Connected car subscriptions are part of the latest trend in which some automakers seek to profit from the customer long after the vehicle was purchased. Vehicle features and access to smartphone apps that were once free are now being bundled by some automakers into monthly subscriptions. Most subscription-based features are possible because new cars are often "connected cars," meaning they can communicate with the manufacturer for over-the-air software updates, which is convenient. Unfortunately, that convenience, combined with the deeply interconnected nature of your vehicle's electronic systems, also enables manufacturers to remotely activate and deactivate features.

The automotive industry is undergoing an extensive transition from hardware-centric development to software-defined vehicles (SDVs). This paradigm shift requires innovative technical solutions and fundamentally different approaches for vehicle design. Together, these developments introduce substantial challenges for an entire industry, affecting both development processes and operations. Although SDVs have attracted considerable attention and widespread industry involvement, prior research has primarily emphasized systematic literature reviews identifying emerging academic trends. Consequently, little attention has been paid to industry and economic developments that influence how SDV technologies evolve in practice and are crucial for future advancement. In response, this article provides a different, industry-oriented view of the current trends and associated challenges of SDVs. To achieve this, we conducted a comprehensive analysis of the SDV from an industry-based perspective. We analyzed three sources of information to identify the current trends in SDV development: expert interviews with automotive IT specialists, a study on major automotive trade fairs and workshops, and insights gained from the authors' professional experience. Based upon, we derive specific challenges arising from these trends. Our findings offer a comprehensive overview of the present SDV landscape, trends, and challenges, and serve as a foundation for future research efforts in this rapidly evolving field.

Modern fleet operations require seamless integration of multiple connected systems including vehicle data, maintenance records, routing, and safety programs. Verizon Connect's fleet management software-as-a-service (SaaS) platform consolidates these disparate systems into a single cloud-based environment, enabling organizations to monitor operations in near real time, automate workflows, and scale efficiently. The platform processes real-time data from vehicles, assets, drivers, and third-party systems, allowing fleet managers to access comprehensive information from one dashboard rather than navigating multiple platforms. Key advantages of SaaS fleet management include significant cost savings compared to purchasing and maintaining proprietary hardware and data centers, reduced liability gaps through automated maintenance scheduling and behavioral alerts, and operational flexibility through subscription-based deployment. Cloud-based solutions eliminate costly upfront infrastructure investments while enabling organizations to expand capabilities as needs evolve and avoid legacy system obsolescence. The platform prepares fleets for next-generation AI-enabled operations by providing transparent measurement of software spend against business outcomes including fuel usage, maintenance costs, safety metrics, and asset utilization, making it increasingly essential for modern fleet leadership.

The global EV truck battery swapping market, valued at USD 3.17 billion in 2025, is projected to grow to USD 21.82 billion by 2035 at a compound annual growth rate of 21.3 percent, according to Cervicorn Consulting. Battery swapping technology enables electric trucks to exchange depleted battery packs for fully charged ones at dedicated stations within minutes, substantially reducing vehicle downtime compared to conventional charging methods. This rapid energy replenishment system is particularly valuable for high-utilization commercial fleets in freight transportation, logistics, mining, ports, and construction, where minimizing vehicle downtime directly impacts operational economics. The technology supports battery-as-a-service models, separating battery ownership from vehicle ownership and potentially reducing initial truck acquisition costs. Market growth is being driven by rapid electrification of heavy-duty transportation, declining battery costs, government zero-emission initiatives, and expanding swapping infrastructure investments. As fleet operators transition from diesel to electric vehicles, they increasingly prioritize uptime and route efficiency, making battery swapping an attractive solution for predictable routes between fixed logistics hubs and industrial facilities.

Tesla is shifting its robotaxi strategy by limiting new Model Y additions to its autonomous fleet while preparing to scale production of its purpose-built Cybercab, according to recent JPMorgan analysis. This represents a significant transition in Tesla's approach to autonomous ride-hailing, moving from adapting existing consumer vehicles to deploying a vehicle specifically engineered for robotaxi operations. The Model Y has served as a transitional platform, leveraging millions of existing units and extensive real-world driving data to develop Tesla's Full Self-Driving technology. However, the Cybercab offers fundamental advantages: designed without traditional steering wheels or pedals, it optimizes every component for autonomous passenger transportation rather than private ownership. Tesla has indicated that Cybercab will gradually replace the Model Y fleet and eventually become its largest-volume robotaxi vehicle. This transition suggests Tesla is approaching a critical inflection point, moving from experimental testing to large-scale commercial autonomous ride-hailing deployment. The strategic shift is significant for investors and the automotive industry, indicating that Tesla's long-term robotaxi success depends on scaling purpose-built platforms rather than repurposed consumer vehicles.

