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

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%. SDVs are becoming increasingly popular due to various factors such as Consumers benefit from a highly personalized driving experience, with settings and preferences customized as per drivers. For OEMs, SDVs open up new revenue streams by allowing them to sell software-based features and services. Moreover, the rise of pay-per-use mobility models offers flexible usage options like car-sharing and subscriptions, catering to modern consumer preferences.

“Zonal Controller Architecture is likely to be the leading segment in the Software Defined Vehicle market by E/E Architecture during the forecast period.”

SDVs come with an array of electronic features developed for improved driving comfort, vehicle safety, and fault detection. SDV providers such as Tesla (US), NIO (China), XPENG (China), ZEEKR (China), and Li Auto Inc. (China) have adopted a software-first approach in which they start with zonal control units to utilize the advanced and integrated software features of SDVs. Legacy OEMs also plan to shift to zonal compute systems with their SDV shift. Volkswagen plans to integrate XPENG’s CES architecture in its vehicles, starting from 2026, which will be equipped with zonal control central computing. Other OEMs such as Hyundai, Mercedes, and BMW also plan to shift to zonal control architecture by 2026-2028, incorporated in their latest vehicle platforms. Zonal controllers allow OEMs to control the whole vehicle through 4-10 HPCs per vehicle and reduce the need for excessive wiring in the vehicles. Thus, the transition to zonal control is seen as a significant step towards fully realizing the potential of SDVs, offering a more streamlined, adaptable, and efficient vehicle architecture.

“Europe shows high growth potential for Software Defined Vehicle market.”

Europe presents a huge growth opportunity for the Software Defined Vehicle market, which is characterized by stringent safety requirements and a need for better user experience. It is home to leading OEMs such as Volkswagen, BMW, Renault, Stellantis, and Mercedes-Benz, which are transitioning toward SDVs. In Europe, OEMs are expanding in the region through strategic partnerships and acquisitions. For instance, in February 2023, CARIAD GmbH acquired Hexad GmbH's Mobility Services Platform unit which enhanced its cloud service capabilities for Volkswagen Group's digital automotive ecosystem. This acquisition integrated over 75 Hexad developers into CARIAD which strengthened its software development for improved digital services across Group brands. Also, in March 2024, Volkswagen Group plans to utilize its 23 regional plants to support the development and production of SDVs in Europe.

In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in the SDV market. The break-up of the primaries is as follows:

By Company Type: Tier I – 42%, Tier II – 40%, and OEM –18%,

By Designation: C-level Executives– 57%, Directors – 29%, and Executives – 14%

By Region: North America – 39%, Europe – 33%, and Asia Pacific – 28%

The Software Defined Vehicle market comprises major manufacturers such as Tesla (US), Li Auto Inc. (China), NIO (China), Rivian (US), XPENG Inc. (China), and ZEEKR (China), etc.

Research Coverage:

The study covers the Software Defined Vehicle market across various segments. It aims to estimate the market size and future growth potential of this market across different segments such as SDV type, vehicle type, E/E architecture, and region. The study also includes an in-depth competitive analysis of key market players, their company profiles, key observations related to product and business offerings, recent developments, and acquisitions.

This research report categorizes Software Defined Vehicle Market by SDV type (Semi-SDV, SDV), vehicle type (Passenger Car, Light Commercial Vehicle), E/E architecture, (Distributed Architecture, Domain Centralised Architecture, Zonal Control Architecture) and region Region (Asia Pacific, Europe, and North America).

The report's scope covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the Software Defined Vehicle market. A detailed analysis of the key industry players provides insights into their business overview, solutions, and services; key strategies; contracts, partnerships, agreements, new product & service launches, mergers and acquisitions, and recent developments associated with the Software Defined Vehicle market. This report covers a competitive analysis of SMEs/startups in the Software Defined Vehicle market ecosystem.

Reasons to buy this report:

The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall Software Defined Vehicle market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (Reduced recall and manufacturing costs, personalized client engagement, integration of ADAS digital cockpits, and increasing adoption of 5G technology), restraints (Limited over-the-air updates and increase in risk of cyberattacks), opportunities (Remote diagnostics, Pay-per-use mobility, SDV platform monetization and Digital twin for emergency repair), and challenges (Complex software updates and security patching and risk of data breach) influencing the growth of the Software Defined Vehicle market.

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the Software Defined Vehicle market.

Market Development: Comprehensive information about lucrative markets – the report analyses the Software Defined Vehicle market across varied regions.

Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the Software Defined Vehicle market.

