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October 8, 2025

New EPoSS Position Paper: Smart Systems for Software-Defined and Hardware-Enabled Vehicles

The transition in the automotive industry towards software-defined and hardware-enabled vehicles (SDVs) is reshaping the entire value chain. Smart systems are at its core, from chip and sensor development to E/E architecture design, from mechatronic system and component integration to testing in real and virtual environments, autonomous driving control, energy management, entertainment systems, and on-demand mobility services. This transforation presents Europe with a unique opportunity to combine its strengths

  • in semiconductor technology,
  • electric and electronic system design,
  • vehicle dynamics know-how,
  • safety validation and automotive engineering
  • in a faster, more agile and more comprehensive manner to secure leadership,
    technological sovereignty and strategic autonomy in an increasingly competitive global market.

 

The Position Paper outlines how smart systems integration can enable Europe to lead the way in SDVs through an ecosystem approach, from chip via architecture to cloud, while maintaining open strategic autonomy, sustainability, and competitiveness.

Smart systems provide the seamless and efficient integration of functionalities along the whole SDV stack – from semiconductor chips through electronic system architecture and middleware to services. This integration allows vehicles to operate as safe, efficient, and upgradeable platforms.
The role of smart systems for SDV is fourfold:

  • Integrating heterogeneous resources to accelerate performance gains
  • Facilitating SW/HW integration through centralized E/E architectures
  • Optimising performance by SW/HW systemic co-design
  • Managing trust with non-deterministic hardware and software

Europe’s leadership in SDV and smart systems will depend on ensuring that all funding instruments, ECAVA, Automotive Partnership or JU, and IPCEI CCAV complement each other along the value chain. They should build upon and continue the achievements of 2Zero and CCAM, and relate to the successor of the Chips JU, creating strong, synergetic funding levers. This must also create spillover potential into AI, robotics, cobotics, industrial automation, and dual-use domains.
If Europe secures common reference architectures, open standards, and aligned funding instruments, it can build a strong SDV ecosystem that combines sustainability, competitiveness, and open strategic autonomy

Downloads

download icon EPoSS Position Paper_Smart Systems for SDV_Oct_2025

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