The major shift from traditional to advanced E/E architecture

In earlier vehicle generations, electrical and electronic systems were built around a large number of individual Electronic Control Units (ECUs), each dedicated to a single function and operating largely independently. Typical ECUs would control:

  • Engine performance
  • Braking systems
  • Lighting
  • Infotainment and other in-car features

This decentralized approach enables a high degree of specialization but results in a complex and less efficient overall system. Every ECU requires its own hardware, wiring, and software stack, which increases system complexity and drives up manufacturing and integration costs.

In contrast, the modern approach to E/E architecture is shifting toward centralization, where fewer but more powerful ECUs manage multiple vehicle domains and functions. These centralized architectures consolidate many operations into one or a small number of high-performance computing platforms capable of handling diverse tasks in parallel. As a result, automakers can reduce wiring and component complexity, lower production costs, and increase the flexibility of vehicle platforms. This trend is reinforced as vehicles become more feature-rich and automotive electronics are expected to account for around 50% of total car cost by 2030.

Key Trends Driving the Evolution of E/E Architecture

The evolution of Electrical/Electronic (E/E) architecture is being shaped by a set of powerful, long-term trends that are redefining how modern vehicles and systems are designed, integrated, and maintained. These trends influence everything from system complexity and software content to connectivity and lifecycle management, creating new requirements for both hardware and software.

This section outlines the key forces behind that transformation and explains how they collectively drive E/E architectures toward more scalable, flexible, and software-centric designs.

Electrification and the need for centralized computing

The global shift toward electric vehicles (EVs) is driving demand for more efficient, high-performance in-vehicle computing systems. EVs depend on advanced battery management, regenerative braking, and real-time monitoring to optimize both energy efficiency and safety.

In this context, centralized architectures can enhance these capabilities by reducing system redundancies and enabling faster data processing. As EV sales are projected to reach almost 65 million vehicles in 2035, such centralized systems will become even more critical for automakers to remain competitive.

Autonomy

The rise of autonomous vehicles (AVs) is driving the evolution of E/E architecture to meet dramatically higher computational demands. Level 4 and 5 autonomous systems require more than 1,000 TOPS (Tera Operations Per Second) to process massive volumes of data from sensors, cameras, and LiDAR systems in real time. This requirement is accelerating the shift toward centralized computing platforms, which are better suited to handle these data loads and the complex decision-making processes that underpin safe and reliable autonomy. As high-performance computation becomes a prerequisite, E/E architecture is increasingly central to enabling the advanced functionality expected from autonomous systems.

Customer expectations for autonomous driving capabilities are also reshaping priorities in E/E architecture development. Research shows that 64% of consumers are willing to switch to OEMs that offer superior autonomous driving experiences, underscoring the growing demand for innovation and differentiation in this space.

Connectivity

Connectivity is reshaping E/E architecture as modern vehicles increasingly rely on IoT, V2V, and V2I technologies to enable advanced functionalities. Connected vehicles can generate up to 4 TB of data per day, which demands a robust and centralized E/E architecture capable of processing information in real time.

A centralized architecture not only improves data handling, but also supports seamless communication between onboard systems, external infrastructure, and other vehicles. This continuous data exchange is critical for enabling features such as OTA updates, predictive maintenance, and enhanced safety.

As 95% of new vehicles are expected to be connected by 2030, E/E architecture must evolve to support scalable, high-bandwidth, and secure connectivity solutions.

How does the E/E architecture shift impact OEMs?

As vehicle electronics grow more complex, the shift toward new E/E architectures is reshaping how OEMs design, develop, and support their products. This transition has far-reaching implications for OEMs across technology choices, organizational structures, and business models.

OEMs must increasingly coordinate hardware and software development in parallel, manage more integrated electronic domains, and ensure that systems remain scalable over a vehicle's lifecycle. This requires tighter alignment between engineering teams, clearer interfaces with suppliers, and stronger capabilities in software and systems integration.