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Tesla (US), Li Auto Inc. (China), NIO (China), Rivian (US), XPENG Inc. (China), and ZEEKR (China), among others in the Software Defined Vehicle market.

Tables List

Table 1 Future Of Sdv Market Definition, By Vehicle Type

Table 2 Future Of Sdv Market Definition, By Sdv Type

Table 3 Future Of Sdv Market Definition, By E/E Architecture

Table 4 Inclusions And Exclusions

Table 5 Usd Exchange Rates

Table 6 Network Speed Required For Performance

Table 7 Paid Services Provided By Key Oems

Table 8 Impact Of Market Dynamics

Table 9 Role Of Companies In Ecosystem

Table 10 List Of Patents Granted In Software-defined Vehicle Market,

2021–2024

Table 11 Testing Parameters For New Car Models

Table 12 Legislation For Adas/Autonomous Vehicles In Us

Table 13 North America: Regulatory Bodies, Government Agencies, And Other Organizations

Table 14 Europe: Regulatory Bodies, Government Agencies, And Other Organizations

Table 15 Asia Pacific: Regulatory Bodies, Government Agencies, And Other Organizations

Table 16 Key Conferences And Events, 2025–2026

Table 17 Oems Providing Over-the-air Updates

Table 18 Compute Platform Providers

Table 19 Cloud Providers

Table 20 Reference Os And Software Suite Providers

Table 21 Oem Plans For New E/E Architecture

Table 22 Future Of Sdv Market, By Sdv Type, 2020–2023 (Thousand Units)

Table 23 Future Of Sdv Market, By Sdv Type, 2024–2030 (Thousand Units)

Table 24 Future Of Sdv Market, By Vehicle Type, 2020–2023 (Thousand Units)

Table 25 Future Of Sdv Market, By Vehicle Type, 2024–2030 (Thousand Units)

Table 26 Passenger Car: Future Of Sdv Market, By Region,

2020–2023 (Thousand Units)

Table 27 Passenger Car: Future Of Sdv Market, By Region,

2024–2030 (Thousand Units)

Table 28 Light Commercial Vehicle: Future Of Sdv Market, By Region,

2020–2023 (Thousand Units)

Table 29 Light Commercial Vehicle: Future Of Sdv Market, By Region,

2024–2030 (Thousand Units)

Table 30 Future Of Sdv Market, By Region, 2020–2023 (Usd Billion)

Table 31 Future Of Sdv Market, By Region, 2024–2030 (Usd Billion)

Table 32 Future Of Sdv Market, By Region, 2020–2023 (Thousand Units)

Table 33 Future Of Sdv Market, By Region, 2024–2030 (Thousand Units)

Table 34 Asia Pacific: Future Of Sdv Market, 2020–2023 (Thousand Units)

Table 35 Asia Pacific: Future Of Sdv Market, 2024–2030 (Thousand Units)

Table 36 Europe: Future Of Sdv Market, 2020–2023 (Thousand Units)

Table 37 Europe: Future Of Sdv Market, 2024–2030 (Thousand Units)

Table 38 North America: Future Of Sdv Market, 2020–2023 (Thousand Units)

Table 39 North America: Future Of Sdv Market, 2024–2030 (Thousand Units)

