Software defined vehicle market to exceed US$ 110 billion by 2031
A new report from Guidehouse Insights analyzes the automotive software-defined vehicles (SDV) market—including vehicle manufacturers, software solution providers, industry organizations, tech companies, government employees, and other suppliers. SDVs’ new mediums and use cases are the focus of this report.
As consumers continue demanding better and more intuitive experiences, and as the market becomes more saturated with cellular-data-capable EVs with increasing levels of automation, SDVs have a promising future. According to a new report from Guidehouse Insights, the total average revenue generated from SDVs is expected to grow from $8.6 billion in 2022 to exceed $110.5 billion by 2031, at a compound annual growth rate (CAGR) of 32.8 percent.
“SDVs could transform the automotive industry—generating billions in revenue from new applications and services. Over the next decade and beyond, automakers’ large investments will bring new vehicles to market that are designed to function as more than a means of transportation,” says Sam Abuelsamid, principal analyst with Guidehouse Insights. “SDVs will become a third space in which consumers can engage in experiences such as working, gaming, or escaping from the outside environment.”
A new digitally native, environmentally, socially, and safety conscious consumer generation is forcing the automotive industry to cater to it. Today’s car buyers are more concerned about sustainability, seamless user experience across all of their devices, and up-to-date safety features than horsepower and brand. EV’s potentially longer product lifecycle coupled with the introduction of new software applications opens a plethora of revenue-generating opportunities that automakers can leverage after a car rolls off the lot. If automakers are to realize these benefits, they must quickly transform their development processes to keep up with the speed of innovation while adhering to an automotive regulatory environment that is notoriously slow to adapt or overreact, according to the report.
The report, Leveraging Software-Defined Vehicles for Next-Generation Consumer Experiences, analyzes the global market for SDVs, the new passenger experiences they will enable, and the industry changes needed to facilitate their implementation. It provides an analysis of SDV market issues, business cases, opportunities, and implementation challenges. Global market analyses for capacity and revenue, broken out by segment and region, extend through 2031. The report examines key SDV technologies, use cases, and profiles key market players. An executive summary of the report is available for free download on the Guidehouse Insights website.