Software defined vehicles are the future of the automotive industry

The progression towards more electrification and software in the automotive market is nothing new. OEMs, suppliers, and the wider value chain have been grappling with the shift away from mostly mechanical products for decades at this point. But the extent of this transition has been underlined by how many of these automotive companies showcased their ideas and products at the Consumer Electronics Show (CES) in Las Vegas this year. Vehicles really are becoming consumer electronics, with their reliance on software and electronics to deliver what a modern customer expects.
While much of this growth is accelerated by the electric and hybrid vehicle markets, it is not the exclusive driver. For brands to stake a claim in the market, or defend their current success there is a need to jump ahead in tools, experience, and competency to deliver these software defined vehicles. A robust digital twin of the product and process is the first step in the evolution for the automotive industry.
Digitalization brings many benefits to the design and manufacture of complex products, but perhaps most critical to the development of software defined vehicles is the ability to securely share design requirements across the value chain and quickly iterate within the bounds of the vehicle architecture. That might be specific communication protocols, mechanical interface requirements, power limitations, or any number of additional requirements and the various combinations. The digital twin helps organize these requirements and connect them to the expected functionality. If a supplier were to suggest a modification to the specification, the change can be validated within the digital version of the vehicle to ensure no functionality is broken within the vehicle and across the entire value chain.
This idea has applied to electronics, electrical, and mechanical systems for years, but the radically different approach to software development has supercharged the value of constant, reliable communication between stakeholders. And it has extended beyond the manufacturing floor as well. Now that software has become a sales driver for vehicles and a point of safety with advanced driver assistance systems, vehicles are being improved even after they leave the showroom floor. And though these software updates can be seamless for the owners, there is a lot of traceability required by the manufacturer to make it happen. Updates need to be rolled out and customized based on the specific architecture of the vehicles. Over the manufacturing life of a product, an OEM will likely swap out systems because of availability, durability, or cost concerns, and each variation needs to be validated with the software update.
Having a digital twin of the many interconnected systems in a product is a great start to overcoming hurdles to success, but this change also alters the business decisions for these companies. This is most easily recognized in the electric and hybrid vehicle segments. Software is a major driver in these categories and because it is closely tied to the drivetrain of the vehicles, many companies are looking at bringing these development processes in-house. Working with a supplier may be a viable path, but by integrating the software systems more directly OEMs have an opportunity for greater differentiation in the market.
But these are only a few facets to the business changes software defined vehicles bring to the automotive industry. To learn more about the changes the software defined vehicle will bring to the industry, you might want to subscribe to On the Move, a podcast from Siemens Digital Industries Software. We are having conversations right now on how this future of the industry will change the engineering and development processes of our customers. Or, you can check out our website for even more information on the automotive and transportation industry.