The fifth of six interviews with leading suppliers of SDV solutions.
Software-defined vehicles (SDVs) use software to govern operations, incorporate new features, and facilitate the integration of novel functionalities. This concept marks an advancement in the automotive industry, laying the foundation for autonomous driving and vehicle connectivity technologies.
The evolution of SDVs entails separating software and hardware development, like smartphones. OEMs are establishing “walled gardens” for applications. This shift encompasses continuous agile software development, heightened computing requirements for data processing, a modular service-oriented architecture, and fortified security measures against cyberthreats.
The automotive industry is rapidly advancing toward SDVs, with the promise of improved comfort, safety and customization. As collaborations between OEMs and tech companies flourish, SDVs present additional challenges such as cybersecurity risks and design intricacy.
The transition from domain to centralized architecture is also progressing, converting vehicles into mobile data centers. In this transformative journey, standards, collaborations and digital twin technology stand out as critical components, promising a future where software dictates the driving experience.
To delve deeper into this transformation, S&P Global Mobility initiated discussions with leading players in the SDV market, including DXC Technology, Elektrobit, Forvia, Harman, Nvidia and Red Hat. We explore how these companies are navigating the complexities of SDVs. All are at the forefront of driving architectural shifts, enhancing in-vehicle experiences, tackling design challenges and countering cybersecurity risks. Representatives of each company share speak to the evolving landscape of SDVs. Next up is DXC Technology.
DXC Technology is a provider of IT and consulting services. It offers a range of services including analytics, cloud applications, cloud infrastructure, enterprise applications, data security services, IT outsourcing, and workplace and mobility solutions. Beyond the automotive industry, DXC serves various sectors such as insurance, healthcare and life sciences, aerospace and defense, consumer and retail, travel and transportation, hospitality, energy, utilities, oil and gas, technology, media and telecommunications, public sector, banking and capital markets.
We spoke to Matthias Bauhammer, Head of Automotive –Consulting & Data&AI Services EMEA, DXC Technology
Key takeaways:
The following is an edited transcript of the conversation.
S&P Global Mobility: What architectural transformations are SDVs [software-defined vehicles] undergoing, moving from domain architectures to centralized ECUs [electronic control units], and how will this impact vehicle operations?
Matthias Bauhammer: The automotive industry's unstoppable drive for SDVs is generating architectural changes, transitioning from domain architectures to centralized ECUs. This transformation necessitates a considerable increase in software code, prompting the adoption of new development methodologies inspired by cloud practices and smart device industries. The software layer is evolving to manage this complexity by incorporating agile methodologies and ensuring compatibility with automotive requirements such as safety and real-time performance.
On the hardware side, the shift involves the adoption of faster processors with data center-like performance, operating within the power constraints of vehicles. This move, from distributed ECUs to centralized computing, incorporates technologies such as virtualization, hypervisors, containers and orchestrators, thereby adapting cloud-centric practices for automotive use. As the industry embraces machine learning and as nontraditional chip manufacturers enter the automotive space, collaboration among traditional chip vendors, new entrants, and automotive OEMs becomes crucial. Initiatives such as SOAFEE [Scalable Open Architecture for Embedded Edge] seek to enhance software portability, allowing OEMs to seamlessly transition between different silicon platforms without extensive code rebuilding.
How are SDVs changing the landscape of in-vehicle experiences, and what opportunities and challenges do these changes present for customization, infotainment and user interaction?
SDVs are reshaping the in-vehicle experience by learning from user behavior, providing personalized services and enhancing customer experiences. This shift opens opportunities for data monetization, creating new revenue streams as businesses tap into user insights and preferences. However, the challenge lies in navigating privacy concerns and complying with regional regulations to ensure responsible data usage. The collaborative ecosystem required for SDVs involves extensive cooperation across the automotive industry, including OEMs, suppliers and software companies; it also incorporates a mix of proprietary, commercial and open-source software, fostering innovation and enabling diverse features. The industry must navigate the challenges of distinguishing unique and nonunique features, ensuring interoperability and addressing standardization issues.
Additionally, SDVs enable OTA updates, transforming the relationship between car buyers and OEMs; while this opens avenues for delivering new features and business models remotely, it introduces challenges related to cybersecurity and system reliability. Leveraging data from SDVs offers the potential to revolutionize decision-making processes in the automotive industry, shortening development cycles through informed choices. However, establishing effective data architectures is crucial to maximize these benefits. It supports machine learning, autonomous driving and research and development while ensuring data accuracy, security and accessibility.
What are the challenges in SDV design, including system architecture, security, safety and the prevention of failures, and how are these challenges being addressed?
Designing SDVs involves navigating challenges in system architecture, security, safety and failure prevention. The separation of software from hardware, coupled with the need for regular updates, calls for changes in the architecture, reliability and safety of in-vehicle systems. Embracing model-based systems engineering, shifting away from text-based requirements documents, and utilizing models for safety analysis and automated checks help enhance system architecture.
