PUBLISHER: The Business Research Company | PRODUCT CODE: 1731038
PUBLISHER: The Business Research Company | PRODUCT CODE: 1731038
Smart vehicle architecture is an advanced, modular, and software-driven vehicle design framework that integrates digital, electrical, and mechanical components to enhance vehicle functionality, safety, and efficiency. It enables seamless interaction between various in-vehicle systems, facilitating real-time data exchange, enhanced automation, and an improved user experience.
The primary components of smart vehicle architecture include hardware, software, and services. Hardware, consisting of processors, sensors, and communication modules, serves as the foundation for connectivity, automation, and safety, ensuring seamless system integration and enhanced vehicle performance. Smart vehicle architecture is implemented across various vehicle types, including passenger cars, commercial vehicles, and electric vehicles, utilizing different architectural models such as centralized architectures, zonal architectures, modular platforms, and distributed architectures. It supports various connectivity technologies, including vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-everything (V2X) communication, enabling applications such as autonomous driving, infotainment and user experience, safety and security, fleet management, and energy management.
The smart vehicle architecture market research report is one of a series of new reports from The Business Research Company that provides smart vehicle architecture market statistics, including the smart vehicle architecture industry global market size, regional shares, competitors with the smart vehicle architecture market share, detailed smart vehicle architecture market segments, market trends, and opportunities, and any further data you may need to thrive in the smart vehicle architecture industry. This smart vehicle architecture market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The smart vehicle architecture market size has grown rapidly in recent years. It will grow from $58.91 billion in 2024 to $66.60 billion in 2025 at a compound annual growth rate (CAGR) of 13.1%. The growth in the historic period was driven by increasing demand for connected vehicles, rising consumer interest in advanced safety features, the integration of cutting-edge technologies and networking solutions, the growing popularity of autonomous driving, and the expansion of the electric vehicle market.
The smart vehicle architecture market size is expected to see rapid growth in the next few years. It will grow to $108.21billion in 2029 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to the rise of digital showrooms and virtual reality experiences, the increasing adoption of autonomous vehicles, growing consumer preference for advanced infotainment and telematics systems, rising demand for an enhanced user experience, and a stronger focus on software-defined vehicles. Major trends expected during this period include the incorporation of high-end technologies, deeper integration of software and hardware, the development of advanced human-machine interfaces, continuous technological advancements, and the growing use of artificial intelligence and machine learning in smart vehicle architecture.
The increasing adoption of autonomous vehicles is expected to drive the growth of the smart vehicle architecture market. Autonomous vehicles, also known as self-driving or driverless cars, are equipped with advanced sensors, artificial intelligence, and automated systems that enable them to operate without human intervention. The rise in autonomous vehicle adoption can be attributed to advancements in artificial intelligence (AI) and a growing focus on road safety. These vehicles promise fewer collisions, better traffic flow, and a safer driving experience, making autonomous technology an appealing solution for the future of transportation. Autonomous vehicles rely on sensors, LiDAR, radar, and high-performance computing systems to process vast amounts of real-time data, ensuring safe and efficient operation. This, in turn, requires an advanced vehicle architecture that integrates software-defined systems, cloud connectivity, and robust cybersecurity features. For example, in September 2023, the UK Parliament reported that around 40% of new cars manufactured in the UK are expected to have self-driving capabilities by 2035. As a result, the growing adoption of autonomous vehicles is driving the expansion of the smart vehicle architecture market.
Leading companies in the smart vehicle architecture market are focused on developing technologies such as AI-driven in-vehicle computing to improve automation, safety, real-time data processing, and advanced driver assistance systems (ADAS). AI-driven in-vehicle computing enhances smart vehicle architecture by enabling real-time data processing, improved automation, better safety, and more advanced ADAS. For instance, in January 2024, Intel Corporation, a US-based semiconductor company, introduced a new family of AI-powered software-defined vehicle system-on-chips (SoCs). These chips are designed to integrate generative AI-driven living room experiences into next-generation vehicles, enhancing in-car entertainment and interactive features. These SoCs are tailored to meet the increasing demand for advanced, data-driven capabilities in modern vehicles.
In November 2024, Panasonic Automotive Systems Co. Ltd., a Japan-based automotive technology company, formed a partnership with Arm Ltd. to revolutionize automotive architecture. The collaboration aims to standardize the architecture for software-defined vehicles (SDVs) by developing a flexible software stack, leveraging the VirtIO framework, and addressing hardware-software decoupling. This partnership aims to accelerate development and overcome interface challenges in the automotive sector. Arm Ltd., a UK-based company, provides software-defined vehicle solutions for smart vehicle architecture.
Major players in the smart vehicle architecture market are Volkswagen Group, Toyota Motor Corporation, Ford Motor Company, Mercedes-Benz Group AG, Hyundai Motor Group, Robert Bosch GmbH, Zhejiang Geely Holding Group, ZF Friedrichshafen AG, Qualcomm Technologies Inc., Continental AG, Magna International Inc., Honeywell International Inc., Micron Technology Inc., Valeo SA, Texas Instruments Incorporated, Aptiv PLC, Infineon Technologies AG, NXP Semiconductors N.V., Elmos Semiconductor SE, Harman International.
North America was the largest region in the smart vehicle architecture market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in smart vehicle architecture report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the smart vehicle architecture market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The smart vehicle architecture market consists of revenues earned by entities by providing services such as centralized computing, cybersecurity management, and predictive maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart vehicle architecture market includes sales of intelligent vehicle platforms and embedded control systems. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Smart Vehicle Architecture Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on smart vehicle architecture market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for smart vehicle architecture ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The smart vehicle architecture market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.