Software-Defined Vehicles (SDVs): The Next Step in Automotive Evolution

Software-Defined Vehicles (SDVs): The Next Step in Automotive Evolution

Software-Defined Vehicles (SDVs): The Next Step in Automotive Evolution

The automotive industry is entering a new era: vehicles are no longer just hardware platforms with embedded software — they are becoming software-centric systems on wheels. This shift is encapsulated in the concept of the Software-Defined Vehicle (SDV). In this article, we provide a clear, modern overview of SDV, highlight key players and initiatives shaping the ecosystem, and explain how Nilux GmbH can enable your company to succeed in this transformation.

The automotive industry is entering a new era: vehicles are no longer just hardware platforms with embedded software — they are becoming software-centric systems on wheels. This shift is encapsulated in the concept of the Software-Defined Vehicle (SDV). In this article, we provide a clear, modern overview of SDV, highlight key players and initiatives shaping the ecosystem, and explain how Nilux GmbH can enable your company to succeed in this transformation.

What is an SDV?

What is an SDV?

What is an SDV?

Definition & Vision

Definition & Vision

A Software-Defined Vehicle is one in which the majority of functionality — control logic, features, diagnostics, updates — is realized, orchestrated, and evolved via software. The hardware (sensors, actuators, ECUs) becomes a baseline infrastructure, while software defines value, differentiation, and lifecycle evolution.


You can think of an SDV as a “computer on wheels”: post-production, it continues to evolve via Over-The-Air (OTA) updates, new features, and remote diagnostics, just like a smartphone or cloud-native service.

Core Characteristics & Trends

Core Characteristics & Trends

Core Characteristics & Trends

Software-centric architecture: Functionality, behavior, and business logic reside in modular, upgradable software, not fixed-function electronics.


  • Over-the-Air (OTA) updates & Feature activation: New features, bug fixes, and optimizations can be delivered remotely over the vehicle’s life.

  • Centralized / Zonal / Domain controllers: Rather than many small ECUs, architectures consolidate functions into domain controllers or zonal controllers which interface with centralized compute.

  • Data, connectivity & cloud integration: Vehicles continuously exchange data with cloud backends, fleets, and infrastructure (V2X), enabling services, analytics, and adaptive behaviors.

  • Lifecycle evolution mindset: Vehicles are treated as living systems that evolve, not static products.

  • Safety, security & resilience: Because software governs critical functions, rigorous architecture, cybersecurity, and functional safety are mandatory.

Challenges to

Overcome

Challenges to Overcome

Challenges to Overcome

Transitioning to SDV is nontrivial, and several challenges must be addressed:


  • Safety & cybersecurity risks (attacks, misuse, integrity)

  • Complexity & cost of software development, integration, testing

  • Regulation, certification & validation (especially when software changes in the field)

  • Legacy systems & heterogeneous architectures

  • Organizational and process shifts (DevOps, continuous integration, cross-domain coordination)

Key Players, Alliances & Open Platforms

Key Players, Alliances & Open Platforms

Key Players, Alliances & Open Platforms

To build SDVs at scale and ensure interoperability, the ecosystem is coalescing around open platforms, alliances, and standards. Below are the main contributors and their roles:

To build SDVs at scale and ensure interoperability, the ecosystem is coalescing around open platforms, alliances, and standards. Below are the main contributors and their roles:

1.

1.

1.

AUTOSAR

AUTOSAR

AUTOSAR

One of the longest-standing and broadest alliances in automotive electronics, providing standardized software architectures, communication layers, and interfaces.


In the SDV era, AUTOSAR’s Classic and Adaptive stacks still provide foundational building blocks (e.g. communication services, diagnostics), and the organization is now collaborating in broader SDV efforts.

2.

Eclipse SDV (Eclipse Foundation)

Eclipse SDV (Eclipse Foundation)

An open-source working group devoted to creating modular, automotive-grade software stacks for SDVs.


It comprises subdomains (e.g. SDV.Edge for in-vehicle stack, SDV.Ops for cloud/operations, SDV.Dev for development workflows). Their guiding principles emphasize reuse, open standards, modularity, virtualization, and automation.


Many major industry players (OEMs, Tier-1s, software vendors) are members.

3.

3.

3.

COVESA (Connected Vehicle Systems Alliance)

COVESA (Connected Vehicle Systems Alliance)

Focuses primarily on data models, standardization of vehicle signals, and interoperability (for example, via its Vehicle Signal Specification (VSS)).


In the SDV context, COVESA helps ensure that telemetry, diagnostics, APIs, and data exchange across clouds, services, and vehicles are standardized, enabling cross-vendor compatibility.

4.

SOAFEE (Scalable Open Architecture for Embedded Edge)

SOAFEE (Scalable Open Architecture for Embedded Edge)

A collaborative industry initiative aiming to bring cloud-native concepts (containers, microservices, orchestration) into embedded vehicle systems.


SOAFEE bridges the gap between cloud and in-vehicle software architectures, enabling coherence across layers.

5.

5.

5.

SDV Alliance & Additional Entities

SDV Alliance & Additional Entities

Rather than duplicating effort, several consortia and open projects (AUTOSAR, Eclipse SDV, COVESA, SOAFEE) are aligning under a common umbrella to coordinate definitions, architectures, and reference designs.


