Software Defined Vehicle Market
Software Defined Vehicle Market Forecasts to 2030 - Global Analysis By Offering (Software, Hardware and Service), SDV Type, E/E Architecture, Propulsion Type, Level of Autonomy, Vehicle Type, Application and by Geography
According to Stratistics MRC, the Global Software Defined Vehicle Market is accounted for $51.64 billion in 2024 and is expected to reach $154.96 billion by 2030 growing at a CAGR of 20.1% during the forecast period. Software-defined vehicles (SDVs), which integrate cutting-edge software technologies to improve vehicle performance and functionality, represent a revolutionary change in the automotive industry. Manufacturers are able to implement new features and enhancements over-the-air (OTA) owing to SDVs' centralized software architecture, which is different from that of conventional vehicles and permits constant updates and modifications. This adaptability enables automakers to swiftly adjust to shifting consumer demands and legal requirements.
According to the International Data Corporation (IDC), global spending on automotive software is expected to surpass $100 billion by 2025, highlighting the increasing reliance on software solutions in the automotive industry.
Market Dynamics:
Driver:
Demand from customers for improved experiences
Customers demands for car performance and features have changed as they have grown more tech-savvy. As the need for individualized customer service grows, drivers are looking for cars with infotainment systems and connectivity options that can be customized to suit their unique tastes. Manufacturers are now investing in software that improves user interaction with the car owing to this trend, which offers features like voice recognition, integrated apps, and smart navigation. Additionally, the focus on enhanced safety features propels the uptake of ADAS technologies, which mainly rely on sophisticated software algorithms to deliver features like adaptive cruise control, collision avoidance, and lane-keeping assistance.
Restraint:
Higher chance of cyber attacks
The risk of cyber attacks rises sharply as cars become more networked and dependent on software systems. Potential hackers have multiple points of entry due to the complexity of SDVs, which frequently include features like vehicle-to-everything (V2X) communication and over-the-air (OTA) updates. Cybersecurity flaws could allow illegal access to vital car systems, endangering the safety of both drivers and passengers. To defend against these threats, manufacturers need to make significant investments in strong cybersecurity measures, such as encryption protocols and ongoing monitoring systems.
Opportunity:
Transition to subscription-based frameworks
The shift to subscription-based business models is a noteworthy trend in the SDV market. There is a growing need for services that can be customized to meet the needs of each individual, as consumers prefer flexibility and personalization in their car experiences. Through software updates, improved connectivity features, and premium services like infotainment packages or sophisticated navigation systems, this change enables manufacturers to create steady income. Moreover, automakers can increase customer engagement and loyalty while diversifying their revenue streams as they adjust to these new business models.
Threat:
Software update and security patch complexity
Although OTA updates have many benefits for keeping up with car software, their implementation can be challenging. It is essential to make sure that updates are smooth and do not interfere with the operation of the vehicle; nevertheless, this procedure can be difficult due to compatibility problems or unforeseen bugs that may appear during deployment. Regular security patching is also required to fix vulnerabilities, but handling these updates can make manufacturers software management procedures more difficult. In order to test and deploy updates with high customer satisfaction, businesses need to create effective systems.
Covid-19 Impact:
The market for software-defined vehicles was significantly impacted by the COVID-19 pandemic, which also caused major disruptions in other areas of the automotive sector. Due to economic uncertainty and decreased purchasing power, the pandemic initially caused a sharp drop in consumer demand for new cars, which hindered sales of software-defined vehicles. It was challenging for automakers to find the vital parts needed for SDV production because of issues like factory closures and supply chain disruptions worldwide. The creation and implementation of cutting-edge software technologies that are essential to SDVs were delayed as a result. Furthermore, research and development expenditures slowed as a result of the unstable market, impeding innovation and the rollout of new features that could improve a vehicle's competitiveness.
The Software segment is expected to be the largest during the forecast period
Due to the growing dependence on sophisticated software solutions for vehicle functions, the software segment of the software defined vehicle (SDV) market has the largest share. Infotainment systems, advanced driver assistance systems (ADAS), autonomous driving software, and over-the-air (OTA) update platforms are just a few of the applications covered in this segment. In an effort to provide features that increase safety, efficiency, and overall driving satisfaction, manufacturers are investing in software development in response to the growing demand for connectivity and improved user experiences. Moreover, the adoption of advanced software systems and the growth of electric vehicles (EVs) are improving vehicle performance and making real-time updates and diagnostics possible.
