The automotive industry is undergoing a transformation from a hardware-centric approach to one centered on software-defined vehicles (SDVs) and advanced driver assistance systems (ADAS). As the SDV structure, which allows for regular software updates even after release rather than being a fixed function during the vehicle manufacturing stage, becomes standard, the performance, safety, and convenience of automobiles are expected to advance by leaps and bounds.

Omdia recently published an e-book titled 2025 Automotive Technology Trends and Forecasts.

This e-book analyzes the key forces reshaping the autotech landscape in 2025, from automotive electrification and China’s market dominance to smart cockpits, connectivity, software integration, ADAS development, and the shift toward sustainability.

SDV, Evolving Vehicle System with OTA Software-defined vehicles operate on an E/E (electrical/electronic) architecture that integrates and simplifies ECUs (electronic control units) within the vehicle.

Functions that were previously tied to hardware constraints for each individual ECU are now improved without restrictions through a centralized domain controller and communication-based OTA (Over-The-Air) updates.

Through 5G/6G communication networks and cloud connectivity, functions that suit the driving environment and consumer preferences are reflected in real time, and continuous addition of functions is possible even after launch.

Sensor fusion core ADAS is currently in a transitional phase from Level 2+ to Level 3.

Lane keeping, automatic emergency braking, and intersection pedestrian detection functions are being improved through sensor fusion that combines cameras, radar, and lidar.

Major OEMs and component makers aim to commercialize Level 3 systems by 2025-26, enabling autonomous driving on highways and limited urban driving.

The autonomous driving AI-based image and radar processing module completed with AI and the cloud is the 'brain' of SDV.
> In-vehicle edge computing and cloud AI models are combined to achieve real-time object recognition and situational judgment.

The learned AI analyzes driving patterns to improve driving assistance performance on its own, and the driving algorithm updated via OTA is constantly evolving.

Global Market Outlook Market research firm Wards Intelligence predicts that 15-20% of new vehicles will adopt SDV architecture by 2036.

The proportion of software-defined vehicles, currently at around 4-5%, is expected to rapidly increase over the next 10 years.

ADAS penetration has already exceeded half of new vehicles worldwide in 2024, and it is predicted that it will be standard equipment in almost all new vehicles by 2028.

Mobility innovation combined with connectivity, sharing, and electrification SDV and ADAS are combined with electric vehicles (EV), mobility services (MaaS), and connected cars to complete the 'CASE (Connected, Automated, Shared, Electric)' ecosystem.

Manufacturers can generate additional revenue through subscription-based feature provision (FoD, Feature on Demand), and users can enjoy cost efficiency by selecting and purchasing only the features they need.

Domestic industry response Hyundai Motor Group is commercializing its self-developed 'Hyundai-Kia OS' as an SDV platform.

Last year, some EVs were equipped with an OTA-compatible infotainment system along with Level 2+ functions, and Level 3 autonomous driving technology is planned to be introduced in stages starting in 2025.

Electronics component manufacturers such as Samsung Electronics and LG CNS are also participating in the SDV ecosystem by expanding their AI chip and communication module businesses.

Task and speed prevention software responsibility·Cybersecurity issues are the biggest obstacle to the spread of SDV and ADAS.

Connected vehicles can be exposed to hacking and data leaks. The European Union (EU) and Korea have already introduced ‘vehicle cybersecurity regulations’, and integrated security architecture and regular security patches are becoming mandatory.

Omdia experts said, “SDV and ADAS, a step toward the future, are not simply cutting-edge options, but essential elements of future mobility.” They added, “Over the next 10 years, automobiles will evolve into ‘road computers,’ and user experience and safety will depend on software quality. Cooperation and standardization competition between domestic and foreign automakers, parts, and software companies are expected to become more intense. The automobile industry is now competing with software competitiveness beyond hardware.”