Automotive Software Services

The automotive industry is currently undergoing one of the biggest transformations in its history. This evolution can be traced through four crucial milestones that have shaped the automotive landscape:

1. Mass production - The Ford Model T (Early 20th Century): The era began with the Ford Model T, which introduced the industry-first moving assembly line. This dramatically reduced production time and costs, making cars affordable and available for the masses. This innovation eventually reshaped urban planning and drove economic growth.
   
   
2. The digital foundation - The Rise of the ECU (1960-1980)
   The next significant step was the introduction of Electronic Control Units (ECUs) - microcontroller-based, embedded computer systems designed to monitor, regulate, and control specific vehicle functions (like fuel injection). Although the use of software expanded dramatically thereafter, the key differentiator for customers remained the vehicle's hardware: performance, interior materials, and engine power.
   
   
3. Connectivity and electrification - The CASE Era (Early 21st Century)
   Fast-forward to the 21st century and the famous CASE acronym (Connected, Autonomous, Shared, Electric). This concept not only shaped industry discussion but became a strategic vector for the entire industry. Software began enabling major use cases, such as basic telematics, connected services, the proliferation of infotainment and embedded navigation systems, and simple Over-The-Air (OTA) updates. To summarize this phase, Akio Toyoda famously said in 2011 that cars were becoming “smartphones on wheels.”
   
   
4. The SDV paradigm
   While CASE drove strategy discussions and investments, the biggest shift came with the SDV paradigm. The existing connected services were not enough to satisfy the growing demand for smooth, digital in-vehicle experiences. Furthermore, technological advancements such as super-fast computing platforms, 5G connectivity, and AI presented completely new opportunities. 
   
   OEMs quickly understood this as a chance to create new revenue streams outside the classic business models of selling cars and spare parts. However, while the SDV brought almost limitless possibilities, it faced serious challenges related to complexity, the integration of new architectures, and the new "software-first" mindset that OEMs had to incorporate into their legacy way of working.

The term Software Defined Vehicle (SDV) represents a fundamental paradigm shift in the automotive industry. While various definitions exist, a simple one states that an SDV is essentially any vehicle that manages its operations, adds functionality, and enables new features primarily or entirely through software. It means that we can change the key functions or nature of our vehicle by changing its software. 

However, we must remember that the SDV is not only about the car. From a broader perspective, realizing the full potential and promise of the SDV demands a robust ecosystem. This ecosystem enables car manufacturers and service companies to continuously deliver customer value through software across the vehicle's entire lifespan.

The SDV is a multidomain challenge and cannot be achieved in isolation. That's why it requires strong partnerships and alliances among OEMs, platform and service providers, semiconductor manufacturers, and hyperscalers.

Key SDV takeaways by Tietoevry:

• A software-defined vehicle (SDV) is a cohesive blend of hardware and software that enables a smoother interaction between a vehicle’s internal systems and the outside world
• SDVs decouple network functions from proprietary hardware, allowing for parallel physical and digital development
•  This shift enables software to drive differentiation and commercialize vehicle functionalities, maximizing the lifecycle and value of vehicles  

To provide a comprehensive understanding of the SDV paradigm to a wide audience, Dr. Moritz Neukirchner (Senior Director from Elektrobit) introduced a five-level classification. We believe this summary effectively shows that not every car equipped with software or connectivity qualifies as a truly software-defined vehicles.

• SDV Level 0 - Software enabled
   Represents a vehicle with standard features that can be found today in vast majority of cars. This level is funded by CAN based in-vehicle networks and microcontrollers-based ECUs. We can say that such cars are software enabled with hard, real-time requirements.
  
• SDV Level 1 - Connected
  Drivers and passengers in these vehicles receive information enhanced by connectivity features. The vehicle connects to a dynamic environment, such as the Internet and the cloud, but the software remains unchanged. This type of car includes features like live traffic information and mobile companion applications with basic functionalities. While it may initially resemble SDV, it is not; there are no modifications being made to the car itself through software. 
• SDV Level 2 - Updatable
  This is the level where software can be dynamically changed in the car. However, the functionality remains unchanged from the customer's perspective. The customer does not notice any tangible benefits aparts from security patches etc. However, the number of software-related mechanisms is increasing, which includes A/B memory on ECUs, update verifications, dynamic operating systems, and partially updatable ECUs.
• SDV Level 3 - Upgadable
  SDV begins with enhanced customer value, enabling the delivery of new functions through software updates. While we have dynamic software, the target hardware platform remains static. Key differentiators for vehicles featuring SDV Level 3 include: zonal architectures that reduce the number of ECUs, Service Oriented Architecture (SOA), virtualization, an automated CI/CD environment, aftermarket revenue from new functions and services, and OEMs developing their own software.
• SDV Level 4 -  Software platform
  This is a space where a car feels "always fresh" throughout its lifecycle. New functions can be introduced for all models, including older lines - the key is to have  software decoupled from hardware to ensure this cross-generation software upgrades. In this level we can expect a solid reduction in hardware variants across vehicles and SDK for managing versions and variants.
• SDV Level 5 - Innovation platform
  At this stage, a third-party software ecosystem can fully customize vehicles, enabling the deployment of solutions across multi-brand fleets. To ensure both security and safety, it is essential to implement robust isolation technology within Electronic Control Units (ECUs), alongside in-ECU intrusion detection and controlled data and device access. At this stage, there are substantial monetization opportunities for providers of third-party functions.