Software-defined vehicle market worth $419.7 billion by 2028

chicago, September 14, 2023 /PRNewswire/ — The software-defined vehicle market is expected to grow from 270.9 billion US dollars In 2023 to 419.7 billion US dollars By 2028, recording a CAGR of 9.1% over the forecast period according to a new report by MarketsandMarkets™. The market growth is attributed to the continuous development of connected vehicles and the introduction of 5G cellular connectivity projects. Moreover, the emergence of ride-hailing and mobility-as-a-service platforms is expected to create lucrative market opportunities.

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Scope of the Software Defined Vehicles Market report:

Report coverage


Market revenue in 2023

$ 270.9 billion

Estimated value by 2028

$ 419.7 billion

growth rate

Expected to grow at a CAGR of 9.1%

Market size available for


Forecast period


Forecasting units

Value (million USD) and volume (thousand units)

Report coverage

Revenue forecasts, competitive landscape, growth factors, and trends

Covered sectors

By width, vehicle type, vehicle autonomy, application and region

Geographic areas covered

Asia Pacific, Europe, North America and the rest of the world

Main market challenge

Data security and privacy concerns

Key market opportunities

The emergence of ride-hailing platforms and mobility-as-a-service

Key market drivers

Enforce strict vehicle safety regulations

The ICE vehicle segment is expected to account for the largest share of the software-defined vehicle market in 2023.

The ICE sector is an important market for software-defined vehicles. Factors driving the adoption of ICE SDVs include the need for improved fuel efficiency and emissions, as well as the desire for more connected and autonomous vehicles and increased availability of software and computing power. Software-based ICE vehicles have various benefits, including improved fuel efficiency and emissions, new features and functions, over-the-air updates, and autonomous driving. Software in ICE-powered vehicles can control speed, steering, braking, and the environment and determine how to navigate safely. Furthermore, these vehicles often include ADAS features, such as adaptive cruise control, lane departure warning, automatic emergency braking, and parking assistance. These features rely on sensors, cameras, and software algorithms to enhance safety and comfort. For example, the Volvo XC90 is a luxury SUV with a turbocharged gasoline engine.

Hardware is expected to account for the largest share of the software-defined vehicle market in 2023.

The hardware segment accounted for the largest share of the software-defined vehicle industry in 2022, and we are expected to witness a similar trend during the forecast period. With increasing hardware standardization and a narrowing technology gap, the automobile industry is likely to go through a similar development process. Due to the rise in development of automotive technologies, the adoption of software-defined vehicles is also increasing. The Instrumentation segment is divided into four sub-segments: ECU/ECU, Sensors/Actuators, Power Electronics, and Others. These devices play a critical role in shaping the behavior, capabilities, and user experience of modern vehicles.

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Asia Pacific The market is expected to witness the highest CAGR in the software-defined vehicle market during the forecast period.

Asia Pacific It is expected to record the highest compound annual growth rate during the forecast period. One of the main drivers of Asia Pacific The software-defined vehicle market is in growing demand for ADAS, especially in China, Japan, IndiaAnd South Korea. China It already has some regulations in place in this area. Moreover, government promotions and plans have led to an increase in electric vehicle production volumes over the years, meeting both domestic and overseas demand. Japan And China Exporting electric cars to all over the world.

The main players

Among the major players in software-defined vehicle companies is Robert Bosch GmbH (Germany), Nvidia Corporation (USA), APTIV (Ireland),Value(France), Marelli Holdings Limited (Japan), Continental AG (Germany), Volkswagen Group (Germany), Tesla (US), Harman International (US), BlackBerry Limited (US), and others.

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