TechTalk SaaS_dashboard

Published on June 5th, 2021 | by Daniel Sherman Fernandez


SaaS Has Changed Driving Forever

For Motor Enthusiasts, SaaS Is Fine-Tuning The Driving Experience When It Comes To Modern Vehicles.

Software as a service (SaaS) has had a transformative impact on many classic areas of industry, and that includes the automotive industry and the experience it provides driving enthusiasts. 

Beginning in the massively important insurance sector, where Forbes has highlighted the use of AI-driven tech to provide faster service for claimants, SaaS is now having a transformative impact across the car industry. This is manifesting in subtle ways that drivers may not even have realized.

SaaS_Honda cockpit

Car software

Modern vehicles have a range of software packages that help the car to run smoothly and to improve quality of life behind the wheel. That includes both engine sensor systems for maintenance, and the driver’s command and communication systems. The automotive industry has long used SaaS in its business model for in-car software. 

SaaS enables customers to customize their in-car experience through the use of software offered by the manufacturer, while also improving the quality – moving that expertise outside to third parties with a track record in great software has helped to create many of the quality of life adaptations that drivers benefit from. Even for drivers who prefer the classic driving experience and use less of the smart features, McKinsey highlights that SaaS has enabled many manufacturers to reduce overall costs and spend more time on innovating in their vehicles.

BHP_Euro5 Diesel_2021

Increased functionality

DataQuest India highlights one important trend in motoring that will increase the relevance of SaaS even further: voice activation. Cars have long had the potential for voice activation, and in the era of distracted driving, having a truly hands-free and non-distracting option is something that motorists and manufacturers will prioritize. 

Before the industry fully shifts into embracing automated driving, SaaS is providing the basis for a better quality of driving today. Manufacturers are always looking for ways to further improve their driver experience, and the functionality that constantly improving and independently developed software licenses is something to be promoted.

The autonomous shift

As autonomous vehicles become widespread, SaaS will only become more relevant. In an analysis conducted by industry researchers TopTal, the continued buyouts of industry innovators by the big auto houses was crowned by General Motors’ acquisition of Cruise Automation for USD1bn. 

The type of expertise that independent software developers can provide is best provided through the SaaS model, and it will continue to be relevant in future car innovation and manufacturing. For drivers, SaaS being part of their vehicle means that they have the opportunity to customize and swap what software package they use for the perfect driving experience.

Software underpins the modern driving experience, and it will characterize the experience of the future. From insurance to automated cars, manufacturers are involving the use of SaaS to improve and modernize the driver experience. Large acquisitions by the auto industry highlight their future plans when it comes to the interface of driving and software.


By Jennifer Dawson

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