Software-defined Commercial Vehicles Market

The software-defined commercial vehicles market is projected to reach USD 44.6 billion by 2032.

Commercial vehicles are increasingly evolving into software-defined vehicles (SDVs). This shift brings significant advantages, including enhanced flexibility, upgradability, efficiency, and maintainability. Fleet operators can benefit from real-time monitoring, remote diagnostics, and over-the-air (OTA) updates, enabling tailored configurations and lower operational costs. At the forefront of this evolution, major commercial vehicle manufacturers like Daimler, Volvo, and PACCAR are investing heavily in SDV technologies, with plans to commercialize by 2028. Their vision is to shift control of key vehicle functions—such as engine performance, safety systems, fleet management, and fuel optimization—from hardware to software. This approach supports predictive maintenance, improved uptime, enhanced safety, and smarter, data-driven fleet optimization, while also helping OEMs reduce development costs through unified software platforms. However, realizing the full potential of SDVs also requires addressing key challenges, including stringent safety standards, cybersecurity risks, and integration complexities. Despite these hurdles, the transition to SDVs promises a future of more agile, intelligent, and continuously evolving commercial transportation.

The truck segment is expected to grow faster during the forecast period.

The truck segment is expected to witness faster growth in the software-defined Commercial Vehicles market during the forecast period, driven by the increasing demand for advanced connectivity, predictive maintenance, and fleet efficiency solutions. Most OEMs are prioritizing the software-defined approach in the trucks segment as compared to buses. A key reason behind this surge is the rising need for flexible, upgradable platforms that can adapt to rapidly evolving logistics and transport operations. Industry leaders are advancing software-defined commercial vehicles through strategic collaborations. For instance, Volvo Group and Daimler Truck are jointly developing a standardized truck operating system and centralized high-performance control units to enable over-the-air updates and decouple hardware-software development cycles, while TRATON Group is integrating modular vehicle OS and AI-powered developer tools via its partnership with Applied Intuition to accelerate autonomous driving and cloud-native fleet management. Software-defined trucks are expected to drastically improve operational efficiency, safety, and digital service offerings. As major stakeholders intensify their focus on SDV platforms, the truck industry is set to transform connected mobility solutions.

Adoption of zonal control architecture by OEMs to accelerate growth during the forecast period.

The increasing adoption of zonal control architecture by OEMs is expected to coincide with a significant rise in the demand for software-defined commercial vehicles during the forecast period. This parallel growth is driven by the fact that zonal architecture provides simplified electronics, reduced wiring complexity, and enhanced scalability that is highly conducive to implementing the advanced software-driven functionalities characteristic of SDVs. A key reason for this growth is the increasing focus on consolidating multiple ECUs into centralized or zonal controllers, enabling faster data processing, easier over-the-air updates, and greater flexibility in software upgrades—critical for the operational demands of heavy-duty trucks and buses. Highlighting this shift, in March 2025, NXP Semiconductors launched its S32K5 family of automotive microcontrollers under the CoreRide platform, specifically designed to advance zonal architectures by enabling efficient ECU consolidation and supporting real-time SDV capabilities. These advancements showcase how zonal architecture is becoming foundational to the evolution of software-defined commercial vehicles.

“Asia Pacific is expected to have the largest market share during the forecast period.”

Asia Pacific region is set to dominate the software-defined commercial vehicles market over the forecast period. This growth is primarily driven by the region’s robust ecosystem of automotive innovations, particularly in countries like China, South Korea, and Japan where various leading OEMs and technology firms are investing heavily in SDV technology. In April 2025, Fujitsu (Japan) announced a collaboration with Isuzu Motors (Japan) on the development of SDV for commercial mobility. Through this partnership, Fujitsu and Isuzu aim to solve efficiency and carbon neutrality-related issues within the logistics industry. In March 2025, Hyundai Motor Group launched its software brand Pleos along with a software-driven ‘Cloud Mobility’ ecosystem. The new proprietary vehicle OS aims to improve SDV performance and scalability via advanced E&E architecture. These advancements highlight the rising impact of SDV technology in commercial transportation, offering benefits like remote diagnostics and predictive maintenance. With strong OEM activity, increasing digital infrastructure, and growing demand for connected fleets, Asia Pacific is well-positioned to lead and dominate the software-defined commercial vehicles market in the coming years.

The software-defined commercial vehicles market is expected to be dominated by major players, including Daimler Truck (Germany), Volvo Group (Sweden), TRATON Group (Germany), Isuzu Motors (Japan), Hyundai Motor Company (South Korea), and more. These companies are undertaking various approaches, primarily through partnerships, in the development of software-defined commercial vehicles such as - Volvo Trucks has upgraded Volvo Connect with automated OTA updates for proactive software deployment and remote parameter adjustments, aiming for a 24% reduction in unplanned stops and optimized fleet efficiency, while REE Automotive showcased its software-defined P7-C electric truck at National Truck and Equipment Association’s (NTEA) World Truck Week 2025. REE Automotive is collaborating with the Geotab network to bring advanced data analytics to electrified fleets using REE’s SDVs.