PUBLISHER: Guidehouse Insights | PRODUCT CODE: 1227555
PUBLISHER: Guidehouse Insights | PRODUCT CODE: 1227555
Software-defined vehicles (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. SDVs will become a third space in which consumers can engage in experiences such as working, gaming, or escaping from the outside environment. SDVs' new mediums and use cases are the focus of this Guidehouse Insights report.
Major automakers project that more than $100 billion can be generated from over the air updates and other services, but many factors challenge these multiples: regulatory uncertainties, lack of industry expertise, and evolving business models. To generate the most revenue possible, automakers will likely focus on providing unique upgrades for their premium vehicle lineups, while increasing the number of premium models they offer. At the same time, a new automotive ecosystem is taking shape whose value chain is significantly different from the traditional Tier 2 > Tier 1 > OEM structure. Guidehouse Insights expects the total annual revenue generated from SDVs to grow from $8.6 billion in 2022 to $110.5 billion in 2031, based on the total addressable vehicles in the market.
This Guidehouse Insights report 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 forecasts for capacity and revenue, broken out by segment and region, extend through 2031. The report examines key SDV technologies and use cases and profiles key market players.