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Volume 2 | 2026

Techniques and practices

Concept stage

  • We observe a growing need to re-architect or rewrite in-vehicle software, driven by several factors. Changing electrical/electronic (EE) architectures demand changes to the distribution of functionality across ECUs. OEMs’ in-sourcing strategies are pushing them to take greater control over components previously owned by suppliers. And new technology stacks are emerging, requiring rewrites of a significant proportion of vehicle software.

     

    OEMs’ traditional outsourcing strategies for development have created various legacy software scenarios. These range from white-box situations, where there’s full access to the source code, to black-box situations, where components must be reverse-engineered based on the behavior of the software. Legacy software may also have inconsistent documentation, poor test automation coverage, or a large code base that has grown over time.

     

    Although the technology is still in its early stages, the use of GenAI tools appears to hold promise for various use cases, including onboarding, post documentation, test generation, refactoring and even code porting. However, since these tools are not specifically designed for the automotive domain, OEMs should consider developing their own solutions based on open source models and tools.

  • A centralized vehicle software repository is a fundamental shift in how automotive manufacturers manage their software components and portfolios. Instead of maintaining separate codebases for different vehicle models and variants, OEMs are consolidating their software into a single virtual monorepo with the main/master branch serving as the primary development line.

     

    This approach eliminates the complexity of managing multiple software stacks and enables faster feature delivery throughout the vehicle portfolio. Teams can develop features once and deploy them across multiple vehicle variants, significantly reducing development time and costs. The centralized repository model also improves code quality through enhanced reuse and reduces the overhead of maintaining multiple codebases.

     

    Leading OEMs, including BMW, Mercedes-Benz and Volkswagen Group, are planning to adopt unified software platforms, taking a centralized approach to streamline development and accelerate time-to-market for new features. And OEMs such as Volvo Cars are implementing this strategy through a superset tech stack approach, consolidating software development across their vehicle portfolio. As more automotive manufacturers adopt this pattern, it will become a key enabler of software-defined vehicle transformation.

  • The automotive software development lifecycle (SDLC) presents unique scale and context challenges. It’s characterized by significantly longer timelines, extensive upfront simulation and design phases, rigorous multi-stage verification and validation, and stringent safety standards. This generates a vast, interconnected context far exceeding typical software projects. Point-solution GenAI tools fail to capture this overarching context, hampering their ability to provide meaningful assistance.

     

    The true value of GenAI can only be realized through its holistic integration throughout the SDLC, providing context spanning the entire V-cycle. Organizations that merely use GenAI as a coding assistant miss valuable opportunities to reduce friction, accelerate innovation and enable smarter workflows throughout the complex development process.

     

    The key to success is holistic, yet pragmatic, GenAI integration, embedding capabilities across the SDLC to understand the extended development continuum and enable richer automation and insight. Specialized AI agents could emerge for every phase of the SDLC. Crucially, GenAI integration must meet developers where their needs are with an ecosystem of interoperable tools — avoiding monolithic ‘one platform’ solutions.

  • The unprecedented complexity of SDVs demands a fundamental change from the ‘hardware first, software later’ development model to hardware and software co-development. Consolidating diverse, mixed-criticality applications onto domain or zonal controllers requires deep integration of hardware and software from the very beginning. Sequential approaches simply cannot achieve the necessary optimization and guarantee safety and security properties effectively.

     

    Hardware and software co-design addresses this by enabling concurrent architecture trade-offs. It breaks down silos, allowing teams to simultaneously optimize silicon for specific workloads (such as dedicated neural network accelerators), embed safety mechanisms directly into hardware (such as lockstep cores or  hardware watchdogs), and build in security (such as hardware Roots of Trust). This intrinsic integration is far superior to bolting on solutions later, which is costly and often ineffective.

     

    Collaborative innovation across the automotive value chain is essential to unlock the full potential of hardware and software co-design. Traditional siloed workflows between OEMs, tier ones, semiconductor vendors and software providers must evolve into integrated partnerships.

