ACV facts & figures
The 2025 Consumer Electronics Show (CES) held this January demonstrated a focus on software-defined vehicles (SDVs). Let’s explore some of the key takeaways from the event. Plus, we’ll dive into what the future looks like for SDVs and how these new technologies may impact the features your customers might be interested in seeing on your lot in the near future.
What Is a Software-Defined Vehicle?
A software-defined vehicle is one that operates and adds features and functionality through software. Thought of as the next era of the automotive industry, SDV capabilities are the foundation for technologies that have been long-awaited, including self-driving cars and connected cars. SDVs can offer benefits including better safety systems, infotainment systems for video and music, deeper vehicle performance insights and diagnostics, and an ever-increasing list of features that can be added through “over-the-air” updates.1
Key Takeaways About SDVs From CES 2025
1. Many of the most exciting features are ready to roll out
Updated features—including AI integrations, autonomous and advanced driving, in-vehicle displays, comfort upgrades, and charging—are ready in vehicles from BMW, Toyota, and Honda. These features leverage technology from household name brands like Sony and Garmin.2
2. Cost is the main challenge for manufacturers
Why are these features less common than we’d hope? The main challenge is to offer the vehicles with them at prices that consumers can actually handle.
It’s not as if these software features are a distant dream—they are ready today. Now, it’s a matter of figuring out how companies can keep costs at a level that will still appeal to consumers. This comes at a time when brand loyalty is waning, and consumers are increasingly seeking to lower their vehicle costs while simultaneously looking for a more high-tech product.2
3. Brands are boosting the in-cabin experience
There are numerous ways software is working to make the in-cabin experience exceptional. For example, Garmin showcased its Unified Cabin concept, which would have a digital cockpit, 3D augmented reality overlays, custom lighting, personal AI assists, and safety sensors. At the same time, HERE technologies showed how AI can help with prompts to find locations, charging stations, and routes.2
4. Comfort is a top priority
These improved in-cabin experiences aren’t just for glamor purposes—companies are looking to solve everyday issues customers face with their vehicles, including car sickness. This also comes into play when we think about entertainment options that are becoming available for passengers, such as video streaming.3
5. Safety is the top priority
With increasingly enticing graphics and dashboard displays, reducing driver distractions is a major concern. But panoramic displays can help keep only essential information in front of drivers, like Hyundai Mobis and BMD’s Panoramic iDrive and Operating System X.
Hyundai Mobis’ holographic windshield, which is not market-ready, will show speed and safety alerts across the entire windshield, aiming to keep drivers focused on the road and alerted to any last-minute issues that could cause a crash or other safety concerns.3
What’s Next for the Automotive Industry?
When we talk about the “future of technology” today, companies’ claims aren’t as bold and distant as they once were. Long-awaited ideas, like autonomous vehicles, are finally possible—so the future is much closer than it has ever been.
With a new presidential administration taking shape, changes to EV regulation are anticipated, and some of the next steps for many of these recent innovations will hinge on their policies.
Even without EVs being as emphasized as they were in the past, the auto industry appears to be keeping up with technological adoption at the rate of other industries instead of lagging. And chip makers, like Nvidia, are essential to further innovation in the industry since automakers will need to power autonomous driving and AI.
As for consumers having access to some of these newer technologies, time will have to tell, as pricing, tax incentives, and other policies play a major role in what is or is not realistic and achievable for the average American.4
Work With ACV Auctions to Build Tomorrow’s Inventory Today
No matter what the vehicle trends or changes are, you can turn to ACV as your dealer partner. We’re ready to help supply used car inventory for your dealership. As an online car auction exclusive to dealers, we offer the best condition reports in the industry featuring all the information you need to bid confidently.
Our own vehicle condition inspectors complete every report, including interior and exterior photos, high-definition engine sounds, OBDII scan, and more to help you feel secure and confident in your bid. Get started with ACV today.
Sources
- QNX. “What is a Software-Defined Vehicle?" QNX. Retrieved January 20, 2025. https://blackberry.qnx.com/en/ultimate-guides/software-defined-vehicle
- Sasha Lekach. 2025. “CES 2025 Was All About Software-Defined Vehicles.” Forbes. Retrieved January 20, 2025. https://www.forbes.com/sites/sashalekach/2025/01/10/ces-2025-was-all-about-software-defined-vehicles/
- Wyatte Grantham-Philips. 2025. “From AI assistants to holographic displays, automakers showcase in-cabin experiences at CES.” Associated Press. Retrieved January 20, 2025. https://apnews.com/article/honda-hyundai-bmw-ces-2025-c6b48e70081c6a4eaab9d6e445e3534f
- Hannah Lutz. 2025. “Auto companies’ CES contributions reflect cautious mood and strategy questions.” Auto News. Retrieved January 20, 2025. https://www.autonews.com/events/ces/an-ces-2025-auto-mood/
