At IAA Mobility 2025 in Munich, topics such as “Software-Defined Vehicle Platforms” and 5G corridors are shaping the debates. At the same time, the EU is discussing digital competitiveness in its Strategic Dialogue on the Automotive Industry – a signal of how closely the automotive and Internet industries are converging. Juan I. Hahn, founder of HAHN Network and Leader of the eco Mobility Competence Group, explains why digital infrastructure, data spaces, AI and cybersecurity are crucial and what politics and businesses can do now.
From car to digital device
The industry is experiencing the dual transformation of electrification and digitalisation. With the Software-Defined Vehicle (SDV), value creation is shifting from hardware to software, data and services. OTA (over-the-air) updates expand functions after purchase, and vehicles are becoming part of digital ecosystems. For users, this means more comfort and safety; for manufacturers, it means new revenue streams. According to S&P Global Mobility, connected cars generate around 25 gigabytes of data per hour – a potential that can only be harnessed with powerful networks, cloud, data spaces, AI and cybersecurity.
Networks and connectivity
Reliable networks are a basic prerequisite for SDV. Autonomous driving, real-time updates and V2X communication require stable connections. With 5G campus networks and later 6G, their importance will grow further. Studies predict annual growth rates of over 40% for the V2X market.
Cloud and data spaces
The cloud processes mass data in real time, controls updates and manages vehicle fleets. The automotive cloud market is forecast to grow by around 15% per year until 2032. At the same time, the EU is strengthening access to vehicle data with the Data Act. Decentralised data spaces such as the Mobility Data Space promote user-oriented services and reduce dependencies.
Interoperability instead of isolated solutions
Incompatible systems are still hampering development. Open standards such as AUTOSAR Adaptive, Eclipse SDV, COVESA and SOAFEE create compatibility – comparable to app ecosystems for smartphones. Partnerships are driving this development: BMW and Microsoft are building connected car platforms, Bosch is investing billions in AI, and SAP and Siemens are supporting production and mobility with cloud and edge solutions.
AI as the core
Without AI, the SDV would be unthinkable: it enables automated driving, intelligent cockpits and predictive maintenance. Edge computing brings decisions directly into the vehicle. Forecasts predict annual growth rates of 15–30% for automotive AI. Europe can achieve independence from hyperscalers with sovereign models on its own data spaces.
Security and trust
As the software load increases, so does the attack surface. Since 2022, new security standards (UNECE, ISO) have been in force. Risk analyses, structured update processes and end-to-end encryption are mandatory. Transparency through software bills of materials and strategies for post-quantum secure cryptography further strengthen trust.
Challenges and conflicting goals
The transformation brings high costs and complexity. Cloud solutions accelerate innovation but harbour dependency risks. Conflicts of interest arise, for example, between OTA speed and safety, monetisation and data protection, or openness and IP protection. Europe competes with the US, where tech companies dominate, and with China, which grows through scale advantages. Europe’s differentiation: trust, security and interoperability.
Recommendations for Europe
- Open interfaces and an EU legal act by 2026
- Governance framework for data spaces, doubling productive data sets by 2028
- 5G coverage on TEN-T corridors up to 90% by 2029
- Cross-border pilot projects and sandboxes
- Stronger SME participation in alliances
- Blended financing via CEF, IPCEI and private funds
- Post-quantum roadmap for secure encryption
Software-defined vehicles are central to Europe’s digital competitiveness. They require close cooperation between the automotive and Internet industries. Networks, cloud, data spaces, interoperability, AI and cybersecurity form the foundation – only together can industry and the tech sector make mobility in Europe reliable and scalable.
