Software-Defined Vehicles by 2035 | IBM Predicts AI-Powered Future

IBM’s latest Automotive 2035 study unveils a transformative decade for the automotive industry, led by the rise of software-defined vehicles (SDVs). According to the report, 74% of executives believe that by 2035, vehicles will be AI-powered and software-driven, marking a pivotal shift in mobility.

Key Trends Driving the Future of Software-Defined Vehicles

The IBM study, based on 1,230 interviews with senior executives from OEMs, suppliers, and industry leaders across nine countries, highlights the following trends shaping the automotive sector by 2035:

1. Software-Defined Vehicles (SDVs):

   • 74% of executives believe AI and software will drive vehicles, making them smarter and more adaptable.

2. Electrification:

   • 80% of new cars will feature an electrified powertrain, emphasizing sustainability.

3. Brand Experience:

   • 75% of respondents agree that a software-driven experience will define brand value in the future.

4. Revenue Models:

   • The industry is transitioning from one-time sales to recurring revenues through digital services.

Challenges in the Evolution of Software-Defined Vehicles

The shift to SDVs comes with its own set of challenges:

• Lack of Tools: 77% of executives highlight the absence of advanced software development tools.
• Cultural Barriers: 74% point to challenges arising from traditional, mechanical engineering-focused cultures.
• Technical Complexity: Separating hardware and software layers remains a significant obstacle.

To overcome these hurdles, automakers need to redesign their electrical and software architectures while fostering innovation.

How AI and Cloud are Revolutionizing SDVs

Jeff Schlageter, Automotive Industry General Manager at IBM, explains that combining AI with cloud technologies enables automakers to explore innovative features, test software configurations, and deliver personalized user experiences.

By leveraging AI’s data analysis capabilities, automakers can accelerate the development of SDVs, identifying patterns and predicting customer needs with precision.

A Look Ahead

The IBM Automotive 2035 study emphasizes that software-defined vehicles are more than a trend—they are the future of the automotive industry. As automakers embrace this transformation, the focus will shift toward electrification, enhanced user experiences, and recurring revenue models driven by cutting-edge software and AI.

Stay ahead of the curve with insights into how software-defined vehicles will reshape mobility.

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