Early adoption stage

  • The automotive industry is witnessing a fundamental shift in software validation as organizations move toward automated, continuous end-to-end testing throughout the development lifecycle. This approach mirrors successful patterns from IoT and other phygital industries, where automated testing has become essential for managing complex, interconnected systems. While validation has always been a standout in the automotive industry, organizations are now adopting testing automation to ensure software quality across increasingly sophisticated vehicle architectures.

     

    To achieve comprehensive testing coverage, organizations are using end-to-end development platforms and virtual engineering workbenches (VEWs) that integrate testing capabilities into mobile devices, vehicle back-ends and in-vehicle systems.

     

    This approach goes hand-in-hand with the test pyramid methodology, where automation is implemented across multiple testing levels. At the base, continuous integration (CI) pipelines enable automated unit and integration testing in virtual environments. VEWs provide simulation-based testing, while automated boxcars and labcars enable hardware-in-the-loop testing for real-time validation. At the top of the pyramid, vehicle-in-loop systems combine virtual and physical testing to validate complete vehicle behavior.

     

    The shift toward automated testing requires significant investment in testing infrastructure, simulation tools and CI pipelines. With vehicle software complexity increasing through multiple subsystems and interdependencies, automated, continuous end-to-end testing is becoming essential for maintaining quality and safety while enabling rapid development.

  • Continuous compliance is the process of continually assessing automotive software components to ensure they always meet regulatory requirements and industry standards. This approach integrates compliance checks into the development process rather than treating them as separate milestone activities.

     

    In automotive software development, compliance audits — including functional safety, cybersecurity and ASPICE — play a crucial role in the safety assessment of vehicle systems before homologation. We are now seeing the emergence of knowledge graphs that capture entire development processes, enabling scalable safety arguments from individual components to complete code bases. Augmented by GenAI, frameworks such as the Trustable Software Framework from Codethink are unlocking innovative approaches to compliance by automating evidence synthesis and transforming audit workflows. Continuous compliance tools such as Kosli and ChainLoop complement this evolution, providing real-time monitoring of software changes against regulatory requirements. These tools also ensure traceability across the development lifecycle, allowing teams to identify and resolve compliance gaps proactively.

     

    The continuous approach reduces the risk of compliance failures during certification and enables faster adaptation to evolving regulatory requirements. It also supports over-the-air updates by ensuring that software changes maintain compliance with safety standards. As vehicles become more software-defined, continuous compliance will be essential for maintaining safety while enabling rapid software evolution.

  • SDV OEMs need deep visibility into software development processes and their external dependencies to monitor progress, manage risks and avoid production delays. These constant assessments apply to individual software artifacts and systems — and to entire vehicle software projects.

     

    The virtual engineering workbench (VEW) integrates engineering, testing and virtual validation tools, allowing users to trace successfully executed tests and validations back to their requirements. As this process can be fully automated, the VEW dashboard will always reflect the current state of development progress, providing OEMs with real-time visibility.

     

    VEWs also offer integration with other VEW environments. By securely connecting these systems, OEMs can gain insights into the development progress of dependent software artifacts spanning multiple suppliers and accounts, giving them a comprehensive view of the end-to-end software development lifecycle.

     

    This approach enables more efficient resource allocation and better coordination of complex automotive software development programs. However, the shift toward cross-project visibility requires the integration of various development tools and the standardization of metrics and reporting. Organizations need to balance transparency with security and ensure teams can focus on their work while maintaining awareness of broader project context.

  • Historically, the way of working for automotive embedded software has been defined by the OEM’s ‘process, methods and tools’ (PMT). The goal was to fix the software development lifecycle to ensure quality and compliance. However, the strict PMT approach is now often seen as a burden by developers. The growing complexity of in-vehicle software and the adoption of new tools and technologies means developers need greater flexibility; the established way of working can seem inefficient or even counter-productive.

     

    Companies like Netflix, Spotify and Etsy have established a ‘Golden Path’ (sometimes referred to as a ‘Paved Road’) approach. This provides a recommended and supported way to complete essential tasks in building, testing and deploying software, but allows teams to deviate from the described path as long as they fulfill defined outcomes. 

