Home > Automotive > Automotive Technology > Automotive Software > Software-Defined Vehicle Market

Software-Defined Vehicle Market Size

Report ID: GMI6887
Published Date: Nov 2024
Report Format: PDF

Download Free Sample

Software-Defined Vehicle Market Size

The global software-defined vehicle market size was valued at USD 49.3 billion in 2024 and is estimated to register a CAGR of 25.2% between 2025 and 2034. Software-defined vehicles (SDVs) are increasingly equipped with advanced safety features powered by sophisticated software. These include real-time vehicle performance monitoring, advanced driver assistance systems (ADAS) such as lane-keeping assist, emergency braking, collision detection, and other proactive safety mechanisms.

To get key market trends

Download Free Sample

According to survey conducted by HERE Technologies titled ‘Safer cars, safer roads’, in November 2023 showed that over 90% of respondents in India believed ADAS is important for road and driver safety. Furthermore, the global ADAS market is projected to grow from USD 38.1 billion in 2023 to USD 150.2 billion by 2032, with a growth rate of over 17%.

Software-Defined Vehicle Market Report Attributes
Report Attribute	Details
Base Year:	2024
Software-Defined Vehicle Market Size in 2024:	USD 49.3 Billion
Forecast Period:	2025 - 2034
Forecast Period 2025 - 2034 CAGR:	25.2%
2034 Value Projection:	USD 449.5 Billion
Historical Data for:	2021 - 2024
No. of Pages:	200
Tables, Charts & Figures:	200
Segments covered:	Vehicle, Propulsion, Level of Autonomy, Offering, Application
Growth Drivers:	Rising demand for advanced features in vehicles Stringent vehicle safety regulations Increased investments in research and development Enhanced navigation and connectivity
Pitfalls & Challenges:	Vast amount of data raises data privacy concerns Complexity and interoperability issues

Learn more about the key segments shaping this market

Download Free Sample

The automotive over-the-air (OTA) system is propelling the software-defined vehicle market growth by allowing continuous improvements and adaptability. Automotive OTA enables manufacturers to update software remotely, improving vehicle functions, safety, and user experience. This helps integrate new technologies such as autonomous driving and advanced driver-assistance systems. Manufacturers can swiftly address security vulnerabilities and bugs, thus ensuring that vehicles are always up to date. As a result, automotive OTA helps software-defined vehicles stay competitive and increases customer satisfaction.

Furthermore, SDVs also allow for quick updates of security patches to address vulnerabilities, ensuring that vehicles stay protected from cyber threats. This ability to continuously update safety and security features is increasing the demand for SDVs, as automakers aim to meet higher consumer expectations and regulatory standards.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of software-defined vehicle reached USD 49.3 billion in 2024 and is set to grow at a 25.2% CAGR from 2025 to 2034, driven by rising demand for advanced features in vehicles.

The ADAS segment held around 36% of the market share in 2024, led by the demand for enhanced safety features and regulatory requirements.

The North America market accounted for 30% of the revenue share in 2024, propelled by the presence of leading technology and automotive companies.

The key players in the industry include Aptiv, Continental, Ford, General Motors, Marelli Holdings, Mercedes-Benz, Nvidia, Robert, Tesla, and Volkswagen.