Software Defined Vehicle Market by SDV Type (Semi-SDV. SDV), E/E Architecture (Distributed, Domain Centralised, Zonal Control), Vehicle Type (Passenger Car and Light Commercial Vehicle) and Region - Global Forecast to 2030
[238 Pages Report] The Software Defined Vehicle Market size is projected to grow from USD 213.5 billion in 2024 to USD 1,237.6 billion by 2030, at a CAGR of 34.0%. With the increase in the adoption of 5G technology in vehicles and autonomous driving experience, primarily in emerging markets, are expected to increase the demand for SDV solutions globally. Moreover, the increasing adoption of EVs and growing demand for driving experience and intelligent cockpits are also expected to create lucrative opportunities for the Software Defined Vehicle market globally in the coming years.
To know about the assumptions considered for the study, Request for Free Sample Report
To know about the assumptions considered for the study, download the pdf brochure
Software Defined Vehicle market Dynamics:
Driver: Reduced recall and manufacturing costs
In conventional vehicles there are limitations with respect to predefined hardware configurations. When the faults identified in hardware, it often needs extensive recall campaigns, leading to substantial costs and logistical challenges for manufacturers. However, with the introduction of SDVs, a lot of the functionality previously controlled by hardware components is now controlled by software and over-the-air updates. Because issues can frequently be fixed online, this change drastically lowers the requirement for actual recalls. For example, car owners don't have to visit service centers to get software faults or performance optimizations fixed quickly. This reduces operational costs for manufacturers by reducing the costs associated with physical recalls and servicing campaigns and improves customer satisfaction by limiting disruptions.
Restraint: Increase in risk of cyberattacks
The risk of cyberattacks is increased due to the integration of complex software systems and connection elements in modern cars, which leads to loopholes that hackers could attack. One of the primary concerns is the potential for remote hacking of SDVs. Vehicles are becoming more and more convenient targets for hackers looking to cause disruption with operations or steal confidential information since they depend more and more on software for essential features such as navigation, autonomous driving, and V2X communication. Software development shortcomings, insecure safety protocols, and inadequate encryption procedures can expose SDVs to unauthorized access and control.
Opportunity:SDV platform monetization
OEMs and technology providers generate new revenue streams by SDV platform monetization through innovative software and services. This shift from a hardware-centric to a software-centric business model boosts profitability and advances continuous customer engagement and loyalty. The monetization of SDV platforms can be achieved through various strategies. For instance, OEMs can offer premium features such as ADAS, enhanced navigation, and entertainment options on a pay-per-use or subscription basis. These features can be dynamically updated and customized to individual preferences. Additionally, data-Defined services such as predictive maintenance, remote diagnostics, and fleet management can offer valuable insights and operational efficiencies for both individual users and commercial fleet operators.
Challenge: Complex software updates and security patching
The updates and maintenance in conventional vehicles were primarily mechanical, involving physical parts and periodic service checks. However, nowadays vehicles are become increasingly software-Defined and the maintenance landscape has shifted toward continuous software updates and security patching. This shift brings about new complexities and challenges that manufacturers and service providers must address to ensure vehicle safety, functionality, and security. Managing software updates in SDVs involves coordinating an array of interconnected systems, each with its unique requirements and dependencies. The complexity is further increased by the need to perform these updates remotely, often while the vehicle is in use. Security patching in SDVs presents another layer of complexity. As vehicles become more connected, they become more vulnerable to cyber threats. Hackers can exploit vulnerabilities in the software to gain control of critical vehicle functions, posing serious safety risks. Hence, timely and effective security patching is crucial. Moreover, patching security flaws must be done so as not to disrupt the vehicle's functionality or the driver's experience. This requires a complex balance between rapid response to emerging threats and thorough testing to ensure patches do not cause potential hazards.
SOFTWARE DEFINED VEHICLE MARKET ECOSYSTEM
The ecosystem analysis highlights various players in the Software Defined Vehicle ecosystem, which OEMs, SDV providers, Tier 1 Hardware provider, Tier 2 players, and chip providers primarily represent. Prominent companies in this market include Tesla (US), Li Auto Inc. (China), NIO (China), ZEEKR (China), XPENG Inc. (China), Rivian (US), among others.
Domain Centralized Architecture is projected to witness significant growth rate in the global Software Defined Vehicle market during the forecast period.