The Semi-SDV segment is expected to have the highest CAGR during the forecast period
The growing demand for customizable features and the quick technical developments in vehicle software are expected to propel the Semi-SDV segment of the Software Defined Vehicle (SDV) market to show the highest CAGR. Semi-SDVs are becoming more and more popular among customers looking for flexibility and personalization because they enable users to manage and control vehicle functionalities through advanced software without requiring significant hardware modifications. Additionally, the Semi-SDV segment is anticipated to flourish as the automotive industry moves toward more software-centric designs, offering chances for improved customer engagement through over-the-air updates and ongoing feature enhancements.
Region with largest share:
Owing to substantial improvements in automotive technology and an expanding customer base, the Asia Pacific region is anticipated to hold the largest share of the Software Defined Vehicle (SDV) market. As a result of their investments in electric vehicles (EVs) and autonomous driving technologies, nations like China, Japan, India, and South Korea are anticipated to be at the forefront of the adoption of SDV technologies by 2030. A major player is China, where there is a strong demand for cars with cutting-edge software features, backed by top producers like BYD, NIO, and XPENG. Furthermore, SDV growth prospects are further enhanced by the region's rapid urbanization and government initiatives that support sustainability and smart transportation.
Region with highest CAGR:
Due to strict government regulations and a strong focus on sustainability, the Software Defined Vehicle (SDV) market is expected to grow at the highest CAGR in the Europe region. Due to the rise of significant startup businesses concentrating on creating SDV applications and a rise in research and development (R&D) activities in the automotive industry, Europe accounted for a sizable portion of the revenue. Workshops arranged by DG CONNECT to address important issues and encourage pre-competitive software development are an example of the cooperative efforts among industry participants that define the European market. Moreover, this cooperative setting encourages creativity and speeds up the uptake of cutting-edge automotive technologies.
Key players in the market
Some of the key players in Software Defined Vehicle market include Robert Bosch GmbH, Continental AG, BYD Company Limited, Hyundai Motor Corporation, NVIDIA Corporation, BMW Group, Qualcomm Technologies Inc., General Motors Company, Ford Motor Company, Toyota Motor Corporation, Mercedes-Benz AG, Aptiv PLC, Tesla Inc, Volkswagen AG, Honda Motor Co., Ltd., Suzuki Motor Corporation and Renault Group.
Key Developments:
In September 2024, Continental and Vitesco Technologies have reached an agreement based on their corporate separation agreement regarding the appropriate allocation of costs and liabilities from the investigations in connection with the supply of engine control units and engine control software.
In September 2024, BYD Automotive GmbH, as the purchaser, and Hedin Mobility Group, as the seller, have entered into an agreement for the sale of the subsidiary Hedin Electric Mobility GmbH, the appointed Dealer+ of BYD vehicles and spare parts in the German market.
In July 2024, Bosch Global Software Technologies (BGSW) and GMR Group have entered a Special Purpose Vehicles (SPVs) arrangement to implement the smart metering program for the cities of Agra, Varanasi, and Prayagraj in India. GMR Group combines its expertise in infrastructure management with BGSW’s value in designing and building state-of-the-art smart metering system architecture.
