BEV-native leadership and established OEM transition in SDV readiness

The transition to zonal E/E architectures is generally more manageable for premium OEMs where higher vehicle price points provide a greater margin to absorb the cost of compute consolidation, in-house software development, and cloud infrastructure investment.

The recent adoption by many original equipment manufacturers (OEMs) of an electrical/electronic (E/E) architecture based on zone controllers supporting a software-defined vehicle (SDV) is slowly replacing distributed electronic control architectures that rely on small pieces of control code housed and distributed widely inside isolated electronic control units (ECUs). This new approach centralizes the hardware processing and memory in fewer, more powerful control units that will house functional algorithms that have been abstracted from the individual ECUs, which can be simplified or eventually removed.