     

    ‘Sensible defaults’ offer a similar approach, giving teams a defined set of practices and methods that are considered to be standard. They should be the starting point for every project and only changed in special circumstances. For software development, this might include test-driven development, pairing and build automation. Companies might also define sensible defaults for data, security or AI. Every employee should be proficient in their use and able to apply them in their role.

     

    We currently see automotive organizations attempting to apply these approaches for their software development. While many have met challenges in finding the right categories and achieving alignment, we consider these approaches to offer powerful ways to foster discussions and define the target way of working.

  • The automotive industry’s electrical/electronic (E/E) architecture and systems are rapidly evolving toward having a powerful, centralized compute system for most core car functions. Many OEMs adopting new E/E architectures are also modernizing their software.

     

    However, in many cases automotive manufacturers moving functionality from legacy software to modern architecture are simply translating existing software to the new architecture.

     

    This lift-and-shift approach fails to leverage the fundamental benefits of SDV. Instead of carefully planning features for the new architecture, OEMs are porting their static, ECU-centric software designs to work on the new E/E architecture, missing opportunities for improved scalability, performance and maintainability. To take full advantage of the capabilities of modern SDV architectures and compute systems, OEMs must properly redesign their software components.

  • Machine learning (ML) models are fundamental to modern vehicles, powering Advanced Driver-Assistance Systems (ADAS) and enabling features like lane-keeping assist and object detection by processing real-time sensor data with ML models to enhance safety.

     

    Self-driving and ADAS applications in cars require rapid decision-making. Therefore, processing information directly within the vehicle is preferable to transmitting large volumes of data to the cloud and processing for information there. While the cloud can assist with highly complex tasks, cars can pre-process data to reduce information transfer. However, integrating increasingly sophisticated AI models into compact, power-efficient in-car computers presents a significant challenge.

     

    AI is also transforming automotive interactions through voice commands and personalized entertainment system recommendations. To enable continuous improvements and new features, frequent vehicle updates are necessary. This necessitates proficiency in wirelessly deploying AI models to cars. This capability will foster the development of the next generation of safer, smarter and continuously evolving vehicles. Automotive manufacturers should also consider managing all ML models within a vehicle fleet to ensure optimal performance and feature delivery throughout the car's lifespan.

  • Shadow mode refers to running two versions of a software component in parallel. One is live and impacts other components with its results; the other runs simultaneously but its results are logged for comparison and analysis and don’t affect other components. This allows teams to gather software performance data and compare it with current production versions.

     

    For example, in adaptive cruise control (ACC), a vehicle sensor detects the distance to the vehicle in front frequently, with an ECU continuously processing the data and generating output. When a new ACC variant is deployed into the vehicle in shadow mode, teams can compare how the new version performs against the current one. When enough data is collected from the field to prove the new ACC variant outperforms the current one, the new variant can be deployed to the entire fleet.

     

    For features such as ADAS, it’s impossible to develop test cases for every imaginable scenario. Running vehicle functions in shadow mode provides a safe way to test new vehicle functions at scale, based on their behavior under real-world conditions. 

     

    With shadow mode capabilities in on-board architectures, organizations can also safely train new functions in the field while processing data in the vehicle and comparing results with expected outcomes. This technique supports the drive toward increased software quality in the automotive industry.

  • Shift-left security is a set of practices for addressing security questions early in the software development process, rather than dealing with them at the end. As vehicles become increasingly software-driven they also become more attractive targets for cyber attackers. For example, in 2024, the Chaos Computer Club showed how it retrieved the movement information of 800,000 vehicles, including user details. This growing threat landscape requires a fundamental change in how OEMs approach software security.

     

    Development teams are evolving their practices to embed security into CI/CD pipelines. They’re also conducting automated security testing to identify vulnerabilities in code and dependencies, and carrying out constant threat model assessments for their applications.