Offerings Covered:
• Software
• Hardware
• Service
SDV Types Covered:
• Semi-SDV
• SDV
E/E Architectures Covered:
• Distributed Architecture
• Domain Centralized Architecture
• Zonal Control Architecture
Propulsion Types Covered:
• ICE
• Electric Vehicle
Level of Autonomys Covered:
• Level 1
• Level 2
• Level 3
• Level 4
• Level 5
Vehicle Types Covered:
• Passenger Vehicles
• Commercial Vehicles
• Electric Vehicles (EVs)
• Autonomous Vehicles
Applications Covered:
• Infotainment Systems
• Advanced Driver Assistance Systems (ADAS)
• Autonomous driving
• Telematics
• Powertrain Control
• Other Applications
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Software Defined Vehicle Market, By Offering
5.1 Introduction
5.2 Software
5.2.1 Infotainment & Telematics Software
5.2.2 Advanced Driver Assistance Systems (ADAS) Software
5.2.3 Autonomous Driving Software
5.2.4 Over-the-Air (OTA) Software Update Platforms
5.2.5 Cybersecurity Software
5.2.6 Connectivity Solutions
5.2.7 Other Softwares
5.3 Hardware
5.3.1 Sensors
5.3.2 Computing Hardware
5.3.3 Connectivity Modules
5.3.4 Other Hardwares
5.4 Service
5.4.1 Integration Services
5.4.2 Connectivity Services
5.4.3 Other Services
6 Global Software Defined Vehicle Market, By SDV Type
6.1 Introduction
6.2 Semi-SDV
6.3 SDV
7 Global Software Defined Vehicle Market, By E/E Architecture
7.1 Introduction
7.2 Distributed Architecture
7.3 Domain Centralized Architecture
7.4 Zonal Control Architecture
8 Global Software Defined Vehicle Market, By Propulsion Type
8.1 Introduction
8.2 ICE
8.3 Electric Vehicle
9 Global Software Defined Vehicle Market, By Level of Autonomy
9.1 Introduction
9.2 Level 1
9.3 Level 2
9.4 Level 3
9.5 Level 4
9.6 Level 5
10 Global Software Defined Vehicle Market, By Vehicle Type
10.1 Introduction
10.2 Passenger Vehicles
10.3 Commercial Vehicles
10.4 Electric Vehicles (EVs)
10.5 Autonomous Vehicles
11 Global Software Defined Vehicle Market, By Application
11.1 Introduction
11.2 Infotainment Systems
11.3 Advanced Driver Assistance Systems (ADAS)
11.4 Autonomous driving
11.5 Telematics
11.6 Powertrain Control
11.7 Other Applications
12 Global Software Defined Vehicle Market, By Geography
12.1 Introduction
12.2 North America
12.2.1 US
12.2.2 Canada
12.2.3 Mexico
12.3 Europe
12.3.1 Germany
12.3.2 UK
12.3.3 Italy
12.3.4 France
12.3.5 Spain
12.3.6 Rest of Europe
12.4 Asia Pacific
12.4.1 Japan
12.4.2 China
12.4.3 India
12.4.4 Australia
12.4.5 New Zealand
12.4.6 South Korea
12.4.7 Rest of Asia Pacific
12.5 South America
12.5.1 Argentina
12.5.2 Brazil
12.5.3 Chile
12.5.4 Rest of South America
12.6 Middle East & Africa
12.6.1 Saudi Arabia
12.6.2 UAE
12.6.3 Qatar
12.6.4 South Africa
12.6.5 Rest of Middle East & Africa
13 Key Developments
13.1 Agreements, Partnerships, Collaborations and Joint Ventures
13.2 Acquisitions & Mergers
13.3 New Product Launch
13.4 Expansions
13.5 Other Key Strategies
14 Company Profiling
14.1 Robert Bosch GmbH
14.2 Continental AG
14.3 BYD Company Limited
14.4 Hyundai Motor Corporation
14.5 NVIDIA Corporation
14.6 BMW Group
14.7 Qualcomm Technologies Inc.
14.8 General Motors Company
14.9 Ford Motor Company
14.10 Toyota Motor Corporation
14.11 Mercedes-Benz AG
14.12 Aptiv PLC
14.13 Tesla Inc
14.14 Volkswagen AG
14.15 Honda Motor Co., Ltd.
14.16 Suzuki Motor Corporation
14.17 Renault Group
List of Tables
1 Global Software Defined Vehicle Market Outlook, By Region (2022-2030) ($MN)
2 Global Software Defined Vehicle Market Outlook, By Offering (2022-2030) ($MN)
3 Global Software Defined Vehicle Market Outlook, By Software (2022-2030) ($MN)
4 Global Software Defined Vehicle Market Outlook, By Infotainment & Telematics Software (2022-2030) ($MN)
5 Global Software Defined Vehicle Market Outlook, By Advanced Driver Assistance Systems (ADAS) Software (2022-2030) ($MN)
