In the past, consumers considered hardware aspects such as displacement, fuel economy and desing a lot when choosing a car.
Howewer, the importance of automotive software such as autonomous driving services and infotainment is also increasing. The vehicle whose value is defined by software is the SDV that we will be discussing today.
SDV is often described as a ‘smartphone on wheels’. More and more customers are choosing cars acoording to special software or services, such as smartphones that have been leveled up and applications are becoming more important.
There is a global trend for electrification of cars behind the growing importance of SDV. Electric vehicles have lower entry barriers than internal combusiton engine vehicles, so many companies are competing.
In addition, electric car brand Tesla has demonstrated the potential of SDV monetization by offering advanced features as paid software.
The automobile industry can also collect driving data through various software and use it for new businesses.
As a result, many automobile companies have jumped into the development of differentiated software to survive.
Tesla, the leader in SDV, sells a Connectivity Package, a connected car service and a paid subscription to FSD, an autonomous driving service.
Meanwhile, recognizing the importance of SDV, Hyundai Motor Group announced a plan to streghten its software competitiveness with its proprietary Connected Car Operating System.
Gm also announced a partnership with software developer Red Hat in preparation for a software platform to be released next year.
Volvo has deployed autonomous driving solutions from AI computing company NVIDIA for its next-generation SDV vehicle. Through OTA updates, they will continue to improve our services and provide us with a customized driving experience.
SDV is a paradigm shift in the automotive industry. We are changing from an era of making and selling cars to an era which we must continue to provide new services to survive.
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