Portugal is steadily consolidating its role as a strategic hub in the global software industry, moving beyond execution to become a key partner in the design of mission-critical systems. At the center of this shift is Critical Software, whose partnerships with BMW, MINI and now Airbus place Portuguese engineering at the heart of mobility and aerospace innovation.
The journey began in 2018 with BMW and the creation of Critical Techworks (CTW). What started as a joint venture has since evolved into BMW Group’s largest software development center outside Germany, with around 3,300 engineers across Lisbon, Porto, Braga and Coimbra. Today, roughly 50% of the software behind BMW’s next-generation vehicles is developed in Portugal.
CTW plays a decisive role in flagship innovations such as BMW Panoramic iDrive, where information is projected across the windshield;
Digital Road Models that enhance ADAS capabilities; advanced energy management and smart charging systems enabling ranges of up to 805 km; and “Heart of Joy”, a unified onboard supercomputer that synchronizes traction, braking, steering and suspension with near-zero latency.
The collaboration expanded to MINI, transforming the car into a digital platform. Portuguese-developed software now supports intelligent charging optimization, mood-based personalization of the interior environment, immersive virtual reality configuration tools for dealerships worldwide, and production digitization at MINI’s Oxford plant to predict failures and ensure flawless customization.
This track record paved the way for the most demanding partnership yet: Critical Flytech, launched in January 2026 with Airbus. The company is responsible for developing avionics software certified under DO-178C Level A, the highest safety standard in aviation, where failure is not an option. This work is critical to Airbus’ ZEROe project, which aims to launch hydrogen-powered commercial aircraft by 2035.
Hydrogen aviation introduces unprecedented software complexity. Cryogenic fuel management at –253°C, new propulsion architectures, and extreme certification requirements all demand deep expertise in safety-critical embedded systems. Critical Flytech is one of the few organizations globally with the capability to make such systems certifiable under EASA and FAA standards.
Together, Critical Techworks and Critical Flytech place Portugal in a rare and highly exclusive category: a country trusted to design software where reliability, safety and zero tolerance for error are mandatory. National engineering talent is now shaping the future of electric mobility and decarbonized aviation—at the global forefront, without needing to leave the country.
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