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A newly released global survey by Wards Intelligence (now part of Omdia), commissioned by automotive software firm Senatus, reveals the auto industry’s increasing commitment to artificial intelligence, over-the-air (OTA) updates, and modular software development in its shift toward software-defined vehicles (SDVs). Conducted in March 2025 across Asia, Europe, and North America, the study collected responses from over 500 professionals, highlighting both momentum and remaining hurdles in achieving a fully software-centric automotive future.
Industry Priorities Shift Toward AI and Embedded Software
Automotive manufacturers and suppliers are now placing greater emphasis on AI-driven capabilities and continuous software deployment, overtaking last yearâs focus on data integration and system consolidation. The 2025 survey shows a decisive realignment of priorities as OEMs look beyond traditional vehicle mechanics.
Emerging Use Cases for AI in Vehicles
Respondents cited smart diagnostics, predictive maintenance, and real-time performance calibration as key areas where AI is expected to drive innovation in the near term. Interestingly, only one of the top five use casesâAI-enhanced routingâhas seen broad deployment to date.
âAI is quickly becoming a cornerstone for vehicle personalization and operational efficiency,â said MaitĂȘ Bezerra, Senior Principal Analyst for Software-Defined Vehicles at Wards Intelligence. âThis is not just about self-drivingâAI is redefining how vehicles self-monitor, self-optimize, and communicate.â
OTA Updates Gain Momentum, But Arenât Yet Ubiquitous
Over-the-air updates continue to expand across the industry, with 67% of respondents reporting current deployment in at least some vehicle systems. However, only 23% say their organizations are using OTA for feature upgrades todayâalthough 78% expect broader functionality by 2027.
Challenges in Scaling OTA Capabilities
The complexity of modern vehicle software architecture has slowed the widespread rollout of OTA across safety and performance systems. Still, the industry is clearly moving toward an environment where vehicles can receive continuous improvements post-sale.
âOTA is no longer a nice-to-have,â noted John Heinlein, Ph.D., Chief Marketing Officer at Sonatus. âAs software becomes the heartbeat of the modern car, the ability to securely and efficiently update systems is becoming fundamental to the ownership experience.â
Modular and Scalable Software Architectures Take Shape
Survey data indicates that the industry is moving toward more modular and scalable platforms, with high-speed in-vehicle networking and consolidated hardware set to gain traction by 2027. By 2029, platform standardization is expected to accelerate, followed by widespread adoption of zonal architectures from 2030 onward.
Open-Source Solutions Gaining Ground
A key development noted in the survey is the increased confidence in open-source systems for safety-critical applications. In a sharp contrast to last year, 83% of respondents are now considering Linux or Android platforms for core vehicle systemsâup from just 12% in 2024.
This marks a significant pivot in an industry that has traditionally leaned heavily on proprietary software for mission-critical functionality, reflecting a growing demand for scalability and vendor interoperability.
Roadblocks to SDV Adoption Still Persist
Despite rapid progress, the transition to software-defined vehicles is not without its obstacles. The top concerns cited include:
- Cost optimization and ROI clarity (29%)
- Data privacy and management (27%)
- Legacy systems and outdated organizational mindsets (26%)
These challenges underscore the complexity of modernizing an industry rooted in mechanical engineering and long production cycles.
Yet optimism remains high: 82% of respondents believe SDVs will be successful in improving customer experiences, unlocking new revenue streams, and accelerating development cycles.
Historical Perspective: Echoes of the Smartphone Revolution
The automotive industryâs current transformation bears resemblance to the early 2000s tech boom, when smartphones transitioned from hardware-centric devices to platforms defined by their operating systems and apps. In a similar vein, automakers are now reimagining vehicles as dynamic platformsâcapable of evolving long after they leave the assembly line.
Conclusion
The 2025 Software-Defined Vehicle Survey paints a clear picture of an industry at a tipping point. With artificial intelligence, OTA capabilities, and open-source platforms leading the charge, automotive OEMs and suppliers are investing heavily in a software-first future. However, legacy hurdlesâboth technical and culturalâmust still be overcome to fully realize the potential of SDVs.
As technology continues to reshape the vehicle lifecycle, those who adapt early may find themselves with a critical competitive advantage in the era of intelligent, connected mobility.
Whatâs your take on this update? Are SDVs the future of mobility or just industry hype? Share your insights below!