Why Commercial Vehicles Hold the Key to Digital Transformation in Automotive

Where do you think key future innovations of the automotive industry should/will be? Well, I think it isn't where most people are looking. Everyone’s obsessed with luxury EVs, connected cars, and the "next big thing" in consumer vehicles. But the truth is—if we really want to talk about where digital transformation is about to take off, we need to be looking at something far less "sexy": commercial vehicles.

It's not Teslas, it's not the latest premium SUVs, but the good old-fashioned, hardworking commercial fleet vehicles that keep our cities alive, businesses running, and deliveries on time. They're the foundation of transportation, and guess what? They’re being massively overlooked when it comes to the next wave of innovation.

The Blind Spot We Can’t Afford to Ignore

For too long, we’ve been focused on consumer vehicles and their "premium digital experiences." It's time this changed. The real revolution in digital transformation? It’s sitting right in front of us. Commercial vehicles aren’t just moving from A to B. They’re moving businesses. These are critical assets that need to be efficient, reliable, and—the most important part—digitally connected.

While you’re upgrading your infotainment system or making sure your smart assistant can sync with your car, commercial fleet managers are dealing with a much different set of priorities. They’re not interested in flashy apps—they’re super-focused on maximising efficiency, cutting costs, and extending the life of their fleet. And right now, they’re being underserved by an industry obsessed with consumer shiny things. Big mistake.

The key to unlocking the full potential of commercial vehicles? Software-Defined Vehicles (SDV). But the thing is—it’s not being fully embraced yet. The potential is there, just waiting to be opened up. But i think, in general we’re too busy looking at the shiny toys.

Why SDV in Commercial Vehicles is the Next Big Thing (and Why No One is Talking About It)

SDV are already transforming the consumer market, but if you think the real value is in that space, think again. SDV in commercial vehicles is where the smart money is. Why? Simple: because in commercial vehicles, SDV isn’t a luxury—it’s a necessity.

I’ll put it bluntly: while consumers are getting excited about their cars having a built-in app for Spotify, commercial fleet managers are more interested in real-time tracking, monitoring, and optimising their vehicles to save money and reduce downtime. These benefits directly translate into operational efficiency—and that means serious savings.

Need an example? Think of how low-cost airlines make money. It’s not from ticket sales. It’s from the extras—baggage fees, seat upgrades, food. The same model can be applied to commercial vehicles. The real money is in services and optimisations—and SDV is the vehicle to get us there.

For example, fleet managers no longer need to buy new hardware to improve their vehicles. Instead, they can roll out software updates that boost fuel efficiency, reduce maintenance costs, and optimise routing. The fleet stays on the road longer, runs cheaper, and performs better. That’s where the future is.

Why Europe is Falling Behind—and Why Tesla/Rivian and Chinese Brands Are Winning

One of the biggest roadblocks to SDV adoption in commercial vehicles isn’t the technology itself—it’s cultural. I’m going to say it outright, and I've been talking about this for some time now: European OEMs are falling behind, trapped in a legacy mindset that’s holding them back. They’re weighed down by bureaucracy, slow decision-making, and risk aversion.

Meanwhile, companies like TESLA , Rivian , and Chinese brands are moving ahead. They’re fast, flexible, and agile because they don’t have the burden of decades-old processes weighing them down. Take Rivian—they’re a software-driven company at their core. They roll out updates in real time, manage assets more efficiently, and offer customers the flexibility that European automakers are still scratching their heads over.

What’s holding back Europe’s automotive giants? It’s not lack of talent or resources—it’s a mindset problem. They’re afraid to make bold moves, and while they debate, others are already innovating.

Let’s be honest—it’s time to break free from the old way of doing things. Commercial vehicles are ripe for digital transformation, but it’s going to take some bold leadership to make it happen. The question is, who’s going to step up?

The Aftermarket Goldmine No One is Talking About

Now let’s get to the real opportunity that everyone’s missing—the aftermarket. This is where the gold is. We all know that automotive suppliers don’t make the big bucks on the initial sale. The real money starts rolling in after the vehicle hits the road—warranties, parts, software updates, and upgrades.

But there is something to remember: traditionally commercial vehicle operators have been somewhat tight. They don’t want to pay a premium for features they don’t need. And this is where SDV offers something unique: you’re not selling a one-time product; you’re selling a service. Fleet managers don’t want new hardware every year, but they’ll gladly pay for a software update that improves fuel efficiency by 10%. That’s real value.

The best part is that SDV allows fleet operators to track and manage their vehicles in real-time. Data on everything from vehicle performance to driver behaviour is priceless. It is about keeping the vehicle on the road and optimising their performance. The real winners in this space will be those who figure out how to deliver ongoing value through software.

The Long-Term Vision: SDV and Commercial Vehicles

What excites me most about SDV in commercial vehicles is the long-term potential. Right now, we’re in the early days, but the possibilities are endless. Once we fully embrace SDV, we’re going to see vehicles that operate efficiently for decades, with continuous updates and improvements along the way.

And here’s where things get really interesting: electrification and sustainability are changing the industry. With the right software in place, commercial vehicles could operate efficiently for years, even decades, with updates that keep them competitive long after their initial sale.

The Revolution Will Be Commercialised

If we’re serious about the future of the automotive industry, we need to stop obsessing over consumer vehicles and start paying attention to commercial ones, this is not to say we should ignore consumer vehicles, but we must event the balance. These vehicles represent a goldmine for SDV, and the operational and financial benefits are too massive to ignore.

But to unlock this potential, we need to rethink how we do business. We need to break down the cultural barriers holding us back and fully embrace SDV. The future of automotive isn’t just about shiny electric cars with flashy dashboards. It’s about creating a digital ecosystem that keeps commercial vehicles running longer, smarter, and more efficiently.

Let me know your thoughts in the comments