     

    Teams are increasingly using AI and ML models to perform real-time code analysis, detect anomalies and assist with automated threat modeling. These tools are being integrated into IDEs and CI/CD pipelines, reducing manual overhead and enabling proactive vulnerability detection before code even hits test environments.

     

    There’s also a greater focus on end-to-end trust, including mutual attestation between in-vehicle ECUs and cloud services, and secure OTA workflows that preserve cryptographic integrity and traceability across domains.

  • Testing in automotive software development involves various environments, from local unit tests on virtual environments to more complex physical hardware setups. Environments early in the testing process are typically faster, but can't reliably detect certain types of errors. 

     

    As automotive software development moves to a more iterative approach, testing must ‘shift left’, catching issues sooner and reducing development time and costs. However, it’s true that different levels of physical test environments are still needed.

     

    The test pyramid is a common metaphor in general software development. It categorizes tests by their scope and granularity, suggesting a pyramid-shaped ratio between the test types. While commonly used test categories must be changed to reflect the challenges and requirements of embedded automotive development, the concept of a test pyramid remains valid. 

     

    Simply aiming to shift left does not define a desired target state, making it difficult to measure progress. By defining their own test pyramid and making it an essential part of testing strategy, automotive organizations can determine testing goals more clearly to make their initiatives more efficient.

  • Traditionally, vehicle data has been instrumental during product development phases, primarily for debugging car components and fine-tuning them to meet quality, security and user experience standards. However, with the advent of SDVs, there's been a significant increase in the volume of data vehicles generate.

     

    One of OEMs' biggest challenges is integrating this data into product engineering so engineers can use real-world insights to refine components more efficiently and deliver enhanced vehicle iterations.

     

    Another challenge is managing data at scale. Selecting which data to extract and analyze from the vehicle is a complex process, as is building the tooling to translate it into actionable insight.

     

    Vehicle data-driven engineering enables more informed decision-making throughout the development process. Teams can use data to validate design assumptions, prioritize development efforts and measure the impact of software changes. This approach also supports predictive maintenance and helps identify potential issues before they affect vehicle performance or safety. If organizations can use data effectively, they’ll engineer better vehicles  and better vehicle experiences.

Mass adoption stage

  • Over-the-air (OTA) software updates can be continuously delivered directly to SDVs, allowing OEMs to deploy or activate new features, enhancements and fixes rapidly and frequently, without the need for physical access to the vehicle. 

     

    This transforms the car into a dynamic platform that evolves to deliver ongoing optimization, new services and enhanced user experiences, mirroring the continuous delivery model prevalent across the software industry. OTA software updates can also reduce the need for recalls and service center visits for software-related issues, leading to a more convenient and cost-effective ownership experience for customers.

     

    The OTA approach requires teams to develop software in smaller, manageable increments that can be tested and deployed independently. Incremental software delivery supports feature updates by enabling teams to add new capabilities without disrupting existing functionality. It also improves development efficiency by allowing teams to get feedback on features earlier and make adjustments based on real-world usage.

     

    However, the shift toward incremental delivery requires changes in how teams structure their work, plan releases and coordinate across different vehicle systems. Organizations need to establish processes for managing dependencies, testing incremental changes and ensuring updates maintain vehicle safety and performance. With the right processes in place, incremental delivery enables OEMs to respond faster to customer needs and market changes, while maintaining software quality and reliability.

Concepts and solutions

 

Capabilities available on the market as packaged solutions that SDV manufacturers can apply within vehicles or use to transform their internal operations.

Ecosystems and organizations

 

Emerging organizations and ecosystems that should be on every SDV manufacturer’s radar, including networks to be part of and regulatory bodies that could impact operations and engineering decisions.

Techniques and practices

 

New ways of working that can help SDV manufacturers evolve how their teams operate and enable them to deliver better results and driver outcomes.

Technology and products

 

Leading technologies SDV engineers and manufacturers can incorporate into vehicles or apply in their engineering organizations to transform experiences and deliver new value.

Trends

 

Relevant trends that don’t fall into the other four areas. Many of these are general evolutions in software engineering that SDV manufacturers should be aware of.