Message from the Chief Software Officer

In an age of software-defined vehicles (SDVs), where cars are connected to society, software will dramatically increase the value of cars. In realizing safe, comfortable, and enjoyable mobility, we must make assured safety a premise and incorporate IT into vehicles that enables application downloads and other advances. By 2030, in-vehicle software is expected to require approximately 600 million lines of code, more than six times the number in 2020 and an order of magnitude greater than the 20 million lines of code needed for the Android OS.

DENSO’s three competitive advantages are integration capabilities: the formation of large-scale projects that make full use of cutting-edge technologies; human resource capabilities: cocreation among various in-house and external experts; and deployment capabilities: leadership in the establishment of industry standards. We have been involved in the development of in-vehicle software for more than 40 years and in the largescale development required to realize SDVs for more than 20 years. Going forward, DENSO will extend the aforementioned advantages even further.

Cars must be highly reliable because, in essence, people entrust their lives to cars when using them for transportation. DENSO provides a wide range of software and hardware for cars. Our strength lies in our expertise in developing cars through a three-pronged approach that integrates mechanical parts, electronics, and software. With the aim of adding IT to this integrated strength in order to provide user value from a broader perspective, we are advancing new partnerships and co-creation with related industries. As part of these efforts, we formed a comprehensive alliance with NTT DATA JAPAN CORPORATION in June 2024. We will continue working with diverse partners to boost our ability to provide customers with solutions.

Furthermore, we will use AI and software tools to accelerate the automation of evaluation, verification, and design processes so that anyone involved in product development can efficiently benefit from our long-standing expertise in the field of in-vehicle software development.

In forming large-scale projects that make full use of leading-edge technologies, securing a significant number of highly skilled software engineers is vital. Aiming to build a development system comprising 18,000 people by fiscal 2031, which is 1.5 times the number in fiscal 2024, DENSO is stepping up branding activities to enhance recruiting capabilities, reskilling personnel from other job categories, and strengthening relationships with partner companies globally.

In addition, through the Career Innovation Program we have defined common skills and standards worldwide, enabling us to visualize the skills of our engineers globally. The program provides in-house certification to encourage personnel with advanced skills to take on important roles in diverse fields.

Given the diminishing number of software engineers, Japan’s car industry cannot survive on a global scale if companies develop software in isolation. By leveraging its relationships of trust with customers, DENSO is leading the way in software standardization and building an industry-coordinated ecosystem.

With respect to human resources, we have begun working with related ministries and agencies to make our Career Innovation Program a standard in the industry. In the technological field, we participate in Japan Automotive Software Platform and Architecture (JASPAR), a standardization body for automotive software, as the sole supplier sitting on its five-company board and promote standardization in relation to SDV technology themes, such as functional safety and security. We will also actively contribute to the standardization of industry software for the digital transformation of mobility strategy that is being promoted by the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism.

We are fast approaching the SDV era, in which DENSO will increasingly be able to demonstrate the competitiveness of the software it has developed. DENSO aims to create a software business worth ¥800 billion by fiscal 2036, roughly four times its scale in fiscal 2024. The business has already won orders not only for conventional hardware-embedded software but also for stand-alone software. To accelerate the business, DENSO will further heighten the software development and value provision capabilities of the entire Group. The goal is to reach a position whereby a mobility society cannot be created without DENSO software.

As software development grows in scale, more than 1,000 engineers can be involved in a single project. In other words, the difference in scale is like changing from constructing a house to constructing a huge building. By working hard together and proceeding through many development processes, our designers are incorporating value into products in the form of high quality. The Hitozukuri (development of human resources) and Monozukuri capabilities required for software projects are already part of DENSO’s long-cultivated DNA. By strengthening its software capabilities as a manufacturer, DENSO will strengthen the Company as a whole. With the pride and vigor of a software engineer, I will focus on creating social value through our software business.