The robotaxi industry's competitive landscape is fundamentally defined by cumulative autonomous distance on public roads, which serves as both a safety metric and a data accumulation engine. Waymo leads US operations with approximately 220 million fully autonomous miles through March 2026, published weekly at roughly 4 million miles, and maintains the only independently scored safety record per mile by IIHS as of July 2026. Baidu Apollo Go reports the largest autonomous-kilometer total at 350 million-plus, with 220 million fully driverless as of May, across 28 cities. Tesla's unsupervised Robotaxi program trails significantly at 1 million miles as of September 2026, operating 420 registered vehicles in Texas including 45 Cybercabs. Waymo dominates paid US trips at approximately 500,000 weekly, targeting 1 million by year-end, while Zoox launched the first purpose-built autonomous vehicle without steering controls in Las Vegas in August. Chinese competitors Pony.ai and WeRide are scaling rapidly with 1,975 and 1,800-plus robotaxis respectively. Comparing these operators requires distinguishing between autonomous miles, trip volume, fleet size, and geographic coverage rather than treating city counts as equivalent metrics.

McKinsey estimates artificial intelligence could represent an annual value opportunity of approximately $215 billion for automotive original equipment manufacturers globally across research and development, manufacturing, supply chain, and sales. However, most industry spending on AI will fail to deliver tangible results, with successful companies treating AI as an operating discipline rather than a science project. The automotive sector faces unique challenges that distinguish it from consumer technology: physical products with safety-critical tolerances, complex international supply chains, capital-intensive manufacturing facilities, stringent regulatory requirements, and extended customer relationships spanning sales, service, and resale. Rather than adopting a move-fast-and-break-things approach, automotive companies must proceed deliberately, proving value on bounded problems before scaling. Early AI wins typically emerge in design and engineering phases before manufacturing, where generative design and simulation-driven AI compress traditionally multi-year timelines. Success in automotive AI depends on understanding these structural realities and implementing a disciplined approach that prioritizes measurable financial impact on the profit and loss statement over theoretical applications.

As vehicles evolve into software-driven, connected systems combining embedded software, sensors, electronic control units, and remote capabilities, automotive cybersecurity has become critical to the entire development lifecycle. Modern vehicles feature multiple digital interfaces including Bluetooth, Wi-Fi, cellular communication, infotainment systems, and Over-the-Air (OTA) updates, each creating potential vulnerabilities that could compromise vehicle functions, data confidentiality, and system integrity. Automotive cybersecurity now encompasses processes, technologies, and engineering practices to identify, assess, and mitigate digital risks throughout vehicle systems. The industry has adopted "security by design" principles, addressing cybersecurity requirements from early development stages rather than adding protection retroactively. ISO/SAE 21434 serves as a key international standard, requiring cybersecurity risk management across the entire lifecycle of electrical and electronic systems, from concept through decommissioning. Additionally, regulatory frameworks including UN R155, which establishes vehicle cybersecurity and Cyber Security Management Systems requirements, and UN R156, addressing software updates, demonstrate that automotive cybersecurity is now an engineering discipline rather than an IT afterthought.

Tata Consultancy Services (TCS) has launched Mobility Connected Vehicle Solutions to capitalize on the anticipated proliferation of connected vehicles, which are expected to comprise the majority of new automotive sales within five years. The comprehensive suite addresses the automotive industry's evolution toward Neural Manufacturing—an approach emphasizing sense, perceive, and act behaviors throughout product development and final delivery. TCS's offering integrates onboard and offboard expertise spanning cloud infrastructure, software development, user experience design, and advanced analytics, complemented by strategic business advisory services. The solution leverages TCS's proprietary patented platforms and deep knowledge of allied industries to create an integrated ecosystem. By enabling manufacturers to harness vehicle and driver data, the solutions facilitate personalized customer journeys and unlock innovative monetization opportunities. This initiative positions TCS to help automotive clients navigate the connected vehicle transition, delivering competitive advantages through Neural Manufacturing principles and comprehensive technical and commercial support.

