AlixPartners Announces "Global Software-Defined Vehicle Survey Report"
AlixPartners' SDV survey report indicates that automakers in Japan, the US, Europe, and Korea are lagging behind China in SDV development, with China establishing technological superiority. Differences are particularly evident in in-house development rates, tech stack strategies, and vehicle architectures.
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- 📰 Published: April 24, 2026 at 21:30
- 🔍 Collected: April 24, 2026 at 13:01
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Global consulting firm AlixPartners (Headquarters: New York, USA; Japan: Chiyoda-ku, Tokyo; Representative: Takuro Uechi; hereinafter, "the Company") has announced its "Software-Defined Vehicle (SDV) Survey Report" (hereinafter, "this survey").
This survey reveals that automotive and auto parts manufacturers in Japan, the US, Europe, and Korea are lagging in the global SDV development race, particularly in key software technology areas (control points), reusability, and overall economic efficiency throughout the lifecycle. In contrast, Chinese automakers and technology companies are further enhancing their superiority and presence in these areas.
This survey was conducted between November and December 2025, targeting over 1,000 senior executives, including CEOs, from automotive manufacturers in the US, Europe, and Asia, as well as Tier 1 suppliers and technology companies. While Chinese manufacturers are concentrating investment in strengthening SDV technological capabilities, many manufacturers in other countries are dispersing management resources across conventional platforms and complex systems. As a result, their dependence on external partners is increasing, making it difficult to secure investment returns. Furthermore, customer resistance to subscription-based business models is strengthening, and the renewal rate for paid features is falling below initial expectations.
These changes are also putting significant pressure on Tier 1 suppliers. Many automakers are shifting towards in-house development of cloud, AI, computing, data, and middleware domains, increasingly taking on the role of system integrator that was traditionally handled by Tier 1s. Consequently, Tier 1 suppliers are forced to make strategic choices about where to maintain their presence within the tech stack.
This background is primarily due to three factors:
In-house development rate: The in-house development rate for SDV-related aspects is 41% in China, compared to 25% in the US, 27% in Europe, and 37% in Japan and Korea. Due to technical constraints, Western manufacturers are at risk of increasing costs for future updates and feature expansions, leading to a decline in competitiveness.
Tech stack strategy: 59% of Chinese manufacturers adopt a "decoupled stack" that allows flexible software updates, while 59% in the US, 67% in Europe, and 67% in Japan and Korea continue to use patchwork monolithic platforms, which become a strategic weakness amidst rising geopolitical threats.
Vehicle architecture: 39% of Chinese manufacturers adopt a central/zone architecture suitable for software updates, whereas 60% in the US, 67% in Europe, and 55% in Japan and Korea remain with less efficient hybrid architectures.
94% of automakers reported that less than half of their currently installed SDV features can be offered to customers as paid services, with technical constraints and customer resistance being the main barriers. Given this situation, the competitive axis for SDVs is shifting from "number of features at mass production" to "cost competitiveness throughout the vehicle lifecycle." Specifically, improving software reusability, streamlining OTA updates, and enhancing quality and warranty support are key. This difference in perception is also reflected in R&D investment: the percentage of manufacturers allocating more than half of their R&D budget to SDVs is 36% in China and 41% in Japan and Korea, compared to only 21% in the US and 19% in Europe.
Furthermore, the percentage of automakers achieving platform-level software reusability, which influences competitiveness, reaches 48% in China, while it stands at 31% in the US, 33% in Europe, and 33% in Japan and Korea, showing a widening gap. By business type, 39% of rapidly growing technology companies have achieved this, compared to only 19% of global Tier 1 suppliers, further highlighting their competitive struggles.
Tomoyuki Suzuki, Japan Team Leader for Automotive & Manufacturing Practice and Partner & Managing Director at AlixPartners, states:
"SDV is the 'future of the global automotive industry.' However, its leadership is shifting to Chinese automakers and technology companies more than many realize. In many cases, it is the European, American, and Japanese manufacturers and suppliers themselves who are relinquishing this leadership. Losing influence over critical control points will narrow future options, reduce cost competitiveness, and make it difficult to capture the full benefits of SDVs throughout the vehicle lifecycle."