Beyond technical changes, the E/E architecture shift also influences how OEMs plan product portfolios, manage costs, and differentiate their brands. It can alter sourcing strategies, redefine responsibilities within the value chain, and shape how OEMs deliver new features and services to customers over time.

Simplified vehicle design and manufacturing

The adoption of a centralized architecture significantly streamlines vehicle design by reducing the number of Electronic Control Units (ECUs) and simplifying wiring harnesses. By lowering system complexity, it also minimizes potential failure points and reduces the effort required for maintenance.

With fewer discrete components to manage, Original Equipment Manufacturers (OEMs) can concentrate on developing optimized, integrated solutions that enhance overall vehicle efficiency.

Cost savings with centralized ECU platforms

By consolidating multiple ECUs into a unified platform, OEMs can unlock substantial cost savings across manufacturing, assembly, and parts sourcing. Centralized architectures also enable over-the-air (OTA) updates, allowing automakers to roll out software improvements and new features without hardware changes. This capability can save manufacturers up to 35 billion USD annually in recall-related expenses while enhancing customer satisfaction through seamless upgrades.

To explore how the transition to zonal and central computer architectures in automotive E/E systems creates both opportunities and challenges across the value chain, read: Gear Up for Next-Gen E/E Architecture with Zonal Compute: The Automotive Industry’s Game Changer.

Increased focus on software and IT capabilities

As E/E architecture becomes increasingly software-centric, OEMs will need to invest heavily in software engineering talent and IT infrastructure. Reliable and robust software is essential to manage critical functions such as vehicle control, safety, and diagnostics, making software a core pillar of future vehicle performance and reliability.

For many traditional automakers, however, this shift represents a significant cultural and operational change, as software development has historically sat outside their core competencies. OEMs must take greater control over the entire software stack, including middleware, operating systems, and communication protocols. To do so effectively, they will need strong cross-functional collaboration, agile development methodologies, and strategic partnerships with technology providers.

Enhanced user experience

Centralized architecture enables OEMs to significantly enhance the in-vehicle user experience. By consolidating control functions into a unified platform, it supports more intuitive and responsive systems for key features such as infotainment and advanced driver-assistance systems (ADAS).

In addition, centralized E/E systems make highly personalized driving experiences possible. Drivers can easily customize settings including seat position, climate control, and infotainment preferences, resulting in comfort and convenience that are tailored to individual needs.

The increased computational power of centralized platforms also underpins the development of sophisticated, visually appealing user interfaces that remain easy to navigate, helping users access features and information quickly and confidently.

Accelerate the future of software-defined vehicles with FPT

The shift to centralized, software-defined E/E architecture in vehicles is transforming how manufacturers design, build, and differentiate their products. It unlocks new ways to enhance vehicle features, deliver continuous updates, and tap into recurring revenue streams through software and services.

As vehicles become more reliant on software and cloud-based services, OEMs are increasingly partnering with technology companies, including software vendors, cloud providers, and telecommunications firms. By working with these technology leaders, OEMs can stay at the cutting edge of digital innovation and strengthen capabilities in areas such as autonomous driving, cybersecurity, and infotainment.

FPT offers a comprehensive suite of automotive engineering services that supports OEMs and Tier-1 suppliers across the entire software-defined vehicle lifecycle. Our key capabilities include:

  • In-vehicle infotainment development
  • E/E architecture design consultancy
  • Electronic Control Units (ECU)
  • Automotive security solutions
  • Automotive UI/UX design
  • Wireless connectivity
  • Digital engineering

With more than 10 years of experience in the automotive industry, a vast global talent pool, and the latest technologies, FPT aims to accelerate the rapid development of an automotive sector increasingly defined by software.