A major European automotive conglomerate faced critical security challenges across its expanding connected vehicle ecosystem, with fragmented infrastructure creating silos in vehicle identity, certificate, and cryptographic key management. The existing distributed architecture limited operational efficiency, constrained scalability, and increased risks of unauthorized access and human error during manual provisioning processes. To support future large-scale deployments, the organization needed a centralized, unified security solution capable of streamlining identity and credential management while simplifying partner integrations. Tata Elxsi designed and implemented a comprehensive security-first connected vehicle platform architecture incorporating enterprise-grade public key infrastructure (PKI), hardware security module (HSM)-backed key management, and trusted over-the-air (OTA) security capabilities. This solution enables secure communication, authentication, and complete lifecycle management of vehicle identities and credentials. By centralizing security operations and automating provisioning processes, the platform significantly enhances operational efficiency, reduces administrative complexity, mitigates human error risks, and provides a robust foundation for next-generation connected mobility services at scale.

Tesla has opened its robotaxi business to third-party operators by publishing an interest form inviting businesses to purchase Cybercab fleets or provide supporting infrastructure for its autonomous vehicle network. This strategic shift marks a significant departure from CEO Elon Musk's original 2016 vision of individual Tesla owners earning income by renting self-driving cars through a ride-hailing app. After years of unfulfilled predictions and regulatory delays, Tesla pivoted to building and operating its own robotaxi fleet using Model Y vehicles and the purpose-built Cybercab. The new initiative, disclosed ahead of Tesla's Cybercab event in Austin, indicates the company recognizes it cannot scale the network alone and seeks external partners. The move comes as competitors gain traction; African fintech Moove recently raised $250 million at a $2.1 billion valuation and currently manages Waymo's autonomous fleets across Phoenix, Miami, Las Vegas, and planned London operations. While Tesla's interest form remains vague about third-party roles—offering options including fleet purchases, infrastructure support, and event collaboration—the company's willingness to involve outside operators signals a fundamental reshaping of its robotaxi strategy.

Mobility is undergoing a significant shift. The software-defined vehicle promises a new era of flexibility, efficiency, and adaptability. But how can we navigate this transformation to ensure that the SDV is not only innovative but also safe and reliable? How can we integrate the SDV into our digital lives in a way that meets our needs and expectations?

Recent advances in autonomous driving have accelerated the deployment of robotaxi services, positioning them as a key component of future urban mobility. However, existing research has largely emphasized pre-adoption intentions, offering limited insight into users’ post-experience evaluations and continued usage behavior in fully driverless contexts. To address this gap, this study examines how perceived value and perceived risk, conceptualised as higher-order constructs, are jointly associated with continued usage intention toward robotaxi services in China. Guided by the cognitive–affective–conative (CAC) framework, perceived value and perceived risk are conceptualized as multidimensional cognitive evaluations formed through actual usage experiences.

Tesla launched its robotaxi service in Dallas and Houston on a fully unsupervised basis from the very beginning, entirely removing the human-driven chase vehicles that were utilized during its initial Austin launch. Tesla is currently operating small, geofenced areas in Texas, but early data shows they are aggressively underpricing competitors on identical routes.

Tesla has shifted its robotaxi strategy by releasing an interest form inviting businesses to purchase Cybercab fleets or provide supporting infrastructure for its autonomous vehicle network. This announcement, made ahead of Tesla's Cybercab event in Austin, signals a significant departure from the company's previous vision of relying solely on personally owned Tesla vehicles with self-driving capabilities. CEO Elon Musk has long promoted the concept of a massive, low-cost robotaxi fleet, originally envisioning that Tesla owners could earn income by renting autonomous vehicles through a ride-sharing app similar to Uber. However, that model never materialized, and Tesla instead focused on building and operating its own robotaxi fleet, first using Model Y vehicles and now the purpose-built Cybercab. The new interest form suggests Tesla recognizes the value in partnering with third-party operators rather than scaling independently. Interested parties can select from options including Cybercab fleet purchasing, mobility hubs, infrastructure development, and event collaboration. This move reflects growing competitive pressure in the robotaxi sector, with companies like Moove, an African fintech startup, increasingly dominating autonomous fleet management for competitors such as Waymo. Tesla's willingness to open its network to external partners indicates a strategic pivot toward broader market penetration and revenue generation through licensing and partnerships rather than exclusive in-house operations.

