Global Connected and Software-Defined Vehicle software-related revenue is to exceed US$700Bn by 2034

Software-Defined Vehicles, Connected Cars, and AI in Cars 2024-2034: Markets, Trends, and Forecasts

SDVs, Connected and Autonomous Vehicles (CAVs), In-Car AI Assistants, V2X, Autonomy as a Service, Connected Vehicles, Intelligent Transportation Systems (ITS-G5), DSRC, C-V2X, Features as a Service, ADAS, Software as a Service

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"Software-Defined Vehicles, Connected Cars, and AI in Cars 2024-2034: Markets, Trends, and Forecasts" explores what a Software-Defined Vehicle is, and draws upon IDTechEx's expertise on autonomous vehicles, 5G, and smart mobility to offer the reader with an in-depth insight of how Connected Vehicle (CV) and Software-Defined Vehicle (SDV) technology, such as V2X (DSRC, ITS-G5, C-V2X), automotive AI/GenAI, and telematics are redefining the automotive landscape.
What is a connected and software-defined vehicle?
Software-Defined vehicles (SDVs) represent a new paradigm for automakers and consumers. Whereas older ICE vehicles were a conglomeration of 70+ Electronic Control units, kilometres of wiring, and many thousands of components, the new era of vehicles can be more centralized, connected, and convenient, bringing benefits to both the consumer and OEM.
The most basic form of SDV is a vehicle where the user experience is affected in some way by the software in a vehicle. However, vehicles can become more 'software-defined' as the number of software-based features on the vehicle increases. Generally, a software-defined vehicle requires a constant cellular connection (4G or 5G), a large, touch-enabled screen, and a powerful central compute system that is also connected to the vehicle's constituent components. Many SDVs also take advantage of third-party apps and in-vehicle payments to add more features and convenience to the user.
Categorizing and comparing software-defined vehicles can be difficult, as almost every vehicle that has been released in the last 5-10 years is arguably 'software-defined' in some way. By assigning a vehicle with a simple level, based on the inclusion of certain software features, an approximate comparison can quickly be made. IDTechEx have developed the following system for comparing software-defined vehicles:
Source: IDTechEx
The future connected vehicle uses not just a standard smartphone cellular connection, but also potentially takes advantage of dedicated 'V2X' safety communication channels at 5.9GHz. This connection uses Wi-Fi or cellular-based technology to communicate with other vehicles and traffic infrastructure. If regulation or safety standards mandate this technology, then V2X is set to quickly become the 'digital seatbelt' of the future, promising to reduce accidents, improve congestion, and reduce emissions globally.
What are current market players and the current status of the market?
The SDV market is emerging, with many potential players being cautious about how to monetize SDV features within the vehicle, and as such, many OEMs, such as SAIC, Renault, and Toyota, are offering long-term free trials for SDV features that range from 3 to 10-years in length. Other players, such as Ford, Tesla, and BMW, are actively monetizing SDV features, and as a result, are generating significant revenue potential. BMW, for example, are offering owners of their i5 model up to US$150 a month in purchasable software upgrades and features, such as connectivity, real-time traffic information, and heated steering wheels.
There is a wide discrepancy between the ability of various OEMs to provision SDV features. Many OEMs, such as Toyota, continue to provide minimal options for users to interact with the vehicle, only providing small screens, with limited onboard compute capability. Other OEMs are providing large screens (with functionality for both passengers and driver), with powerful compute, 5G support, and support for in-vehicle payments.
Connectivity is a big feature for SDVs, with many OEMs offering 4G or 5G functionality for approximately US$10 a month, generating US$120 a month per vehicle per year. Autonomy as a Service (AaaS) can also offer significant revenue potential, with OEMs such as Ford offering upgraded AaaS for US$900 a year in some regions.
Source: IDTechEx
Based on information from vehicle brochures, context from automotive conferences, past trends, and conversations with players in the automotive industry, IDTechEx is forecasting a 35% CAGR in automotive software-related revenue by 2034, with software-related revenue being worth more than US$700 billion (US, 2023 prices) by 2034. The higher the SDV level, the more features are offered, and the more likely consumers are to decide to purchase or subscribe to the features offered within the vehicle. Alternative revenue streams will also be available from in-vehicle payments, the sale of actuarial data, and in-vehicle app stores. This is discussed further in the Connected and Software-Defined Vehicle Market report.
