The VECS 2026 conference in Gothenburg has made one thing clear: the transition to Software-Defined Vehicles (SDVs) is no longer a future prediction—it is accelerating rapidly toward total market dominance. I’ve been to both days and it seems that the best time for software is NOW! For a nerdy software engineer like me, this conference provided a glimpse of the future where software defines everything, AI – yes, but complemented with a lot of good-old-fashion programming, guardrails and similar.
My Key Takeaways from the Conference:
- Rapid Market Evolution: While current volumes are relatively low, the global SDV share is projected to jump from 14% in 2025 to 46% by 2035. Similarly, Zonal Architectures are expected to grow from a 5% share today to 40% by 2035.
- The Rise of Middleware: Middleware is emerging as a critical control point for OEMs. To shorten time-to-market and maintain control over software platforms, OEMs are now partnering to develop joint middleware solutions rather than relying on fragmented supplier systems.
- China as a Catalyst: The fast pace of Chinese automakers is a primary driver for global change, pushing the industry toward “AI-defined mobility” and the integration of edge AI models. Notably, over 20 OEMs integrated DeepSeek within weeks of its release.
- The “Software Factory”: Industry leaders like Alwin Bakkenes emphasized that profitability in the electric vehicle sector requires extreme process optimization. This is being achieved through “Software Factories”—modern development concepts where source code is integrated with digital twins for virtual testing and exploration.
- Hardware Innovation: To control AI workloads, OEMs are increasingly designing their own chips and moving toward 2nd Generation Zonal Architectures, such as the one powering the upcoming Volvo EX60.
The message from VECS 2026 is certain: for the automotive industry to thrive, it must embrace a “machine that builds the machine” philosophy, prioritizing high-performance computing and seamless software integration.
