During The Autonomous 2023, industry experts emphasized that fostering a culture of safety was crucial to advancing autonomous vehicles (AVs) beyond the realm of hype. At the 2024 event held in late September, discussions shifted toward the technological foundation necessary to support that safety culture: software-defined vehicles (SDVs).
Dirk Linzmeier, CEO of TTTech Auto, reportedly described the transition to SDVs and AVs as one of the most significant transformations in automotive history. He believed this shift was inevitable, fast-moving, and far-reaching. Projections from Goldman Sachs suggested that by 2028, over a quarter of all vehicles would feature SAE Level 2+/2++ advanced driver assistance systems (ADAS), and by 2030, nearly 90% of new cars might include software-defined features. Linzmeier was said to have stressed the immense investment required, predicting that the market would initially split between Eastern and Western players, with Western companies potentially losing market share in China to domestic automakers. However, he reportedly urged that safety should not become a point of competition but rather a shared priority, requiring collaboration across the SDV ecosystem.
There was a consensus among attendees that for autonomous systems to meet investor and customer expectations, they would need to exceed human drivers in terms of safety. It was noted that existing testing metrics were only scratching the surface of what would eventually be required. Ricky Hudi, Chairman of The Autonomous, was quoted as saying that successfully implementing an SDV required avoiding shortcuts and focusing on more than just advanced software. He reportedly viewed SDVs as dynamic systems that should integrate evolving and desirable features seamlessly.
Speakers highlighted the complexity of integrating various technologies, such as sensor hardware, vehicle connectivity, and machine learning algorithms, while keeping safety and scalability at the forefront. It was suggested that traditional domain-oriented vehicle architectures, which rely on numerous electronic control units (ECUs) to manage specific functions, could become too unwieldy as SDVs grew more complex. Many attendees reportedly pointed to zonal architectures—where related functions are consolidated into centralized units—as a promising solution.
Lars Reger, CTO at NXP Semiconductors, reportedly criticized automakers struggling to adapt, suggesting that some had created what he called “zomain” architectures—hybrid systems combining outdated hardware and software without clear direction. These overly complex designs were said to hinder progress. Reger was quoted as saying that a more straightforward, modular approach was essential and highlighted NXP’s S32 CoreRide platform as an example. This platform was reportedly designed to simplify the development process by layering hardware, middleware, and application functionality in a collaborative, streamlined manner.
Attendees appeared to agree that decoupling hardware and software was a crucial step forward. Prashant Gulati, CEO of SDVerse, reportedly described the shift to zonal architectures as a prerequisite for unlocking the multi-trillion-dollar SDV opportunity. However, he suggested that this didn’t eliminate opportunities for innovation and competition. It was noted that SDVerse was working on a B2B marketplace to connect OEMs and software developers, with companies like Renault and General Motors already participating. Ethan Sorrelgreen, Global Head of Product at Woven by Toyota, reportedly argued that standardizing hardware across models could lower costs, improve quality, and enhance safety by enabling scalable software solutions.
It was said that automakers needed to adapt culturally as well as technologically. Michael Fait, Head of SDVs, Europe, at Thoughtworks, reportedly remarked that the traditional “get it right the first time” mindset was no longer applicable to software, which now required continuous updates to remain relevant. Sorrelgreen reportedly emphasized the importance of applying principles from Toyota’s production system to software development, suggesting that standardization could drive efficiency and quality improvements.
Several speakers highlighted the high stakes involved. In the US, for instance, road fatalities averaged 1.26 per 100 million miles driven, according to the National Highway Traffic Safety Administration. Stefan Poledna, CTO at TTTech Auto, reportedly argued that SDVs must surpass this benchmark, which would require integrating redundancy and diversity into system architectures. Poledna was quoted as saying that companies mastering integration would lead the market, as platform approaches and robust system architecture capabilities would be critical.
Gulati reportedly stated that software was no longer just an opportunity but a necessity for survival in the automotive industry. McKinsey & Co.’s forecast that the global auto software market would more than double to $84 billion by 2030 was repeatedly referenced. Nikolai Setzer, CEO of Continental, was said to have concluded that the industry could only unlock the full potential of SDVs by fostering open and transparent collaboration. Setzer reportedly viewed this challenge as the industry’s greatest opportunity.
