QNX—the division of BlackBerry providing operating systems, hypervisors, middleware, solutions, and development tools, along with support and services to the automotive industry—has released a research report exploring the shift toward SDVs (software-defined vehicles). Based on a survey of 1100 automotive software developers across North America, Europe, and Asia, the report covers the impact of new regulations and software recalls on development processes, the most challenging regulations, predictions for AI’s role over the next few years, and what SDVs will look like by 2030.

The technology that underpins the automotive industry has come a very long way in a very short time, and is still evolving at extraordinary speed, according to Justin Moon, VP, Core Product Engineering, in the Software Developer Report’s forward.

“More than ever before, the success of the industry rests on the capabilities of software-defined vehicles (SDVs) and the software developers who build and refine the products and services upon which they depend,” wrote Moon. “Today, the industry is operating under immense and complex pressures created by economic forces and by the need for these remarkably complex vehicles to be driven as safely as possible. With AI and other emerging technologies about to drive yet more change, we felt it was a good time to talk to embedded software developers about the state of play in the SDV world.”

According to Moon, the findings show that, while these and other factors are creating huge challenges, it remains a resilient, endlessly creative, and adaptable industry. There are some interesting and instructive differences in the ways that developers in different regions see their role within the broader automotive ecosystem, but it remains true that OEMs that harness the right mix of technologies and collective, collaborative capabilities can succeed in the competitive environment.

Among the key findings, 80% of automotive software developers said that OEMs should focus on innovation in the application layer, rather than foundational software infrastructure, to increase speed to market and better differentiate customer experiences. Only 30% of developers rated their working environment as excellent—a shortfall in quality that poses a clear risk to productivity, retention, and innovation. Some 91% said that AI will play a major role in automotive software development during the next three to five years, and AI tools could replace more than 35% of human software development roles.

Participants were asked to choose up to five issues from a list of the biggest challenges hampering software development. Those most frequently cited included long development cycles (cited by 37%), debugging and testing processes (36%), integration complexity (36%), a lack of scalability across vehicle, platform, or model lines (36%), and regulatory compliance (35%). Notably, VPs of engineering cite integration complexity as one of the five biggest challenges they face, with 52% saying this, compared to 36% of all developers. Some 58% of developers say recent software recalls have significantly changed their approach, with nearly 40% calling these changes “major.”

Respondents were asked to identify up to three main reasons for the reported disconnect between consumer expectations and software delivery timelines. The most commonly reported factors were regulatory delays, inefficient development processes, and a shortage of skilled talent.

Development environments were found to be a potential barrier to innovation. Just three out of ten developers said their current development environment was “excellent.” Working in a lower-quality environment undermines productivity, reduces opportunities to nurture innovation, and can make retention of key personnel more difficult. Developers in Japan were the least satisfied with their working environment; only 14% rated it as excellent. Even in the U.S., only 38% reported working in an excellent environment.

The findings show that those working in the automotive industry understand the value and potential benefits of cross-industry collaboration between OEMs, Tier 1 suppliers, and software vendors. Some 93% said this was important in their current development projects, including 48% who said it was “very important.” Collaboration was particularly highly prized in India, the UK, and the U.S., where almost every respondent says this kind of collaboration is critical.

Regulatory and compliance complexity have impacts on development. During 2024, more than 500 new regulations and legislative proposals with a direct impact on the development of in-car technology were introduced globally. Because automotive is a highly international industry, with many OEMs operating across multiple jurisdictions and working with globally based suppliers, it faces an enormous additional regulatory burden.

One in three respondents (33%) say new regulations and legislative proposals introduced during 2024 led to delays in development timelines. However, 40% said these changes had resulted in accelerated timelines—a demonstration of the industry’s commitment to finding a way to operate effectively. Most developers expressed confidence in their team’s ability to keep up with evolving regulations and remain compliant; 93% agreed, including 99% of those in India and the U.S.

Of the regulations currently presenting the biggest challenges to their teams, 47% cited cybersecurity as the biggest. Software update and over-the-air (OTA) compliance, data privacy, and functional safety regulations were also cited by substantial numbers of respondents in each country.

There was a reasonable amount of confidence among developers about the likelihood of regulatory frameworks being able to evolve fast enough to keep up with the pace of innovation and complexity of SDVs, particularly among those in India, the U.S., and China. While 85% said this will either “definitely” or “possibly” be the case, only one in three said it will “definitely” happen.

Responses provided by the vice presidents of engineering tended to offer a more sober view of challenges facing the industry, revealing the unique insights they bring as influential evaluators and decision-makers.

For instance, they were more likely than respondents in any other role to identify integration complexity as one of the biggest challenges in software development. VPs of engineering were almost twice as likely as many of their colleagues to say that they didn’t think regulatory frameworks will keep pace with innovation, with 24% saying this, compared to an average of 14% across the full sample.

This outlook is in line with recent research published by Deloitte, which found that 56% of OEM business executives felt ill-prepared to meet future requirements, compared to only 28% of people working in their technical departments.

In recent years, software recalls and failures have become a critical challenge for the SDV industry. In the U.S., software-related recalls rose 80% in 2024, reaching 202 cases compared with 112 in 2023, and software-related issues accounted for 44% of all recalls, according to JD Power’s US Initial Quality Study 2025.

Almost six out of ten developers reported experiencing an impact on the software development process as a result of software recalls. However, responses varied considerably depending on country, with businesses in India, France, the U.S., and Japan experiencing a greater impact than those elsewhere.

Developers also identified the features most likely to define SDVs by 2030, with nearly half highlighting AI-driven personalization and full vehicle autonomy, perhaps reflecting the same respondents who felt these areas currently receive excessive attention. Additionally, more than four in ten predicted that “seamless integration with smart infrastructure” and full OTA update capabilities will be key components in shaping the future of the SDV.

As is the case in virtually every other industry, AI technologies will play an important role in the future of the SDV. Some 91% of developers cited that AI will play a major role in automotive software development during the next three to five years.

That figure comprised 55% who expected AI to play a “significant” role, integrated into development workflows; and 36% who said its role will be “transformational” and at the heart of future development processes. Developers in India were most likely to say AI will play a transformational role, with 51% predicting this.

When developers were asked what percentage of software development workforces within their businesses might realistically be replaced by AI tools during the next decade, they expected AI tools to replace 35% of human software development roles. Three-quarters of developers predicted that up to half of software development roles will be replaced by AI tools.

Regarding future risks, developers identified cybersecurity vulnerabilities as the greatest risk to successful SDV roll-out over the next five to ten years, with 44% citing this concern. Other major risks, each noted by at least one-third of respondents, included technical complexity and integration, regulatory uncertainty, cost and return on investment issues, global trade and tariff uncertainty, and consumer trust.