Under The Hood: SDV Developer Report
The automotive industry is in the midst of its most significant transformation yet. Every part of the vehicle is being reimagined, with software taking the driver’s seat. This new, software-defined vehicle (SDV) era is buzzing with transformative applications and services, but it also presents immense challenges for the developers building this future.
To understand the state of play, QNX commissioned the Under The Hood: SDV Developer Report, a global study surveying 1,100 embedded automotive software developers. The findings reveal an industry that is resilient and endlessly creative, but one that is also navigating complex pressures. Developers have a clear and powerful message for OEMs: the time has come for a strategic shift in focus.
A Clear Mandate for OEMs: Focus on Applications, Not Infrastructure
It all starts with a solid foundation. But where should an OEM’s focus lie? According to developers, the answer is overwhelmingly clear. A remarkable 80% of automotive software developers said their businesses should focus on innovation in the application layer, the features and services consumers interact with, and less on the foundational software infrastructure.
This sentiment is even stronger among senior leadership, with 94% of VPs of Engineering agreeing that this shift is the right move. The rationale is simple: this approach allows OEMs to bring innovative capabilities to market more quickly and to better differentiate the end-user experience. This suggests a growing need for OEMs to rely on dependable partners for the underlying software, freeing up their own expert teams to create the in-car experiences that define their brand.
The Productivity Problem: Top Hurdles Slowing Down Innovation
While the vision for the future is clear, developers on the ground are facing significant roadblocks that hamper productivity. The report identifies five major challenges that are consistently slowing down software development:
- Long development cycles (cited by 37%)
- Complex debugging and testing processes (36%)
- Integration complexity (36%)
- A lack of scalability across platforms (36%)
- Regulatory compliance (35%)
These issues are compounded by the quality of the development environment itself. Only 30% of developers rated their current environment as "excellent," a shortfall that poses a clear risk to productivity, innovation, and talent retention. In a world of endless complexity, developers need the tools and support to do their best work.
The Double-Edged Sword of Artificial Intelligence
It’s impossible to talk about the future without discussing Artificial Intelligence. Our technology-driven world moves fast, and developers see AI as a massive opportunity to learn and improve. An overwhelming 91% believe AI will play a major role in automotive software development over the next three to five years.
However, this transformation comes with a significant impact on the workforce. On average, developers predict that AI tools could realistically replace more than a third (35%) of human software development roles within the next decade. This doesn’t signal an end for human ingenuity, but rather a shift in the skills required to succeed. Developers identified cybersecurity (58%), functional safety (53%), and AI/ML integration (51%) as the most critical skills for the developer of the future.
Navigating a Complex Web of Recalls and Regulations
When mission-critical tasks have real-world consequences, reliability is everything. Recent software recalls and evolving regulations have become a critical challenge for the industry. Nearly six out of ten developers (58%) reported that recent recalls have significantly changed their team’s approach to software development.
Cybersecurity regulations present the single biggest challenge, with 47% of developers citing them as difficult to comply with. Yet, in a demonstration of the industry's commitment to progress, the response to new rules is not always to slow down. While 33% of developers reported delays due to new regulations, 40% said these changes actually led to accelerated timelines, forcing a more efficient and effective approach.
The Path Forward for a Resilient and Collaborative Industry
The report paints a clear picture of a confident, optimistic, and highly adaptable industry that is tackling immense challenges head-on. To navigate this complex environment, it all starts with partnership. The vast majority (93%) of developers said that cross-industry collaboration between OEMs, Tier 1 suppliers, and software vendors is important to their current projects.
Success in the new automotive era requires more than just great code; it requires a strategic vision. For OEMs, the message from their own development teams is clear: focus on the applications that delight customers and build on a trusted, proven, and safe foundation provided by expert partners. This collaborative approach is how the industry will solve today’s challenges and unlock the full potential of the software-defined future. Your answer to complexity starts here.