Amazon Web Services Inc. made several announcements at the CES consumer electronics show last week regarding partnerships in the automotive industry that are aimed at furthering the rise of software-defined vehicles.

Building and delivering cars is increasingly becoming a software game that requires automotive manufacturers to take an ecosystem approach. The rise of software-defined vehicles, or SDVs, enables auto companies to work on parts or cars that have yet to be built. Also, updates can be made to finished products using over-the-air connectivity, something they could never do before.

AWS is partnering with several companies to make SDVs smarter and easier to develop. By using cloud computing, artificial intelligence and scalable tools, AWS is helping automakers build better cars that can be updated and improved over time.

Honda Motor Co. Ltd. is among the companies working with AWS to turn its cars into SDVs. The car company has created a “Digital Proving Ground,” or DPG, an AWS-enabled cloud simulation platform for digitally designing and testing vehicles. Using DPG, Honda can collect and analyze data such as electric vehicle driving range, energy consumption and performance. The platform reduces reliance on physical prototypes, speeding up development and lowering costs.

Historically, auto companies have had to build cars first and then test them. Though this seems reasonable, the cost and time taken can be very high as accidents happen, which creates delays, and niche use cases can be complex to test. For example, at dawn and dusk, sensors can malfunction because of the brightness. This can only be tested for a few minutes daily in the physical world. In a simulated environment such as the DPG, the sun can be held at the horizon, and millions of hours of simulation run.

Moreover, Honda uses AWS’ video streaming and machine learning tools to develop video analytics applications. Amazon Kinesis Video Streams processes and stores car camera footage to detect unusual movement around a car. If implemented in the real world, it could potentially alert drivers to nearby hazards and help prevent collisions.

Honda is also tapping into AWS generative AI services, specifically Amazon Bedrock. For example, it’s developing a new system that guides drivers to the best charging stations based on location, battery level, charging speed and proximity to shopping centers. The system provides secure communication between vehicles and the cloud while gathering driver preferences to offer personalized recommendations. It’s set to launch in Honda’s 0 Series EVs (pictured).

Honda’s partnership is notable, as it’s among the highest-volume manufacturers. Specialty EV companies were early interested in leveraging platforms such as AWS. A Honda partnership legitimizes that SDVs are the way forward for this industry.

Building on this momentum, AWS has also teamed up with HERE Technologies to enhance location-based services for SDVs. HERE provides advanced mapping technology, while AWS supplies the cloud tools to process large amounts of data. The companies are helping automakers build driver assistance systems, hands-free driving, EV routing and more.

HERE’s HD Live Map processes real-time sensor data to provide granular navigation and improve EV battery usage. The company just launched a new tool called SceneXtract, which simplifies testing by creating virtual simulations. Using a combination of HERE’s mapping technology and services like Amazon Bedrock, automotive developers run detailed simulations to test advanced driver assistance systems and automated driving. For instance, they can locate and export map data into test scenes, reducing the time, effort and cost involved in preparing simulations.

Additionally, AWS has partnered with automotive supplier Valeo to simplify the development and testing of vehicle software. Valeo announced the first three solutions during CES 2025: Virtualized Hardware Lab, Cloud Hardware Lab and Assist XR.

Virtualized Hardware Lab allows carmakers to test software on virtualized components, potentially speeding up development by up to 40%, according to Valeo. This cloud-based solution, hosted on AWS, will be available on AWS Marketplace yearly this year.

Valeo offers the Cloud Hardware Lab, a Hardware-in-the-loop-as-a-service solution for those who want access to large-scale testing systems. HIL combines hardware components with software simulations so companies can test how their software interacts with hardware systems. HILaaS allows companies to access Valeo’s advanced testing systems remotely through an AWS-hosted platform.

Lastly, Assist XR will provide roadside assistance, vehicle maintenance and other remote services. It will use AWS cloud infrastructure and AI tools to process real-time data from vehicles and their surroundings. This is one of many examples of the technologies needed to build safer, smarter and more efficient cars.

Going into CES, I was chatting with some media, and there is a perception that the automotive industry has seen little innovation over the past several years. Though I believe this statement is incorrect, I understand the source. Five or more years ago, fully autonomous vehicles were all the rage and were supposed to be here by now. This set an expectation that was not realistic. If the benchmark for innovation is level five AVs, then we aren’t there yet.

However, every year, incremental innovation has been made in the journey to fully autonomous, and we now have many features that make us better, smarter and safer drivers. 2025 won’t be the year of level five, but it will be another year in which we see more steps taken toward it.

Zeus Kerravala is a principal analyst at ZK Research, a division of Kerravala Consulting. He wrote this article for SiliconANGLE. 

Photo: Honda