to a smartphone.  

3. Static vs. dynamic architecture 

Traditional: The architecture is relatively static, with limited flexibility for updates or modifications after production. 

SDV: The architecture is dynamic and designed for continuous evolution. Software updates can optimize performance, add features, and even change vehicle behavior over time.  

4. Limited vs. extensive connectivity 

Traditional: Limited connectivity, primarily for diagnostics or basic telematics. 

SDV: Extensive connectivity, enabling vehicle-to-everything (V2X) communication, cloud integration, and real-time data exchange with the surrounding environment.  

5. Simple vs. complex software 

Traditional: Relatively simple software primarily focused on controlling individual hardware components. 

SDV: Complex software systems manage a wide range of functions, from infotainment and driver assistance to autonomous driving capabilities.  

Why software-defined vehicles are the future of automotive 

SDVs are shaping the future of automotive because they align with emerging trends in technology and consumer preferences. SDVs’ reliance on software-driven features enables them to support connected services, autonomous driving capabilities, and AI-driven personalization. The benefits for consumers include more efficient driving, a customizable in-car experience, and access to continuous updates that ensure the vehicle’s performance improves over time. 

The economic impact of SDVs is substantial. Analysts predict that SDVs will open new revenue streams for automotive companies, including feature updates and subscription services for enhanced functionality and performance, in-vehicle marketplaces, and personalized digital services. The potential for SDVs to generate ongoing revenue for manufacturers makes them a lucrative long-term investment. 

II. Core technologies powering SDVs 

1. Vehicle software architecture 

A robust software architecture is fundamental for any SDV. Siemens’ software suite supports the development of SDV architectures by providing tools for designing, simulating, and verifying electronic systems. It enables manufacturers to create flexible, modular designs that accommodate continuous updates and feature expansions, making it ideal for the dynamic needs of SDVs. 

In traditional automotive design, different components operate independently, often resulting in complex and costly manufacturing processes. However, SDVs use centralized computing, allowing systems to work harmoniously under a unified architecture. This design streamlines production, reduces hardware costs, and enables a seamless flow of data across the vehicle’s systems. 

2. Over-the-air updates 

Over-the-air (OTA) updates are one of the standout features of SDVs, allowing for remote updates and enhancements. OTA functionality enables automakers to deploy new features, improve performance, and fix issues without requiring the vehicle to be brought into a service center. This approach benefits consumers by keeping their vehicles current and secure while offering manufacturers a cost-effective means to manage updates. 

Siemens offers a comprehensive integrated SDV framework that allows you to virtually design, engineer, test and validate every aspect of the SDV system in the context of a full vehicle, ensuring that software improvements can be implemented seamlessly. The framework prioritizes security and minimizes disruption, allowing manufacturers to maintain a high level of service quality and responsiveness. 

3. Automotive cybersecurity 

As vehicles become increasingly connected, cybersecurity is essential to protect consumer data and vehicle systems. SDVs face unique security challenges, as their reliance on connectivity exposes them to cyber threats. Siemens addresses these risks through its cybersecurity solutions, which embed security measures at every stage of development. 

Siemens’ approach to cybersecurity in SDVs includes secure software development practices, regular vulnerability assessments, and the use of encryption protocols to safeguard data and systems. This holistic security model ensures that SDVs remain resilient against evolving cyber threats. 

4. High-performance processors and advanced computing hardware 

SDVs require powerful computing capabilities to handle the complex algorithms and real-time processing demands of ADAS and autonomous driving capabilities. Siemens’ solutions leverage high-performance processors and advanced computing hardware, such as powerful GPUs and specialized AI chips, to seamlessly integrate complex sensor data, advanced decision-making, and real-time response capabilities. 

These high-performance computing platforms provide the necessary processing power and energy efficiency to support the demanding computational requirements of SDVs, ensuring smooth and reliable operation in a wide range of driving scenarios. 

5. Centralized computing architecture 

The centralized computing architecture of SDVs is a key enabler for their advanced capabilities. By consolidating multiple electronic control units into a single, powerful central computing platform, Siemens’ solutions streamline the vehicle’s electronic systems and facilitate the efficient management of data flow and decision-making processes. 

