Software-Defined Vehicles Market Share Analysis Report, 2023-2032
The global software-defined vehicles market size was exhibited at USD 35.9 billion in 2022 and is projected to hit around USD 212.84 billion by 2032, growing at a CAGR of 19.48% during the forecast period 2023 to 2032.
Key Pointers:
Software-Defined Vehicles Market Report Scope
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Report Coverage |
Details |
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Market Size in 2023 |
USD 42.89 Billion |
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Market Size by 2032 |
USD 212.84 Billion |
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Growth Rate From 2023 to 2032 |
CAGR of 19.48% |
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Base Year |
2022 |
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Forecast Period |
2023 to 2032 |
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Segments Covered |
By Propulsion, By Application, By Vehicle Type and By Level of Autonomy |
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Market Analysis (Terms Used) |
Value (US$ Million/Billion) or (Volume/Units) |
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Regional Scope |
North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
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Key Companies Profiled |
Tesla, Inc., Toyota Motor Corporation, Volkswagen Ag, General Motors Company, Stellantis NV, BYD Company Limited, Hyundai Motor Company, Ford Motor Company, Honda Motor Co., Ltd., Mercedes Benz Group AG, BMW Group, Suzuki Motor Corporation and Others. |
Software Defined Vehicle refers to a vehicle whose features and operations are primarily software enabled. This continual transformation of the car from a mostly hardware-based product to an electronic gadget on wheels with software at its core has led to the development of this segment.
Transition from hardware-defined to software-defined computing necessitates new development paradigms made to accommodate modern computer architectures and rising software complexity. More than 150 million lines of code using more than 100 ECUs are needed to be involved for one vehicle with a data transfer speed of upwards of 6Gbps, decision-making speed of 100-200terraflops, and data generation and storage capacity of 40TB/hour for one complete system to work autonomously fulfilling the required road and safety constraints for seamless development and deployment from the cloud to the automobile.
Software-Defined vehicles provide innovative in-vehicle experiences and functions through software and provide updates and services over the air (OTA). They provide major safety and convenience advantages. Software-Defined vehicles may assist automakers, OEMs, and tier-one suppliers achieve strict functional safety criteria while also providing significant income and customer relationship advantages.
In the current scenario, service station or OEM dealership are responsible for software upgrades for most vehicle applications such as vehicle infotainment, telematics, and diagnostic systems. Through software-defined vehicle, users would be able to get OTA updates comprising security patches, infotainment upgrades & improvements. Additionally, monitoring and tuning of core vehicle functions such as powertrain and vehicle dynamics can also be accomplished in software-defined vehicles.
Drivers: Enhanced autonomous and semi-autonomous capabilities aiding drivers in monotonous and tough driving conditions.
Software-defined vehicles are being widely adopted for their semi-autonomous and autonomous capabilities, especially in monotonous driving situations like highways and traffic jams and tough driving situations like parking with features like highway pilot, traffic jam assist and parking assist wherein the vehicle computer takes situationally, partial, or complete control of the vehicle. The increase in demand for the level of autonomy in vehicles is driving the growth of the software-defined vehicles market.
Opportunities: Software Oriented architecture for vehicles to open new fronts of innovations for OEMs and chip manufacturers for the Software-Defined vehicle market.
With Software-Defined vehicles becoming more software-dependent, a software-oriented architecture (SOA) for vehicles is expected to be the way forward for innovations in Software-Defined vehicles. This gives immense opportunities for OEMs and chip manufacturers to partner to develop sophisticated hardware to handle the SOA efficiently while providing ASIL-D standard of surety for autonomous and semi-autonomous functions of Software-Defined vehicles. This further enables opportunities for OEMs in terms of vehicle renting, ecosystem creation, and others. The fleet management companies like Uber, OLA, etc. are expected to be among the key customers for the Software-Defined vehicle market due to their expected adoption of Level 4&5 autonomous vehicles for their fleets for efficient fleet management.
Challenges: Designing and testing challenges associated with software-defined vehicles
The rising software complexity with more than 150 million lines of code for Software-Defined vehicles for semi-autonomous or autonomous functions with ASIL-D grade safety requires more than 100 ECUs with high computing power for one vehicle. This is a challenging task to be taken up by OEMs due to the lack of current technology and a skilled workforce. The current traditional waterfall software development model cannot be applied to Software-Defined vehicles due to the safety factor. Hence the automobile industry needs to shift from a traditional waterfall software development model to an agile development model for the software development of Software-Defined vehicles. With one of the prime issues as computation powers, OEMs are partnering with chip manufacturers to overcome this issue and get an operation-specific product. OEMs like Hyundai, Tesla, and General Motors have announced to manufacture their semiconductor chips by 2032 to address the issue.
Recent Developments
In October 2022, Hyundai Motor Group (South Korea) announced that it is going to enter the Software-Defined vehicle market with a major leap by releasing Software-Defined vehicles in gasoline and electric variants. By 2032, HMG hopes to have 20 million connected vehicles on the road with its in-house developed Integrated Modular Architecture (IMA) and Connected Car Operating System (CCOS).
In September 2022, NVIDIA and Qualcomm announced their new system on Chip (SOC) portfolios for Software-Defined vehicles named Drive Thor and Ride Flex SoC (also claimed by the company to be the “industry’s first super-compute class SoC portfolio”) to capture the semiconductor segment of Software-Defined vehicle market.
In May 2022, Red Hat, Inc. General Motors today announced a collaboration to expand an ecosystem of innovation around the Red Hat In-Vehicle Operating System, which provides a functional-safety certified Linux operating system foundation intended for the ongoing evolution of General Motors’ Ultifi software platform. The collaboration is said to be revolutionary for the Software-defined Vehicle market. With Red Hat's open-source operating system accelerating the development of General Motors’ software-defined vehicle programs following Ultifi’s initial launch, the collaboration will enable both companies to offer customers more valuable features responsibly in a fraction of the typical development time.
Some of the prominent players in the Software-Defined Vehicles Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Software-Defined Vehicles market.
By Propulsion
By Application
By Vehicle Type
By Level of Autonomy
By Region
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
(Upto 5 With No Cost)
Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers