Benchmarking Asian OEMs’ Software-defined Vehicle Strategies, 2024
Transformative Megatrends Forcing European OEMs to Focus on Pre-competitive Collaboration at a Deeper Level Across their Ecosystem; Previously Unseen in the Automotive Industry
Original equipment manufacturers (OEMs) used to differentiate their products based on mechanical features. Today, however, consumers are increasingly looking for features defined by software, such as driver assistance, connectivity, and comfort-convenience services. The convergence of technologies including electrification, autonomous driving, shared mobility, and connectivity is causing OEMs to migrate from the traditional hardpoint-defined architecture to a software-oriented architecture. Meanwhile, these trends are reshaping customer expectations and forcing OEMs to address them in new-generation vehicles, thereby turning vehicles into software on wheels.
Similar to the mobile phone industry, the automotive industry is experiencing a sort of rebirth. The traditional business models of generating revenue cyclically are being challenged by continuous cash flow generation throughout the vehicle life cycle. Beyond unlocking new safety, comfort, and convenience features, software-defined vehicles (SDVs) have several advantages compared to their hardware-defined counterpart. SDVs allow customers over-the-air (OTA) updates that cover firmware patches; infotainment to receive improvements; monitoring and tuning of core functional capabilities, such as powertrain and vehicle dynamics; and feature-on-demand comfort-convenience services. This allows OEMs the opportunity to improve and upgrade vehicles on the go throughout their life cycle while generating revenue from feature-on-demand services, which culminates in deeper, more connected relationships with customers.
SDVs are at the forefront of monumental changes in the automotive industry. This research service aims to benchmark European OEM SDV strategy. It discusses the impact of these trends on the growth and deployment strategies of different European OEMs in the market.
- Growth Environment
- Key Findings
- OEM Comparative Analysis—Hardware Strategy
- OEM Comparative Analysis—Software Strategy
- Comparative Analysis—SDV Strategy and Implementation
- Transformation in the Software-defined Vehicles Sector
- Why is it Increasingly Difficult to Grow?
- The Strategic Imperative 8
- The Impact of the Top 3 Strategic Imperatives on Benchmarking Asian OEMs’ SDV Strategies
- Ecosystem
- Research Scope
- Definitions—Vehicle Architecture
- Key Competitors
- Growth Generator
- Growth Drivers
- Growth Restraints
- OEM Software-defined Vehicle Strategy—BYD
- BYD Hardware Strategy
- Potential List of BYD Models on New Architecture
- BYD Software Development Strategy
- BYD Software Strategy—BYD OS Software Platform
- BYD Focus Areas—SDV Ecosystem and Strategy
- OEM Software-defined Vehicle Strategy— Honda
- Honda Hardware Strategy
- Potential List of Honda Models on New Architecture
- Honda Software Development Strategy
- Honda Software Strategy—Software Platform
- Honda SDV Ecosystem and Strategy
- OEM Software-defined Vehicle Strategy— Hyundai
- Hyundai Hardware Strategy
- Potential List of Hyundai Group Models on New Architecture
- Hyundai Software Development Strategy
- Hyundai Software Strategy—ccOS Software Platform
- Hyundai Focus Areas—SDV Ecosystem and Strategy
- OEM Software-defined Vehicle Strategy—NIO
- NIO Hardware Strategy
- Potential List of NIO Models on New Architecture
- NIO Software Development Strategy
- NIO Software Strategy—Software Platform
- NIO SDV Ecosystem and Strategy
- OEM Software-defined Vehicle Strategy—Toyota
- Toyota Hardware Strategy
- Potential List of Toyota Models on New Architecture
- Toyota Software Development Strategy
- Toyota Software Strategy—Toyota Arene OS Software Platform
- Toyota SDV Ecosystem and Strategy
- Growth Opportunity Universe
- Growth Opportunity 1—Consolidating Functions in HPC and Mixing Data Traffic in Ethernet Increasing Demand for Cybersecurity
- Growth Opportunity 2—Cloud Computing and Functional Virtualization Will Open Opportunities for Cloud Technology Developers
- Growth Opportunity 3—OEMs are Becoming Software Organizations
- Best Practices Recognition
- Frost Radar
- Next Steps
- Benefits and Impacts of Growth Opportunities
- Next Steps
- Take the Next Step
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