This centralized approach reduces hardware complexity, improves system integration, and enables the seamless coordination of various vehicle subsystems, such as perception, planning, and control. It also simplifies software development and updates, as changes can be implemented across the entire vehicle through the central computing unit. 

6. In-vehicle networking 

Robust in-vehicle networking is essential for the seamless integration and communication of various sensors, actuators, and computing modules in SDVs. Siemens’ solutions leverage advanced in-vehicle networking technologies, such as high-speed Ethernet, to enable the rapid and reliable exchange of data between the vehicle’s systems. 

This high-performance, low-latency networking infrastructure supports the real-time requirements of autonomous driving functions, ensuring that sensor data, control commands, and safety-critical information can be transmitted and processed with minimal delays. The in-vehicle networking solutions also provide the necessary bandwidth and scalability to accommodate the growing complexity of SDV systems. 

7. Digital twin technology 

Digital twin technology represents a fundamental advancement in Siemens’ approach to SDV development. This sophisticated technology enables manufacturers to create comprehensive virtual models of vehicles and systems, facilitating early detection of potential issues before they manifest in physical prototypes. Through digital twin capabilities, manufacturers can use simulation to virtually design, test, and validate systems much earlier in the design process, significantly reducing the risk of costly modifications later. The technology particularly shines in its ability to support continuous software development, allowing developers to refine and enhance software systems independently of hardware changes 

III. Key components and features of SDVs 

1. Connected vehicles and data-driven insights 

One of the defining features of SDVs is their ability to connect to external systems and gather real-time data. This connectivity enables automakers to offer tailored services, enhance safety, and optimize vehicle performance. Siemens’ software solutions enable you to design, test and validate the infrastructure for real-time data processing and analytics, enabling manufacturers to implement predictive maintenance, in-car personalization, and adaptive systems. 

At the heart of modern SDV development lies Siemens’ comprehensive cloud-based framework, powered by sophisticated digital twin technology. This innovative approach has revolutionized the development process by enabling significantly faster software development and feature implementation. The framework not only streamlines the integration and validation processes but also helps to identify issues much earlier by shifting left. The seamless integration capabilities ensure that all components work harmoniously within the vehicle ecosystem. 

2. Advanced driver assistance systems (ADAS) and autonomy 

ADAS features are critical for advancing vehicle safety and supporting future autonomous driving capabilities. Siemens’ technology supports ADAS integration within SDVs, allowing manufacturers to introduce and improve the quality of features like lane-keeping assistance, collision warnings, and adaptive cruise control. As automakers progress toward full autonomy, Siemens’ tools facilitate the development of complex ADAS. 

3. Artificial intelligence (AI) for enhanced personalization 

AI capabilities in SDVs allow vehicles to adapt to individual driver preferences, providing a tailored experience. Siemens’ AI-driven software solutions help manufacturers develop intelligent systems that adjust settings, recommend optimal routes, and analyze driving habits to improve efficiency and comfort. 

IV. Benefits of SDVs for consumers and manufacturers 

1. Increased vehicle performance over time 

With the ability to receive continuous improvements via OTA updates, SDVs retain and even increase their value over time. Siemens’ software tools enable automakers to enhance vehicle performance, add features, and address security vulnerabilities, ensuring that the vehicle’s value and functionality evolve with time. 

2. Cost efficiency for manufacturers 

SDVs streamline production, allowing manufacturers to produce vehicles more cost-effectively. Siemens’ software lifecycle management tools support agile development, enabling automotive teams to respond quickly to changes and roll out updates seamlessly. Additionally, the reduced number of ECUs and parts in SDVs helps lower manufacturing costs. Furthermore, the ability to directly send fixes to the vehicle instead of requiring the customer to visit a dealership reduces the cost of warranty claims. 

3. Sustainable automotive practices 

Siemens’ focus on sustainability in SDV production contributes to eco-friendly practices, such as reduced emissions, lower resource consumption, and the use of recycled and recyclable materials. The modular design of SDVs and Siemens’ commitment to sustainable development support a greener automotive future. Additionally, the energy-efficient operation of SDVs, enabled by Siemens’ software solutions, further enhances the environmental benefits of these vehicles. 

