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Software-Defined Vehicle Ecosystems in Transformation -- A Systematic Literature Review

This systematic literature review analyzes the transformation of the automotive industry into software-defined vehicle (SDV) ecosystems by mapping six levels of collaboration among twelve stakeholder groups, identifying key challenges and opportunities across technical, organizational, and regulatory domains, and proposing a multi-level socio-technical model to address gaps in governance and collaborative business model research.

Original authors: Heidi Hietala, Nirnaya Tripathi, Prabhash Rathnayake, Yueqiang Xu, Tero Päivärinta, Ella Peltonen

Published 2026-04-21
📖 6 min read🧠 Deep dive

Original authors: Heidi Hietala, Nirnaya Tripathi, Prabhash Rathnayake, Yueqiang Xu, Tero Päivärinta, Ella Peltonen

Original paper licensed under CC BY 4.0 (http://creativecommons.org/licenses/by/4.0/). This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer

Imagine the car industry is undergoing a massive makeover. For over a century, cars were like complex mechanical watches: if you wanted a better timepiece, you had to buy a new one with better gears and springs. The value was in the metal, the engine, and the physical parts.

Today, the industry is shifting to Software-Defined Vehicles (SDVs). Think of these new cars less like mechanical watches and more like smartphones on wheels. Just as your phone gets smarter, faster, and more capable through software updates without you ever buying a new device, SDVs are designed to evolve, learn, and improve throughout their entire life.

This paper is a systematic literature review, which means the authors acted like detectives, sifting through hundreds of research studies to figure out how this new "smartphone car" world actually works. Here is the breakdown in simple terms:

1. The Big Shift: From "Building" to "Updating"

In the old days, car companies (OEMs like Ford or Toyota) were the "bosses." They built the car, bought parts from suppliers, and sold it. Once the car left the factory, it was mostly done.

Now, because the car is driven by software, the "boss" role is changing.

  • The Old Way: A linear supply chain. It's like a relay race where the baton is passed from one runner to the next in a straight line.
  • The New Way: A messy, exciting ecosystem. It's more like a jazz band. You have the car company, but they are jamming with cloud giants (like Google or Microsoft), chip makers (like NVIDIA), open-source communities, and even city governments. Everyone is playing different instruments, but they need to stay in sync to make good music.

2. Who is in the Band? (The Stakeholders)

The paper identifies 12 different groups of people and companies involved in this jazz band. They are divided into three levels:

  • The Musicians (Primary): The car makers (both old-school and new ones like Tesla), the part suppliers, and the software coders. They are building the actual car and the code.
  • The Sound Engineers (Secondary): The big tech companies (AWS, Microsoft), the chip manufacturers, and the open-source groups. They provide the stage, the amplifiers, and the tools the musicians need to play.
  • The Audience and the Venue Owners (Tertiary): The governments (who make the rules), the researchers, the banks (who fund the show), and you (the driver). You aren't just watching; your feedback and data actually change how the band plays.

3. The Six Ways They Play Together

The authors found that these groups don't just work in a straight line. They collaborate in six different ways:

  1. Internal: The car company building its own software team (like a band learning to write its own songs).
  2. Bilateral: A car maker partnering with a tech giant (like a band hiring a famous producer).
  3. Supply Chain: Working with the parts suppliers (the instrument makers).
  4. Open Source: Sharing code freely with the world (like a band sharing their sheet music so others can remix it).
  5. Consortiums: Groups of companies agreeing on rules so their instruments fit together (like agreeing on a standard tuning).
  6. Policy: Governments and researchers setting the rules of the venue.

4. The Power Struggle (Who Holds the Mic?)

This is the most dramatic part of the story. In the past, the car maker held the microphone. Now, power is being redistributed.

  • The Tension: Car makers want to keep control (so they can make money from updates), but they need the tech giants' expertise to build the software.
  • The Risk: If a car maker relies too much on a tech giant, the tech giant might become the "real" boss, turning the car maker into just a hardware assembler.
  • The Analogy: It's like a restaurant owner (the car maker) who needs a celebrity chef (the software expert). If the chef becomes too famous, the customers might start going to the chef's other restaurants, leaving the original owner with just the building.

5. The Hurdles (The Challenges)

Building this new ecosystem is hard. The paper lists several "traffic jams":

  • Software Glitches: Cars are safety-critical. A bug in a phone app is annoying; a bug in a car's brakes is deadly.
  • The "Legacy" Problem: Old car companies have decades of old systems (like a library full of dusty, handwritten books) that are hard to connect to new, fast digital systems.
  • The Talent Gap: There aren't enough people who understand both how to build a car engine and how to write complex AI code.
  • The Rules: Different countries have different laws. A car that works in Germany might be illegal in Japan, making it hard to build one "global" software version.

6. The Silver Lining (The Opportunities)

Despite the hurdles, the potential is huge:

  • New Money: Instead of just selling a car once, companies can sell subscriptions (like Netflix for heated seats or self-driving features).
  • Better Cars: Cars can get better over time. A car bought today could be smarter in three years because of a software update.
  • Safety & Trust: If done right, these systems can reduce accidents and make cities cleaner and safer.

The Big Conclusion

The authors argue that we shouldn't just look at SDVs as a technical problem (how to code the car). We need to see them as a social problem (how do humans, companies, and governments work together?).

They propose a new Model for the future:
Think of the SDV ecosystem as a multi-layered city.

  • The Software is the electricity and plumbing (the core infrastructure).
  • The Governance is the city council and the laws.
  • The Stakeholders are the residents, businesses, and visitors.

If the city council (governance) doesn't work with the utility companies (tech firms) and the residents (drivers), the lights will go out, and the city will fail.

In short: The car industry is trying to turn a mechanical machine into a living, breathing digital organism. It's a massive, risky, but potentially rewarding transformation where the "software" is the brain, but the "ecosystem" is the body that keeps it alive.

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