The value of the software-defined vehicle market stood at USD 268.8 billion in 2023, and this number is projected to reach USD 489.7 billion by 2030, advancing at a CAGR of 9.0% during the projection period.
Software is projected to advance at the highest CAGR of 9.5%, credited to the numerous benefits it provides, like easy driving experiences and better safety. The rise in the requirement for software-defined cars is mainly because of the increasing requirement for security and the rising sale of EVs.
The ADAS category is projected to witness substantial development during the projection, credited to the growing knowledge among people of the safety of passengers and drivers. Along with this, the costs of in-car electronic safety systems are reducing, which is permitting more individuals to purchase vehicles combined with them.
On the basis of autonomy, level 3 is projected to advance fastest, as level 3 autonomous vehicles are fortified with the ability to spot the environment and make better decisions for themselves. These decisions comprise keeping the ideal speed as per the traffic and weather circumstances.
It is considered a conditionally automated level, where the driver is capable of handling the automobile themselves in numerous situations. In January 2023, Mercedes-Benz declared the receipt of the sanction of the U.S. government for level 3 driving features.
The Asia-Pacific region is dominating the software-defined vehicle industry, and it will grip the same position during the projection period, accounting for a worth of USD 147.8 billion by 2030. The development is credited to the surge in the concentration on safety and the decrease in the number of accidents.
China retains its lead position within the Asia Pacific region and is expected to increase at a compound annual growth rate of 8.8% over the forecast period. This is due to the swift technological development of its vehicle sector, as well as the adoption of advanced manufacturing techniques in order to increase production.