Software-Defined Vehicle Market Size

Software-Defined Vehicle Market Size

The global software-defined vehicle market size was valued at USD 49.3 billion in 2024 and is estimated to register a CAGR of 25.2% between 2025 and 2034. Software-defined vehicles (SDVs) are increasingly equipped with advanced safety features powered by sophisticated software. These include real-time vehicle performance monitoring, advanced driver assistance systems (ADAS) such as lane-keeping assist, emergency braking, collision detection, and other proactive safety mechanisms.  

According to survey conducted by HERE Technologies titled ‘Safer cars, safer roads’, in November 2023 showed that over 90% of respondents in India believed ADAS is important for road and driver safety. Furthermore, the global ADAS market is projected to grow from USD 38.1 billion in 2023 to USD 150.2 billion by 2032, with a growth rate of over 17%.
 

The automotive over-the-air (OTA) system is propelling the software-defined vehicle market growth by allowing continuous improvements and adaptability. Automotive OTA enables manufacturers to update software remotely, improving vehicle functions, safety, and user experience. This helps integrate new technologies such as autonomous driving and advanced driver-assistance systems. Manufacturers can swiftly address security vulnerabilities and bugs, thus ensuring that vehicles are always up to date. As a result, automotive OTA helps software-defined vehicles stay competitive and increases customer satisfaction.
 

Furthermore, SDVs also allow for quick updates of security patches to address vulnerabilities, ensuring that vehicles stay protected from cyber threats. This ability to continuously update safety and security features is increasing the demand for SDVs, as automakers aim to meet higher consumer expectations and regulatory standards.