The V2X market is expected to grow significantly in markets such as China, with markets such as the US and Europe adopting the features soon with cellular-based C-V2X set to become the primary method of vehicle to everything communication.
Key Aspects - What is in this report?
This report provides a comprehensive analysis of the market for connected and software-defined vehicles (SDVs), which are vehicles that can communicate with other devices and networks, and have software that significantly impacts the user experience. The report covers the following topics:
  • Software-Defined Vehicles: How software is becoming a key differentiator for automakers and consumers, enabling new features, services, and business models.
  • V2X and Connected Vehicle Technology: How vehicles can communicate with other vehicles, infrastructure, and pedestrians, using different radio access technologies (RATs) such as DSRC, C-V2X, and ITS-G5, as well as standard 4G, and 5G. The report compares the advantages, and disadvantages of each RAT, and analyzes the regional regulatory and spectrum allocation status, covering Europe, China, the USA, Japan, South Korea, and India.
  • V2X Use Cases for Safety and Sustainability: How vehicle-to-vehicle and vehicle-to-infrastructure communication can enable various use cases that improve safety, efficiency, and sustainability.
  • V2X ITS Hardware: The report provides a comparison of the key players and products in the V2X hardware market, and their features, specifications, and commercial status.
  • Autonomous Vehicle Connectivity: How connectivity is essential for supporting mapping, localization, teleoperation, and data transmission for autonomous vehicles.
10-year granular Market Forecasts:
  • 10-year market forecast of SDV Software Feature Penetration within new vehicle models including Wi-Fi, 4G/5G connectivity, Apple CarPlay/Android Auto, Digital Assistants/In-Vehicle AI, and In-Vehicle Payments.
  • 22-year market forecast for Global SDV Software Feature-Related Revenue
  • 10-year market forecast for Global SDV Unit Sales broken down by SDV Level
  • 10-year market forecast for Global SDV Hardware Revenue broken down by SDV Level
  • 10-year market forecast of vehicle-to-vehicle communication market penetration, broken down by region.
  • 10-year market forecast of vehicle-to-vehicle communication-enabled vehicle unit sales, broken down by region
  • 10-year market share forecast of Wi-Fi-based (DSRC) versus Cellular-based (C-V2X) vehicle-to-vehicle communication technology
The report is based on extensive research and interviews with industry experts and provides valuable insights for anyone interested in the future of connected and software-defined vehicles.
Report MetricsDetails
CAGRThe Global Connected and Software-Defined Vehicle software-related annual revenue is expected to exceed more than US$700 billion by 2034, with a forecasted CAGR of 34%.
Forecast Period2024 - 2034
Regions CoveredWorldwide
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Table of Contents
1.1.What is a software-defined vehicle?
1.2.What's required for an SDV
1.3.Software-Defined Vehicle Level Guide
1.4.SDV Level Chart : Major OEMs compared
1.5.SDV Level Guide Explained
1.6.SDV feature map
1.7.SDV Feature Forecast 2013-2034
1.8.SDV Feature Forecast 2013-2034
1.9.Over-the-Air updates and diagnostics
1.10.SDV Feature Forecast (Global Revenue)
1.11.Software-Defined Vehicle Forecast (Units)
1.12.SDV Conclusions and Key Takeaways (1)
1.13.SDV Conclusions and Key Takeaways (2)
1.14.What is a Connected Vehicle?
1.15.Connected Vehicles Key Terminology
1.16.Radio Access Technologies Compared
1.17.The Connected Vehicle Supply Chain
1.18.Radio Access Technologies Compared
1.19.V2V/V2I Supply Chain
1.20.V2X Chipsets - Comparison
1.21.V2X Modules - Comparison
1.22.Example V2V/V2I use cases summarised
1.23.V2X Regional Regulatory Status
1.24.V2V/V2I Uptake Forecasting (expected)
1.25.V2V/V2I Radio Access Technology Forecast (expected)
1.26.Why 5G Matters for Autonomy
2.1.1.What is a software-defined vehicle?
