Allied Market Research

Increase in demand for advanced driver assistance system (ADAS), and rise in demand for autonomous and connected vehicles drive the global software defined vehicle market.

PORTLAND, Ore., Oct. 14, 2025 /PRNewswire/ -- Allied Market Research published a report, titled, "Software Defined Vehicle Market by SDV Type (Semi-SDV, and SDV), Electrical and Electronic Architecture (Distributed Architecture, Domain Centralised Architecture, Zonal Control Architecture, and Hybrid Architecture), Application (Infotainment systems, Advanced Driver Assistance Systems (ADAS), Autonomous driving, Telematics, Powertrain control, Battery Management Systems, V2X communication, and Others), Propulsion (ICE, Electric, Hybrid, and Others), Offering (Software, Hardware, and Services), and Vehicle (Passenger Cars and Commercial Vehicles): Global Opportunity Analysis and Industry Forecast, 2025-2034". According to the report, the software defined vehicle market was valued at $258.9 billion in 2024, and is estimated to reach $1,902.9 billion by 2034, growing at a CAGR of 22.6% from 2025 to 2034.

Prime determinants of growth

The global software defined vehicle market has experienced significant growth and transformation, driven by increase in demand for advanced driver assistance system (ADAS), and rise in demand for autonomous and connected vehicles. Also, growth in over-the-air (OTA) updates, and growth of mobility-as-a-service (MaaS) and shared mobility ecosystem are expected to provide lucrative market growth opportunities during the forecast period.

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Report coverage & details:

Report Coverage	Details
Forecast Period	2024–2034
Base Year	2024
Market Size in 2024	$258.9 Billion
Market Size in 2034	$1,902.9 Billion