Software-Defined Vehicle Market Analysis

Vehicle Type (Passenger Cars, Commercial Vehicles)

In terms of vehicle types, passenger cars segment is estimated to dominate around 79.1% software-defined vehicle market share by the end of 2037. Adaptive cruise control and ADAS systems have made these models preferable to fit commercial transportation. The advanced cameras, sensors, and radars are capable of processing large data to deliver precise software outputs. Tech companies are increasingly prioritizing OTA updates and feature additions for improved performance. For instance, in June 2024, Renesas launched R-Car Open Access (RoX) for seamless integration of AI applications in SDVs. The market-ready platform enabled ASIL D-level sensing to elevate the in-cabin passenger experience.

Propulsion Type (ICE, Electric Vehicle)

Based on propulsion type, the software-defined vehicle market is expected to witness significant progress in the EV segment. The rising concern about sustainability is pushing automakers to manufacture eco-friendly solutions. Electric vehicles are setting the future of this concept, promoting zero-emission in transportation. Software can enhance the operational value of these cars to deliver optimal performance. The advanced control systems can increase energy efficiency through smart battery management and regenerative braking features. Leading tech companies are now investing to develop technologies to reduce footprint. For instance, in April 2024, intel acquired in-tech to accelerate its R&D for e-mobility engineering. It aims to utilize in-tech assets in automobile-specific software systems to upgrade EVs in the UK.

Our in-depth analysis of the global software-defined vehicle market includes the following segments:

Vehicle Type	Passenger Cars Commercial Vehicles
Propulsion Type	ICE Electric Vehicle
Level of Autonomy	Level 1 Level 2 Level 3 Level 4
Offering	Software Infotainment & Telematics Software Advanced Driver Assistance Systems (ADAS) Software Autonomous Driving Software Over-the-Air (OTA) Software Update Platforms Cybersecurity Software Connectivity Solutions Others Hardware Sensors Computing Hardware Connectivity Modules Others Services Integration Services Connectivity Services Others
Application	Infotainment Systems Advanced Driver Assistance Systems (ADAS) Autonomous driving Telematics Powertrain control Others

Frequently Asked Questions (FAQ)

In the year 2024, the industry size of the software-defined vehicle market was over USD 53.8 billion.

The market size for the software-defined vehicle market is projected to reach USD 602.4 billion by the end of 2037 expanding at a CAGR of 22.3% during the forecast period i.e., between 2025-2037.

The major players in the market are Aptiv PLC, Continental, Mobileye, NVIDIA Corporation, Robert Bosch GmbH, Tesla Inc., Waymo LLC, and others.

In terms of vehicle type, the passenger cars segment is anticipated to garner the largest market share of 79.1% by 2037 and display lucrative growth opportunities during 2025-2037.

The market in North America is projected to hold the largest market share of 29.8% by the end of 2037 and provide more business opportunities in the future.

Software-Defined Vehicle Market Analysis