2.1.2.SDV feature map
2.1.3.Why is there this hype? (1)
2.1.4.Why is there this hype? (2)
2.1.5.Software-Defined Vehicle Level Guide
2.1.6.SDV Level Chart : Major OEMs compared
2.2.Software-defined vehicle examples
2.2.1.Connectivity as a Service
2.2.2.SDV for Insurance (Allianz)
2.2.3.In-vehicle payments
2.2.4.Infotainment hardware
2.2.5.Infotainment (1)
2.2.6.Infotainment (2)
2.2.7.Hardware as a Service (HaaS)
2.2.8.Over-the-Air updates
2.2.9.Over-the-Air diagnostics
2.2.10.Autonomy as a Service (AaaS)
2.3.Software-Defined Vehicle Hardware
2.3.1.SDV Hardware Requirements
2.3.4.Screens to facilitate connected features (1)
2.3.5.Screens to facilitate connected features (2)
2.3.6.Automotive transparent antennas
2.3.7.Selling a Chinese SDV in Europe - BYD
2.4.Case Studies
2.4.2.MG (SAIC)
2.4.4.BMW (1) - Connected Drive Portal
2.4.5.BMW (2) - SDV Monetization
2.4.6.BMW (3) - Connected Package
2.4.7.BMW (4) - International Strategy
2.5.Generative AI for SDVs
2.5.1.What is a Generative AI?
2.6.In-vehicle generative AI
2.6.1.Smart Cockpit
2.6.2.Spike the personal assistant (AWS & BMW)
2.6.3.A personalized digital assistant (AWS)
2.7.Generative AI for automakers
2.7.1.Generative AI for Automotive Design
2.7.2.Vizcom (powered by Nvidia)
2.7.3.Microsoft - AI for automotive
2.7.4.Microsoft - M365 Copilot
2.7.5.Digital Twins and Simulated Autonomy
2.7.6.SDV-related Regulations
2.8.1.SDV Conclusions and Key Takeaways (1)
2.8.2.SDV Conclusions and Key Takeaways (2)
3.1.V2X Acronyms
3.2.What is a Connected Vehicle?
3.3.Why V2X
3.4.Radio Access Technologies Compared (1)
3.5.Connected Vehicles Key Terminology
3.6.Radio Access Technologies Compared (2)
3.7.Radio Access Technologies Compared
3.8.3GPP Automotive Roadmap
3.9.Regulatory Status: DSRC vs C-V2X (1)
3.10.Regulatory Status: DSRC vs C-V2X (2)
3.11.Regulatory Status: DSRC vs C-V2X (3)
3.12.V2X Low Latency (PC5) use cases
3.13.V2X High Data Rate (Uu) use cases
3.14.Connected Vehicle Cybersecurity
3.15.C-V2X roadmap
4.1.1.What is V2V and V2I?
4.1.2.Day 1/Day 2/Day 3
4.1.3.How V2V and V2I works
4.2.Current 'Day 1' V2V/V2I dependent use cases
4.2.1.V2V/V2I-required use cases (1)
4.2.2.V2V/V2I-required use cases (2)
4.2.3.V2V/V2I-required use cases (3)
4.2.4.V2V/V2I-required use cases (4)
4.3.Current use cases that benefit from V2V/V2I
4.3.1.V2V/V2I-beneficial use cases
4.3.2.Example V2V/V2I use cases summarised
4.4.Case Studies and the 5GAA
4.4.1.ZTE 5G and C-V2X use cases for Autonomous Vehicles: 5GAA C-V2X overview
4.4.4.Q&A with 5G Automotive Association (5GAA) director (1)
4.4.5.Q&A with 5G Automotive Association (5GAA) director (2)
4.4.6.Q&A with 5G Automotive Association (5GAA) director (3)
4.4.7.C-V2X: Automated valet parking in a 5G network (1)
4.4.8.C-V2X: Automated valet parking in a 5G network (2)
5.1.V2X Hardware: What's in a V2X module
5.2.V2X Hardware: Key terms explained
5.3.Telematics Control Unit
5.4.The Connected Vehicle Supply Chain
5.5.V2V/V2I Supply Chain
5.6.V2X Chipsets: Qualcomm
5.7.V2X Chipsets: NXP & Huawei
5.8.V2X Chipsets: Autotalks
5.9.V2X Chipsets: Marvell and Morningcore
5.10.V2X Chipsets - Comparison
5.11.Alps Alpine Modules
5.12.Murata Modules
5.13.Quectel Modules
5.14.Cohda Wireless Modules, OBUs, & RSUs
5.15.Commsignia Modules, OBUs, & RSUs
5.16.V2X Modules - Comparison
5.17.V2X Hardware: RSUs and OBUs
5.18.Siemens RSUs
5.19.Huawei RSUs
5.20.AI-enhanced roadside unit (RSU) for future mobility (1)
5.21.AI-enhanced roadside unit (RSU) for future mobility (2)
5.22.Intelligent RSU for C-V2X side link positioning
5.23.V2X Software
5.24.V2X micromobility solutions
5.25.Connected Vehicle Conclusion and Thoughts
6.1.1.Why Automate Cars?
