Software-defined vehicles (SDVs) shift car ownership from a one-time hardware purchase to an ongoing digital service relationship. Owners move from “buying a spec” to “owning a platform” that can gain or lose capabilities over time through software, subscriptions, and data-driven services.
From product to service
Traditional cars deliver most of their value at the moment of purchase, with only minor changes over their lifetime. SDVs instead centralize functions in software and use over‑the‑air (OTA) updates to keep adding or improving features such as safety, infotainment, and energy management. This makes ownership feel more like a service that evolves, rather than a fixed product that ages.[1][2][3][4]
Subscriptions and features on demand
SDVs enable “features on demand” where capabilities like advanced driver assistance, enhanced navigation, or premium infotainment can be unlocked, rented, or turned off via software. Owners may choose permanent purchases, time‑based subscriptions, or pay‑per‑use models, blurring the line between owning the car and “renting” parts of its functionality.[2][5][6]
Personal profiles across vehicles
Because SDV features are software- and cloud-based, user profiles and entitlements can follow the driver, not just the car. This allows owners or fleet users to carry their preferred settings and paid features across multiple vehicles or shared mobility services, reducing the importance of a single, personally owned car.[7][6][3]
Impact on resale value and lifecycle
Cars that can receive regular OTA updates tend to hold value better because they stay current on safety, security, and digital features. However, resale now depends on whether software options, subscriptions, and update rights transfer cleanly to the next owner, which can either boost or hurt residual values depending on OEM policies.[8][9][10][11]
## Enabling new mobility models
SDVs support mobility‑as‑a‑service concepts where users access vehicles on demand, while software personalizes each session and manages billing based on time, usage, or enabled features. In this world, ownership can shift from individuals to fleets and platforms, while drivers primarily “subscribe” to mobility and digital experiences rather than owning a single, fully specified car for years.[6][12][13][7]
Sources
[1] What is a Software Defined Vehicle? – IBM https://www.ibm.com/think/topics/software-defined-vehicle
[2] Software-defined Vehicle – Bosch Mobility https://www.bosch-mobility.com/en/mobility-topics/software-defined-vehicle/
[3] Software Defined Vehicle https://www.kpit.com/software-defined-vehicle/
[4] How software-defined vehicles are changing the road ahead https://www.elektrobit.com/blog/how-software-defined-vehicles-are-changing-the-road-ahead/
[5] Features on Demand for Software Defined Vehicle https://excelfore.com/features-on-demand
[6] Software Defined Vehicles: A New Paradigm in Automotive … https://www.niradynamics.com/latest/software-defined-vehicles-a-new-paradigm-in-automotive-development
[7] What is a Software-Defined Vehicle | Keysight https://www.keysight.com/in/en/cmp/topics/what-is-a-software-defined-vehicle.html
[8] Hidden ROI Of OTA Updates—Why Your Next Ford In The GTA … https://blog.erinwoodford.com/post/hidden-roi-of-ota-updates-why-your-next-ford-in-the-gta-should-be-software-first
[9] Are OTA Updates Becoming the Nervous System of Modern Vehicles? https://www.linkedin.com/pulse/ota-updates-becoming-nervous-system-modern-vehicles-akash-tyagi-vwrbc
[10] How OTA Updates Support Drivers – Kia https://www.kia.com/uk/about/news/how-ota-updates-support-drivers/
[11] OTA Updates Can Tank Your Resale Value—Here’s How to Avoid It https://www.autoblog.com/news/ota-updates-can-tank-your-resale-value-heres-how-to-avoid-it
[12] Software-Defined Vehicles: Next Big Evolution in Transportation https://www.tataelxsi.com/industries/automotive/automotive-software-engineering/software-defined-vehicles
[13] What is a Software-Defined Vehicle? – Ansys https://www.ansys.com/en-in/simulation-topics/what-is-a-software-defined-vehicle
[14] Everything you need to know about the Software Defined Vehicle … https://www.valeo.com/en/everything-you-need-to-know-about-the-software-defined-vehicle-sdv/
[15] Software-defined Vehicle (SDV) – ZF https://www.zf.com/mobile/en/technologies/softwaredefined_vehicle/softwaredefined_vehicle.html
[16] Software-Defined Vehicles (SDV) – Arm® https://www.arm.com/markets/automotive/software-defined-vehicles
[17] Subscriptions and the SDV: Where is the value proposition? https://www.sbdautomotive.com/post/subscriptions-and-the-sdv-where-is-the-value-proposition
[18] How Software Updates Affect EV Resale Value – Premium Autos Inc https://www.premiumautosinc.com/how-software-updates-affect-ev-resale-value
[19] Embracing the Software-Defined Vehicle Business Model – AEye, Inc. https://www.aeye.ai/blog/embracing-the-software-defined-vehicle-business-model/
[20] Software-defined vehicle https://www.sw.siemens.com/en-US/digital-thread/mbse/software-defined-vehicle/