The automotive industry is undergoing a radical transformation as software becomes the key driver of innovation and value creation. Software Defined Vehicles (SDVs) are the future of mobility, offering customers the ability to customize and upgrade their vehicles remotely and seamlessly. Three major players in the South Korean market, Samsung, Hyundai Motor, and LG, are competing to lead this new era of software-defined mobility.
What are Software Defined Vehicles?
Software Defined Vehicles are vehicles that can be controlled and modified by software, rather than hardware. This means that the vehicle’s functions, features, and performance can be changed and improved through Over-The-Air (OTA) software updates, without the need for physical intervention or replacement of parts. SDVs can also adapt to the preferences and needs of different drivers, passengers, and environments, offering a personalized and optimized driving experience.
SDVs are enabled by a new architecture that integrates hardware and software technologies, such as:
- A next-generation Electric Vehicle (EV) platform that supports various types of vehicles and powertrains
- An integrated controller that consolidates multiple Electronic Control Units (ECUs) into a single unit, reducing complexity and cost
- A Connected Car Operating System (ccOS) that manages the communication and data processing between the vehicle and the cloud, as well as the OTA software updates
- A Connected Car Service (CCS) that provides customers with various services and features based on their preferences and usage patterns
Why are Software Defined Vehicles important?
Software Defined Vehicles are important for several reasons, such as:
- They offer customers more choice and convenience, as they can customize and upgrade their vehicles anytime, anywhere, according to their needs and preferences
- They enhance customer satisfaction and loyalty, as they provide customers with fresh functionality and features that keep their vehicles up to date and relevant
- They create new business opportunities and revenue streams, as they enable the provision of software subscriptions, data-based services, and platform partnerships with diverse industries
- They improve efficiency and profitability, as they reduce the development time and cost of new models and features, and increase the utilization and lifespan of vehicles
- They foster innovation and competitiveness, as they enable the rapid deployment and testing of new technologies and solutions, and accelerate the adoption of emerging trends such as autonomous driving, smart mobility, and green energy
How are Samsung, Hyundai Motor, and LG competing for Software Defined Vehicles?
Samsung, Hyundai Motor, and LG are three of the leading companies in the South Korean market that are competing for the Software Defined Vehicle market. Each company has its own strengths and strategies, such as:
- Samsung: Samsung is a global leader in electronics and software, with a strong presence in the semiconductor, display, and smartphone industries. Samsung is leveraging its expertise and resources to develop its own SDV platform, called Samsung Automotive Innovation Platform (SAIP), which will offer a comprehensive solution for hardware, software, and services. Samsung is also collaborating with various automakers, such as Audi, BMW, and Ford, to provide them with its advanced components and technologies, such as Exynos Auto processors, OLED displays, and Harman audio systems.
- Hyundai Motor: Hyundai Motor is a global leader in the automotive industry, with a wide range of vehicles and brands, such as Hyundai, Kia, Genesis, and Ioniq. Hyundai Motor is investing heavily in its software capabilities, aiming to transform all its vehicles to SDVs by 2025. Hyundai Motor is developing its own ccOS and CCS, as well as its next-generation EV platforms, called eM and eS, which will support various types of vehicles and powertrains. Hyundai Motor is also expanding its mobility solutions, such as Purpose Built Vehicles (PBVs), Advanced Air Mobility (AAM), robotaxis, and robots, which will be connected and integrated with its SDVs.
- LG: LG is a global leader in the home appliance and entertainment industries, with a strong presence in the OLED TV, smartphone, and smart home markets. LG is focusing on its core competencies, such as displays, batteries, and cameras, to provide high-quality components and technologies for SDVs. LG is also partnering with various automakers, such as General Motors, Tesla, and Geely, to supply them with its products and solutions, such as LG Chem batteries, LG Display OLED panels, and LG Innotek cameras.
Who will win the Software Defined Vehicle race?
The Software Defined Vehicle market is expected to grow rapidly in the coming years, as customers demand more flexibility, convenience, and personalization from their vehicles. The competition among Samsung, Hyundai Motor, and LG will be fierce, as each company has its own advantages and challenges. The winner will be the one who can offer the best combination of hardware, software, and services, as well as the most innovative and customer-centric solutions.