Legacy OEM which are planning for a shift to software-based architectures, are transitioning to domain-centralized architecture as a transition towards zonal control architecture. In such vehicles, functions are grouped into domains such as powertrain, body, and ADAS, each controlled by a few powerful ECUs. This reduces the number of ECUs to around 20-40 per vehicle, streamlining operations and improving integration. However, vehicles are becoming more technologically advanced and software-focused, so they define function based on domains. Key legacy OEMs such as Mercedes-Benz (Germany), BMW (Germany), Ford (US), General Motors (US), Volkswagen AG (Germany), Renault Group (Germany), BYD (China), and Toyota (Japan) have shifted to this architecture with developments in their latest vehicle platforms. Mercedes-Benz has shifted to domain centralized architecture in its MB.OS integrated MB.EA, MB.Van, AMG.E platforms. For instance, BMW has shifted to this architecture with its new vehicle skateboards through its CLAR New Class platform. Other examples include STLA Small to Frame platforms and the MEB platforms of Stellantis and Volkswagen, respectively, which come with domain centralized architecture.
Leading manufacturers such as Tesla (US), Li Auto Inc. (China), NIO (China), ZEEKR (China), XPENG Inc. (China), and Rivian (US), are integrating SDV technology into their vehicles. Companies such as Stellantis, BMW, Volkswagen, and BYD are transitioning towards SDVs to offer software Defined passenger cars.
“The Asia Pacific Software Defined Vehicle market is projected to hold the largest share by 2030.”
Asia Pacific is estimated to be the largest market for SDVs by 2030. In this region, leading countries such as China, Japan, India, and South Korea are expected to develop autonomous driving technology in the coming years. Leading OEMs in this region, such as Toyota, BYD, and Hyundai, have utilized the advantages of R&D in autonomous technology and collaborated with various technology enablers such as SAMSUNG, among others to enhance their SDV capabilities. China is expected to be the most significant factor in the Asia Pacific Software Defined Vehicle market growth in terms of value & volume. China leads the region in terms of value and volume for Software Defined Vehicle market, which can also be attributed to the increased demand for EVs and increased sales of vehicles equipped with SDV technology. For example, ZEEKR 001, XPENG P5, XPENG P7, ZEEKR X, and BYD Seal H6 are some of the models in China equipped with SDVs.
Key Market Players
The global Software Defined Vehicle market is dominated by major players such as Tesla (US), Li Auto Inc. (China), NIO (China), Rivian (US), XPENG Inc. (China), and ZEEKR (China) and among others. These companies have strengthened distribution networks at a global level and offer a wide range of SDVs such as XPENG P5, Rivian R1T, Tesla Model Y, among others. The key strategies these companies adopt to sustain their market position are collaborations, new product developments, acquisitions, etc.
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Request Sample Scope of the Report
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
|
Report Metric |
Details |
|
Market size available for years |
2020–2030 |
|
Base year considered |
2023 |
|
Forecast period |
2024-2030 |
|
Forecast units |
Volume (Thousand Units) & Value (USD Billion) |
|
Segments Covered |
SDV Type, Vehicle Type, E/E Architecture, and Region |
|
Geographies covered |
Asia Pacific, North America, and Europe. |
|
Companies Covered |
Tesla (US), Li Auto Inc. (China), NIO (China), Rivian (US), ZEEKR (China), XPENG Inc. (China) |
This research report categorizes the SDV market based on SDV type, vehicle type, E/E Architecture, and region.
Software Defined Vehicle Market, By SDV Type
- Semi-SDV
- SDV
Software Defined Vehicle Market, By E/E Architecture
- Distributed Architecture
- Domain Centralised Architecture
- Zonal Control Architecture
Software Defined Vehicle Market, By Vehicle Type
- Passenger Car
- Light Commercial Vehicle
Software Defined Vehicle Market, By Region
-
North America
- US
- Canada
-
Europe
- France
- Germany
- UK
- Spain
-
Asia Pacific
- China
- Japan
- South Korea
Recent Developments
- In June 2024, XPENG Inc. partnered with NVIDIA Corporation for the adoption of the NVIDIA DRIVE Thor platform for its next-generation EVs. This platform will power XPENG's XNGP AI-assisted driving system, enhancing intelligent driving capabilities. XPENG launched the G6 Coupe SUV, G9 SUV, and P7 Sedan equipped with NVIDIA DRIVE Orin, boasts continuously upgraded AI capabilities through over-the-air updates.
