SDV-related revenues are expected to grow at a compound annual growth rate of 30-34% through 2035, driven by the monetization of connectivity- and autonomy-based services.
Total worldwide vehicle sales by SDV level, source: IDTechEx
From ECUs to Central Computing: The Rise of SDV Architectures.
Modern SDVs are defined by their ability to decouple hardware from software, supported by centralized computing platforms and over-the-air (OTA) update capabilities. This report categorizes SDVs into five tiers, from gateway-centric and domain-based systems to fully software-centric vehicles, and provides a detailed breakdown of key components, including high-performance computers (HPCs), zonal controllers, and service-oriented middleware.
Monetization in the era of SDVs: Features like in-vehicle service and commerce.
SDVs are not just a technical improvement; they represent a shift in the business model. Automakers are increasingly incorporating monetizable features into vehicles, ranging from advanced driver assistance systems (ADAS) to infotainment, personalization, and even heating functions.
V2X Connectivity and Infrastructure Readiness:
As vehicles become more autonomous and connected, V2X (Vehicle-to-Everything) technologies play a vital role in ensuring safety, coordination, and an enhanced user experience. This report provides a detailed overview of C-V2X, DSRC, and 5G-based communications, assessing their performance, cost, and geographic adoption.
IDTechEx maps spectrum allocations and policy evolution in key regions such as China, the EU, the US, Japan, and South Korea. The report also features leading V2X hardware vendors and explains how on-board units (OBUs), on-road units (RSUs), and chipsets are integrated into SDV platforms.
Generative AI and the smart cockpit are
With companies like Qualcomm, Nvidia, and Unity enabling AI inference on devices, new opportunities are emerging for OEMs to deliver adaptive and immersive digital experiences.
Beyond voice control, the SDV cockpit is becoming a digital platform. Full-width displays, AI avatars, and customizable software skins are creating a new battleground for brand loyalty and user engagement.
The IDTechEx report, "Software-Defined Vehicles, Connected Cars and AI in Cars 2026-2036: Markets, Trends and Forecasts", offers a comprehensive analysis of this transformation, covering the evolution of vehicle electrical/electronic (E/E) architecture, connectivity platforms, feature monetization models and long-term market forecasts.
By Shihao Fu
