Road to 2030: Software-Defined Solutions Drive Mobility Innovation 

At its core, software is simply a sequence of ones and zeroes. Yet the way in which these binary codes are combined is transforming the very foundation of how vehicles operate and perform. As software becomes increasingly centralized to the operation of modern vehicles, it is unlocking new opportunities for innovation across the automotive mobility sector – and beyond.   

 

Software-Defined Vehicles & Supporting Systems

At the forefront of this evolution is the Software-Defined Vehicle (SDV), which prioritizes software updates as the driving force behind functionality, feature, and performance improvement on automobiles.  

 

While the idea of SDVs has been around since the early 2000s, it’s only been over the past decade or so that OEMs and automotive suppliers have really leaned into the idea of creating automobiles that work like smart phones on wheels. Now, SDVs have become the dominant model for how vehicles are designed, built, operated, and monetized.  

 

A vital capability driving development and innovation in SDVs is Over-the-Air (OTA), a system capability pioneered by the telecommunications industry for secure, remote delivery, and management of software updates to connected devices.  

 

Just like how smart phone users receive operating system and app updates to fix bugs and improve the user experience, vehicle owners can benefit from similar updates delivered to their cars OTA – extending the lifecycle of vehicles through continuous improvement. Drivers no longer have to buy a brand-new car to take advantage of new features or functionality from hardware updates. Those updates can now be delivered from OTA to SDVs.  

 

It’s worth noting, however, that an increasing reliance on software makes vehicles more vulnerable to cyberattacks – just like any personal computer, tablet, or connected device like wearables, smart TVs and even IoT-enabled baby monitors. As SDVs have advanced and become the industry baseline for automobile development, OEMs and suppliers have simultaneously had to advance technology solutions to prevent cyberattacks on vehicles.  

 

SDVs sit at the heart of this new frontier in vehicle design, they are enabled by OTA updates and safeguarded by advancing cybersecurity initiatives, together forming a synchronized management system that supports continuous and innovative vehicle development. 

 

Broader Applications

The automotive industry has traditionally been at the forefront of technological advancements and developments that benefit other industries and applications. While systems and technologies like OTA and cybersecurity aren’t necessarily new, the automotive mobility industry’s foray into these spaces has driven innovation, refinement and standardization. 

 

For example, the automotive and mobility sectors have been instrumental in the development and global adoption of cybersecurity standards and regulation, including ISO/SAE 21434 and UNECE WP.29 R155/R156 that require cybersecurity management standards across the entire product lifecycle. These standards have become a common framework for assessing risk in industries like manufacturing, energy, and critical infrastructure to improve governance and reliance.  

 

Similarly, while industries such as technology, finance and governance pioneered advanced cybersecurity infrastructures like Vehicle Security Operations Centers (VSOCs) and Security Orchestration, Automation and Response (SOAR) platforms, the mobility industry continues to push these systems into new territory.  

 

Supporting real-time threat detection and response across millions of safety-critical, mobile endpoints has driven the evolution of VSOCs and SOAR toward more resilient, scalable, and cyber-physical-aware architectures that are increasingly relevant across utilities, defense, industrial IoT, and financial services.  

 

And, as previously mentioned, OTA updates originated with the telecommunications industry through smart phones, but mobility applications have extended OTA into far more safety-critical and cyber-critical systems. 

 

Modern vehicles contain dozens of electrical control units, forming highly complex electronic and electrical architectures that require sophisticated coordination, validation, and fail-safe mechanisms to support reliable OTA updates. Stronger safety-first OTA design patterns utilized in modern vehicle architecture have spilled over into industrial automation, medical devices, and robotics.   

 

The automotive mobility industry also had to content with OTA challenges like backward compatibility and mixed hardware deployments in OTA updates due to the longer lifespan of vehicles. These solutions have proven valuable in other industries with assets that can last for decades, including energy and utilities, manufacturing equipment and smart infrastructure.  

 

Expansion Potential

Rapid advancements in SDVs, OTA and cybersecurity will have a significant economic impact. North America’s software spending for hybrid and electric vehicles will continue to grow, with electric-vehicle software alone projected to reach $575 million by 2030. 

 

This impact will be especially apparent in OTA systems and technologies, where mobility leaders now aim to apply them across the entire vehicle, updating software that influences systems such as engine performance, fuel efficiency, and steering. This expectation is reflected in their penetration, where OTA capabilities in light vehicles will grow from nearly 0% in 2021 to 86% by 2027.  

 

As vehicles make greater use of software-enabled technology, jobs in Michigan are also anticipated to grow. Employment in SDV is expected to increase by 56%, from 4,800 SDV-related workers in 2023 to 7,500 by 2030. 

 

Mobility Use Cases

There are multiple corporations and startups across the Detroit region working in mobility-related software technologies. These companies include:  

 

• Ford’s new software-defined vehicle plan, called FNV3.X, aims to improve digital teams for faster OTA software updates, provide access to new features, and continue to modernize the industry. The FNV3.X platform will enable a shared platform across all vehicle lines, not just EVs. They are working to improve security, driving, and infotainment technologies within vehicles.  

• Block Harbor is a Detroit-based company that completes risk assessments, vulnerability identification, and testing and regulatory compliance across the entire vehicle lifecycle for companies in software-defined vehicles.  

• Movimento, based in Troy, is a division of Aptiv that provides reflash services. Through Movimento’s OTA platform, automakers can remotely update vehicle software by sending new, secure software from the cloud to each vehicle over the air, where their in-vehicle system manages the safe installation. This allows mass updates to be completed without requiring a dealership visit. 

 

As the definition of mobility technologies evolves and mobility organizations in the Detroit region continue to integrate software more deeply into their systems and products, GEM and its partners provide support through startup assistance, talent transformation, site readiness support, and more. GEM aims to connect organizations to the resources they need for the implementation of future technologies and continued success in the industry.