The automotive industry is undergoing a fundamental transformation toward software-defined vehicles (SDVs). Enabled by AI, cloud platforms, high-speed connectivity, and modern architectures, SDVs are shifting value creation from hardware to software, data, and services. Original equipment manufacturers (OEMs) must embrace agile development, insource critical capabilities, and build resilient, secure, and connected systems. AI will personalize driver experiences, optimize performance, and enable predictive maintenance, while cloud and over-the-air (OTA) updates ensure that vehicles remain continuously upgradable. Cybersecurity, resilience, and cost-efficient data management are essential elements for developing SDVs. This report outlines the areas that providers in the automotive space need to master successfully. It discusses which emerging technologies to tackle, how to embrace agile innovation cycles, and how to define strategies to compete with fast-moving new OEMs, especially from Asia.
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