Software-Defined Vehicle Market Share

North America Market Analysis

North America in software-defined vehicle market is likely to hold over 29.8% revenue share by the end of 2037, due to its technology leadership. Its continued innovations have influenced the automotive industry to adopt such systems. Leading automakers including General Motors, Ford, and Stellantis are heavily investing in SDVs. This further inspires other regional startups to adopt advanced technologies in delivering enhanced vehicle performance. For instance, in June 2022, Apple launched a new software-driven car dashboard, CarPlay. The tool enables the monitoring of crucial vehicle components including speed and gas mileage. Automakers such as Ford, Nissan, and Honda shared their plan to implement this software in their upcoming models.

Being home to winning cloud companies such as Apple, Google, and Microsoft has inflated SDV demand in the U.S. software-defined vehicle market. The country is also opening doors to imported technologies to boost its software implementation. For instance, in February 2023, Hyundai and Kia announced to offer advanced software systems to 8.3 million cars in this country. The protection software will indulge in existing vehicle features to enhance traffic safety in response to the increasing thefts.

Canada is pushing towards remarkable growth in the software-defined vehicle market with its established automobile manufacturing industry. Domestic tech companies in this country are collaborating with global leaders to bring innovative software solutions to the auto industry. For instance, in March 2024, LeddarTech collaborates with Arm to develop new technology, LeddarVision for ADAS, AD, and parking. The AI-powered tool is capable of enhancing SDV navigation by accessing Arm’s next-generation hardware and software solutions.

APAC Market Statistics

Asia Pacific is expected to generate lucrative opportunities in the software-defined vehicle market during the forecast period. The developing auto industry of this region holds the potential to bring innovative solutions in this sector. Global leaders including Hyundai, Nissan, BMW, and BYD are heavily investing to accelerate development in this region by adopting SDV technologies. Tech leaders are introducing advanced software tools to offer elevated vehicle performance, safety, and infotainment systems. In September 2024, Hyundai Motors partnered with Kia and Samsung to develop improved connectivity for SDVs. The alliance will empower the vehicle-to-smartphone connection to create a user-specific ecosystem. This further inspires other domestic competitors to invest in smart auto technologies.

The rapidly evolving auto industry and supportive government are revealing the growth potential of India software-defined vehicle market. Many well-established companies in this country are contributing to the optimum implementation of tech ecosystems. They are taking the initiative to support the transition of the domestic automotive industry. For instance, in July 2024, Tata Elxsi opted for River Studio Developer to be the partner in leveraging their technology and design for SDVs. The collaboration will take off the speed of development and deployment of its DevSecOps platform.

With global leaders such as BYD, China is predicted to gain traction in the software-defined vehicle market. The country is also improvising software technologies to elevate its EV industry. Many business fleets including Didi Chuxing are incorporating such advancement in their MaaS offerings. This further creates the scope of investment to help generate greater revenue from this sector. In October 2023, Didi received funding worth USD 149 million from GAC Group and Guangzhou for R&D in autonomous driving. Such support is helping the country to convert urban mobility through autonomous technology and V2I communication.