Everything you need to know about the Software Defined Vehicle (SDV)

What is the Software Defined Vehicle (SDV)?

The Software-Defined Vehicle (SDV) revolutionizes the way cars are used, enabling continuous updates and the enhancement of new functions throughout the vehicle’s lifecycle.

The automotive industry is undergoing an accelerated digital transformation. With an average of 200 million lines of code – 33 times more than a Boeing 787¹ – every new car is now a computer-on-wheels.

This development has given rise to the software-defined vehicle (SDV), a veritable revolution which is transforming both the relationship between the car and the on-board user experience, and the way the industry works.

The Software-Defined Vehicle (SDV) represents a major technological advance for the automotive industry. It revolutionizes the driving experience by fully exploiting the technological potential of the car, through updates and introduction of new functions throughout the vehicle’s lifecycle. This new approach promises to be decisive in enhancing vehicle functionality to make it ever safer, more efficient, more enjoyable and more personalized.

Unlike traditional architectures, in which each vehicle function has its own ECU (distributed architecture), the SDV uses a reduced number of more powerful centralized ECUs to manage most functions. This simultaneously simplifies the vehicle’s electrical and electronic architecture, reduces its weight (less cable) and increases its efficiency. Moreover, this new approach enables better vehicle connectivity, which is essential for updating functions, for example.

Software & ADAS functionality

“ADAS, in particular, can benefit from SDV and be continuously improved. If vehicles are equipped with the appropriate hardware, such as cameras, radar or LiDAR sensors, and if they have sufficient computing power and memory, updates could be made every two or three months to allow new functions to be added. We can compare this to our smartphones: You buy it with a set of features and applications, and it has sufficient performance and memory space for future upgrades and additional applications you choose.“
Joachim Mathes, CTO Valeo Brain Division

A revolution in progress

We are currently experiencing a period of transition from hardware-based to software-centric vehicles. As a car’s hardware and software have different life cycles, decoupling software and hardware in a vehicle is becoming an important design principle.

“Based on the existing hardware with which a vehicle has left the OEM’s assembly plant, we are able to continuously update the software of a software-defined vehicle. New features and functionalities can be added to keep the vehicle up-to-date and to offer its owner new user experiences – this even works with features that didn’t exist yet when the vehicle went to market.“
Derek de Bono, Valeo Group SDV VP

Traditionally, each vehicle function was managed by a dedicated electronic control unit (ECU). In SDVs, these ECUs are replaced by domain controllers. These controllers group together all the functions of a specific domain.

The capacity of each domain controller is based on a System on Chip (SoC).

Like a full computer system, the SoC offers computing and memory capabilities split across several cores. It can also integrate special computing structures that are optimized for artificial intelligence. The more powerful the SoC, the faster and more complex computing tasks it will be able to perform. It could, for example, detect speed limits from camera images, while at the same time computing the exact position of the vehicle in a high-definition map and classifying radar signals and accelerometer data to calculate that another vehicle is cutting into your path, triggering a braking request

SoCs are developed by players such as Mobileye, Qualcomm, Nvidia or NXP, TI or Renesas, to name just a few. These companies design custom chips optimized for automotive applications. Leading edge suppliers have leveraged synergies with data centers or consumer electronics markets. The choice of SoC will depend on the computing power required and the functionalities required.

Domain controllers or computers dedicated to a specific domain have not only computing power, but also high-level memory capacity, enabling them to host a large number of functionalities. Typical domains are: driving assistance systems, infotainment, connectivity, body and chassis. Their architecture has been optimised for the requirements of the specific domain in terms of safety, interfaces, protocols etc.

Eventually, to better leverage computing resources, they will further be combined into a central computing cluster/controller.

Domain or central controllers integrate several software layers:

One or more operating systems manage the computing and memory capacities of the microcontroller / SoC to ensure the execution of the functions to be implemented, taking into account their criticality. Security functions take priority over entertainment functions.
Middleware is the fundamental link that enables communication between applications and the SoC, the link that ensures the functioning of the system as a whole.
Applications are the software that provides functions directly visible to the user, such as navigation or driver assistance.

Different suppliers are specialized in offering software (1, 2 and 3). Application software can be embedded in the ECU (on-board) or partly hosted in the cloud (hybrid).

What are the advantages of software-defined vehicles (SDV)?

SDV & Driver Experience

“With SDV, your car will become a learning device. Its performance will improve over time and you will be able to customise features as well as the look and feel to better match your needs and preferences.“
Joachim Mathes, CTO Valeo Brain Division

The SDV allows the vehicle to evolve with you according to your needs and expectations, by selecting certain software functionalities and applications. The only limitation is the equipment (ECU power, sensor set) that was integrated into the vehicle when it left the plant. Let’s take a few examples:

If you live in the city, your car’s standard headlights may be enough, but if you move to the countryside and often drive on dark country roads, you might want to upgrade your basic headlights to feature smarter lighting.
Perhaps you’re planning to go on vacation? If so, you might want more power from your electric motor to tow a trailer. This could be activated with a SDV.
If you want new driving assistance or infotainment features, these can often be added after commissioning via an upgrade. This keeps the vehicle fresh and new, with a new digital experience.

The advantages of SDV vehicles are numerous for the quality of your vehicle’s user experience:

Bug fixing by avoiding vehicle recalls.
Updating vehicle functions as far as hardware allows.
Improving the performance of functions such as parking updating Infotainment and mapping services.
Online updating of synchronization software using smartphones, following the smartphone life cycle.
Robust cybersecurity for existing functions and products.
Enhanced driving experience: connectivity between vehicle and smartphone.
Preventive vehicle maintenance: remote diagnostics and OTA updates can reduce the need for physical maintenance and garage visits.
Enhanced safety.

