
Trends That Will Influence the Automotive Sector in the Next Five Years
The future cars will be software-defined vehicles (SDVs), with specifications and functions controlled by software.
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CIO Applications Europe | Tuesday, March 14, 2023

Software-defined vehicles (SDVs) are revolutionising the automotive industry, affecting design and manufacturing, as well as how individuals use, maintain, and interact with cars.
FREMONT, CA: A number of rousing inventions in automotive software are set absolutely to transform the driving experience from how to access and operate a vehicle to how it interacts with users and the environment. The key trends will gain momentum over the next five years.
The Software in a Vehicle will be as Important as its Logo
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The future cars will be software-defined vehicles (SDVs), with specifications and functions controlled by software. SDVs are known more for their user experience than their substantial accreditation. The software will develop a direct interaction between the vehicle manufacturer and the customer, validating platform-driven auto businesses which ideally deliver customised services to customers via their vehicles.
The increasing integration of software in vehicles and their connectivity to various services have expanded their value beyond their physical features, creating a richer network of available services for users.
The Car will Renew Itself and Offer On-Demand Upgrades
As the phone's software is regularly enhanced, with new features, apps, security updates and bug fixes. SDVs evolve in the same direction that is connected to the internet. Although they may require more development before they attain the same level of adaptability, self-renewal and self-repair capabilities as a phone. Automakers around the world are currently exploring the use of on-demand software services for their customers. BMW (BMW: ETR), for example, offers downloadable upgrades through its My BMW App or the SIM card embedded in the vehicle. Volvo also provides OTA (over-the-air) software updates to its customers, which are delivered to their vehicles in two phases: a download phase while the car is in use, and an installation phase while the car is not being used.
For Gen Z, Owning a Car may be a Thing of the Past
The way people live and work is evolving, with hybrid work arrangements becoming more common. This means fewer people need to travel to work by car every day. While younger individuals may desire the convenience of having a car, they may not want the traditional model of ownership which is often expensive, demanding, and rigid. Instead, some individuals may prefer a more flexible approach where they only pay for a car when they need one, through options like subscription-based, car-sharing or peer-to-peer rental services. SDVs are well-suited for this type of service because of their on-demand and remote-control capabilities.
The Car will Arrange an Appointment With a Mechanic Before you Know you Have a Problem
The Internet of Things (IoT) will utilise the connectivity of cars to send real-time diagnostic information, which will enable more advanced and convenient predictive maintenance schedules. With the help of artificial intelligence (AI), a vehicle will be able to alert the forthcoming issues and inform the garage, dealership, or manufacturer about the potential issues before they occur. Mechanics will receive this diagnostic information in advance, allowing them to order necessary parts. This technology will not only make road travel safer but will also reduce the driver's responsibility to identify car maintenance issues.
Rivian (RIVN: NASDAQ), a US electric car manufacturer, offers at-home car servicing and claims to have the ability to perform comprehensive diagnostics through their connected vehicle platform. Appreciating onboard sensors and associated predictive algorithms enable them to proactively identify potential issues, often before the user even notices a problem, and provide an early notification.
The advanced software enables car manufacturers to collect data from individual vehicles and create a centralised errors and maintenance log. As more data is accumulated, manufacturers will be better equipped to identify patterns and detect issues earlier in the vehicle's lifecycle and its various parts.
Future EVs May be Fuelled by Hydrogen
The sales of electric vehicles (EVs) worldwide are expecting significant growth. With China being the largest automotive market, EVs make up 21 per cent of the market. By 2029, 26 per cent of vehicles will be produced worldwide, accounting for North America to be third in the market. Automakers must change their business model to become software firms in the new SDV era.
The rising prices of electric vehicle batteries, extended waiting periods for cars and their components, and difficulties in expanding the recharging infrastructure in line with expanding demand are already affecting the acceptance of electric vehicles. In numerous cities worldwide, drivers are compelled to wait for more than an hour to charge their vehicles at public charging stations.
SDVs can address several transportation challenges such as efficient routing and energy management, but finding suitable fuel alternatives remains a priority. Experiments conducted in Germany on hydrogen fuel cells indicate that a vehicle with a 6.3 kg hydrogen tank capacity can generate up to 100kWh of electricity, which is comparable to the average monthly electricity consumption of a single-person household. As the automotive industry progresses towards software-defined vehicles, there will likely be more exploration and advancement in alternative fuel sources.
The emergence of software-defined vehicles is bringing about exciting developments that will affect various aspects of the automotive industry. This includes changes in the design and manufacturing process, as well as how individuals use, maintain, and interact with cars within the growing automotive ecosystem.
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