Table 40 Key Player Strategies, 2021–2024

Table 41 Future Of Sdv Market: Vehicle Type Footprint, 2023

Table 42 Future Of Sdv Market: Region Footprint, 2023

Table 43 Future Of Sdv Market: List Of Key Start-ups/Smes

Table 44 Future Of Sdv Market: Competitive Benchmarking Of Start-ups/Smes

Table 45 Future Of Sdv Market: Product Launches, January 2021–january 2025

Table 46 Future Of Sdv Market: Deals, January 2021–january 2025

Table 47 Tesla: Company Overview

Table 48 Tesla: Products Offered

Table 49 Tesla: Product Launches

Table 50 Tesla: Deals

Table 51 Li Auto Inc.: Company Overview

Table 52 Li Auto Inc.: Products Offered

Table 53 Li Auto Inc.: Product Launches

Table 54 Li Auto Inc.: Deals

Table 55 Zeekr: Company Overview

Table 56 Zeekr: Products Offered

Table 57 Zeekr: Product Launches

Table 58 Zeekr: Deals

Table 59 Zeekr: Expansions

Table 60 Zeekr: Others

Table 61 Xpeng Inc.: Company Overview

Table 62 Xpeng Inc.: Products Offered

Table 63 Xpeng Inc.: Product Launches

Table 64 Xpeng Inc.: Deals

Table 65 Xpeng Inc.: Others

Table 66 Nio: Company Overview

Table 67 Nio: Products Offered

Table 68 Nio: Product Launches

Table 69 Nio: Deals

Table 70 Rivian: Company Overview

Table 71 Rivian: Products Offered

Table 72 Rivian: Product Launches

Table 73 Rivian: Deals

Table 74 Volkswagen Ag: Company Overview

Table 75 Volkswagen Ag: Products Offered

Table 76 Volkswagen Ag: Product Launches

Table 77 Volkswagen Ag: Deals

Table 78 Volkswagen Ag: Expansions

Table 79 Hyundai Motor Corporation: Company Overview

Table 80 Hyundai Motor Corporation: Products Offered

Table 81 Hyundai Motor Corporation: Deals

Table 82 Ford Motor Company: Company Overview

Table 83 Ford Motor Company: Products Offered

Table 84 Ford Motor Company: Product Launches

Table 85 Ford Motor Company: Deals

Table 86 Ford Motor Company: Others

Table 87 General Motors: Company Overview

Table 88 General Motors: Products Offered

Table 89 General Motors: Product Launches

Table 90 General Motors: Deals

Table 91 Renault Group: Company Overview

Table 92 Renault Group: Products Offered

Table 93 Renault Group: Product Launches

Table 94 Renault Group: Deals

Table 95 Toyota Motor Corporation: Company Overview

Table 96 Toyota Motor Corporation: Products Offered

Table 97 Toyota Motor Corporation: Deals

Table 98 Stellantis: Company Overview

Table 99 Stellantis: Products Offered

Table 100 Stellantis: Product Launches

Table 101 Stellantis: Deals

Table 102 Mercedes-benz Ag: Company Overview

Table 103 Mercedes-benz Ag: Products Offered

Table 104 Mercedes-benz Ag: Product Launches

Table 105 Mercedes-benz Ag: Deals

Table 106 Byd: Company Overview

Table 107 Byd: Products Offered

Table 108 Byd: Product Launches

Table 109 Byd: Deals

Table 110 Bmw: Company Overview

Table 111 Bmw: Products Offered

Table 112 Bmw: Product Launches

Table 113 Bmw: Deals

Table 114 Nvidia Corporation: Company Overview

Table 115 Qualcomm Technologies Inc.: Company Overview

Table 116 Blackberry Limited: Company Overview

Table 117 Vector Informatik Gmbh: Company Overview

Table 118 Google Inc.: Company Overview

Table 119 Amazon Inc.: Company Overview

Table 120 Microsoft: Company Overview

Table 121 Apex.Ai: Company Overview

Table 122 Mobileye: Company Overview

Table 123 Tencent: Company Overview

Table 124 Alibaba: Company Overview

Table 125 Horizon Robotics: Company Overview

Table 126 Tata Technologies: Company Overview

Table 127 Kpit Technologies: Company Overview

Figures List

Figure 1 Future Of Sdv Market Segmentation

Figure 2 Research Design

Figure 3 Research Process Flow

Figure 4 Key Industry Insights

Figure 5 Breakdown Of Primary Interviews: By Company Type, Designation, And Region

Figure 6 Research Methodology: Hypothesis Building

Figure 7 Bottom-up Approach

Figure 8 Market Growth Projections From Demand-side Drivers And Opportunities

Figure 9 Demand And Supply-side Factor Analysis

Figure 10 Sdv Growth Factors: Data Streams Fuel New Features And Services

Figure 11 Global Sdv Shift Scenario

Figure 12 Key Players: Sdv Shift Comparison

Figure 13 Semi-sdv To Be Transitional Phase In Shift To Sdv

Figure 14 Increasing Demand For Better Driving Experience And Oem Plans For Alternative Revenue Streams To Drive Market

Figure 15 Europe To Be Fastest-growing Market With Major European Automakers Shifting To Digital First Ecosystem

Figure 16 Semi-sdv Segment To Act As Transition Phase For Sdv Shift

Figure 17 Light Commercial Vehicle To Be Faster-growing Vehicle Type During Forecast Period

