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The transformative power of a software-defined vehicle

Mobility is undergoing a significant shift. The software-defined vehicle promises a new era of flexibility, efficiency, and adaptability. But how can we navigate this transformation to ensure that the SDV is not only innovative but also safe and reliable? How can we integrate the SDV into our digital lives in a way that meets our needs and expectations?

Software-defined vehicle
Article

Aug 25, 2026

Software defines what a vehicle can do. Semiconductors define what software can become.

Smartphones taught us that products can improve after we buy them. Now cars are following the same path. A software-defined vehicle (SDV) can gain new features, safety functions, and digital services throughout its lifetime. But behind every update, every connection and every automated function, semiconductors ensure that the vehicle performs safely and reliability.

We and BMW Group join forces to shape the future of the SDV with the Neue Klasse

From vision to vehicle: Infineon and BMW Group have brought a software-defined vehicle to life with the Neue Klasse. More than 200 Infineon products help enable the vehicle’s intelligent architecture, including AURIX™ and TRAVEO™ microcontrollers, BRIGHTLANE™ Ethernet, OPTIREG™ power management ICs, PROFET™ smart power switches and eFuses.

Learn more: Infineon and BMW Group join forces

Facts about SDV

1,650 GW waiting to connect

Drivetrain electrification

The share of electric vehicles is expected to grow from 25% in 2025 to 45% in 2030, driving increasing demand for power semiconductors, battery management, and power distribution solutions.

ADAS

ADAS / automation driving and the software-defined vehicle

Around 10% of all new produced cars feature a mixed domain / zonal architecture. By 2030, this share could increase to around 40%.

An SDV can significantly accelerate the market penetration of automated driving. About 30% of all new cars currently feature driver assistance and automated driving functions – a figure that could rise to approximately 55% by 2030. 

What challenges does a software-defined vehicle face?

The SDV enables faster innovation and new digital services. To scale safely, they rely on advanced E/E architectures, secured connectivity, efficient power distribution, and automotive-grade semiconductors.

How can innovation keep pace with rising system complexity?

Graphic HVDC

Challenge
Traditional E/E architectures rely on 70 – 110 ECUs, up to 5 km wiring harness 10 – 15 car models. As more vehicle functions become software-defined, integration, software updates and system validation grow increasingly complex. This limits scalability, increases development effort and slows innovation.

Solution
Zonal architectures reduce ECU count by consolidating functions into vehicle zones connected to central compute platforms. This simplifies software management, enables faster updates, and creates a scalable foundation for an SDV.

AURIX™ TC4x
BRIGHTLANE™ Automotive Ethernet
Memories (SEMPER™ NOR Flash, EXCELON™ F-RAM)

Why is cybersecurity critical for connected mobility?

Challenge
A Software-defined vehicle depends on cloud connectivity, vehicle networking and over-the-air updates. Every additional connection increases the need to protect data, software and safety-critical vehicle functions from cyber threats throughout the vehicle lifecycle.

Solution
A layered cybersecurity approach combines hardware-based protection, secure communication, encryption and real-time monitoring. Infineon enables trusted vehicle platforms with OPTIGA™ security solutions, security-enabled microcontrollers and secure connectivity technologies.

OPTIGA™ security solutions
BRIGHTLANE™ Automotive Ethernet

What does it take to enable secured over-the-air updates?

Challenge
OTA updates enable new features, performance improvements and security patches after vehicle production. To ensure safety and reliability, vehicles require secured update mechanisms, dependable computing and protected communication channels.

Solution
Infineon provides the semiconductor foundation for updateable vehicle platforms with microcontrollers, memory, connectivity and security solutions. Together, these technologies support secure, reliable and scalable OTA deployments.

OPTIGA™ security solutions
Memory solutions

What enables high-speed communication in data-rich vehicles?

Challenge
Advanced driver assistance systems, central computing and software services generate massive amounts of data. Conventional in-vehicle networks struggle to provide the bandwidth and scalability required for future software-defined vehicle platforms.

Solution
Automotive Ethernet enables scalable, high-speed communication across zones, sensors and central computers. Infineon BRIGHTLANE™ Ethernet solutions provide the networking backbone for modern SDV architectures.

