Hello, Michael. For starters, what is a software-defined vehicle?

A software-defined vehicle uses software to control key functions, add new features, and stay up to date over its lifetime. To understand the shift from conventional vehicles to SDVs, think about how smartphones evolved. Taking the iPhone as an example, your experience improves over time through software updates. The same principle works for commercial vehicles. While the hardware may not change, the systems within a vehicle become smarter and faster with each successive over-the-air update.

As SDVs mature, vehicles are becoming nodes in a broader digital ecosystem. Data sharing between customers, logistics systems, infrastructure, and even end customers will therefore become more prevalent. To unlock the full benefits, seamless interoperability is a must and is something that we are working towards via the use of software. The sheer breadth of potential use cases is very exciting, encompassing a more connected and integrated product in the digital ecosystem of body builders, infrastructure, fleet management, route planning, autonomous driving, and more.

TRATON software-defined vehicles infographic showing upgradable, connected, and data-driven features for trucks
Vehicles are evolving into smart, connected platforms.

How can software enable a better customer experience?

Customer requirements are increasingly varied and complex. Historically, TRATON brands Scania, MAN, International and Volkswagen Truck & Bus focused on developing vehicle hardware to deliver value and meet customer expectations. Going forward, however, customer value will increasingly stem from software, which will support a growing number of applications.

For example, software is rapidly becoming central to vehicle safety. Delivering advanced functionality for Advanced Driver Assistance Systems (ADAS), and meeting evolving safety regulations, depends on robust E/E architectures and software platforms.

Today’s vehicles rely on a large number of electronic control units (ECUs), each dedicated to specific functions. Software enhancements enable these ECUs to deliver enhanced functionality, but this requires intricate integrations. TRATON is working towards a more centralized architecture to streamline the process of adding new features for a better customer experience.

Given the pace of change within software development, the ability to make regular updates is crucial. Ultimately, the shift to software-defined vehicles supports a lower Total Cost of Ownership, not only through reduced downtime and more efficient maintenance, but also by boosting residual value and enabling cost-effective updates over the vehicle’s lifecycle.

Does this mean that the very nature of commercial vehicles is changing?

In a way, yes. The automotive sector is now in a pivotal moment, with software fast becoming a key differentiator. This shift will reshape product strategies, business models, and customer expectations.

Companies that fail to innovate risk being left behind in a market that increasingly demands smarter, more connected, and continuously upgradable vehicles. The way we view our products must change accordingly. In this new landscape, we’re not just building trucks, we’re building adaptable platforms that evolve over time based on insights from live vehicle data.

Michael Skarped, Global Domain Head at TRATON GROUP
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The long-term winner in this space will be the company that learns the fastest, and in this regard, data gives us a strong competitive advantage.

Michael Skarped Global Domain Head at TRATON GROUP Quote

It sounds like data will play a critical role in the success of SDVs, what can you tell us about this?

Data will be massively important, giving us the ability to iterate rapidly by developing, testing, deploying, and refining software based on real-world data.

Returning to the earlier ADAS example, a prototype function, like pedestrian detection, can be deployed across a test fleet alongside the original system. By comparing the results and feeding the data back into development, TRATON can rapidly improve functionality. This approach helps to shorten development cycles and deliver better products, faster and more cost effectively. The long-term winner in this space will be the company that learns the fastest, and in this regard, data gives us a strong competitive advantage.

How is TRATON positioning itself for success within the SDV market?

TRATON has strong technical foundations in the area of software and is continuing to invest heavily in our internal capabilities, adopting cloud-native tools, and shifting from traditional real-time systems to service-based architectures and modern development methods. All of this will enable us to remain ahead of the curve in the coming years.

Even still, the scale and complexity of this transformation means that collaboration will be essential. By partnering with an organization such as Applied Intuition, we are tapping into their world-class software know-how and experience from other industries, helping us to level up our skills. This approach also allows us to pool investment and drive innovation more effectively.