V. Siemens’ SDV development framework  

Siemens’ integrated SDV framework implements a sophisticated, multi-phase development approach that ensures comprehensive coverage of all aspects of vehicle development. The process begins with vehicle product definition and requirements, where Siemens combines product lifecycle management (PLM), application lifecycle management (ALM), and model-based systems engineering (MBSE) to create a complete system-level view with full traceability. This integration enables precise definition of critical systems, from adaptive cruise control to battery configurations, ensuring all components align perfectly from the project’s onset. 

In the architecture and design phase, Siemens’ approach revolutionizes traditional development by decoupling hardware and software development, enabling parallel processing that significantly reduces development time. The implementation of digital twins allows for early simulation and validation, while continuous virtual verification and validation through various testing models ensures robust system integrity. 

The framework then progresses to real-world verification, where mixed fidelity models are employed to test software features against physical systems. This crucial step ensures proper interaction between software and hardware components in real vehicles, validating the theoretical models against practical applications. 

The final commissioning phase demonstrates the framework’s sophistication through the seamless integration of PLM and ALM systems. This integration enables remote software commissioning, ensuring that each ECU across the vehicle receives the correct code and version, maintaining system integrity throughout the vehicle. 

Siemens partners with leading automotive brands, helping them implement SDV technology for real-world benefits. Companies using Siemens software have reported significant improvements in production efficiency, faster time-to-market, and enhanced customer satisfaction rates. Read case studies and examples. 

VI. Future trends and challenges in SDVs 

1. The future of autonomous driving 

As manufacturers explore Levels 4 and 5 of autonomy, Siemens supports development with tools for robust ADAS and AI-driven systems. Siemens’ simulation and testing platforms enable automakers to validate the safety and reliability of their autonomous driving algorithms. Additionally, Siemens’ sensor fusion and data integration capabilities help SDVs perceive their surroundings with more accuracy and make informed decisions. As the industry moves towards fully autonomous vehicles, Siemens’ expertise in areas like machine learning, sensor networks, and real-time data processing will be crucial in overcoming technical challenges. 

2. Overcoming cybersecurity challenges 

Siemens provides comprehensive cybersecurity solutions designed to protect SDVs against evolving threats, safeguarding both data and functionality. Siemens’ end-to-end security approach includes secure-by-design hardware, robust software frameworks, and advanced threat detection and response capabilities. By integrating security measures throughout the vehicle’s lifecycle, from design to deployment, Siemens helps manufacturers mitigate the risk of cyber-attacks that could compromise the safety and integrity of SDVs. Siemens also collaborates with industry partners and policymakers to develop standardized cybersecurity protocols and best practices, ensuring a coordinated response to emerging threats. 

3. Regulatory standards and compliance 

Siemens helps manufacturers navigate the complex compliance landscape, ensuring that SDVs meet international safety and security standards. Siemens’ expertise in areas like functional safety, homologation, and regulatory compliance enables automakers to streamline the certification process of autonomous functions and bring their vehicles to market with confidence. Siemens also actively participates in industry consortia and standards development organizations, shaping the regulatory frameworks that will govern the deployment of SDVs. By staying at the forefront of evolving regulations, Siemens helps its customers adapt their products and processes to meet the latest requirements, ensuring the safe and responsible introduction of autonomous driving technologies. 

VII. What are the differentiating benefits of working with Siemens in the development of SDVs? 

With an integrated software-defined vehicle framework, OEMs can eliminate barriers and manage the entire lifecycle, connecting suppliers and partners for seamless collaboration at every stage. By combining technologies like PLM for data management, ALM for software, and MBSE, the framework offers a complete systems view with full traceability. It decouples hardware and software, allowing development to occur in parallel, which accelerates the process and facilitates the development of software, electrical/electronic and mechanical systems in the context of the entire vehicle. With virtual models of vehicles and systems, you can shift left, identify issues early, and optimize designs before physical prototypes. 

