As automotive technology evolves rapidly, OEMs are increasingly relying on third-party software suppliers to support everything from connectivity to autonomous systems. This approach accelerates development and enables innovation, but it also introduces significant risk.
What happens if a critical software supplier suddenly becomes insolvent, is acquired, or stops supporting their code?
The impact can be immediate—delayed production, stalled development, and increased operational uncertainty.
Software escrow provides a structured and proactive solution to this growing challenge. It works by securely storing a supplier’s source code, build instructions, and documentation with an independent escrow provider. With clearly defined release conditions in place, escrow gives OEMs the legal right to access critical software assets if a supplier fails, supporting continuity and control over key systems.
In 2025, this risk is far from theoretical. Recent research into automotive software development highlights the pressure teams face:
These aren’t just development challenges — they represent serious continuity risks. When combined with source code testing and independent verification, software escrow offers a reliable framework to address these challenges with confidence.
Want a clear breakdown of how software escrow works?
Read our guide, Escrow for the Automotive Sector, to understand how OEMs are building software continuity into their risk management strategies.
Not ready to download yet?
Keep reading to explore why escrow is becoming essential for automotive manufacturers and how it fits into their long-term continuity strategy.
OEMs manage deeply integrated supply chains. A single point of failure in the software stack, whether caused by vendor insolvency, acquisition, or disengagement, can delay vehicle launches or freeze R&D progress.
Software escrow gives OEMs access to the critical assets such as source code, build instructions, and documentation needed to maintain and update a critical software system if the original supplier is no longer available.
With over a quarter of teams already struggling to test thoroughly, adding a vendor exit scenario could halt innovation altogether. Escrow and verification together provide a clear, proactive plan for continuity.
OEMs often spend years and millions developing proprietary platforms with third-party vendors. From vehicle connectivity layers to autonomous driving modules, this IP is foundational.
Escrow ensures that investment is secure by giving OEMs the legal right to access critical software and assets if the original vendor is no longer available. Through regular deposits and independent testing, OEMs gain ongoing assurance that they can maintain their critical software.
Software is now as integral as any physical component in a vehicle. As OEMs depend more on third-party code, the risk of vendor disruption becomes a real threat to production and support.
Escrow helps mitigate this by embedding a continuity strategy into the supplier relationship. By securing access to critical source code and documentation, OEMs can maintain operations even if a vendor fails, strengthening the resilience of the entire software supply chain.
Automotive compliance frameworks increasingly emphasise traceability and lifecycle control. Standards require not just documentation, but demonstrable evidence of long-term supportability.
Escrow with verified deposits creates a reliable audit trail — complete with updated documentation, and validated build instructions.
As regulatory expectations continue to rise, verified escrow remains one of the most effective ways to align software continuity with compliance readiness.
Today’s most exciting innovations often come from start-ups and niche vendors. However, these companies may not have long-term stability, especially in volatile markets.
Software escrow allows OEMs to confidently engage with high-potential suppliers, knowing there’s a defined path forward if the business relationship unexpectedly changes.
When combined with verification, escrow provides confidence and supports long-term resilience and IP control.
For auto OEMs, software has become as mission-critical as chassis design or engine architecture — yet the code driving that functionality often lies outside the organisation’s control.
Software escrow, supported by independent verification and testing, bridges that gap. It transforms risk into continuity, gives legal and engineering teams actionable planning tools, and ensures OEMs can maintain control of the platforms shaping their development.
Don’t wait for a disruption to think about software continuity.
Whether you're rolling out new systems or relying on long-established software, software escrow is a critical part of risk management.
Start by identifying your business-critical applications and asking:
What’s our plan if the supplier can no longer support this software?
If the answer isn’t clear, now’s the time to act.
Download our guide for the automotive sector or speak to our specialist team to learn more.
Learn how OEMs can protect their critical software with Escode’s Escrow and Verification solutions.
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