BRIGHTLANE™ Ethernet solutions
Automotive Ethernet PHYs
Automotive Ethernet Switches

How can efficiency and reliability scale together?

Challenge
More software functions increase wiring complexity, power demand and system interactions. Without an optimized architecture, vehicle weight, energy efficiency and overall system robustness can be affected.

Mobility Tech Talk - The software-defined vehicle

Solution
Zonal architectures reduce wiring requirements and support more efficient power distribution. Infineon power management ICs, smart power switches, eFuses and MOSFETs help improve efficiency, reliability and system protection.

Dependable power distribution solutions
PROFET™ smart power switches
SPOC™ smart power controllers
MOSFETs

What makes functional safety essential for the future of mobility?

Challenge
As software increasingly controls vehicle functions, safety requirements become more demanding. Critical systems such as ADAS, body electronics and power management require highly reliable processing and fault-tolerant operation.

Automotive dependability

Solution
Infineon AURIX™ and TRAVEO™ microcontrollers combine performance with automotive-grade safety capabilities. They help OEMs develop reliable SDV platforms that meet stringent functional safety requirements.

AURIX™ TC4x microcontrollers
TRAVEO™ microcontrollers

The business value of an SDV

For car manufacturers, the SDV opens the door to new business opportunities. Instead of focusing solely on one-time sales, OEMs can generate further revenue streams through software-enabled services and subscriptions. Features such as advanced driver assistance systems, premium infotainment options, or even performance upgrades can be offered as on-demand purchases. This approach not only enhances customer engagement but also provides automakers with valuable insights to improve products and services, turning cars into customer-centric platforms.

software defined vehicles

In the spotlight: E/E architecture

The shift to SDVs introduces significant complexity that traditional electrical and electronic (E/E) architectures with a large number of electronic control units (ECUs) distributed in the car can no longer handle. This is why the automotive industry is transitioning to a more centralized approach with zonal architectures which divide the vehicle into physical zones – e.g. front, rear, left, and right – each managed by a powerful local controller. In addition, one or more central high-performance car computers are at the heart of the architecture. This approach reduces wiring complexity, improves communication efficiency, and simplifies updates, offering the scalability and modularity needed for SDVs. 

Key features of a zonal E/E architecture:

  • Modularity: Zonal architectures allow for greater modularity, as different zones can be developed and upgraded independently. This modularity can lead to easier integration of new features and technologies.
  • Flexibility: With the new architecture, a car’s electrical systems can be flexibly designed and adapted. New components and functions can be added or modified without affecting the entire vehicle architecture.
  • Scalability: Vehicles are becoming more complex with more and more electronic systems. With the scalability provided by a zonal approach, this increasing complexity can be managed more efficiently.
  • Reduced wire harness: By localizing components and controllers, a zonal architecture can reduce the amount of wiring required in a vehicle, resulting in lighter and more efficient designs.
  • Faster development and updates: A zonal architecture enables faster development cycles and easier software updates since changes in one zone may not necessarily require changes to the entire system.
  • Improved reliability and redundancy: Critical functions can be distributed across different zones in the new architecture. This reduces the impact of a single point of failure, improving reliability and redundancy.

How semiconductors shape an SDV

Zonal architectures rely on advanced semiconductors to bring an SDV to life. These vehicles require powerful microcontrollers (MCUs) or system-on-chips (SoCs) to handle the simultaneous processing of multiple vehicle functions while enabling seamless, high-speed communication through Ethernet.

As software-defined vehicles continue to increase the amount of data exchanged between sensors, zone controllers and central compute platforms, the evolution of Automotive Ethernet and IEEE networking standards is enabling higher bandwidth, enhanced scalability and more resilient in-vehicle communication architectures.

Functional safety and cybersecurity are equally critical considerations. With an SDV relying heavily on connected systems and cloud interactions, protecting sensitive data and preventing cyberattacks are top priorities. Zonal architectures demand semiconductors with integrated security features that can detect anomalies, safeguard against threats, and alert drivers in case of potential breaches. A scalable, layered security framework – including encryption, real-time monitoring, and compliance with global automotive cybersecurity standards – is vital to ensure that vehicles remain safe, even as software evolves over time.

