Connectivity is now the defining multiplier of software-defined vehicles (SDVs). It amplifies software capability, operational resilience, and monetisation potential. Across the automotive and mobility industry, 2025 has marked a clear shift: the SDV has moved from strategic ambition to operating reality.
At Cubic3, our work with OEMs, fleets, and mobility providers, combined with insights from global industry forums, shows a consistent pattern. The organisations making the fastest progress are simplifying their architectures, reducing operating costs, and building in-vehicle experiences that rely on secure, scalable, brilliant connectivity. Below, we highlight the core trends shaping this SDV transition and what they mean for the next phase of connected mobility.
Connectivity is now the SDV’s foundation
Industry analyses from S&P Global, Alvarez & Marsal and Omdia point to the same conclusion: connectivity has shifted from a hardware component to a central layer of the SDV software stack.
Three forces are driving this:
- OTA as a core operational tool: Updates now support safety improvements, EV optimisation, diagnostics, and feature deployment — not just infotainment.
- Complexity of global deployments: OEMs are consolidating ECUs and modernising software programmes while ensuring connectivity infrastructure scales securely across markets.
- Regulatory expectations: Standards such as UNECE R155/156, NIS2 and TISAX now set the minimum bar for secure SDV operations.
When connectivity fails, software capability weakens. When connectivity is resilient, every software layer performs better. This makes managed connectivity, SGP.32 eSIM flexibility and multi-network redundancy essential multipliers of SDV performance.
The cockpit is becoming a strategic platform, shaped by AI
Platform decisions, not UI preferences, are reshaping the in-car experience. OEMs are reconsidering control of the interface, the data, and the service ecosystem.
Recent shifts include:
- GM’s planned phase-out of Apple CarPlay and Android Auto from 2028, prompting industry debate.
- Apple CarPlay Ultra is integrating more deeply into vehicle functions.
- Euro NCAP’s updated guidance limits touch-only controls for 5-star ratings.
AI is filling the gap between reduced touch interaction and rising experience expectations. OEMs are adopting conversational interfaces, personalisation engines, and context-aware services — all of which rely on consistent, low-latency connectivity.
Whichever route OEMs choose, connectivity remains the multiplier: it enables safe AI behaviours, responsive interactions, and unified digital services.
Fleets are becoming early SDV value leaders
While consumer adoption of paid digital features varies, commercial fleets are already realising the benefits of SDV.
Key areas of momentum include:
- In-vehicle payments and automated fuelling – Reducing fraud and reconciliation effort, and removing reliance on physical fuel cards.
- Compliance automation – Driven by regulations such as the EU Smart Tachograph II, which increase demand for trusted data flows.
- Predictive and integrated operations – Combining telematics, diagnostics, and utilisation insights into a single operational picture.
Fleets illustrate a broader trend: the SDV is becoming a transactional platform. Here, identity, secure data and connectivity form the technical foundation.
OEM SDV strategies are evolving — with partnerships accelerating
Several OEMs are recalibrating SDV programmes to focus on areas that deliver the most value:
- Select high-profile internal software initiatives have been narrowed or reshaped.
- Joint ventures such as the Volvo–Daimler Truck Coretura platform signal a shift to shared architectures.
- Interest in open ecosystems — including the Eclipse SDV community — continues to expand.
- Honda’s “Asimo OS” for Honda Zero EVs reflects renewed investment in vertically integrated software platforms.
This recalibration emphasises collaboration. OEMs are choosing where to innovate, standardise, and partner. Cubic3’s work with global operators such as SoftBank and technology partners like Thales supports this direction: ecosystem integration is becoming the fastest path to SDV scale.
Trust, resilience, and security are now baseline requirements
With greater reliance on software comes a need for stronger operational safeguards.
Industry developments in 2025 include:
- Increased scrutiny of OTA activity and ADAS data reporting.
- Higher cybersecurity expectations across supply chains.
- More focus on service continuity during regional network outages.
Frameworks such as TISAX, ISO 27001/27017 and NIS2 are now baseline requirements for organisations handling vehicle and driver data. Trust has become a core attribute of connected mobility—and a prerequisite for any solution that scales.
Monetisation enters a more evidence-based phase
The SDV monetisation model is maturing. The opportunity remains strong, but consumer behaviour is clarifying:
- Drivers are selective about which services they value.
- Higher adoption is seen among premium brands and younger cohorts.
- Reliability, simplicity, and visible benefit shape willingness to pay.
This shift marks a healthy evolution from expectation to evidence. Sustainable monetisation depends on delivering outcomes, not just features — and on architectures that support dependable service availability.
What comes next?
2025 shows that these SDVs are increasingly defined by the vehicle’s ecosystem, not solely by code running on it. Connectivity, AI, security, payments, OTA, compliance, and partnerships are converging into a new operational model for mobility.
Cubic3 sees connectivity as a multiplier: it strengthens software capabilities, improves operational efficiency, and helps manufacturers, fleets, and mobility providers unlock recurring value.