- In June 2024, XPENG Inc. launched its all-new G6 electric mid-size SUV, positioning it as a strong contender against established rivals like the Tesla Model Y in the Australian market. It is designed on XPENG's SEPA 2.0 platform. The vehicle also features bidirectional charging (V2X) with V2L support up to 3.3 kW AC, making it versatile for energy transfer to external devices. This SUV accelerates from 0 to 100 km/h in 6.9 seconds and reaches a top speed of 200 km/h, powered by a rear-wheel drive system generating 190 kW (258 PS) of total power and 440 Nm of torque. Its battery architecture operates at 800 V, and it supports up to 11 kW AC charging.
- In June 2024, Rivian launched the second generation of the R1 lineup i.e., R1S and R1T models with software-defined technology. These vehicles feature a streamlined electrical architecture, reducing ECUs from 17 to 7 and significantly cutting down wiring. The new Rivian Autonomy Platform, powered by advanced sensors and AI, enhances driving assistance capabilities. In-vehicle connectivity includes digital car keys via Apple Wallet and Google Pixel, a rich entertainment system with streaming video and Apple Music integration, and an interactive user interface powered by Unreal Engine.
- In April 2024, Li Auto launched Li L6, which is a five-seat premium family SUV, available in Pro and Max trims. Li L6 offers a spacious, high-tech interior, advanced safety features, and robust performance with an extended range of 1,390 kilometers. The Li L6 combines luxury with advanced technology, featuring a four-screen interactive system powered by the Qualcomm Snapdragon 8295P chip for a seamless infotainment experience. The Li L6 Pro includes the Li AD Pro autonomous driving system, using a Horizon Robotics Journey 5 chip for enhanced computing power, while the Li L6 Max boasts the Li AD Max system with dual Orin-X chips for superior autonomous driving capabilities.
- In April 2024, ZEEKR launched ZEEKR MIX, the first model built on the sustainable experience architecture (SEA)-M platform. All SEA-M-based vehicles will meet global five-star safety standards and qualify for IIHS Top Safety Pick. The ZEEKR MIX, the fifth model from ZEEKR and the first on the SEA-M platform, has a length of 4.7 meters, a 3-meter wheelbase length, and a ground clearance of 39 centimeters.
- In March 2024, Panasonic Holdings Corporation and Mazda Motor Corporation partnered and installed full-display meters for the CX-70 model of Mazda Motor Corporation. The CX-70 integrates a large 12.3-inch display, showcasing graphics of the vehicle conditions, such as speed and warnings. It adapts in real-time to offer drivers timely and pertinent information, enhancing their safety and driving experience.
Frequently Asked Questions (FAQ):
What is the current size of the Software Defined Vehicle market?
The Software Defined Vehicle market is estimated to be USD 213.5 billion in 2024 and is projected to reach USD 1,237.6 billion by 2030.
Who are the winners in the global Software Defined Vehicle market?
The Software Defined Vehicle market is dominated by global players such as Tesla (US), Li Auto Inc. (China), NIO (China), Rivian (US), and XPENG Inc. (China) among others. These companies develop new products, adopt expansion strategies, and undertake collaborations, partnerships, and mergers & acquisitions to gain traction in the Software Defined Vehicle market.
What are the new market trends impacting the growth of the Software Defined Vehicle market?
Increasing demand for ADAS digital cockpits in vehicles and the adoption of 5G technology are major trends affecting this market.
Which region is expected to be the largest market during the forecast period?
Asia Pacific is expected to be the largest market in the Software Defined Vehicle market due to increased demand for SDVs and increased sales of vehicles equipped with autonomous technology, especially in China.
What is the total CAGR expected to be recorded for the Software Defined Vehicle market during 2024-2030?
The CAGR is expected to record a CAGR of 34.0% from 2024-2030. .
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved four major activities to estimate the current size of the Software Defined Vehicle market. Exhaustive secondary research was done to collect information on the market, the peer market, and model mapping. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The bottom-up approach was employed to estimate the total market size. After that, market breakdown and data triangulation were used to determine the market size of segments and subsegments.
Secondary Research
Secondary sources referred to for this research study included automotive industry organizations involved with head-up display; publications from government sources [such as country level automotive associations and organizations, Organisation for Economic Co-operation and Development (OECD), World Bank, CDC, and Eurostat]; corporate filings (annual reports, investor presentations, and financial statements); and trade, business, and automotive associations. Secondary data was collected and analyzed to arrive at the overall market size, which was further validated through primary research.
