SDVs have created a new subscription-based revenue stream, prompting OEMs to focus on ecosystem activation based on common OS.
The development process of SDV is similar to that of smartphones.
When SDVs do reach the maturity stage, automobiles will no longer be considered a means of transportation, but will be positioned as a service in smart cities.

A software-defined vehicle’s (SDV) main functions are defined through software mainly in the form of subscriptions and value is added through software updates. For example, Tesla provides a Self-driving Function (FSD) in the form of a $99-per month subscription. The subscriber receives the software configuration and the latest data required for self-driving, making the vehicle capable of self-driving. Upon cancellation after a month, the settings revert to normal and the vehicle becomes a regular car again.

This subscription-based service offering has opened new revenue opportunities for OEMs. OEMs previously focused on only selling vehicles, but now they can generate revenue on an ongoing basis as service providers.

In this SDV era, OEMs want to create a common OS that can be applied to various vehicle models and an ecosystem for creating services based on it. This report delves into which OS each OEM is choosing, how they are creating an ecosystem, and what factors are needed for SDV to go beyond popularization and enter the maturity stage.

Table 1. Status of Automotive OS by Major OEM

Source: Counterpoint Research

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