Expert Insights with Bence Nagy: Software-defined Vehicles: The Platform Shift Transforming the Automotive Sector

Software-defined vehicles (SDVs) are fundamentally changing how automobiles are designed, developed, and evolved throughout their lifecycle. By shifting from hardware-centric architectures to software-driven platforms, SDVs enable continuous feature updates, centralized computing, and swifter innovation across modern vehicle programs.

In this expert interview, Bence Nagy, Application Engineer at SciEngineer, shares an engineer’s perspective on the so-called “SDV transition” based on real-world experience from OEM and Tier 1 projects. The discussion explores why SDVs represent a long-term architectural shift rather than simple short-term hype, how they are already influencing how vehicles operate today, and which technologies are critical to scaling software-defined automotive platforms.

Are SDVs the future of the automotive industry?

Yes, the industry is already committed to software-defined vehicle concepts, and SDV projects have surpassed their trial phases and are heading towards production projects. It is projected that by the end of this decade, more than 80% of new vehicles will be software defined. Obviously, when such a big hype exists regarding such a topic, we need to be a bit careful. In the 2010s, for example, everyone projected self-driving cars would be widespread by 2025, and yet here we are, still driving our own cars.

But the SDV trend seems to be more future-proof because it is purely about technology, and there are many fewer legal restrictions that could hold things back, unlike in the case of autonomous vehicles.

How are SDVs changing the way cars operate today?

Software-defined vehicles represent a fundamental architectural shift in automotive design. Their emergence shows that we are moving away from hardware-centric systems toward centralized, software-driven platforms. This means that a car’s performance will be determined by what kind of software it runs. While drivers may not immediately notice the transformation “under the hood,” this paradigm shift is critical for unlocking next-generation capabilities.

At the core of SDVs are high-performance, zonal electronic control units (ECUs) that consolidate functions previously handled by dozens of separate controllers. This zone-based architecture reduces hardware complexity, but more importantly, it creates a flexible foundation where features can be added, updated, or enhanced through over-the-air software updates – similar to modifications made to smartphones.

This shift enables capabilities unheard of with traditional architectures: advanced autonomous driving features that learn and improve over time, personalized driving experiences that adapt to individual preferences, and subscription-based features that can be activated post-purchase. The vehicle essentially becomes a programmable platform rather than a machine with only defined, fixed functions, allowing manufacturers to continuously enhance value throughout the car’s lifecycle while also responding rapidly to emerging safety standards and consumer demands.

What are the key enablers for achieving the next level of automotive technology with SDVs?

Software is undeniably the cornerstone enabler for next-generation SDVs. Once robust hardware platforms are in place, the possibilities for software innovation become virtually limitless. However, this potential can only be realized through excellent software development practices and capabilities.

The present complexity of SDV software is unprecedented in automotive history. Engineers must develop and integrate sophisticated algorithms for power electronics, vehicle control, and connectivity – all while ensuring functional safety, cybersecurity, and real-time performance. Traditional development approaches simply cannot scale to meet these demands. At SciEngineer, in our work with our partners, we are witnessing this shift in focus, which mandates that we have more aligned development workflows that meet industry demands.

This is precisely where advanced development tools become critical. MathWorks provides an ecosystem that accelerates SDV development through Model-Based Design, enabling engineers to design, simulate, and validate complex systems before deployment. Tools like System Composer and Simulink allow you to tackle the challenges of service-oriented architectures and you can virtually develop and verify your systems. Automated code generation ensures that proven algorithms translate reliably into production-grade embedded software, while continuous integration workflows support the iterative development cycles essential to modern software development. By bridging the gap between concept and implementation, MathWorks tools empower automotive teams to deliver the sophisticated, reliable software that defines next-generation vehicles.

Are SDVs a short-term trend or a long-term industry shift?

While only time will provide definitive answers to that question, all indicators point toward SDVs representing a permanent, transformational shift in the industry rather than a change that’s been generating temporary hype.

Major technology players entering automotive markets is a sign of this fundamental change. Tech giants such as Nvidia and Google, for example, are investing in automotive software and computing infrastructure. These companies bring decades of software expertise that traditional automakers are actively seeking to integrate.

Equally telling is how established automotive players are responding. Major OEMs, like Rimac, have launched flagship SDV initiatives, while other companies are restructuring their organizations to prioritize software capabilities. Tier 1 supplier AUMOVIO, for example, is also moving toward software-centric solutions. The sheer scale of investment and the fundamental reorganization of development processes suggest this isn’t an experimental investment but a strategic one.

Furthermore, regulatory trends toward over-the-air updates for safety improvements, and end-user expectations shaped by smartphones, are reinforcing the case that software-defined approaches are becoming the industry standard – not simply an alternative approach, but the new baseline for the industry.

Featured products 

All products mentioned are developed by MathWorks®: 

• MATLAB® – Algorithm development, data analysis, and automation 

• Simulink® – Model-based design and system-level simulation 

• SciEngineer Professional Services – SDV consulting, workflow design, and toolchain integration 

 Learn More about Software-defined Vehicles 

• Virtual ECUs and SIL Simulation: Accelerating Software-defined Vehicle Development with MATLAB & Simulink 

• The Road to Software-defined Vehicles: From Vision to Implementation 

• Software-defined Vehicles: The New Era of the Automotive Industry