The “Integration Blueprint” published by the alliance describes how components from different groups can interoperate in an SDV architecture. This alliance helps mitigate fragmentation and establishes shared definitions and governance.


Additional entities contributing to the SDV concept:

  • OEMs / Tier-1s: Many manufacturers are launching in-house SDV platforms (e.g. Toyota’s Arene) to own the software stack and OTA strategy.

  • Middleware / Platform Vendors: Companies offering hypervisors, virtualization, communication stacks, and domain controllers (e.g. QNX, Green Hills, Wind River, Linux-based platforms).

  • Cloud/Backend Providers: Ensuring fleet management, OTA infrastructure, data pipelines, ML/AI integration.

Rather than duplicating effort, several consortia and open projects (AUTOSAR, Eclipse SDV, COVESA, SOAFEE) are aligning under a common umbrella to coordinate definitions, architectures, and reference designs.


Additional entities contributing to the SDV concept:

  • OEMs / Tier-1s: Many manufacturers are launching in-house SDV platforms (e.g. Toyota’s Arene) to own the software stack and OTA strategy.

  • Middleware / Platform Vendors: Companies offering hypervisors, virtualization, communication stacks, and domain controllers (e.g. QNX, Green Hills, Wind River, Linux-based platforms).

  • Cloud/Backend Providers: Ensuring fleet management, OTA infrastructure, data pipelines, ML/AI integration.

Rather than duplicating effort, several consortia and open projects (AUTOSAR, Eclipse SDV, COVESA, SOAFEE) are aligning under a common umbrella to coordinate definitions, architectures, and reference designs.


Additional entities contributing to the SDV concept:

  • OEMs / Tier-1s: Many manufacturers are launching in-house SDV platforms (e.g. Toyota’s Arene) to own the software stack and OTA strategy.

  • Middleware / Platform Vendors: Companies offering hypervisors, virtualization, communication stacks, and domain controllers (e.g. QNX, Green Hills, Wind River, Linux-based platforms).

  • Cloud/Backend Providers: Ensuring fleet management, OTA infrastructure, data pipelines, ML/AI integration.

Real-World Examples & Use Cases

Real-World Examples & Use Cases

Real-World Examples & Use Cases

Toyota / Arene

Toyota / Arene

Toyota is developing its own software platform, Arene, which enables OTA updates, unified development across domains, and faster time to market.

Bosch

Bosch

Positioning SDV as the key enabler for personalization, connectivity, and over-the-air feature evolution.

BlackBerry QNX

BlackBerry QNX

Advocates for the fusion of hardware and software as the core of safety and reliability in SDVs, and highlights the trade-offs between open OS (like Linux) and certified systems (like QNX) in TCO and certification contexts.

Open-source & research

Open-source & research

Numerous initiatives show that containerization and microservices can be applied to in-vehicle systems with acceptable performance overhead, improving modularity and maintainability.

Security research

Security research

New threat models, intrusion detection systems, secure boot chains, and cryptographic protections are explored actively, especially given the increased attack surfaces in SDVs.

How Nilux Enables Your SDV Transformation

How Nilux Enables Your SDV Transformation

How Nilux Enables Your SDV Transformation

At Nilux, we specialize in bridging strategy, architecture, and execution in automotive software. Here’s how we can support your SDV journey:

At Nilux, we specialize in bridging strategy, architecture, and execution in automotive software. Here’s how we can support your SDV journey:

Strategic Assessment & Roadmap

Strategic Assessment & Roadmap

  • Evaluate your current platform, software maturity, and domain gaps

  • Develop a staged transition plan toward full SDV architecture

Architecture Design & Integration

Architecture Design & Integration

  • Assist with middleware selection, virtualization/hypervisor strategy, zonal/domain architectures

  • Integrate open-source modules (e.g. from Eclipse SDV) and industry standards (AUTOSAR, COVESA)

Standards & Interoperability Alignment

Standards & Interoperability Alignment

  • Ensure adherence to SDV Alliance, VSS, AUTOSAR, SOAFEE, and other relevant frameworks

  • Facilitate cross-vendor interoperability

Cybersecurity & Validation Strategy

  • Define and implement security architecture conforming to ISO/SAE 21434, secure boot, over-the-air update security

  • Support functional safety, validation, verification, simulation, HIL testing

Prototype & Pilot Implementation

  • Build MVPs or pilot vehicles that showcase OTA, domain consolidation, modular software updates

  • Validate performance, update mechanisms, resilience

Lifecycle Operation & OTA Maintenance

Provide infrastructure and processes for OTA services, fleet telemetry, remote diagnostics, software maintenance

Cybersecurity & Validation Strategy

Cybersecurity & Validation Strategy

  • Define and implement security architecture conforming to ISO/SAE 21434, secure boot, over-the-air update security

  • Support functional safety, validation, verification, simulation, HIL testing

Prototype & Pilot Implementation

Prototype & Pilot Implementation

  • Build MVPs or pilot vehicles that showcase OTA, domain consolidation, modular software updates

  • Validate performance, update mechanisms, resilience

Lifecycle Operation & OTA Maintenance

Lifecycle Operation & OTA Maintenance

Provide infrastructure and processes for OTA services, fleet telemetry, remote diagnostics, software maintenance