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Software-Defined Vehicles: Transforming Automotive Architecture for the Future



10/16/2025


Software-Defined Vehicles: Transforming Automotive Architecture for the Future
In our previous blog post, we examined what makes a vehicle software-defined (SDV) and why this shift represents a significant milestone for the automotive industry. Now, we’re taking a closer look at the architectural foundation that makes SDVs possible. As car manufacturers move from hardware-focused designs to software-first platforms, the very structure of vehicles is being reimagined from the ground up. But what exactly is changing in vehicle architecture, and why is this shift crucial for the future of mobility?

Understanding the Evolution Toward SDVs
To grasp the path toward fully realized SDVs, it helps to trace the evolution of vehicle architecture and software integration. Keysight aligns with industry leaders and consultancies like PwC in viewing SDV development as a progression through maturity levels—ranging from Level 0 to Level 5—similar to the SAE levels for autonomous driving. The following framework highlights how SDVs mature, evolving from mechanically controlled systems to fully integrated, cloud-native ecosystems, with each stage building on the previous in terms of architecture, capability, and business potential.

Software as the Core Driver of Innovation
As the automotive sector advances along the SDV maturity curve—with many companies moving from Level 2 to Level 3, and frontrunners already operating at Level 4 and above—it becomes evident that software is no longer merely a support function. It has emerged as the central driver of innovation, competitive advantage, and sustainable value.

At early stages, software typically enhances isolated vehicle functions. Over time, however, it forms the backbone of the entire vehicle experience, encompassing everything from core safety systems and operational functionality to user interaction and connected services. Over-the-air (OTA) updates and modular software stacks allow manufacturers to continually introduce new features and improvements long after the vehicle has left the factory.

At the more advanced stages, vehicles begin to function as digital platforms. They support application ecosystems, integrate third-party services, and offer highly personalized experiences. With real-time data at the core, these vehicles can enable predictive maintenance, usage-based insurance, and dynamic performance optimization. Moreover, this architecture supports new business models, from subscription-based features to data-driven services, while facilitating advanced safety, security, and AI-driven mobility solutions such as autonomous driving, robotaxis, and remote tele-driving.

The Legacy: Domain-Oriented Vehicle Architecture
Historically, vehicles have relied on domain-based architectures, where each functional area—infotainment, powertrain, body control, or ADAS—was managed by dedicated Electronic Control Units (ECUs). A single vehicle could have more than 80 ECUs, each tied closely to its own hardware and software, creating isolated domains.

This architecture typically involved:
  • Multiple ECU domains, each responsible for specific functions
  • Heterogeneous bus systems for communication, mostly point-to-point
  • Extensive cross-vehicle wiring, often exceeding 50 kg of copper
While this setup allowed clear functional separation, it also brought several challenges:
  • High ECU counts, with overlapping capabilities
  • Each ECU requiring its own controller and firmware
  • Redundant hardware and wiring, increasing weight and cost
  • Limited flexibility for updates and new features
  • Complex integration and maintenance due to fragmented systems
While effective in the past, domain-oriented architectures introduce silos, reduce scalability, and limit the software-driven evolution of mobility.

The Transformation: Zonal and Service-Oriented Architectures
Zonal architecture reorganizes vehicle electronics around physical zones (e.g., front-left, rear-right) rather than functional domains. Each zone is controlled by a powerful zonal controller that aggregates data from nearby sensors and actuators. These controllers communicate with a centralized High-Performance Computer (HPC) via high-speed, low-latency networks such as automotive Ethernet.

Legacy protocols like CAN and LIN, while reliable, are increasingly insufficient for SDV requirements. Modern solutions like 10BASE-T1S provide lightweight, cost-effective Ethernet connections optimized for low-speed, high-node networks, supporting multipoint communication and both deterministic and non-deterministic functions.

This hardware shift goes hand in hand with a move toward Service-Oriented Architecture (SOA), where vehicle functions—such as navigation, climate control, or lane keeping—are modular services that can be independently developed, deployed, and updated.

Key elements include:
  • High-performance computers: Centralized units for software execution and real-time decisions
  • Automotive Ethernet: High-speed, low-latency backbone supporting multipoint connections
  • Localized wiring: Sensors and actuators connect to their nearest zonal controller, reducing cross-vehicle wiring
  • Service-oriented software: Decouples software from hardware, enabling flexible feature deployment and cross-domain data sharing via standardized APIs
By consolidating processing power and localizing wiring, zonal, service-oriented architectures simplify system complexity, reduce costs, and improve reliability. Centralized computing also fosters a dynamic software environment, enabling rapid deployment of features, streamlined updates, and continuous integration of third-party services. Modular, service-based software allows for agile development workflows, CI/CD/CT pipelines, and seamless OTA updates—ensuring vehicles continue to evolve post-production.

Building the Software-Defined Vehicle
This architectural evolution establishes the foundation for SDVs: intelligent, adaptable platforms capable of continuous improvement in a rapidly changing mobility landscape.

Looking Ahead
This shift is more than a technical update—it’s a strategic transformation. Automakers must embrace hardware/software separation, leverage commoditized components, and build modular, scalable, secure, cloud-connected platforms designed for rapid iteration. In the SDV era, software is not just an addition; it defines the entire vehicle experience, driving innovation, differentiation, and long-term value.

In the next installment of our SDV Series, we’ll explore the business challenges of this transition and how organizations can proactively navigate and shape it to maintain a competitive edge.