Software Defined Vehicles (SDVs) will grow to account for about 67% of all new vehicles in 2035! We will explain the future created by the growing demand for automotive semiconductors and electronic components and technological innovation.
🟦The SDV market will grow rapidly by 2035! Growing Demand for Automotive Semiconductors and Electronic Components
By 2035, SDVs are expected to account for 66.7% of all new vehicle production, and demand for automotive semiconductors is expected to reach $159.4 billion. Behind this market growth is the fact that SDV continues to evolve with software performance as a key competitive edge.
For example, SDVs will carry far more semiconductors than traditional vehicles in order to support autonomous driving and the sophistication of cloud connectivity. Specifically, the demand for high-performance processors for AI processing and in-vehicle sensors for real-time data processing is expected to increase.
🟦 What are the factors supporting the expansion of the SDV market?
According to an announcement by JEITA, major countries, including Japan, are launching policies to promote the spread of SDV, such as tax incentives and support for infrastructure development, which are boosting the market growth. It is also worth noting that automakers are moving forward with the development of SDV platforms. This platform is expected to facilitate the introduction of new technologies and further accelerate market expansion.
In addition, the demand for automotive electronic components is expected to increase due to the development of SDVs, reaching a scale of 11.8 billion dollars by 2035. These trends are also providing new growth opportunities for the semiconductor industry and electronic component manufacturers.
🟦Summary
SDVs are expected to account for about 67% of all new vehicles in the market by 2035, and the demand for automotive semiconductors and electronic components is expected to grow rapidly. This is largely due to the acceleration of the spread of SDVs on the back of technological innovation and government support.
The spread of SDV is expected to become full-fledged around 2030. Over the next 10 years or more, technological innovation and market expansion will progress, and we would like to keep an eye on the progress from a long-term perspective.
