BlackBerry QNX Report Finds SDV Delay Opens Door for Telcos

A new report from QNX reveals that the UK’s ambition to lead in the Software-Defined Vehicle (SDV) market is facing significant headwinds due to complex regulations and persistent development bottlenecks.

For the telecommunications sector, the challenges signal a critical opportunity to provide the robust connectivity, security and data infrastructure that automakers urgently need to accelerate progress.

The research, detailed in the Under the Hood: SDV Developer Report, surveys embedded software developers to understand the core pressures stalling innovation.

The findings for the UK paint a picture of an industry navigating a maze of compliance while struggling with internal processes, creating an apparent demand for expert partners to help manage the flow of data and secure the connected car ecosystem.

The regulatory maze divides development

The regulatory landscape is a primary source of friction for UK automotive software developers. In 2024 alone, the industry faced more than 500 new global regulations and legislative proposals that affected in-car technology.

It is no surprise that 43% of UK developers cite regulatory compliance as one of their most significant challenges in development.

The complexity has split the industry’s momentum. While 39% of developers report that new rules have accelerated their timelines, an equal 39% say they have caused delays.

The most difficult regulations for UK teams to navigate centre on digital infrastructure and data handling.

These include cybersecurity rules (47%), software update and Over-the-Air (OTA) compliance (44%) and data privacy regulations like GDPR (37%).

Each of these domains relies heavily on the telecommunications network for secure, reliable data transmission.

As Manuel Tagliavini, Software Principal Analyst at S&P Global Mobility, says: “Regulatory frameworks are evolving, but not fast enough to match the pace of innovation.

“OEMs must build resilience into their development processes and lean on trusted partners to navigate compliance while maintaining speed and agility.”

Recalls and bottlenecks force a rethink

Software recalls and failures further complicate development timelines.

More than half (57%) of UK automotive software developers confirm that their team’s approach has changed due to recent recalls, with 40% describing these changes as “major”.

These reactive changes add pressure to already strained workflows. Developers identify long development cycles (41%), debugging and testing processes (39%) and integration complexity (39%) as significant internal bottlenecks hampering progress.

Secure, high-speed connectivity, such as that offered by private 5G networks in R&D and manufacturing environments, presents a straightforward solution to accelerate these processes.

Bridging the skills and security gap

Cybersecurity represents a growing challenge and a critical area of focus. UK developers overwhelmingly agree that cybersecurity skills will be the most vital asset for automotive software teams in the coming years (68%).

It is followed by a demand for expertise in functional safety (50%), AI/ML integration (50%) and real-time systems (47%).

The skills are essential to counter the most significant threats to a successful SDV rollout.

UK developers identify cybersecurity vulnerabilities (55%), regulatory uncertainty (45%) and a lack of consumer trust (38%) as the top risks.

Telecommunications providers, with their deep expertise in network security and threat mitigation, are well-positioned to partner with automakers to secure vehicle-to-everything (V2X) communication channels and build essential consumer trust.

Recalibrating for reality over hype

The report suggests a disconnect between industry hype and developer priorities.

While features like AI-driven personalisation are often highlighted, 59% of UK developers believe the area currently receives more attention than is warranted.

Furthermore, developers report that unrealistic consumer expectations (51%) are a key reason for the gap between feature promises and delivery timelines.

The finding reinforces the pragmatic viewpoint that 82% of UK developers believe a deliberately minimalist, lower-tech vehicle could succeed commercially.

The insight suggests a strong market for vehicles that prioritise reliability and essential, secure connectivity over feature overload.

Despite scepticism about certain applications, developers see a powerful role for AI in their own work.

A remarkable 93% expect AI to play a significant or transformational role in software development over the next three to five years.

Thomas Cardon, Director of EMEA Automotive Sales at QNX, says: “These findings confirm the challenges that UK automakers face, with regulatory pressures, cybersecurity skills shortages and rising consumer expectations all combining to stall progress.

"AI will be part of the solution, but it’s no quick fix. The manufacturers leading the way in the UK are the ones using automation to ease bottlenecks, embedding compliance into their processes and focusing engineering talent on innovation that delivers safer, more secure and more reliable vehicles.”