QNX, a division of BlackBerry Limited (NYSE: BB; TSX: BB) today released a new global research study, Under the Hood: The SDV Developer Report, revealing how regulatory complexity and software recalls are reshaping software-defined vehicle (SDV) development.
The study, which surveyed 1,100 automotive software developers across North America, Europe, and Asia, highlights the growing strain of long development cycles, integration complexity, and the opportunity for OEMs to rethink their software strategies. A new episode of QNX’s Code the Future podcast, featuring Manuel Tagliavini of S&P Global Mobility, explores the findings in depth.
Regulatory Pressure and Software Recalls Reshape Development Priorities
Developers are navigating an increasingly complex regulatory landscape. One-third (33%) report delayed timelines as a direct result of evolving compliance demands, perhaps unsurprising given that over 500 new regulations and legislative proposals affecting in-car technology were introduced globally in 2024. Among the most challenging areas for compliance are cybersecurity regulations, such as the Cyber Resilience Act, UNECE WP.29, and ISO/SAE 21434 (47%), software update and OTA mandates (40%), data privacy laws like GDPR and CCPA (36%), and functional safety standards including ISO 26262 (36%). Pressure from failing to meet these standards is also reshaping development priorities – 58% of developers say recent software recalls have significantly changed their approach, with nearly 40% calling these changes “major.”
“Global regulatory frameworks are evolving, but not fast enough to match the pace of innovation,” said Manuel Tagliavini, Software Principal Analyst, Automotive Supply Chain & Technology at S&P Global Mobility. “OEMs should build resilience into development, realign internal organizations for software lifecycles, and – where appropriate – consider targeted collaborations to navigate compliance while maintaining speed and agility.”
Development Bottlenecks Threaten SDV Progress
These regulatory pressures are compounding existing development bottlenecks. Developers cited long cycles (37%), debugging and testing (36%), and integration complexity (36%) as some of the top challenges their teams struggle with. Notably, just 30% rated their current development environment as “excellent” for productivity. These inefficiencies are exacerbated by the growing disconnect between consumer expectations and software delivery timelines – which respondents attribute to regulatory delays (52%), skills shortages (44%), and inefficient processes (44%).
OEMs Urged to Get Out of the Software ‘Plumbing’
Looking towards the future, a resounding 80% of developers believe OEMs should focus less on foundational infrastructure and more on application-layer innovation – a move seen as key to accelerating time-to-market and delivering differentiated consumer experiences. Additionally, 93% cite cross-industry partnerships as vital to their current projects, with half reporting strong support for collaborative development practices. Together, these findings point to a growing recognition that strategic alliances and a reallocation of engineering focus could help unlock greater innovation.
The Future of SDV
Nearly half of developers view AI-driven personalization and full vehicle autonomy as the defining features of software-defined vehicles by 2030, with more than four in ten also predicting seamless integration with smart infrastructure and full OTA update capabilities. Vice presidents of engineering, however, placed greater emphasis on the importance of centralized computing and OTA updates, suggesting a growing divergence between strategic and technical priorities at different levels of the industry.
AI and Automation Poised to Transform Development Workflows
The research also revealed that developers are optimistic about the role of AI in automotive software with 91% expecting it to play a transformational or significant role in the next 3–5 years, and on average, they estimate that 35% of their current workforce could be replaced by AI tools over the next decade.
“This research echoes what we’re hearing from automakers around the world: the pace of regulatory change, rising consumer expectations, and the complexity of building and maintaining foundational software is slowing SDV development and straining productivity,” said John Wall, COO and Head of Product, Engineering and Services at QNX. “While AI offers promise, it’s not a silver bullet. The OEMs making real progress are those rethinking how and where their engineering teams are focused – building the right partnerships and shifting energy toward innovation that directly impacts the in-car experience for drivers and passengers alike.”
As SDV complexity grows, QNX remains committed to helping automakers navigate change, accelerate innovation, and deliver safer, smarter vehicles. QNX is trusted as the foundation for a software-driven future by most leading OEMs and Tier 1s worldwide, including BMW, Bosch, Continental, Dongfeng Motor, Geely, Honda, Mercedes-Benz, Toyota, Volkswagen, Volvo, and more. Its foundational software supports future-proof engineering design, from digital cockpits and advanced driver assistance systems (ADAS) to infotainment systems and domain controllers, enabling automakers to bring innovation to market faster and at lower cost.
For more information on QNX, visit QNX.com and follow @QNX News.
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