Connectivity is becoming cheaper per unit thanks to standardisation and scaling. Yet, overall costs for automakers are rising. Why? Because the shift to software-defined vehicles and advanced features like ADAS, autonomous driving and infotainment introduces three interconnected cost drivers: connectivity infrastructure, internal system complexity and third-party integrations.
The industry knows this challenge well. Omdia’s 2025 ‘Software-Defined Vehicle (SDV) Survey‘ highlights increased system complexity as one of the top concerns for automotive leaders. In response, OEMs are investing heavily in simplifying their architectures — from BMW’s plans to completely redevelop the electronics stack for its Neue Klasse vehicles to VW’s joint venture with Rivian to build state-of-the art zonal architecture and software.
But paring back complexity is only part of the story. Even as unit connectivity costs fall, the hidden operational and ecosystem costs continue to spiral.
Automotive connectivity costs declining, yet software complexity remains
Modern cars depend on secure, high-speed, globally available connectivity to power advanced features. While automotive connectivity costs are declining, the software and orchestration layer is becoming more expensive. It demands specialised protocols and constant updates; new systems must integrate with legacy platforms, adding significant engineering overhead; and cybersecurity and regulatory compliance introduce ongoing, unavoidable costs.
Automakers have built complex internal ecosystems to manage connectivity, data flows and vehicle functions. But these systems are often hampered by legacy technology, duplicated platforms, tooling and licenses and tricky maintenance costs as systems evolve — all of which slows innovation and create operational headaches.
Beyond legacy system integration challenges, you have third-party automotive integrations to support functions like navigation, infotainment, cloud analytics and over-the-air (OTA) updates. Each new integration introduces fresh hurdles, including subscription fees, setup and support requirements, compatibility issues with existing systems and added security risks.
Ultimately, the real issue is interdependence. Connectivity, internal systems and third-party integrations aren’t isolated challenges. Without visibility across all three layers, OEMs struggle to spot redundancies, understand what’s making them money, plan scalable architectures or negotiate effectively with vendors.
Solving the interdependence challenge
Explore3 gives OEMs the clarity and control they’ve been missing in today’s increasingly complex software-defined vehicle landscape. By providing a unified view. Explore3 enables teams to map technology dependencies, identify redundancies and eliminate duplication across internal systems and third-party integrations — which is essential to managing automotive connectivity costs.
With cost analytics dashboards, automakers can break down expenses by category, vendor, region, and system complexity. This transparency allows teams to pinpoint inefficiencies and optimise spending, supporting effective software-defined vehicle cost optimisation across their platforms.
Risk and compliance monitoring is also built directly into the platform, meaning OEMs reduce exposure to cybersecurity threats, regulatory penalties, and other operational risks that can drive up costs. Meanwhile, future-proof planning tools support scalable, adaptable connectivity strategies, ensuring that OEMs can keep pace with evolving technology while keeping automotive connectivity costs in check.
By combining visibility, actionable insights and strategic planning, Explore3 empowers automakers to make data-driven decisions, streamline integrations and achieve software-defined vehicle cost optimisation. This creates a connectivity ecosystem that is cost-efficient, scalable and capable of adapting to the ever-evolving SDV industry.
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