Primary Research
Extensive primary research has been conducted after acquiring an understanding of the SDV market scenario through secondary research. Several primary interviews have been conducted with market experts from both the demand-side vehicle manufacturers [(in terms of component supply), country-level government associations, and trade associations] and supply-side OEMs and component manufacturers across three major regions—North America, Europe, and Asia Pacific. Approximately 23% and 77% of primary interviews have been conducted from the demand and supply sides, respectively. Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, efforts have been made to cover various departments within organizations, such as sales, operations, and administration, to provide a holistic viewpoint in our report.
After interacting with industry experts, brief sessions with highly experienced independent consultants have been conducted to reinforce the findings from the primaries. This, along with the in-house subject-matter experts’ opinions, has led to the findings as described in the remainder of this report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The bottom-up approach has been used to estimate and validate the size of the Software Defined Vehicle market. In this approach, the SDV statistics have been considered at the country level.
A model mapping of the SDVs has been carried out for each country to determine the market size in terms of volume. The number of SDV models varied from country to country. Then, the penetration of SDVs is applied to vehicle sales, giving the volume of the Software Defined Vehicle market. The country-level data has been summed up to arrive at the region-level data in terms of volume. The summation of the country-level market size has given the regional market size, and further summation of the regional market size has provided the global Software Defined Vehicle market size.
- The key players in the industry and markets have been identified through extensive secondary research.
- The industry’s future supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global Software Defined Vehicle Market Size: Bottom-Up Approach
To know about the assumptions considered for the study, Request for Free Sample Report
Data Triangulation
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified by primary sources. All parameters that are said to affect the markets covered in this research study have been accounted for, viewed in extensive detail, and analyzed to obtain the final quantitative and qualitative data. This data has been consolidated and enhanced with detailed inputs and analysis from MarketsandMarkets and presented in the report.
data triangulation
Market Definition
SDV: A software-defined vehicle is one in which the majority of the vehicle's functions and features are controlled, enhanced, and updated through software rather than solely relying on hardware. This approach leverages advanced computing, connectivity, and software technologies to offer a range of benefits, including improved performance, enhanced safety, and greater flexibility in terms of updates and customization.
Key Stakeholders
- Third-party FOD providers
- Associations, forums, and alliances related to electric vehicles
- Automotive blogs
- Automobile manufacturers
- Automotive component providers
- Automotive cybersecurity providers
- Automotive software providers
- Autonomous vehicle manufacturers
- Autonomous vehicle platform providers
- Government agencies and policymakers
- Industry associations and experts
- Software providers for SDVs
Report Objectives
- To analyze and forecast the SDV market in terms of value (USD billion) and volume (thousand units) from 2024 to 2030
-
To segment the market by vehicle type, SDV type, and region
- To segment and forecast the market size by volume based on vehicle type (passenger car and light commercial vehicle)
- To segment and forecast the market size by volume based on SDV type (Semi-SDV and SDV)
- To segment and forecast the market by value and volume based on region (Asia Pacific, Europe, and North America)
- To segment the market qualitatively based on E/E architecture (Distributed architecture, domain centralized architecture, zonal control architecture)
- To provide detailed information about the factors influencing the market growth (drivers, challenges, restraints, and opportunities)
- To strategically analyze the market with respect to individual growth trends, prospects, and contributions to the total market
-
To study the following with respect to the market
- Ecosystem analysis
- Technology A\analysis
- OEM SDV shift strategies
- E/E architecture plans of OEM’s shifting to SDV
- Tech enabler developments for SDVs
-
To strategically profile the key players and comprehensively analyze their market share and core competencies
- To analyze the opportunities for stakeholders and the competitive landscape for market leaders
- To track and analyze competitive developments such as deals, product launches/developments, expansions, and other activities undertaken by the key industry participants
AVAILABLE CUSTOMIZATIONS
With the given market data, MarketsandMarkets offers customizations in accordance to the company’s specific needs.
- Software Defined Vehicle market, by Vehicle type, at a regional level
- Software Defined Vehicmarket, by SDV type, at a regional level
- Profiling of additional market players (Up to 5)
Growth opportunities and latent adjacency in Software Defined Vehicle Market