 

Find out more about our service offerings here: https://fptsoftware.com/industries/automotive

Conclusion

The shift to centralized, software-defined E/E architecture is no longer a technical option but the strategic backbone of an industry being redefined by electrification, autonomy, and connectivity. As vehicles evolve into high-performance computers on wheels, OEMs can simplify design, cut costs through ECU consolidation and OTA updates, and unlock richer, more personalized in-car experiences—but only if they build strong software and IT capabilities at their core. This demands new operating models, agile development, and deep partnerships with technology providers like FPT, who bring domain expertise and full-stack engineering services to accelerate the transition. Ultimately, the OEMs that act now to master next‑gen E/E architectures will not just adapt to software‑defined vehicles, they will set the standards for what the car of the future can become.

Frequently Asked Questions

Why is automotive E/E architecture shifting to centralized designs? The shift to centralized, software-defined E/E architecture is driven by the need to handle complex software features, enable faster innovation, and support new digital services. Central platforms simplify integration, improve performance, and create revenue opportunities, while encouraging OEMs to partner more closely with software, cloud, and telecom providers.

What industry trends are reshaping automotive E/E architecture? Three major trends are reshaping E/E architecture: electrification, higher levels of driving automation, and pervasive connectivity. Together they massively increase data volumes, functional complexity, and performance needs. Centralized, software-defined platforms are emerging as the only scalable way to meet these requirements efficiently and competitively.

How does centralizing ECUs improve on traditional E/E designs? Traditional vehicles rely on many separate ECUs, each with its own hardware, wiring, and software, creating complexity, cost, and integration challenges. Centralized architectures replace dozens of ECUs with a few powerful computers, cutting wiring, easing software management, reducing failures, and making it easier to add or update functions over time.

Why do EVs need more centralized, high-performance E/E systems? EVs depend on precise battery management, regenerative braking, and real-time energy monitoring to maximize range, safety, and lifetime. Centralized E/E architectures process these data streams quickly, reduce redundancy, and coordinate powertrain, chassis, and thermal systems, helping OEMs scale EV portfolios and stay competitive in a fast-growing market.

How do higher autonomy levels push E/E toward central compute? Level 4–5 autonomy requires over 1,000 TOPS to fuse data from cameras, radar, LiDAR, and maps in real time and run complex AI. Central computing platforms concentrate this performance, simplify integration of perception and planning, and support fast updates, enabling OEMs to deliver safer, more competitive autonomous driving features.

Why does vehicle connectivity require centralized E/E platforms? Connected cars can generate terabytes of data daily from sensors, apps, and cloud links. Centralized E/E platforms are needed to process and filter this data in real time, coordinate V2V and V2I communication, and securely enable OTA updates, predictive maintenance, and new digital services as connectivity becomes near-universal.

How do centralized E/E systems simplify design and manufacturing? By consolidating functions into a few powerful controllers, centralized architectures cut the number of ECUs and simplify wiring harnesses. This reduces failure points, integration work, and assembly complexity. OEMs gain more modular platforms, easier variant management, and a cleaner basis for future features and derivatives.

Where do OEMs see cost savings from centralized E/E platforms? OEMs save by reducing ECU count, wiring, and part diversity, lowering material and assembly costs. Centralized platforms enable OTA updates, letting OEMs fix bugs and add features without dealer visits or hardware changes, which can cut recall expenses dramatically while improving customer satisfaction and vehicle uptime.

How does the E/E shift change OEM strategy and operations? Centralized, software-defined E/E architectures affect vehicle design, costs, talent needs, and customer offerings. OEMs must rethink product roadmaps around software, restructure organizations toward cross-functional development, and form deeper technology partnerships to monetize connected, autonomous, and personalized features over a vehicle’s lifetime.

How can FPT help OEMs build software-defined E/E platforms? FPT supports OEMs with E/E architecture consulting, ECU and software development, connectivity, security, and automotive UX. Leveraging cloud and in-vehicle platforms, FPT helps design centralized, software-defined architectures and digital services that enable OTA updates, advanced infotainment, and autonomous features, unlocking ongoing revenue opportunities.