Figure 18 Integrated Components Of Software-defined Vehicles

Figure 19 Drivers, Restraints, Opportunities, And Challenges

Figure 20 Cost Savings By Regular Over-the-air Updates

Figure 21 Personalized Client Engagement: Benefits To Customers

Figure 22 Qualcomm’s Snapdragon Digital Chassis Platform

Figure 23 5g Use Cases In Automotive Sector

Figure 24 Over-the-air Update Method

Figure 25 Working Of Intrusion Detection Systems

Figure 26 Service-oriented Vehicle Diagnostics

Figure 27 Automotive Technology Stack

Figure 28 Digital Twin Ecosystem

Figure 29 Ecosystem Analysis

Figure 30 Oem’s Shift Toward Software-defined Vehicles

Figure 31 Number Of Patents Granted For Software-defined Vehicles,

2014–2024

Figure 32 Central High-performance Computing In Sdv

Figure 33 Nxp Semiconductors: Zone Control Poc

Figure 34 Over-the-air Firmware Update Through Device Management System

Figure 35 Trends Of Future E/E-architecture

Figure 36 Comparison Of Sdv Offerings By Leading Oems

Figure 37 Strategies Followed By Key Legacy Oems For Sdv Shift

Figure 38 Oem Dashboard On Sdv Offering And Efforts By Key Legacy Oems

Figure 39 Current E/E Architecture Scenario

Figure 40 Shift In E/E Architecture For Vehicle Electronics Control

Figure 41 Sdv Segment To Dominate Market During Forecast Period

Figure 42 Passenger Car Segment To Lead Market During Forecast Period

Figure 43 Future Of Sdv Market, By Region, 2024–2030

Figure 44 Asia Pacific: Future Of Sdv Market Snapshot

Figure 45 Sdv Market In China (2023)

Figure 46 Europe: Future Of Sdv Market, By Country, 2024–2030 (Thousand Units)

Figure 47 North America: Future Of Sdv Market Snapshot

Figure 48 Market Share Analysis, 2023

Figure 49 Revenue Analysis Of Oems, 2019–2023

Figure 50 Future Of Sdv Market: Company Evaluation Matrix (Key Players), 2023

Figure 51 Future Of Sdv Market: Company Footprint, 2023

Figure 52 Future Of Sdv Market: Overall Footprint For Oems Transitioning To Sdv, 2023

Figure 53 Future Of Sdv Market: Company Evaluation Matrix

(Start-ups/Smes), 2023

Figure 54 Valuation Of Top 5 Companies (Oems)

Figure 55 Financial Metrics Of Top 5 Players (Oems)

Figure 56 Tesla: Company Snapshot

Figure 57 Tesla: Sdv Shift Journey

Figure 58 Li Auto Inc.: Company Snapshot

Figure 59 Li Auto Inc.: Sdv Shift Journey

Figure 60 Zeekr: Sdv Shift Journey

Figure 61 Xpeng Inc.: Company Snapshot

Figure 62 Xpeng Inc.: Sdv Shift Journey

Figure 63 Nio: Company Snapshot

Figure 64 Nio: Sdv Shift Journey

Figure 65 Rivian: Company Snapshot

Figure 66 Rivian: Sdv Shift Journey

Figure 67 Volkswagen Ag: Company Snapshot

Figure 68 Volkswagen Ag: Sdv Shift Journey

Figure 69 Hyundai Motor Corporation: Company Snapshot

Figure 70 Hyundai Motor Corporation: Sdv Shift Journey

Figure 71 Ford Motor Company: Company Snapshot

Figure 72 Ford Motor Company: Sdv Shift Journey

Figure 73 General Motors: Company Snapshot

Figure 74 General Motors: Sdv Shift Journey

Figure 75 Renault Group: Company Snapshot

Figure 76 Renault Group: Sdv Shift Journey

Figure 77 Toyota Motor Corporation: Company Snapshot

Figure 78 Toyota Motor Corporation: Sdv Shift Journey

Figure 79 Stellantis: Company Snapshot

Figure 80 Stellantis: Sdv Shift Journey

Figure 81 Stellantis: Vehicle Platforms

Figure 82 Mercedes-benz Ag: Company Snapshot

Figure 83 Mercedes-benz Ag: Sdv Shift Journey

Figure 84 Byd: Company Snapshot

Figure 85 Byd: Sdv Shift Journey

Figure 86 Bmw: Company Snapshot

Figure 87 Bmw: Sdv Shift Journey

Figure 88 Nvidia Corporation: Sdv Offerings

Figure 89 Qualcomm Technologies Inc.: Sdv Offering

Figure 90 Qualcomm Technologies Inc.: Snapdragon Digital Chassis

Figure 91 Blackberry Limited: Sdv Offering

Figure 92 Vector Informatik Gmbh: Sdv Offering

Figure 93 Google Inc.: Sdv Offering

Figure 94 Amazon Inc.: Sdv Offering

Figure 95 Strategic Recommendations For Oems In Sdv Market