Security concerns, particularly with OTA updates and external infrastructure integration, can be addressed through standardized communication protocols for secure OTA updates. Compliance with regulatory standards remains paramount to establishing a robust security framework. SDVs prioritize safety through predictive maintenance tools, diagnostic systems and a focus on agile methodologies, thereby ensuring reliability and effective failure prevention.
Moreover, SDVs are designed for seamless integration with external infrastructure, prioritizing user experience through ergonomic design and extensive testing. Scalability and flexibility are inherent in SDV designs, so adopting a platform-based approach to accommodate the evolving complexities of target systems is key.
Among all the non-technical challenges faced in developing an SDV, is the biggest one silos?
Yes, silos within organizations are a significant challenge in developing SDVs. These silos can result in suboptimal decisions, such as choosing smaller controllers or memory components to cut production costs, potentially impeding over-the-air updates due to insufficient resources. To address this challenge, leaders should empower end-to-end architects more and foster collaboration across different teams and subsystems. This collaboration should extend to suppliers to ensure a more holistic and effective approach to developing SDVs.
How do you see the automotive industry addressing the increased risks associated with safety-related software crashes and remote cyber threats in SDVs?
The automotive industry is actively countering the heightened risks associated with safety-related software crashes and remote cyberthreats in SDVs. This involves deploying advanced cybersecurity measures like encryption, firewalls and intrusion detection systems, along with integrating redundant systems into critical vehicle functions such as braking and steering. OTA updates play a crucial role in swiftly deploying software patches and security updates, ensuring timely adaptation to emerging threats without requiring physical interventions.
Collaborative efforts with technology firms and cybersecurity experts are focused on building robust security architectures specifically tailored for SDVs, enhancing the industry's ability to anticipate and respond to evolving cyberthreats. A continuous monitoring approach is adopted to regularly assess vehicle performance and security, reducing the likelihood of safety-related software crashes. Additionally, efforts to streamline and enhance productivity involve reducing system complexity by minimizing the number of ECUs and car configurations, while embracing technologies like AI, software factory, automation and virtualization.
Copyright © 2024 S&P Global Inc. All rights reserved.
These materials, including any software, data, processing technology, index data, ratings, credit-related analysis, research, model, software or other application or output described herein, or any part thereof (collectively the “Property”) constitute the proprietary and confidential information of S&P Global Inc its affiliates (each and together “S&P Global”) and/or its third party provider licensors. S&P Global on behalf of itself and its third-party licensors reserves all rights in and to the Property. These materials have been prepared solely for information purposes based upon information generally available to the public and from sources believed to be reliable.
Any copying, reproduction, reverse-engineering, modification, distribution, transmission or disclosure of the Property, in any form or by any means, is strictly prohibited without the prior written consent of S&P Global. The Property shall not be used for any unauthorized or unlawful purposes. S&P Global’s opinions, statements, estimates, projections, quotes and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security, and there is no obligation on S&P Global to update the foregoing or any other element of the Property. S&P Global may provide index data. Direct investment in an index is not possible. Exposure to an asset class represented by an index is available through investable instruments based on that index. The Property and its composition and content are subject to change without notice.
THE PROPERTY IS PROVIDED ON AN “AS IS” BASIS. NEITHER S&P GLOBAL NOR ANY THIRD PARTY PROVIDERS (TOGETHER, “S&P GLOBAL PARTIES”) MAKE ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE PROPERTY’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE PROPERTY WILL OPERATE IN ANY SOFTWARE OR HARDWARE CONFIGURATION, NOR ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO ITS ACCURACY, AVAILABILITY, COMPLETENESS OR TIMELINESS, OR TO THE RESULTS TO BE OBTAINED FROM THE USE OF THE PROPERTY. S&P GLOBAL PARTIES SHALL NOT IN ANY WAY BE LIABLE TO ANY RECIPIENT FOR ANY INACCURACIES, ERRORS OR OMISSIONS REGARDLESS OF THE CAUSE. Without limiting the foregoing, S&P Global Parties shall have no liability whatsoever to any recipient, whether in contract, in tort (including negligence), under warranty, under statute or otherwise, in respect of any loss or damage suffered by any recipient as a result of or in connection with the Property, or any course of action determined, by it or any third party, whether or not based on or relating to the Property. In no event shall S&P Global be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including without limitation lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Property even if advised of the possibility of such damages. The Property should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions.
The S&P Global logo is a registered trademark of S&P Global, and the trademarks of S&P Global used within this document or materials are protected by international laws. Any other names may be trademarks of their respective owners.
The inclusion of a link to an external website by S&P Global should not be understood to be an endorsement of that website or the website's owners (or their products/services). S&P Global is not responsible for either the content or output of external websites. S&P Global keeps certain activities of its divisions separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain divisions of S&P Global may have information that is not available to other S&P Global divisions. S&P Global has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process. S&P Global may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P Global reserves the right to disseminate its opinions and analyses. S&P Global Ratings’ public ratings and analyses are made available on its sites, www.spglobal.com/ratings (free of charge) and www.capitaliq.com (subscription), and may be distributed through other means, including via S&P Global publications and third party redistributors.