Siemens’ integrated framework stands out in the automotive industry through its comprehensive approach to SDV development. The framework effectively eliminates traditional development barriers through its sophisticated digital twin technology, enabling seamless lifecycle management from concept to production. It creates an environment that facilitates smooth collaboration between suppliers and partners, while the virtual modeling capabilities allow for early issue identification and resolution. This comprehensive approach positions manufacturers to efficiently manage the complex challenges of SDV development in today’s rapidly evolving technological landscape. The framework’s ability to adapt and scale makes it an ideal solution for automotive manufacturers looking to lead in the SDV space. 

This unique and comprehensive approach reduces complexity and enables continuous updates and upgrades, hallmarks of software-defined vehicles. 

VIII. Frequently asked questions (FAQs) 

Q: What is a software-defined vehicle?

A: A software-defined vehicle is a vehicle where the majority of its functionality is controlled by software rather than traditional hardware-based systems. In a software-defined vehicle, the vehicle’s core systems (e.g., powertrain, chassis, body) are controlled by software running on powerful onboard computers. New features and capabilities can be added or updated remotely via over-the-air software updates. The vehicle’s behavior and performance can be dynamically adjusted and personalized through software. Data collected from the vehicle’s sensors can be leveraged by software to enable advanced driver assistance, autonomous driving, and other intelligent features. The shift towards software-defined vehicles allows for greater flexibility, faster innovation, and more personalized experiences than traditional hardware-centric vehicle architectures. 

Q: What is the difference between traditional and software-defined vehicles?

A: The key difference between a software-defined vehicle and a traditional vehicle is that functionality is primarily controlled by dedicated hardware components (e.g., electronic control units, mechanical systems) in a traditional vehicle. Updates and new features typically require physical hardware changes or replacements. Customization and personalization options are more limited, and data collection and analysis capabilities are more constrained. In a software-defined vehicle, the majority of functionality is controlled by software running on powerful onboard computers. New features and updates can be added remotely via over-the-air software updates. Personalization and dynamic adjustment of vehicle behavior are enabled through software. Advanced data collection and analytics can allow intelligent features like autonomous driving capabilities. The software-defined approach provides greater flexibility, faster innovation, and more personalized experiences compared to traditional hardware-centric vehicle architectures. 

Q: What are the benefits of a software-defined vehicle?

A: The key benefits of a software-defined vehicle are: 

• Increased flexibility and adaptability: The vehicle’s functionality can be easily updated and expanded through software changes rather than physical hardware modifications. 
• Faster innovation: New features and capabilities can be deployed rapidly via over-the-air software updates without waiting for the release of the next model. 
• Enhanced personalization: Drivers can customize and personalize the vehicle’s behavior and performance through software settings and profiles. 
• Improved data utilization: Advanced data collection and analytics from the vehicle’s sensors can feed the development and improve the quality of advanced features like ADAS or autonomous driving.
• Reduced development and manufacturing costs: With a reduced number of ECUs and parts, the software-centric approach can lower the costs of vehicle development, production, and maintenance compared to traditional hardware-focused designs. 
• Increased revenue opportunities: Automakers can generate new revenue streams by offering software-based features, subscriptions, and over-the-air updates. 

Overall, the software-defined vehicle architecture provides greater flexibility, faster innovation, and more personalized experiences for drivers while also offering benefits for automakers in terms of cost, development, and new revenue streams. 

Q: What are the key technologies enabling software-defined vehicles? 

A: The key technologies enabling software-defined vehicles include advanced electronic architectures, high-performance computing platforms, over-the-air update capabilities, and software-defined systems for functions like like battery energy management, ADAS and autonomous driving and infotainment.

Q: How do software-defined vehicles impact the automotive industry? 

A: Automotive manufacturers traditionally follow a serial process of developing hardware and then software, often in disconnected departments, teams, or suppliers. As the industry transforms into software-defined vehicles, this tight coupling between hardware and software development proves critically inefficient. 

The lack of collaboration leads to integration difficulties and delays when attempting to combine the two components. This results in lengthy development cycles, warranty issues, and recalls when problems remain undetected until cars are on the market. Furthermore, this traditional approach limits innovation by hindering the introduction of new features or updates and the benefits of new business models.