6.1.2.The Automation Levels in Detail
6.1.3.Functions of Autonomous Driving at Different Levels
6.1.4.Roadmap of Autonomous Driving Functions in Private Cars
6.1.5.Typical Sensor Suite for Autonomous Cars
6.1.6.Evolution of Sensor Suites from Level 1 to Level 4
6.1.7.Autonomous driving technologies
6.1.8.Why is cellular connectivity important for AVs
6.1.9.Connected aspects of Autonomous Vehicles compared to 5G compared to 5G visualized
6.1.12.Why 5G Matters for Autonomy
6.1.13.Why V2X Sidelink Matters for Autonomy (1)
6.1.14.Why V2X Sidelink Matters for Autonomy (2)
6.1.15.Level 2 Requirements
6.1.16.Level 3 Requirements
6.1.17.Level 4 (Private) Requirements
6.1.18.Level 4 (Robotaxi) Requirements
6.1.19.Autonomy Levels Requirements compared
6.2.Mapping and Localization
6.2.1.What is Localization? (1)
6.2.2.What is Localization? (2)
6.2.3.HD Mapping Assets: From ADAS Map to Full Maps for Level-5 Autonomy
6.2.4.HD Map as a Service
6.2.5.Civil Maps: Low-Data rate Maps
6.3.1.Teleoperation: Enabling Autonomous MaaS
6.3.2.Three Levels of Teleoperation
6.3.3.How remote assistance works - Zoox
6.3.4.Remote assistance
6.3.5.Remote Control
6.3.6.Where is teleoperation currently used?
6.3.8.MaaS vs Independent solution providers
6.3.9.Ottopia: 5G Advanced Teleoperation (1)
6.3.10.Ottopia: 5G Advanced Teleoperation (2)
6.3.11.Phantom Auto: Reliable 4G-based Teleoperation
6.3.12.Phantom Auto Gaining Momentum in Logistics
6.3.13.Case study: WMG - 5G to Support HD Content and Driver Assistance Systems
6.3.14.Case Study: Halo - Subverting Autonomy with 5G
7.1.Forecasting Content
7.2.Forecasting Methodology
7.3.Software-Defined Vehicle Level Guide
7.4.Software-Defined Vehicle Forecast Methodology
7.5.Software-Defined Vehicle Forecast (Units)
7.6.Software-Defined Vehicle Forecast (Units)
7.7.Software-Defined Vehicle Forecast Methodology
7.8.SDV Forecast (Hardware Revenue)
7.9.SDV Forecast (Hardware Revenue)
7.10.SDV Feature Revenue Forecast Methodology
7.11.SDV Feature Revenue Forecast Methodology
7.12.SDV Feature Forecast (Global Revenue)
7.13.SDV Feature Forecast (Global Revenue)
7.14.SDV Revenue Combined Forecast
7.15.SDV Revenue Combined Forecast
7.16.SDV Feature Forecast 2013-2034
7.17.SDV Feature Forecast 2013-2034
7.18.V2V/V2I Uptake Forecasting (expected)
7.19.V2V/V2I Radio Access Technology Forecast (expected)
7.20.V2V/V2I Unit Sales Forecasting (expected)
7.21.V2V/V2I Unit Sales Forecasting (expected)
8.4.Black Sesame
8.9.JPMorgan Mobility Payments
8.12.NXP Technologies
8.13.PreAct Technologies
8.14.Qualcomm: Sense ID
8.15.Qualcomm: SDVs
8.16.Qualcomm: Autonomy

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Slides 211
Companies 20
Forecasts to 2034
ISBN 9781835700013

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