At CES 2025, Counterpoint’s VP of Research, Neil Shah, conversed with mapping company TomTom’s CEO, Harold Goddjin. The discussion revolved around how location technology has evolved since COVID-19, and how the automotive industry is dealing with the software-defined vehicles trend. Goddjin shared insights on how TomTom is enabling the transition of the automotive industry through its innovations across new technologies from software vehicles to infotainment and digital cockpit, as well as autonomous vehicles.

The Interview

Key Takeaways from the Discussion

• 2024 was difficult for TomTom’s customers. However, things are expected to change in 2025.

• TomTom has redesigned its software stack and introduced an open-source base map layer through its Overture foundation.

• The auto industry is going through a transformational phase as automakers have utilized past years to decide and develop a clear strategy. 2025 could be the year of clarity as to where the industry is heading in terms of electrification, technology, software, how it all comes together, and what a better operating model is for the different players.

• The automotive industry has also made a lot of investments to enable software-defined vehicles. Some of those investments have been very successful, others have not, but a lot of learning has gone into it. Some of the carmakers have gone through changes that have been painful to them, but they are making a strong comeback.

• Traditional car brands are being held back by the sheer complexity and number of variations in hardware configurations that are extremely difficult to manage. Simplification allows for speed and innovation. In other words, simplification is a new differentiation.

• TomTom understands that user experience is significant, so its new tools and SDK allow car brands to have their own unique brand experience.

• TomTom has partnered with Esri, the leader in GIS software and technology. At CES, TomTom demonstrated a true 3D map for the first time.

Analyst Take:

• 2025 could be the inflection point for the automotive industry, as we will see breakthroughs in electrification and autonomous vehicle technology.

• Legacy carmakers that have invested in software-defined vehicle technology over the past years are expected to make progress by leveraging partnerships with new-age companies.

• The software-defined vehicles will lead to simplification of hardware that will allow for speed and innovation. This will push OEMs to offer different features and technologies as a differentiator.

• TomTom allows auto companies to create their own brand image, and brand experience through its new tools and SDKs that are flexible to offer room for innovation, and differentiation for its customers.