Himanshu Khandelwal, Partner & Managing Director in the Automotive & Manufacturing Practice, states:
"The reality that almost all European, American, and Japanese automakers are struggling to monetize SDV features speaks volumes. SDV"
This survey reveals that automotive and auto parts manufacturers in Japan, the US, Europe, and Korea are lagging in the global SDV development race, particularly in key software technology areas (control points), reusability, and overall economic efficiency throughout the lifecycle. In contrast, Chinese automakers and technology companies are further enhancing their superiority and presence in these areas.
This survey was conducted between November and December 2025, targeting over 1,000 senior executives, including CEOs, from automotive manufacturers in the US, Europe, and Asia, as well as Tier 1 suppliers and technology companies. While Chinese manufacturers are concentrating investment in strengthening SDV technological capabilities, many manufacturers in other countries are dispersing management resources across conventional platforms and complex systems. As a result, their dependence on external partners is increasing, making it difficult to secure investment returns. Furthermore, customer resistance to subscription-based business models is strengthening, and the renewal rate for paid features is falling below initial expectations.
These changes are also putting significant pressure on Tier 1 suppliers. Many automakers are shifting towards in-house development of cloud, AI, computing, data, and middleware domains, increasingly taking on the role of system integrator that was traditionally handled by Tier 1s. Consequently, Tier 1 suppliers are forced to make strategic choices about where to maintain their presence within the tech stack.
This background is primarily due to three factors:
In-house development rate: The in-house development rate for SDV-related aspects is 41% in China, compared to 25% in the US, 27% in Europe, and 37% in Japan and Korea. Due to technical constraints, Western manufacturers are at risk of increasing costs for future updates and feature expansions, leading to a decline in competitiveness.
Tech stack strategy: 59% of Chinese manufacturers adopt a "decoupled stack" that allows flexible software updates, while 59% in the US, 67% in Europe, and 67% in Japan and Korea continue to use patchwork monolithic platforms, which become a strategic weakness amidst rising geopolitical threats.
Vehicle architecture: 39% of Chinese manufacturers adopt a central/zone architecture suitable for software updates, whereas 60% in the US, 67% in Europe, and 55% in Japan and Korea remain with less efficient hybrid architectures.
94% of automakers reported that less than half of their currently installed SDV features can be offered to customers as paid services, with technical constraints and customer resistance being the main barriers. Given this situation, the competitive axis for SDVs is shifting from "number of features at mass production" to "cost competitiveness throughout the vehicle lifecycle." Specifically, improving software reusability, streamlining OTA updates, and enhancing quality and warranty support are key. This difference in perception is also reflected in R&D investment: the percentage of manufacturers allocating more than half of their R&D budget to SDVs is 36% in China and 41% in Japan and Korea, compared to only 21% in the US and 19% in Europe.
Furthermore, the percentage of automakers achieving platform-level software reusability, which influences competitiveness, reaches 48% in China, while it stands at 31% in the US, 33% in Europe, and 33% in Japan and Korea, showing a widening gap. By business type, 39% of rapidly growing technology companies have achieved this, compared to only 19% of global Tier 1 suppliers, further highlighting their competitive struggles.
Tomoyuki Suzuki, Japan Team Leader for Automotive & Manufacturing Practice and Partner & Managing Director at AlixPartners, states:
"SDV is the 'future of the global automotive industry.' However, its leadership is shifting to Chinese automakers and technology companies more than many realize. In many cases, it is the European, American, and Japanese manufacturers and suppliers themselves who are relinquishing this leadership. Losing influence over critical control points will narrow future options, reduce cost competitiveness, and make it difficult to capture the full benefits of SDVs throughout the vehicle lifecycle."
Himanshu Khandelwal, Partner & Managing Director in the Automotive & Manufacturing Practice, states:
"The reality that almost all European, American, and Japanese automakers are struggling to monetize SDV features speaks volumes. SDV"