Stellantis plans €20 billion in software revenue by 2030

Cars are increasingly becoming an extension of our digital lives, and at Stellantis’ Software Day event, the group behind 14 automotive brands outlined its plans to develop and monetise software solutions.

Its targets are ambitious. Stellantis expects products and subscriptions based on software solutions to generate roughly €4 billion in revenue by 2026, rising to €20 billion by 2030.

To achieve this, it will introduce three new technology platforms, due in 2024, establish partnerships and significantly expand its connected vehicle base. This is expected to enable up to 400 million over-the-air updates in 2030, compared with more than six million carried out in 2021.

Three new technology platforms in 2024

At the heart of this digital transformation is a new electrical/electronic (E/E) and software architecture called STLA Brain, the first of the three new technology platforms. Designed to support remote over-the-air (OTA) updates, it promises considerable flexibility.

By separating the hardware and software links that currently exist, STLA Brain will make it quicker to create or update functions and services, without having to wait for new hardware developments. Stellantis says the advantages will be wide-ranging: “These OTA updates dramatically reduce costs for both customers and Stellantis, simplify maintenance for the user and support vehicle residual values.”

Built on STLA Brain, the second technology platform will be the STLA SmartCockpit architecture. Its purpose is to integrate with the digital lives of a vehicle’s occupants, digitally personalising the cabin environment. It will provide AI (Artificial Intelligence)-based applications, including navigation, voice assistance, e-commerce and payment services.

Finally, STLA AutoDrive, as its name suggests, is focused on autonomous driving. Developed through a partnership between Stellantis and BMW, it will enable autonomous driving capabilities across levels 2, 2+ and 3, with continuous improvements ensured through remote updates.

For vehicles capable of fully autonomous driving at level 4 or above, Stellantis has strengthened its relationship with Waymo. The company already uses several Chrysler Pacifica Hybrid models fitted with the Waymo Driver system as test vehicles to develop the required technologies. Light commercial vehicles and local delivery services are expected to be the first to adopt these technologies.

Software-based businesses

These new E/E and software architectures will form part of the four vehicle platforms - STLA Small, STLA Medium, STLA Large and STLA Frame - that will underpin all future models from Stellantis’ 14 brands, allowing customers to tailor vehicles more closely to their requirements.

This customisation will generate part of the return on investment from the development of software platforms and connected services, which will be based on five pillars:

• Services and Subscriptions
• Features on Demand
• DaaS (Data as a Service) and Fleets
• Vehicle Pricing and Resale Value
• Acquisition, Service Retention and Cross-selling Strategy

This business is set to grow substantially as the number of connected and monetisable vehicles rises; this classification applies during the first five years of a vehicle’s life. Stellantis currently has 12 million connected vehicles, but expects that figure to reach 26 million vehicles in 2026, five years from now, before increasing to 34 million connected vehicles in 2030.

According to Stellantis forecasts, the growth in connected vehicles will lift revenue from approximately €4 billion in 2026 to €20 billion in 2030.

Adding 4,500 software engineers by 2024

The digital transformation already under way at Stellantis will need to be supported by a much larger team of software engineers. For this reason, the automotive giant will establish a software and data academy, involving more than 1,000 internal engineers in building this technology community.

Stellantis also intends to recruit far more talent in software development and artificial intelligence (AI), aiming to bring in around 4,500 engineers in the field by 2024 and create global talent hubs.