United States Software Defined Vehicle Market 2025 | Growth Drivers, Key Players & Investment Opportunities

Market Size and Growth

Global Software Defined Vehicle Market reached US$ 298.36 billion in 2024 and is expected to reach US$ 1,478.72 billion by 2032, growing with a CAGR of 22.15% during the forecast period 2025-2032.

Key Development:

United States: Recent Industry Developments

✅ In October 2025, Stellantis announced a $13 billion investment to expand its U.S. production by 50%, introducing five new vehicle models and 19 product updates by 2029. This move aims to enhance SDV capabilities across Illinois, Ohio, Michigan, and Indiana.

✅ In July 2025, Qualcomm hosted its inaugural "Snapdragon Auto Day" in New Delhi, India, showcasing advancements in SDV technologies such as connected vehicles, AI-powered in-car experiences, and cloud-integrated mobility solutions.

✅ In June 2025, Applied Intuition secured $600 million in funding, raising its valuation to $15 billion. The company plans to accelerate investment in autonomous technology, including a partnership with OpenAI to enhance personalized driving experiences.

Japan: Recent Industry Developments

✅ In July 2025, Japan's Ministry of Economy, Trade and Industry (METI) announced a new strategic roadmap aiming for Japanese automakers to sell 12 million SDVs domestically and globally by 2030. The plan includes joint development of key technologies such as semiconductors and artificial intelligence.

✅ In June 2025, Honda opened the "Honda Software Studio Osaka," a new software development operation aimed at enhancing SDV capabilities. The studio focuses on areas such as automated driving, advanced driver assistance systems, and smart cabin applications.

✅ In May 2025, Toyota unveiled a revamped version of its RAV4 SUV, introducing the Arene software development platform. This platform enhances key vehicle features and marks Toyota's initial step toward producing SDVs.

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A software defined vehicle (SDV) is an automobile whose functionality and features are primarily controlled and updated via software rather than hardware. SDVs enable over-the-air updates, enhanced connectivity, autonomous driving capabilities, and a customizable user experience.

Recent merger and acquisition:

United States: Recent M&A Activity in SDVs

✅ In June 2025, NXP Semiconductors completed the acquisition of TTTech Auto, a leader in safety-critical systems and middleware for SDVs. This move aims to accelerate NXP's transformation into a software-driven automotive technology provider.

✅ In May 2025, Bosch invested approximately €4 billion in software development capabilities, including the acquisition of Five AI. This strategic investment enhances Bosch's position in the SDV market by expanding its software and AI capabilities.

✅ In April 2025, Tata Technologies announced a significant focus on SDVs, aligning with the industry's shift toward software and electronics. This strategic move positions Tata Technologies to capitalize on the growing SDV market, which is expanding rapidly by approximately 25-30%.

Japan: Recent M&A Activity in SDVs

✅ In May 2025, Tata Elxsi partnered with Mercedes-Benz Research and Development India (MBRDI) to enhance vehicle software engineering and accelerate SDV development. This collaboration signifies a major step in Tata Elxsi's expansion in the automotive software sector.

✅ In April 2025, Volvo and Daimler Truck launched a joint venture named Coretura to develop a software-based manufacturing platform for digitized commercial vehicles. This collaboration reflects the automotive industry's shift toward digitalization and connectivity.

Key Players:

=> Aptiv PLC, Tesla, Inc., Continental AG, NVIDIA Corporation, Robert Bosch GmbH, Li Auto Inc., Rivian Automotive, Inc., Volkswagen AG, QUALCOMM Incorporated and General Motors Company.

Growth Forecast Projected:

The Global Software Defined Vehicle Market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2032. In 2024, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

Research Process:

Both primary and secondary data sources have been used in the global Software Defined Vehicle Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.

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Key Segments:

➥ By Type: Semi-SDV, SDV

➥ By Vehicle Type: Passenger Car, Commercial Vehicles

➥ By Propulsion: ICE, Electric, Hybrid, Others

➥ By Offering: Hardware, Software, Services

➥ By Application: Infotainment Systems, Advanced Driver Assistance Systems (ADAS), Autonomous Driving, Telematics, Powertrain Control, Battery Management Systems, V2X Communication, Others

Regional Analysis for Software Defined Vehicle Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

Benefits of the Report:

Chapter 1: Sets the stage by outlining the report's coverage, summarizing key market segments by region, product type, and application. Presents a snapshot of market sizes, growth potential across segments, and anticipated industry evolution both short and long term.

Chapter 2: Highlights pivotal market insights and uncovers the most significant emerging trends driving change within the industry.

Chapter 3: Offers an in-depth look at the competitive landscape among Software Defined Vehicle producers, including revenue shares, strategic moves, and recent mergers and acquisitions.

Chapter 4: Presents comprehensive profiles of the market's key players, delving into details such as revenue, profit margins, product portfolios, and company milestones.

Chapters 5 & 6: Analyze Software Defined Vehicle revenue at both regional and country levels, providing quantitative breakdowns of market sizes, growth opportunities, and development prospects worldwide.

Chapter 7: Focuses on different market segments by type, examining their individual sizes and potential, guiding readers toward high-impact, untapped market areas.

Chapter 8: Explores segmentation by application, evaluating industry growth potential in various downstream markets and pinpointing promising sectors for expansion.

Chapter 9: Provides a thorough review of the industry's supply chain mapping out both upstream and downstream activities.

Chapter 10: Concludes with a summary of the report's key findings and highlights the most critical takeaways for industry stakeholders.

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FAQ

What is the current size of the Software Defined Vehicle Market?

A: In 2024, the Software Defined Vehicle Market was valued at US$ 298.36 billion , reflecting its strong industry presence.

Q2: How large is the Software Defined Vehicle Market expected to be by 2032?

A: By 2032, industry forecasts suggest the Software Defined Vehicle Market will grow to around US$ 1,478.72 billion, demonstrating significant expansion.

Q3: What is the growth rate of the Software Defined Vehicle Market?

A: The market is projected to expand at a compound annual growth rate (CAGR) of 22.15% during the forecast period from 2025 to 2032.

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