What Is a Software-Defined Vehicle

A car is no longer a finished product; it has become a platform that continues to evolve even years after it is sold.

A car is no longer a finished product; it has become a platform that continues to evolve even years after it is sold.

A traditional car has dozens to hundreds of small control units, each from a different supplier and with its own software. Once it rolls off the assembly line, it’s finished. What’s in it stays in it.

A software-defined vehicle is built differently. Its functions are controlled by several powerful central computers connected via a high-speed network. The software is separate from the hardware, so it can be updated independently over the internet, much like on a phone. The result is simpler electrical wiring, lower production costs, and a car that drives better after a few months than it did on the day of purchase.

This architecture is not an end in itself. It is a prerequisite for higher-level driver-assistance systems as well as for autonomous driving, which requires computing power, continuous updates, and feedback from real-world operation.

Where Value Is Created

According to a study by the Center of Automotive Management and Accenture, the revenue potential from in-car digital services will reach around 40 billion euros in 2030 and approximately 115 billion by 2035. This includes infotainment, e-commerce, charging, the electric vehicle ecosystem, and autonomous driving. Average revenue from services per vehicle is expected to rise from the current 75 to 120 euros to approximately 200 euros in 2030 and up to 400 euros in 2035.

According to the study, automakers fall into three groups. The leaders built vehicles around software from the start and did not have to deal with older platforms. Fast followers have their first production models and over-the-air updates under control but are still finalizing a unified software platform. Lagging players—typically high-volume brands with lower margins—must convert far more platforms and restructure their more cumbersome organizations.

In addition to technology, corporate culture is also a significant obstacle. A traditional automaker operates with the goal of “starting mass production.” In the software world, a product is never finished.

The European Response

In 2023, the European Commission launched an initiative for an open European software platform for SDV. It consolidates the outputs of projects such as Shift2SDV, ECLIPSE SDV, AUTOSAR, SOAFEE, and COVESA with the goal of bringing an open, modular platform into the mass production of European vehicles by 2030. In 2025, the ECAVA alliance was added, comprising four areas: software-defined vehicles, automotive hardware, artificial intelligence and data, and the deployment of autonomous vehicles. The reason is practical. It makes no sense to develop software layers—which do not differentiate brands from one another—five times in parallel. A shared, open foundation reduces costs and shortens time to market. For Slovak suppliers, this is an opportunity to join European consortia before they reach full capacity.

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