Multiple security factors must simultaneously be addressed in order to build the best possible, scalable cybersecurity framework.

Scalable cybersecurity framework

In addition, zonal architectures play a key role in optimizing energy efficiency and power distribution. By consolidating local functions within each zone, they reduce wiring complexity, saving both weight and energy. Semiconductors support this efficiency through intelligent power management, enabling precise control over power allocation across vehicle systems. As software-defined vehicles continue to push the boundaries of innovation, Infineon semiconductors are critical to delivering the performance, security, and efficiency required for this new era of mobility.

Next step: Physical AI

The SDV transforms cars into connected, upgradeable platforms. The next step is Physical AI, enabling vehicles to perceive their environment, understand situations, make decisions, and act in real time. Imagine a car that continuously improves automated driving, anticipates traffic, optimizes energy use, and coordinates vehicle functions for greater safety and comfort. This requires powerful semiconductors. Infineon combines high-performance computing, sensing, connectivity, power technologies, and cybersecurity to turn data into intelligent actions and make Physical AI a reality.

FAQ

What is a software-defined vehicle (SDV)?

Software is at the heart of modern life, shaping how we work, communicate, and experience the world. From smartphones to smart home devices, it has transformed everyday products into connected platforms that can be continuously enhanced through over-the-air updates. This evolution is now reshaping the automotive industry as well. Vehicles are no longer just mechanical machines; they are becoming intelligent, connected platforms known as software-defined vehicles. With software at their core, these vehicles promise a new era of comfort, personalization, and performance. Imagine your car becoming smarter overnight: new driving features or enhanced safety capabilities can be delivered directly to the vehicle without the need for a service appointment. This is exactly what an SDV enables. It turns cars into “computers on wheels”.  Watch video

Is the SDV really a software revolution, or is it ultimately a semiconductor revolution?

While software defines vehicle experience, semiconductors provide the foundation that makes an SDV possible. High-performance computing, networking, cybersecurity, power distribution, and real-time control all depend on advanced semiconductor technologies. Without the right hardware architecture, software alone cannot deliver the performance, safety, and scalability required for future vehicles.

What role do memory solutions play in the SDV?

Memory solutions are a fundamental building block of the SDV. They store operating systems, vehicle software, security functions, and data required for over-the-air (OTA) updates. At the same time, they must provide fast data access, high reliability, and long-term data integrity. Without advanced memory technologies, software-defined vehicles could not be continuously enhanced, updated, and operated securely throughout their lifecycle. An SDV is only as reliable as the memory technologies that store and protect their software and data.

Is the SDV the foundation for autonomous driving?

Autonomous driving requires the real-time processing of vast amounts of data, powerful AI algorithms, and the ability to continuously enhance vehicle capabilities over time. An SDV provides the technological foundation through centralized computing architectures, high-speed connectivity, and over-the-air updates. These capabilities enable automated driving functions to be deployed, improved, and securely updated throughout the vehicle's lifetime while paving the way for future AI-driven and autonomous mobility applications.

Why does an SDV enable subscription-based features and services?

Software enables new features and services to be delivered throughout a vehicle’s entire lifetime. A subscription model allows customers to access and pay only for the features they actually need. At the same time, automakers can continuously improve, update, and expand services through software updates.

Why is RISC-V gaining momentum in the software-defined vehicle?

RISC-V is an open and scalable processor architecture that enables flexible, future-ready software-defined vehicle platforms. By supporting open standards and ecosystem collaboration, it gives automakers greater design freedom and control while ensuring the safety, security, and reliability required for next-generation mobility. Infineon sees RISC-V as a key enabler of the SDV era. Read more about RISC-V

Turning software potential into vehicle performance

A software-defined vehicle is built on semiconductors.
As vehicles become increasingly software-defined, the underlying hardware foundation becomes more critical than ever. Infineon combines leading technologies for compute, connectivity, security, and power to enable scalable, secure, and reliable vehicle architectures. From automotive Ethernet and zonal architectures to functional safety and cybersecurity, we provide the building blocks that turn software potential into vehicle performance.