Software-defined Vehicle Market

Market Overview

The growth of software defined vehicle market has been increased due to the need to reduce accidents, enhance safety for elder people and disabled individuals and to improve the overall driving experience. The advanced software minimizes the human error, reduces drivers burden, and supports feature like infotainment system for smart routing, multimedia streaming and hands-free communication. The integration of cloud and local edge computing allows for automatic updates and improved weather reports. Modern vehicles are evolving through connected ecosystems by in car infotainment and V2X communication supported by software defined architectures. The importance on electric and hybrid vehicles highlights the importance of software for managing components like battery systems and motor control with the updates that enhances vehicles performance and consumers also expects personalized, user-friendly experiences, facilitated by advanced human machine interfaces and customizable features. As automakers adopt software platforms, vehicles become dynamic platforms that continuously evolve, offering greater value through agile product management and digital platforms driving market growth.

Software-defined Vehicle Market Size

Report	Details
Market Size Value	USD 270.9 Billion in 2023
Market Size Value	USD 489.7 Billion by 2032
CAGR	9%
Forecast Period	2024-2032
Base Year	2023
Historic Data	2020
Segments Covered	Offering,Vehicle Type,Vehicle Autonomy,Application, and Region
Geographics Covered	North America, Latin America, Europe, Asia-Pacific, Middle East & Africa

Major vendors in the global Software-defined vehicle market are Aptiv PLC, Continental, Volkswagen, HARMAN International, Blackberry Ltd, Valeo, Mobileye, NVIDIA Corporation, Robert Bosch GmbH, Tesla Inc, Waymo LLC and Others.

Execution of strict vehicle safety regulations

The safety features has become an important requirement for automotive consumers worldwide, driven by growing concerns about vehicle safety and strict government regulations. The rise of software defined vehicle market addresses these concerns by offering flexibility and adaptability. SDV can be updated with software and features over the air (OTA). This capability is crucial for safety, as automakers can swiftly deploy fixes for software vulnerabilities or introduce new safety features, enhancing vehicle security and performance. The ability to update vehicles remotely ensures that they remain compliant with the latest safety standards and technological advancements. Additionally, the increasing connectivity of vehicles makes them more vulnerable to cyber threats. SDVs can receive timely security updates to protect against such risks, safeguarding both the vehicle and its occupants. Government regulations mandating higher safety standards and encouraging innovation further drive the adoption of SDVs. The convergence of these factors positions SDVs as a vital component in the evolution of modern transportation, ensuring safer and more reliable vehicles on the road.

Market Dynamics

Drivers:

• Growing demand for autonomous vehicle
• Execution of strict vehicle safety regulations
• Heavy investment are being made in self-driving technology

Opportunities:

• Increase in car sharing and mobility as a service platform
• Implementing systems for seamless and secure software updates
• Providing cybersecurity solutions for vehicles

Increase in car sharing and mobility-as-a-service platform

The increase in car sharing and Mobility-as-a-Service platform is creating opportunities in software defined vehicle market. These models depend on the advanced software system to improve user experience and deliver efficient transportation services. The development of connected autonomous car technology is advancing rapidly, with numerous companies dedicating significant resources to this field. Tesla is at the forefront of this revolution, spearheading advancements in autonomous driving. Self-driving vehicles are revolutionizing the ride-sharing and mobility services by offering more efficient, safe, and convenient transportation options. Moreover, the integration of AI and machine learning in these systems enhances predictive maintenance, reduces operational costs, and ensures seamless user experiences. As urban areas increasingly grapple with traffic congestion and pollution, these technologies present a sustainable solution by promoting the use of shared vehicles, thus reducing the number of cars on the road. Governments and policymakers are also starting to recognize the potential of these innovations, leading to the creation of supportive regulations and infrastructure investments. This convergence of technology, industry efforts, and regulatory support is set to transform urban mobility and pave the way for a more connected and autonomous future.

The market for software defined vehicle market is dominated by Asia Pacific region.

The Asia Pacific region witness a high market growth as the demand for seamless integration of smartphones, access to apps, and connectivity caused automakers to embrace software defined approaches. The shift to the electric vehicles and autonomous driving is closely related with software defined market. The risk of cyber-attacks has been increasing because of increasing complexity of vehicle software systems. Artificial intelligence and machine learning are driving advancements in software defined vehicles.

The countries in North American region such as U.S. dominates with highest CAGR during the forecast period because it adopts the smart manufacturing to boost the production and it allocates for the rapid technological development in the software industry and also due to the increase in the number of technological advancements and upgrade in software defined vehicle field and various partnership in major market companies developing software defined vehicles especially U.S.

The software segment is anticipated to hold the largest market share during the forecast period

In the offering segment the software is highest growing segment showing highest CAGR as it attributes various advantages such as more convenient driving experience and protection as there is increase due to the surge in software defined cars is mostly due to increasing need for security and growing sale of electric vehicles.

The services segment shows the highest CAGR in the software defined vehicle market as due to the need of real time data collection from the sensors and external sources that drives the demand for software service and also for the threat detection and prevention for vehicles become more connected as there is need for advanced cybersecurity services to protect from hacking.

Segmentations Analysis of software-defined vehicle market: -

• By Vehicle Type:
  • BEV
  • ICE
  • HEV/PHEV
• By Application Basis:
  • Body control
  • Comfort system
  • Autonomous driving
  • Power system
  • Connected vehicle services
  • ADAS & Safety
  • Telematics
  • Infotainment system
• By Vehicle Autonomy:
  • Level 0
  • Level 1
  • Level 2
  • Level 3
  • Level 4
  • Level 5
• By Offering:
  • Hardware
  • Software
  • Services
• By Region
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • U.K.
  •  Asia Pacific

• • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of Asia Pacific

• • Middle East & Africa

• • Saudi Arabia
  • U.A.E.
  • South Africa
  • Turkey
  • Rest of MEA

 Recent Developments

• March 2023, BYD partnered with NVIDIA for the expansion of BYD use of DRIVE Orin, in order to launch safe and intelligent vehicles.
• March 2023, Continental AG new electrics/electronics architecture which uses infeneon high end Aurix TC4 microcontroller paves the way for speedier development of software defined vehicles.
• August 2023, Sibros company partnered with iWave Systems this partnership leads to expedite software-defined vehicle innovation across various vehicle architectures.

Answers to Following Key Questions:

• What will be the software-defined vehicle market’s Trends & growth rate? What analysis has been done of the prices, sales, and volume of the top producers in the software-defined vehicle market?
• What are the main forces behind worldwide software-defined vehicle market? Which companies dominate software-defined vehicle market?
• Which companies dominate software-defined vehicle market? Which business possibilities, dangers, and tactics did they embrace in the market?
• What are the global Insight Engines industry's suppliers' opportunities and dangers in software-defined vehicle market?
• What is the Insight Engines industry's regional sales, income, and pricing analysis? In the software-defined vehicle market, who are the distributors, traders, and resellers?
• What are the main geographic areas for various trades that are anticipated to have astounding expansion over the software-defined vehicle market?
• What are the main geographical areas for various industries that are anticipated to observe astounding expansion for software-defined vehicle market?
• What are the dominant revenue-generating regions for software-defined vehicle market, as well as regional growth trends?
• By the end of the forecast period, what will the market size and growth rate be?
• What are the main software-defined vehicle market trends that are influencing the market's expansion?
• Which key product categories dominate software-defined vehicle market? What is software-defined vehicle market’s main applications?
• In the coming years, which software-defined vehicle market technology will dominate the market?