For automakers, the transition to a centralized software architecture represents a major challenge, often requiring a complete redesign of the vehicle’s electrical/electronic architecture. This change is complex and time-consuming, although some players are more agile than others and have already begun this transformation. In particular, new entrants to the market, starting from scratch, are quicker to adapt to this new model. Nevertheless, all manufacturers, whatever their size or region, are currently investing heavily in the development of SDVs.

SDV & Market challenges

The SDV is completely changing the way the automotive industry operates as a whole. We have moved from a very top-down hierarchy between OEMs and suppliers to a partnership approach with open innovation and co-development. Indeed, SDV requires the implementation of an entire ecosystem.

SDV: Valeo’s approach

Valeo: expertise in software-defined vehicles

Over the past 30 years, Valeo has become one of the leaders in automotive embedded software. The number of software and embedded systems engineers at Valeo has increased 20-fold between 2010 and 2024. Today, 40% of our 20,000 engineers are specialized in these two fields. We have dedicated software development centers in Egypt, China, India, Mexico, the Czech Republic and Germany…. Expertise in this field is constantly expanding.

Valeo develops key elements for the development of software-defined vehicles (SDV): high-tech components, high-performance controllers, application products and system expertise to optimize architectures.

In 2023, we launched Valeo anSWer, our software as a product and software as a service offering, including:

cutting-edge applications,
middleware that enables communication between applications and the SoC, and ensures that the system operates efficiently and securely,
and services to support our customers in software architecture design, integration, validation, testing and maintenance.

OEMs require expertise in software architecture design, integration, validation and maintenance. According to McKinsey, testing, integration and validation actually account for 40% of software value. We offer integration and validation services during the development phase, as well as after the start of production.

These services are essential, as the life cycle of software in a vehicle continues for many years after the vehicle leaves the assembly plant, and even years after production has ended. If the automotive industry is heading straight for the software-defined vehicle, Valeo is becoming a software-defined company in many respects.

At the same time, the SDV is still made up of hardware, and the reliability, safety and upgradeability of this hardware define the possibilities to upgrade one’s user experience. Our ambition is to be the reference partner for our automaker customers, building this SDV with them, alongside them, in dynamic ecosystems.

Each automaker implements its own strategy, and this also varies by region. China, for example, has its own ecosystem. This is clearly the spirit of Renault’s SDV ecosystem, which we have joined alongside Google and Qualcomm, and for which we will be supplying key components, including the high-performance computer and embedded application software.

Our partnership with BMW for the future “Neue Klasse” is another excellent example. We will supply the ADAS domain controller, sensors and software for parking and maneuvering. All ADAS functions will be hosted and processed by our domain controller, which will be powered by Qualcomm Snapdragon SoCs.

SDV: what are the cybersecurity challenges?

The increased complexity of SDV on-board systems poses specific challenges in terms of cybersecurity and intrusion detection.

To meet these challenges, automakers and equipment suppliers are implementing robust security strategies right from the vehicle design stage. First and foremost, new equipment must comply with the principles set out in UN Regulation 155. This requires all vehicles to be equipped with the latest electronic systems.

Other international texts, such as ISO/SAE 21434, specify the normative framework applicable to SDVs, including:

Regular, secure software updates.
Intrusion detection systems.
Encrypted communication protocols.

These include intrusion detection systems, segmentation of on-board networks, use of secure communication protocols and regular penetration tests. In addition, updates are essential to correct vulnerabilities and keep systems up to date with new threats.

SDV & Cybersecurity

“We work closely with automakers to ensure that our products are safe not only today, but also for the vehicle’s future lifespan.“
Derek de Bono, Valeo Group SDV VP

What is the impact of artificial intelligence on SDV?

The integration of AI into SDVs opens up new perspectives in terms of safety, comfort and performance, but also raises new challenges. We anticipated these automotive challenges by creating, in 2017, the world’s first research center dedicated to artificial intelligence: valeo.ai.

The artificial intelligence integrated into a software-defined vehicle makes it possible, first and foremost, to develop ever more effective driver assistance systems, capable of anticipating hazards and intervening when necessary. Image recognition and computer vision, for example, enable vehicles to detect pedestrians, cyclists and other vehicles better and faster than a human driver. In addition, machine learning enables vehicles to adapt their behavior to traffic conditions and the environment.

AI, however, also greatly enhances your on-board user experience:

Intelligent voice assistants allow you to control various vehicle functions by voice.
Recommendation systems suggest optimized routes based on the user’s preferences.
The vehicle’s interior ambience can be customized by adapting temperature, lighting and music to suit the driver’s mood.

By analyzing large quantities of data, AI can detect potential SDV anomalies and failures before they occur or become serious. This makes it possible to plan maintenance proactively, reducing the risk of breakdowns and extending vehicle life.

Integrating AI into SDVs also raises new challenges. The question of data security, already mentioned above, is paramount. Autonomous vehicles, by their very nature, collect a large amount of personal data, which needs to be protected against cyber-attacks.

The software-defined vehicle marks in a new era of mobility. By offering constant personalization and upgradability, it transforms your car into an everyday technological companion, adapting to your changing and evolving needs over the course of your life. The potential for innovation is immense, for an ever more immersive driving experience.

3 key points to remember:

The SDV is an evolutionary vehicle that aims to offer the most accomplished user experience, which can be enriched throughout its use over several years.
The SDV radically transforms vehicle architecture, centralizing all software functions.
The SDV is profoundly changing the automotive industry, creating new business models and strengthening collaboration between players.