Software-Defined Vehicle Market To Generate USD 489.7 Billion Revenue by 2030

The software-defined vehicle market size is expected to advance at a CAGR of 9.0% during 2024–2030, to reach USD 489.7 billion by 2030. This is ascribed to the need for higher driving quality, safer rides, and better uptime. Moreover, the increase in the comfort offered by infotainment systems, such as video streaming and music, is contributing to the growth of the market. These automobiles enable continuous optimization, automation, connectivity, personalization, and on-time software feature upgradation.

The rapid urbanization leads to an increase in the number of vehicles on the road, most of which emit significant amounts of GHGs. Due to this, there is a high need to reduce the negative impact of automobiles on the environment. As per several government sites, by 2050, approximately 7 out of 10 people would live in urban areas in search of jobs and education. Due to the increasing population, the chances of accidents will increase, because of human error. This issue can be tackled with these vehicles, hence contributing in the growth of the market.

Growing Rate of Digitization in Emerging Economies

The growing digitization rate means a rising number of internet users, which further increases the focus on advanced vehicles the functions of which can be controlled by software. According to government websites, around 54% of the population was using the internet in 2019, and the number increased to 63% in 2021. The increasing rate of digitization in several countries, such as India, Mexico, China, Brazil, and U.S., is driving the adoption of these vehicles because of their unique features.

Emergence of Ride-Hailing and Mobility as a Service Platforms

Because of the increasing usage of shared mobility platforms, such as car sharing, micromobility, and ride hailing, the opportunities in the market are increasing. The rapid evolution of technologies enables the deployment of connected and autonomous cars. This is because they depend heavily on advanced software for improving user experience, optimizing fleet management, and enabling efficient transportation services. Ride-hailing is especially beneficial for persons with disabilities, seniors, and those who do not wish or are not able to purchase vehicles themselves. Thus, mobility as a service platform, especially those that deploy SVDs, make transportation efficient, as these vehicles continuously interact with the environment, in order to make the ride convenient.

North America Is Expected To Show Considerable Growth

The market in North America is growing significantly because of the increasing concerns over road safety, growing automotive industry, and rapid digitization. In North America, the U.S. will grow at a rapid pace, attributed to the rising rate of urbanization and the fast adoption of self-driving technologies. Along with this, the presence of major automotive manufacturers and the rising awareness among people of fuel economy are expected to fuel the market growth over the coming years.

Further, the market growth across the region is attributed to the rising focus on new and advanced technologies and the extensive research and development in this area. Governments across the region have started focusing on minimizing the emission of carbon and fighting the change in the climate. The increasing awareness of the harmful effects of the emissions from the fossil fuels is promoting the usage of low-emission automobiles. This will, in turn, contribute toward the growth of the market as a range of software is now being designed to optimize engine and drivetrain performance.

The most-significant software-defined vehicle market players are Robert Bosch GmbH, NVIDIA Corporation, APTIV Plc, Valeo, Marelli Holdings Co. Ltd., Continental AG, Volkswagen AG, Tesla Inc., HARMAN International, and BlackBerry Limited.