Google's Software-Defined Vehicle (SDV) architecture represents an evolution from Microdroid, a minimal Android operating system designed to address critical automotive requirements including rapid boot times and reduced memory footprints. SDV integrates closely with Android Automotive OS In-Vehicle Infotainment (AAOS IVI) to enable secure, advanced inter-system communication. The architecture operates within virtual machines on VirtIO-capable hypervisors, supporting multiple isolated virtual machines on a single CPU and facilitating cloud-based testing and integration with platform-independent design that reduces third-party software integration costs. SDV standardizes internal communication using Android technologies including Binder, gRPC, and FMQ, wrapped in a new API focused on automotive performance. The Google SDV team is developing essential automotive components such as Service Orchestration, Vehicle Power Mode management, SOME/IP integration, and Telemetry. The telemetry system, defined using protobuf language, enables collection of vehicle data without requiring updates, processing data at the edge, and generating metrics reports. This architecture allows developers to simulate and develop SDV software directly in the cloud using existing Google technologies like Cuttlefish, eliminating the need for specialized local hardware.

In this Q&A with Waste360, Nick Nesbitt, founder and CEO of Mapleview Energy, discusses why the coming wave of retired EV batteries presents both a waste management challenge and an infrastructure opportunity. Nesbitt explains how second-life battery applications fit into a circular economy, the technical and safety considerations behind battery repurposing, and more.

Oman's Telecommunications Regulatory Authority (TRA) has introduced comprehensive technical regulations designed to enhance cybersecurity, data integrity, and operational safety for internet-connected vehicles throughout the Sultanate. As modern vehicles increasingly depend on real-time connectivity, telematics, and automated systems, the regulatory framework establishes technical benchmarks to protect drivers and passengers from cyber vulnerabilities. The TRA has initiated a public consultation period extending until September 1, welcoming feedback from automotive manufacturers, telecommunications operators, technology providers, and the general public on the draft regulations. This stakeholder engagement approach ensures alignment with global automotive best practices while addressing Oman's specific operational requirements. The initiative supports the Sultanate's broader digital transformation strategy within transportation and logistics sectors, creating a secure environment for smart mobility, autonomous driving, and connected fleet management. By establishing robust data protection and technical standards, the regulations advance next-generation transport infrastructure while building consumer trust in innovative technologies. The framework positions Oman as a forward-thinking market for secure, connected automotive solutions, protecting against emerging cyber risks while enabling technological advancement in line with Oman Vision 2040 objectives.

Battery swapping has emerged as a transformative solution for electric two and three-wheelers in India, enabling rapid battery exchange at specialized stations within minutes rather than prolonged charging periods. This approach significantly reduces vehicle downtime and proves particularly effective for high-utilization commercial applications. The model facilitates the Battery-as-a-Service (BaaS) concept, where users purchase EVs without batteries and subscribe to battery usage through swapping networks, substantially lowering initial vehicle costs while eliminating maintenance and replacement burdens. Recognizing this technology's potential, India's Government introduced a Battery Swapping Policy initiative in the Union Budget 2022–23, with NITI Aayog releasing a Draft Battery Swapping Policy in April 2022. This framework emphasizes interoperability, safety, BaaS models, and private sector investment, complementing existing support schemes like FAME and PLI initiatives. India's electric mobility sector has experienced considerable growth through comprehensive policy interventions, manufacturing incentives, and infrastructure expansion. Battery swapping represents a critical component of this ecosystem, addressing sustainable resource management while advancing the nation's EV deployment objectives through an innovative, cost-efficient alternative to conventional charging infrastructure.

The automotive industry has fundamentally transformed from mechanical engineering to software-defined, cloud-connected platforms incorporating over-the-air updates, predictive maintenance, advanced driver assistance systems, vehicle-to-everything communication, and autonomous capabilities. While these innovations promise enhanced safety and mobility, they create unprecedented regulatory challenges around cybersecurity, data governance, and software liability. Traditional automotive regulations focused on safety and emissions are inadequate for this digital landscape. Transforma Insights' report "Global regulations for connected vehicles" examines the evolving regulatory environment across major markets, revealing six consistent governance themes: data privacy, data sovereignty, cybersecurity, software and OTA updates, V2X communication, and autonomous vehicles. Connected vehicles continuously collect extensive data on drivers, passengers, vehicle performance, location, and environments, enabling valuable services like navigation and predictive maintenance while raising critical privacy concerns. Regulators increasingly mandate manufacturer and service provider accountability through user consent requirements, transparent data collection practices, minimized processing, and user control mechanisms, reflecting growing recognition that comprehensive data governance frameworks are essential for connected vehicle adoption.