6 Global Software Defined Vehicle Market Outlook, By Autonomous Driving Software (2022-2030) ($MN)
7 Global Software Defined Vehicle Market Outlook, By Over-the-Air (OTA) Software Update Platforms (2022-2030) ($MN)
8 Global Software Defined Vehicle Market Outlook, By Cybersecurity Software (2022-2030) ($MN)
9 Global Software Defined Vehicle Market Outlook, By Connectivity Solutions (2022-2030) ($MN)
10 Global Software Defined Vehicle Market Outlook, By Other Softwares (2022-2030) ($MN)
11 Global Software Defined Vehicle Market Outlook, By Hardware (2022-2030) ($MN)
12 Global Software Defined Vehicle Market Outlook, By Sensors (2022-2030) ($MN)
13 Global Software Defined Vehicle Market Outlook, By Computing Hardware (2022-2030) ($MN)
14 Global Software Defined Vehicle Market Outlook, By Connectivity Modules (2022-2030) ($MN)
15 Global Software Defined Vehicle Market Outlook, By Other Hardwares (2022-2030) ($MN)
16 Global Software Defined Vehicle Market Outlook, By Service (2022-2030) ($MN)
17 Global Software Defined Vehicle Market Outlook, By Integration Services (2022-2030) ($MN)
18 Global Software Defined Vehicle Market Outlook, By Connectivity Services (2022-2030) ($MN)
19 Global Software Defined Vehicle Market Outlook, By Other Services (2022-2030) ($MN)
20 Global Software Defined Vehicle Market Outlook, By SDV Type (2022-2030) ($MN)
21 Global Software Defined Vehicle Market Outlook, By Semi-SDV (2022-2030) ($MN)
22 Global Software Defined Vehicle Market Outlook, By SDV (2022-2030) ($MN)
23 Global Software Defined Vehicle Market Outlook, By E/E Architecture (2022-2030) ($MN)
24 Global Software Defined Vehicle Market Outlook, By Distributed Architecture (2022-2030) ($MN)
25 Global Software Defined Vehicle Market Outlook, By Domain Centralized Architecture (2022-2030) ($MN)
26 Global Software Defined Vehicle Market Outlook, By Zonal Control Architecture (2022-2030) ($MN)
27 Global Software Defined Vehicle Market Outlook, By Propulsion Type (2022-2030) ($MN)
28 Global Software Defined Vehicle Market Outlook, By ICE (2022-2030) ($MN)
29 Global Software Defined Vehicle Market Outlook, By Electric Vehicle (2022-2030) ($MN)
30 Global Software Defined Vehicle Market Outlook, By Level of Autonomy (2022-2030) ($MN)
31 Global Software Defined Vehicle Market Outlook, By Level 1 (2022-2030) ($MN)
32 Global Software Defined Vehicle Market Outlook, By Level 2 (2022-2030) ($MN)
33 Global Software Defined Vehicle Market Outlook, By Level 3 (2022-2030) ($MN)
34 Global Software Defined Vehicle Market Outlook, By Level 4 (2022-2030) ($MN)
35 Global Software Defined Vehicle Market Outlook, By Level 5 (2022-2030) ($MN)
36 Global Software Defined Vehicle Market Outlook, By Vehicle Type (2022-2030) ($MN)
37 Global Software Defined Vehicle Market Outlook, By Passenger Vehicles (2022-2030) ($MN)
38 Global Software Defined Vehicle Market Outlook, By Commercial Vehicles (2022-2030) ($MN)
39 Global Software Defined Vehicle Market Outlook, By Electric Vehicles (EVs) (2022-2030) ($MN)
40 Global Software Defined Vehicle Market Outlook, By Autonomous Vehicles (2022-2030) ($MN)
41 Global Software Defined Vehicle Market Outlook, By Application (2022-2030) ($MN)
42 Global Software Defined Vehicle Market Outlook, By Infotainment Systems (2022-2030) ($MN)
43 Global Software Defined Vehicle Market Outlook, By Advanced Driver Assistance Systems (ADAS) (2022-2030) ($MN)
44 Global Software Defined Vehicle Market Outlook, By Autonomous driving (2022-2030) ($MN)
45 Global Software Defined Vehicle Market Outlook, By Telematics (2022-2030) ($MN)
46 Global Software Defined Vehicle Market Outlook, By Powertrain Control (2022-2030) ($MN)
47 Global Software Defined Vehicle Market Outlook, By Other Applications (2022-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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