PUBLISHER: The Business Research Company | PRODUCT CODE: 1455331
PUBLISHER: The Business Research Company | PRODUCT CODE: 1455331
A software-defined vehicle refers to an automobile whose characteristics and operations are primarily enabled by software, marking a shift from a predominantly hardware-based product to a software-centric electronic device on wheels. This transformation is integral to the development of future intelligent, networked, and environmentally friendly vehicles.
The main propulsions for software-defined vehicles include ICE vehicles and electric vehicles. An ICE vehicle, or internal combustion engine vehicle, is powered by a conventional internal combustion engine. Various types of vehicles fall under this category, such as passenger cars and commercial vehicles. These vehicles can have different levels of autonomy, classified as level 1 through level 5, and encompass a range of applications, including Advanced Driver Assistance Systems (ADAS) and safety features, connected vehicle services, autonomous driving, body control and comfort systems, and powertrain systems.
The software-defined vehicles market research report is one of a series of new reports from The Business Research Company that provides software-defined vehicles market statistics, including software-defined vehicles industry global market size, regional shares, competitors with software-defined vehicles market share, detailed software-defined vehicles market segments, market trends, and opportunities, and any further data you may need to thrive in the software-defined vehicles industry. This software-defined vehicles market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The software-defined vehicles market size has grown rapidly in recent years. It will grow from $46.51 billion in 2023 to $55.16 billion in 2024 at a compound annual growth rate (CAGR) of 18.6%. The growth observed in the historic period can be attributed to factors such as advancements in embedded systems, increasing consumer demand for connected vehicles, the integration of over-the-air (OTA) updates, a shift toward electric and hybrid vehicles, and regulatory emphasis on vehicle safety.
The software-defined vehicles market size is expected to see rapid growth in the next few years. It will grow to $107.42 billion in 2028 at a compound annual growth rate (CAGR) of 18.1%. The anticipated growth in the forecast period can be attributed to factors such as the implementation of 5G connectivity, the rise of Mobility-as-a-Service (MaaS), the integration of augmented reality (AR) in vehicles, the demand for personalized and context-aware services, and regulatory initiatives emphasizing emission reduction. Major trends expected in the forecast period include continued collaboration for ecosystem development, an increased emphasis on cybersecurity in automotive systems, the evolution of autonomous driving technologies, a shift towards software-defined architectures in vehicles, and a focus on enhancing user experience (UX) in automotive technology.
The surge in demand for electrified and autonomous vehicles is anticipated to drive the expansion of the software-defined vehicle market in the future. An electric vehicle (EV) is a car propelled by multiple electric motors, drawing power from various sources, including a battery or an external energy collection system. A self-driving vehicle, also known as an autonomous or unsupervised car, can operate autonomously. The software-defined vehicle is poised to centralize the electric and electrical architecture of automobiles, facilitating seamless integration of innovative features throughout their lifecycle. In March 2023, the International Energy Agency reported exponential growth in the electric car market, with sales surpassing 10 million in 2022, constituting 14% of all new car sales, up from approximately 9% in 2021. Additionally, G2.com Inc. revealed in January 2022 that the global self-driving car industry was growing at a 16% annual rate, with over 1,400 self-driving vehicles undergoing testing. Consequently, the increasing demand for electrified and self-driving automobiles is propelling the software-defined vehicle market.
The escalating emphasis on vehicle safety is expected to drive the software-defined vehicle market's growth. Vehicle safety encompasses measures to minimize the risk of accidents and injuries, and software-defined vehicles contribute to safety by facilitating real-time sharing of information on traffic conditions, hazards, and potential collisions. This enables vehicles to proactively respond and avoid accidents. According to a November 2021 survey by Mobility Outlook, 58% of 270,000 respondents expressed a willingness to extend their budget for safety ratings, while 75% preferred vehicles with four or five-star safety ratings. Thus, the growing focus on vehicle safety is a key driver for the expansion of the software-defined vehicle market.
The growth of the software-defined vehicle market is anticipated to face constraints due to escalating concerns regarding privacy and security. The growing apprehensions about data privacy and security present challenges to the widespread adoption of software-defined vehicles. Users and businesses are becoming more cautious about potential breaches and unauthorized access, thereby impacting the overall expansion of the market. In 2023, as per the CISCO Data Privacy Benchmark Study 2023 by Cisco Systems Inc., a US-based technology company, 95% of respondents consider privacy a crucial business necessity, marking an increase from 90% in 2022. Moreover, 94% believe that customers are unlikely to make purchases from businesses lacking proper data protection. Consequently, the rising privacy and security concerns are inhibiting the growth of the software-defined vehicle market.
Leading companies in the software-defined vehicle sector are directing their efforts towards advanced technological products such as the DRIVE Thor to better cater to the needs of their existing consumers. DRIVE Thor is a forward-looking system-on-a-chip (SoC) designed for self-driving cars, aiming to consolidate all intelligent vehicle operations on a single artificial intelligence computer. For instance, in September 2022, NVIDIA Corporation, a US-based technological firm renowned for its graphics processing units, introduced DRIVE Thor. This modern central system, with a performance rating of up to 2,000 teraflops, integrates intelligent functions such as automated driving, parking, driver and person monitoring, digital tool cluster, in-vehicle infotainment (IVI), and rear-seat entertainment into a unified architecture. The advanced AI capabilities of DRIVE Thor draw inspiration from the NVIDIA Hopper Multi-Instance GPU architecture, along with the NVIDIA Grace CPU and NVIDIA Ada Lovelace GPU. DRIVE Thor's MIG support for visuals and computation facilitates the execution of IVI and sophisticated driver-assistance technologies with domain solitude, allowing concurrent time-critical activities to proceed uninterrupted.
In December 2022, Aptiv PLC, an Irish-based company specializing in creating safer, greener, and more interconnected transportation solutions for the future, completed the acquisition of Wind River Systems Inc. for approximately $3.5 billion. This strategic move enables Aptiv PLC to empower clients to leverage the full potential of the software-defined car throughout its entire lifecycle by integrating the Wind River Studios cloud-native software framework into Aptiv's industry-leading Smart Car Architecture. The initial version of this comprehensive end-to-end solution was showcased at CES 2023 in January. Wind River Systems Inc., a US-based company, provides applications for critical intelligent systems and solutions for software-defined vehicles.
Major companies operating in the software-defined vehicles market report are Volkswagen AG, Toyota Motor Corporation, Stellantis N.V., Mercedes-Benz Group AG, Ford Motor Company, General Motors Company, Bayerische Motoren Werke AG, Honda Motor Co. Ltd., Hyundai Motor Group, Robert Bosch GmbH, Tesla Inc., Kia Corporation, Renault Group, Volvo Group, Qualcomm Incorporated, Continental AG, Tata Motors Ltd., Suzuki Motor Corporation, Nvidia Corporation, ZF Friedrichshafen AG, BYD Co. Ltd., Valeo S.A., Aptiv PLC, Harman International Industries, BlackBerry Limited, Jaguar Land Rover Automotive PLC, Marelli Holdings Co. Ltd., Green Hills Software Inc., Airbiquity Inc., Sonatus Inc.
North America was the largest region in the software-defined vehicles market in 2023. The regions covered in the software-defined vehicles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the software-defined vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The software-defined vehicle market includes revenues earned by entities by providing services such as driver assistance, real-time information, diagnostics, and telematics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The software-defined vehicle market consists of sales of operating systems, bootloaders, device drivers, hypervisors, and middleware. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Software-Defined Vehicles Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on software-defined vehicles market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for software-defined vehicles ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The software-defined vehicles market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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