What is the difference between connected cars and software-defined vehicles?

Connected driving has come a long way since the first time it introduced vehicles capable of communicating with their surroundings.

What started as a collection of features that made cars smarter turned into an entirely new branch of automotive innovation.

Welcome to the era of the software-defined vehicle.

Unlike connected cars, software-defined vehicles are reshaping not only how cars operate but also how they’re built and updated over time.

So what exactly is the difference between these two?

Connecting what matters

Let's start with connected driving. The concept emerged from the pursuit of safer and more efficient transportation.

What started with early advancements in telematics and vehicle-to-vehicle communication systems today represents the foundation for highly integrated networks of sophisticated vehicles.

In its core are cars that focus on communication with the outside world, using internet connectivity and wireless networks to share information with other cars, traffic systems and cloud-based services.

This external communication enables features like real-time traffic updates, vehicle-to-vehicle warnings about road hazards and remote monitoring by manufacturers.

In essence, it's all about creating a network where vehicles can talk to each other and to road infrastructure to alert nearby vehicles about sudden braking or accidents ahead, making roads safer for everyone.

Innovation from within

Unlike the external nature of connected cars' communication, software-defined vehicles prioritize how the car operates internally, using digital systems to manage and improve the driving experience.

Think of it as a computer on wheels.

Software-defined vehicles can receive over-the-air updates that add new features or improve performance without visiting a service center.

What this means is that software manages everything from engine performance to entertainment systems, creating a unified digital experience controlled by code rather than mechanical systems.

This approach allows for continuous improvement and personalization long after the car leaves the factory.

Still all about location

Although they have different needs, both connected cars and software-defined vehicles rely on precise location technology to operate efficiently.

And it goes beyond simple support. Location data essentially serves as a bridge between connected cars and software-defined vehicles.

For connected cars to operate effectively, they rely on location services like HERE Real-Time Traffic to share accurate information about road conditions with other vehicles. This data helps create the networked ecosystem that makes connected driving possible.

Software-defined vehicles use location technology differently, integrating services such as HERE HD Live Map into their internal systems to provide precise navigation and support advanced driver assistance features. The software uses this geographic data to make real-time decisions about routing, safety and performance optimization.

Some solutions support both.

HERE Routing, for instance, enables both types of vehicles to calculate optimal paths based on current conditions, while HERE Live Sense SDK provides hazard detection capabilities that work whether the car is sharing information externally or processing it internally through software systems.

Similarly, real-time mapping data and precise positioning information support both external communication and internal software systems.

Read more: What is a software-defined vehicle?

Bridging the gap

Connected driving enables vehicles to interact seamlessly with their surroundings, leveraging networks to enhance safety, navigation and efficiency.

Software-defined vehicles focus on internal adaptability, offering modular systems and over-the-air updates to stay current with technological advancements. While connected driving looks outward to integrate with external systems, software-defined vehicles emphasize flexibility and personalization within the vehicle itself.

As connected and software-defined vehicles continue to evolve, we can expect to see a merging of these two concepts. A key driver for this is the rise of autonomous vehicles.

With self-driving cars becoming more prevalent on our roads, the need for advanced connectivity and adaptable software systems is becoming increasingly important.

These technologies will allow autonomous vehicles to function efficiently and safely in complex traffic situations, reducing accidents and improving overall mobility.

Collaboration over competition

Both connected cars and software-defined vehicles are pushing automotive technology forward, complementing each other to make driving smarter, safer and more convenient.

Connected cars are creating smarter road networks through communication and data sharing, while software-defined vehicles are redefining how cars are built, maintained and personalized.

To continue evolving, cars will need external connectivity to participate in smart traffic systems while also requiring sophisticated internal software to manage complex digital features and continuous improvements.

Read more - A safe bet: why connected safety is taking over software defined vehicles

Communication is key

As smart vehicles continue to develop, understanding the differences is essential to keeping pace with the rapid innovation in automotive technology.

From external communication to internal software control, identifying the nuances of smart cars supports the goal of building safer, smarter and more efficient transportation systems for the future.