Software-Defined Vehicle Era Shifts Parts' Value Core to Software
Category: Company News
"Software-Defined Vehicle" is no longer a concept but a reality. This means the core of a vehicle's value and differentiated competition is shifting from traditional hardware to software and algorithms. For parts suppliers, this presents both a challenge and an opportunity.
For instance, the experience of a smart cockpit no longer depends solely on the size and number of screens but relies more on the underlying operating system, human-machine interface, and rich application ecosystem. Similarly, the performance of an ADAS system is determined by the accuracy of perception algorithms and the intelligence of decision-making algorithms. Consequently, suppliers like Bosch and Aptiv are massively recruiting software engineers and establishing independent software divisions.
The role of suppliers is evolving from pure hardware manufacturers to comprehensive "Hardware + Software + Services" solution providers. Through Over-The-Air (OTA) updates, they can continuously add new functions or optimize performance, creating new profit models. In the future, parts companies lacking software R&D capabilities will find it difficult to integrate into the smart car supply chain.
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