Screens, Not Steel: Virtual Engineering Speeds Software Cars

Automakers are swapping physical prototypes for simulations, betting virtual testing will cut costs and launch cars faster

30 Jan 2026

The biggest change in the global car industry is taking place not on factory floors but on computer screens. As vehicles become increasingly defined by software, carmakers are reshaping how models are designed, tested and approved for production.

The shift was clear at CES 2026, where digital testing featured prominently across automotive presentations. Virtual engineering, the use of detailed simulations to test vehicles before physical hardware exists, is moving from a supporting role to the core of development programmes.

Instead of building and discarding multiple physical prototypes, engineers now test entire vehicles in simulated environments, exposing systems to thousands of scenarios early in the design process. The aim is to identify faults when changes are cheaper and schedules more flexible.

Synopsys, a US-based software group, said carmakers and suppliers are already using its modelling tools to replicate vehicle behaviour with increasing precision. The company argues that early-stage simulation reduces costly redesigns later and shortens development cycles.

The push reflects the growing weight of software in modern cars. Advanced driver assistance systems, battery management, safety controls and connectivity features are tightly linked. A single software error can affect multiple functions, making traditional testing methods, which focus on late-stage physical validation, more risky.

Virtual environments allow engineers to test interactions across systems quickly and repeatedly. Thousands of edge cases can be run in days rather than months, increasing confidence before vehicles reach the road.

Suppliers are also adjusting. Tier 1 groups such as Bosch have described digital testing as essential as product ranges expand and platforms become more complex. Frequent software updates and feature releases mean validation must be continuous rather than confined to final testing.

Artificial intelligence is accelerating the trend. AI-based tools help prioritise which scenarios to test and flag unusual behaviour early. Nvidia has said keeping simulations aligned with rapidly evolving chips remains challenging, but improvements in computing power and modelling are narrowing the gap.

There are limits. Simulations can overlook unexpected real-world conditions, and heavy reliance on digital results carries risk. Even so, the direction of travel is clear. As cars evolve into rolling computers, virtual engineering is becoming a competitive requirement rather than an option.