Government unlocks software defined vehicles as a fundable technology frontier
Date: 16 July 2026
A new report by the Advanced Propulsion Centre UK (APC) provides the automotive industry with a definition of a software-defined vehicle (SDV), the key levels and components, and details the industrial shift into this new technology.
The new DRIVE35 scope introduces key elements of an SDV as a fundable area of technology development.
Delivered by the Department for Business and Trade in partnership with the Advanced Propulsion Centre UK and Innovate UK, the DRIVE35 programme is part of the UK Government’s Advanced Manufacturing Sector Plan, which outlines its commitment to a zero-emission future, with an unprecedented £4 billion of grant funding available to 2035 for automotive R&D, scale-up, and transformation.
Dr Hadi Moztarzadeh, Head of Technology Trends, APC said:
“Software-defined defined vehicles represent one of the most profound transformations the automotive industry has experienced in decades. This changes how vehicles are designed, validated, updated, and operated and is reshaping where value is created across the automotive industry. SDVs are a fast-moving and constantly developing area within the automotive industry.
The Software-Defined Vehicle Value Chains report spans hardware, software, integration, and the lifecycle operations required to support continuous improvement beyond Start of Production (SOP). SDV shifts the product model from a one-off release, with refresh cycles, toward a platform which is continuously updated, monitored and refined.
The UK’s strongest opportunity is in the high-value enabling capabilities that help OEMs and suppliers develop, integrate, validate, and operate SDVs safely at scale. These capabilities are increasingly central to competitiveness because SDV value is not only created at vehicle launch, but through the ability to improve, assure, and update vehicles throughout their lifecycle.”