Software-Defined Vehicle Market Outlook:
Software-Defined Vehicle Market size was over USD 287.64 billion in 2025 and is projected to reach USD 3.4 trillion by 2035, witnessing around 28% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of software-defined vehicle is assessed at USD 360.13 billion.
The growth is driven by the rapid evolution of the transportation industry. Companies are developing features such as connectivity, automation, and advanced mobility solutions, propelling robust demand in this sector. For instance, in May 2023, Renault partnered with Valeo to improvise its software-defined ecosystem. This partnership will supply SDVs with HPC to increase their capability to adopt new functionalities.
The developed electronic and electrical infrastructure further integrates innovations in the software-defined vehicle market. The unmatched connectivity and cloud computing technology can offer real-time navigation, remote evaluation, and predictive maintenance. Such enhanced features inspire companies to invest and collaborate to deliver more personalized user experiences. For instance, in May 2022, KPIT acquired SOMIT Solutions to add cloud-based capabilities to its vehicle diagnostics portfolio. This addition will create new opportunities to capture the large after-sales industry of automobiles through software intelligence. These further influence automakers to integrate advanced software capabilities in their latest vehicles.
